Q3 ResultsWell the revenue was certainly worse than I had expected, but I must say I'm still not disappointed because the margins were very strong.. a good sign for the year to come. Despite being well below on revenue epxectations, EBITDA and cash flow still came in at what I hoped.
Also remember that most of their sales are in USD and a lot of their expenses are in CAD so they should benefit a lot from the Canadian dollar weakness
Further, lets not ignore that this may be the best their balance sheet has ever been. Yes a big part of that is the dilution in the quarter but that's done and reflected in the valuation. They have very little debt currently, and because of their cash the enterprise value is about $31M right now. that's about 10x the annualized cash flow year to date. Dirt cheap.
$9.9M cash, about $1M in debt, and $7.7M in working capital. All strong.
Some people might not like this quarter because of the sales, but this was a good one by any other measure and is a good sign for the future when sales are stronger.