Bullboard - Stock Discussion Forum Richards Packaging Income Fund RPKIF

Primary Symbol: T.RPI.UN

Consumer Cyclical Packaging & Containers

Richards Packaging Income Fund (the Fund) is a Canada-based company. The Fund owns Richards Packaging Inc. (Richards Packaging), which serves a range of customer bases throughout North America comprised of approximately 17,000 regional food, beverage, cosmetics, healthcare, and other enterprises. Richards Packaging specializes in the design, manufacture, and distribution of packaging solutions... see more

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Richards Packaging Income Fund > Q4 results - a few thoughts

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Post by HermannHaller on Mar 08, 2022 7:32pm

Q4 results - a few thoughts

Unfortunately, a few negative surprises:

revenue down 7% and EBITDA down 30% in Q4
revenue guidance of negative 5-7% for Q1...covid unwind still hitting sales
contingent consideration - up $28 million in Q4. Richards has to pay another $48 million this month for Clarion acquisition. This will take the leverage ratio up to 1.3x from 0.3x. The debt is still at a manageable level, but this is a pretty big payment.

I'm not sure why they are doing the special 69c distribution, I guess that is a small positive.

Overall, I think this one will stay on the watchlist for now. Maybe a better buy after Q1 if sales trends begin to improve.

GLTA

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