Evertz Technologies Ltd T.ET

Earnings comment

[Ciao]

Earnings out and comment from the CopyCat Investor.

https://copycatinvest.substack.com/p/et-evertz-mixed-2q-but-better-than?utm_source=post-email-title&publication_id=491478&post_id=152933873&utm_campaign=email-post-title&isFreemail=true&r=tkivd&triedRedirect=true&utm_medium=email

[OmahaValue]

Solid quarter for Evertz. Dividend increase to $0.20 per quarter and excellent November shipments at $50M bodes well for Q3. 

[BuckProfit]

Not sure I'd call it a solid quarter.  Yes the "revenues" and "earnings" were pretty good but you also have to also take into consideration the cash flow effects, especially if you were hoping for a "special dividend" payout...which has just now been pushed out to F26.  Cash balance just dropped from $91M to $62M as they didn't generate enough cash

[BuckProfit]

sorry, I meant April 1st not the 30th as ET's fiscal 2025 year end is March 31, 2025.

[Ciao]

Change in cash flow was due to non cash working capital which includes; "Non-cash working capital includes a company's inventory of raw materials, finished goods and accounts receivable " Is this just a timing issue? Maybe this was addressed in the conference call which is not available yet.

[Contrarian333]

It is a timing issue!

[BuckProfit]

I’d agree.  From my experience, when the income statement (revenue & earnings) and balance sheet (debt coverage) are positive and the cash flows are down in a single quarter, it should just be timing.  Coincidently, Free Cash Flows were negative in Q2 of F22 and Q2 of F23 (positive in all 4 quarters of F24) so with Evertz, I would expect that all 3 accounting areas will be

[Ciao]

The market agrees. A 3 month ascending triangle with a $12.50 resistance level was just broken on a gap up. Bullish move based on the fundamentals of the business.

[Contrarian333]

The market agrees. A 3 month ascending triangle with a $12.50 resistance level was just broken on a gap up. Bullish move based on the fundamentals of the business. Or maybe not................