Quipt Home Medical Corp T.QIPT

Cost /Acquired Revenue dropped; minimal liquidity spend

[Trademark11]

Date        Revenue acquired (MM)         Ebitda (MM)                 Cost   (MM)
July 14                   5.5                                    0.55                            4.2
August 23              5.5                                    1.1                               2.5
Oct 5                      2.7                                    0.5                              1.95
November 9           2.5                                    0.6                               1.7
Nov 16                 13.0                                   eps +                             ?
November 22       14.0                                   eps +                            5.5


Excluding last weeks 13MM LOI (cost was not disclosed), Qipt has purchased 29.2MM in revenue for  15.85MM. = 0.55 x acquired revenue.  

At the 0.55X,  the November 16 acquisition of 13MM revenue would cost 7.15 MM

As such, total monies spent in the last 5 months would be $23MM of $130MM  liquidity (30MM cash and now a 100MM LOC)

Need for equity raise:  negligible 

[lscfa]

Working capital June 30......$29.4 mil     working capital Oct 31.....$23 mil (per prospectus) acquistions closed in the period.....$8.4 mil ==> $2 million increase to working capital from operations        

[besttobe]

ISCFA wrote "==> $2 million increase to working capital from operations " and now they are dipping into the current LOC and arranging an increase in the LOC to 100mil.  History shows the company is not profitable and has no FCF. Dah!! The only thing that will save this company in the long run is to either be bought out or get a raise in reimbursment rates. I would not hold my

[Trademark11]

Discussion of debt raise, interesting take, good for long term investors https://player.captivate.fm/episode/2a251183-a807-4e21-913b-b3e0c4f6027c