Post by
KarlGibbons on Aug 14, 2024 10:20pm
Tight Liquidity
As it turns out, the company was not able to grow off of the Q2 numbers and it appears that QIPT is a flat (at best) to declining business. You can be sure mgmt pulled out all the stops to not show a decline from Q2. Some observations:
Cash is down to $14.4 million. This is a bit worrying as they also stretched accounts payable to over $32 million, up from $24-25 million at the end of last year...this means, they have to pay down $6-7 million of cash payables to normalize. Of course, A/R is also hight but they are starting to take higher provisions which calls into question whether they can recover them. They also drawed on the revolver again this Q after doing so last Q...real cash adjusted for these things might be well betlow $10 million...and that's before any DOJ settlement.
All those acquisitions ($150 million spent) and the associated high cost debt and they have a flat to declining businesses that looks cash flow negative. Very, very poor capital allocators.
Comment by
KarlGibbons on Aug 14, 2024 10:26pm
If they did expand into diabetes products and generated revenue in that area this Q, it means the rest of the business did decline again..