Post by
KarlGibbons on Dec 16, 2024 7:32pm
Results look OK
Revenue stabilized, up 1% sequentially.
EBITDA down a bit. perhaps some elevated costs in Q4 that mgmt will address on the call.
Importantly, no major writedown or charge taken.
CFO indicated returning to historical organic growth rates in Calendar 2025. I suspect he said Calendar becasue Q1 last year was before the end of 75/25 and capitated agreement impact.
SEC decided in November to not pursue any action against company after investigation.
DOJ still outstanding.
Cash Burn for year
Beginning Cash Balance: $17.2 million
Ending Cash Balance: $16.2 million
Revolver Drawdown: $6.3 million
Senior Debt Repayment : $3.45 million
Apples to Apples Cash = $17.2 million less Revolver Drawdown plus Senior Debt repayment = $17.2 - $6.3 + $3.45 = $14.35. Net Cash burn = $17.2 less $14.35 = $2.85 million.
I suspect the results should be sufficient given how out of favour the stock has been. Much depends on mgmt't outlook on the call but it does seem they may have turned the corner.
The GAAP reporting has segmented out the "right of use assets" as an amortization expense on the Income Statement for clarity. It is still being added back for their EBITDA calc. perhaps that's how the lenders want it? a bit odd given US Co's typically don't do that. However, it is deducted in operating cash flow calculation now, with finance lease payble component much lower.
Comment by
gibbonsj on Dec 16, 2024 8:10pm
Thank you Karl great analysis and synopsis