Roots Corp T.ROOT

TIme to ROOT?

[Possibleidiot01]

• Sales decreased 3.5% year-over-year to $262.7 million
• Gross margin was 58.0% compared to 57.7% in 2022
  • DTC gross margin increased to 61.1% from 60.8%
• Net income totaled $1.8 million compared to $6.7 million in 2022
• Adjusted EBITDA amounted to $19.9 million compared to $27.0 million in 2022
• Inventory of $36.2 million compared to $55.0 million in 2022
• Net debt reduced 31.6% year-over-year to $17.0 million
• Repurchased 1,438,318 shares for a total consideration of $4.4 million
• Paid just under $3.06 a share which with the current price well under that. Still the level of debt improved by $7.8 million despite paying $4.4 million for the shares. if you add that $4.4 million pay to earnings , just a $ 0.5 million drop in earnings

""We have reduced our inventory balance by 34% year-over-year while maintaining our gross profit margin," stated Leon Wu , Chief Financial Officer. "This achievement has notably strengthened our cash flow, which led to a 32% reduction in net debt."


"As at February 3, 2024 , Roots had net debt of $17.0 million , improved from $24.8 million a year earlier. The Company's leverage ratio, defined as total net debt to trailing 12-months Adjusted EBITDA, was less than 0.9 times at the end of the year."

Overall , ( keep in mind I'm no financial analyst) the situation seems pretty stable with free cash flow of approximately 35-36 million.

I don't own any - just putting an argument out there.