Comment by screamer99on Nov 07, 2024 9:00am
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Post# 36300645
RE:Financials
RE:FinancialsWith the sale-leaseback transaction, it qualifies as a material event so the company couldn't renew the NCIB (management's words). So they're directing the money that would have gone to the NCIB in Q4 as a dividend and then will re-evaluate.
No mention that the dividend increase is temporary so I can only assume that the dividends will continue at this rate and the NCIB will resume in due course.
Higher backlogs were discussed on the CC. Margins hurt by more absorption of fixed costs on lower volumes partially due to restrcutring activities beginning in August and in full swing in September.
The sale-lease back transaction will unlock significant cash flow, but rent payments will increase and these are not reflected in their adjusted EBITDA. All things considered (rent increases due to sale-leaseback, rent savings due to facility consolidation, improving operations, etc.), the expectation is that cash flows will continue to increase.