The Ceo is basically telling you that competition is hurting their business. Foreign competitors such as Amazon, Netflix as well as Radio Canada have seriously impacted them which has now forced them to layoff 240 employees.
The good news is the company added $37m in cash flow from operations in Q4. For the year, cash flow before changes in non cash working capital was $18.87m which is a significant decrease from the previous year at $62.3m.
Working capital now stands at $60.6m and debt is about $10m with $390.3m in shareholders equity. The market cap is $86.4m. The company should monetize the assets from their real estate to increase shareholder value. There is too much hidden value in this company and shareholders are out of the money.
It is clear to me that the future of this company is in Film Production and Audiovisual Services. Everything else can be tossed in the garbage.
There is very little transparency with this company and no indication how they are going to turn things around. Yes, there will be cost savings from the layoffs, but competition could continue to erode profits if there are any left.