I'm looking forward to the amended 8K that they said they would file around the end of this month, which would show proforma numbers for the merged entity for 2016. They've already given us some clues about how that is going to look, saying that they had a proforma EBITDA margin of 10.4% during that period. If that % is confirmed in the filing it would bode well for the stock it would seem.
If I take the $39M/month that they say they had in backlog at the beginning of the month, multiply that by 3, that says they are earning $117M/qtr. in revenues. Applying a 10% EBITDA margin to that would say they are generating $11.7M/qtr. in EBITDA. Taking into account the new & modified debt from the acquisition, I estimate that their quarterly interest expense is running around $1.5M or so. Their depreciation expense before the acquisition was very low, around $100K per quarter, but obviously that will go up a lot with the acquisition. The amended 8K should shed some light on this.
For grins let's just use a figure of $500K/qtr. for depreciation expense, realizing that, since its a non-cash charge, it doesn't matter that much anyway. So for quarterly earnings we get quarterly EBITDA of $11.7M, less interest of $1.5M, less depreciation of $.5M, and taxes should be zero with all of FTE's loss carryforwards. Quarterly earnings would be 11.7-1.5-.5=$9.7M. With 150M shares out FD this would mean their quarterly EPS would be $.06 and annualized that comes out to $.26.
So with the stock at $.61 its looking like a pretty good buy at this point.
