Bingo.
Selling a unit that generated $11m in revenue for just $4.9 mil is and undercut, but the value increase in the balance sheet is well worth it.
This company had to learn some hard lessons about growth philosophy which Munro, to his credit, talked about last year. They've shifted from a focus on revenue to a focus on earnings. And they're succeeding.
All they have to do is make their interest payments - a pittance relative to their contracts - for a few months and then wipe out that note when the other $.9 mil comes in.
This will all converge with the improved share structure, the elimination of debt, positive cash flow from operations and a balance sheet built out of brick and steel instead of straw.
Not many company leaders are willing to rethink how they're doing things and then decisively change course for the better. Hats off to Munro for taking his lumps and coming out the other side.
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