The initial revs # was above what I was looking for. I was thinking $43ish mill, maybe $45 mill.
Their fulfillment biz was very antiquated and is going to continue to need time to more fully recover plus there has been margin pressure around increased costs for product movement (trucking, etc).
Customer care continues to outperform and I was surprised how well that segment is doing now that they broke it out. They did $5.8 mill in op income in that segment in 2020.
Marketing services at many companies were hit hard in 2020 from COVID but Q4 rebounded, with $2 mill EBITDA.
They have another $7+ mill of tax refunds coming it looks like in 2021 to offset some of the corporate overhead/unallocated Corp expense. The PPP loan was supposed to begin forgiveness application in Q4 and can take up to 5 months to process so I’m guessing that one time will be more toward Q2. Those items help cushion things going to Q3 when they’re planning on being FCF positive.
The general feel of CEO still seems pretty upbeat in that they’re modernizing more to tech, downsizing to more asset light and have large addressable markets to start growing overall biz segments again moving forward. Fairly competitive industries but they have a good amount of verticals to try and drive sales into other segments. The recent Midea win IMO is a good example of that.
I bought this as a turnaround play looking for a back half 2021 timeframe so there’s still some time for things to mature and streamline, but in the meantime they’re outperforming where I thought they’d be over the last 2 Qs plus should have nice one time cushions of tax refunds and PPP loan forgiveness.
All IMO only. I haven’t seen the annual yet so this is kind of preliminary feel after reading release and listening to CC.
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