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Renegades17

12/09/13 10:31 AM

#2334 RE: detearing #2333

Because of seasonality, you have to really look at this company on a full year basis. The June and September quarters are the slowest periods from a seasonal perspective. Moreover, we had the Vernon situation this year, so that caused a one-time (hopefully) drag on the results.

It will be more informative to look at numbers after the March quarter, but I will post my view on the latest twelve months after they release the December quarter financials. Unfortunately, that won't be until early February.

It takes some time to calculate a clean EBITDA number for this company because of restructuring charges and impairments as well as asset divestitures (they sold their Australasian business last year).

I would also add that one should look at capex levels too as free cash flow is really what determines the majority of enterprise value. Capex has been coming down a lot in recent periods, which is good for free cash flow.