EBITDA not converting to CASH

Hi All,

This stock is looking very cheap so Ive started to review their financials and business plan.

I note the last two years their EBITDA has not nearly converted into cash. I cant understand it - are they overstating revenues? Or are they poor at managing their working capital???

I have huge faith in McGrath to turn this business around - but I am concerned about the commoditisation of the industry - real estate agents are overpaid for what they do and it is ripe for disruption.

Their Other segment which includes auctions, training and mortgage broking is makgin a loss - how on earth does that happen? And how can such a small business need $13M to run the head office function? The CFO needs to step up and start cutting layers of costs out of the business.

What does everyone else think?