Don't use EBITDA, It's Bullshit earnings as munger would say. These guys have to put in a very significant (~50% of EBITDA) into D&A and then pay a 30% tax. It's likely the pay off the debt with remaining proceeds or close to but NPAT is a perfectly suitable measure here... not EBITDA.
8x EBITDA (which is more like 23x NPAT) is a farcry from a conservative multiple. The APS sale was a huge success in my mind because they negotiated a price far above intrinsic value. In my mind this isn't worth anything above 15x NPAT, no pricing power, huge maintenance capex etc.
I don't own this, and never have but have been a long time user of APS, and currently own shares in the demerged Getbusy that occurred a few years back.
RKN Price at posting:
$1.32 Sentiment: None Disclosure: Not Held
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