In Nov I posted what I thought about the original IDX deal (it was titled "Food for Thought" - if you want to have a squiz). The reason I mentioned it is because I concluded cash would be tight and they might not be able to pay a divi (which they have albeit a very small one). A couple of things strike me about the recent result and as much as I would like to buy back some CAJ - I won't for the time being - till we get a resolution on the IDX bid. ( IMO - debacle / waste of funds that could have increased the divi or bought back shares for ex).
A couple of things to note IMO -
- The amount of goodwill paid for the two acquisitions is $21.77m (Tassie Radiology) + $3.19m (I-Rad Sunshine Victoria) = $24.967m. Goodwill is the excess of the purchase price over the assets /liabilities etc of the business (see page 18 Interim Financial Report for more detail). We have paid ~$27.67m for the two businesses excluding earn-outs of another $1.5m over the next 2yrs.
- so what's the net cash /debt position now ? CAJ is net cash $5m - "The Company’s current cash balance and debt levels are $85m and $80m ..." - (this is from p2 of the three page release yesterday. )
The increase in debt is due to the acquisitions ie original debt 52.6M+27.7m= 80.3m. This is before any payout for IDX if it proceeds - I guess that will be partly funded by EBITDA and part debt.
Management seem comfy with this but I am not so sure - "• Projected net debt after the Integral Diagnostics takeover will be comfortable at ~1.5x EBITDA " (p4 Presentation).
Anyway enough said - but if I could go back to where we were pre IDX bid (ie net cash ~$45m, share buy-back, increasing margin, possibly larger divi - I personally would in a heart beat !! DYOR
I look fwd to seeing how this plays out.
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In Nov I posted what I thought about the original IDX deal (it...
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Last
29.5¢ |
Change
-0.010(3.28%) |
Mkt cap ! $314.4M |
Open | High | Low | Value | Volume |
30.5¢ | 30.5¢ | 29.5¢ | $325.0K | 1.080M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 1700 | 29.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
30.0¢ | 14021 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 1700 | 0.295 |
3 | 117982 | 0.290 |
3 | 60000 | 0.285 |
3 | 460000 | 0.280 |
1 | 4000 | 0.275 |
Price($) | Vol. | No. |
---|---|---|
0.305 | 20689 | 1 |
0.310 | 285920 | 7 |
0.315 | 483919 | 14 |
0.320 | 799683 | 22 |
0.325 | 584621 | 10 |
Last trade - 16.10pm 26/07/2024 (20 minute delay) ? |
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