JMegL: Maybe shareholders made the same mistake I made initially...

JMegL: Maybe shareholders made the same mistake I made initially -- I drew some inaccurate conclusions about utilization and revenue from the written docs without listening to the audio open briefing presentation.

The audio briefing is a MUST LISTEN for shareholders. The CEO and CFO explain well beyond the written docs.

Specifically, the lower OZ utilisation (to 76%) and flat revenue:WDV are explained twice in the open briefing but not as well in the written docs. The CEO and CFO explain these are partly/mostly due to purchase of new trucks that haven't yet been deployed (being readied for use in a few months). Mentions "roll-off" as another explanation, but the CEO states in the open briefing that these were known end of contracts where trucks can't be redeployed until after contract ends (and many/most are now being redeployed).

The redeployment of equipment from Canada to Chile isn't well explained in the written doc. But EHL is expanding the fleet in Canada ($72M) and transferring some Cdn fleet ($25M) to Chile. Might be preference for new trucks in Canada to compete in that market, whereas used trucks would serve the Chilean market fine. Or could be about the size and type of trucks.

After listening the the open in briefing and reading the written docs, I am amazed the share price fell. Earning, contracts, expansion, new capital deployment all seem to be going well, and mgt is aware of risks (e.g. OZ coal clients). Even the dividend was above consensus (3.5 cents vs consensus of 3.1 or 3.2 cents). EHL also seems to be nicely growing beyond OZ, although hopefully faster in Canada and Chile in the next year.

As always, please do your own research.