As ANO gains scale, perhaps they no longer need to make prepayments. Unless they are choosing to be really nice to their suppliers for a strategic reason, they could demand much better payment terms. Along with inventory financing and receivables factoring, they could really reduce working capital requirements down the road and free up a lot more cash. While ANO ramps up, perhaps their suppliers need extra capital to ramp up as well, hence the prepayments.
This year ANO should not pay cash taxes. Q4 is a bit of a question mark still, but I think they do at least $40m revenue and $20m EBIT in FY2020, from a starting point of only about $10m of invested capital ($4m fixed and $6m working capital). $20m would enable them to at least triple capacity again. They will probably end next year with no cash again! If the resumption of cash taxes causes their capacity growth rate to fall behind demand, they can always look into inventory financing, corporate debt or another capital raise.
If the Company keeps growing capacity at the current rate, they would end up monopolizing the global sunscreen market in less than five years. At this point there is no telling how close they will get to that so they just have to keep the pedal to the metal. I wouldnt expect any free cash flow or a dividend until growth comes back down to earth, like back below 100%.
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