Although the financials showed net loss the EBITDA for Aquaventures was $55.6m for the nine months so if we annualised it say they hit $75m EBITA. Assuming they taking on all the cash & debt then total "purchase price" is $1.3b, divided by $75m gives a multiple of 17.3 times.This doesn't take into account the growth profile of the business.
Still very positive & bodes well for FLC, when they hit EBITDA positive then share price should react accordingly & larger players will start to look at them. Good to get an idea of what the market is paying for water companies at present. Nice work @sell
See below some points from the Q:
For the nine months ended September 30, 2019, total revenues of $150.9 million increased 45.4% from $103.8 million in the prior year period. Gross margin was 51.3% compared to 52.9% in the prior year period, a decrease of 160 basis points. Total SG&A was $69.3 million for the nine months ended September 30, 2019, or 45.9% of revenue, compared to $59.7 million for the nine months ended September 30, 2018, or 57.5% of revenue. Net loss was $13.1 million, or ($0.46) per share, compared to a net loss of $14.0 million, or ($0.53) per share in the prior year period.
Adjusted EBITDA was $55.6 million for the nine months ended September 30, 2019, a 62.3% increase over $34.2 million in the same period in 2018. Adjusted EBITDA Margin increased 380 basis points to 36.8% from 33.0% in the prior year period. Adjusted EBITDA plus the principal collected on the Peru construction contract was $59.5 million for the nine months ended September 30, 2019, an increase of 57.1% over the prior year period.
Financial Highlights and Recent Developments • Total revenues of $52.9 million reflected a 43.8% increase over the prior year period, comprised of 10.5% organic growth and 33.3% inorganic growth. On a segment basis, Quench and Seven Seas Water revenues grew 44.7% and 42.5%, respectively, over the prior year period. • Net loss of $3.9 million, or ($0.13) per share, compared to net loss of $2.7 million, or ($0.10) per share, in the prior year period. • Adjusted EBITDA was $20.4 million, a 60.5% increase over the prior year period. Adjusted EBITDA Margin was 38.4%, an improvement of 400 basis points compared to the prior year period. • Adjusted EBITDA plus principal collected on the Peru construction contract increased 55.9% to $21.7 million from $13.9 million in the prior year period. • In July, the Company completed its first follow-on offering of 4,715,000 ordinary shares at a public offering price of $16.88, including 615,000 ordinary shares issued upon the underwriters’ full exercise of their option to purchase additional shares. The aggregate net proceeds received by the Company from the offering was approximately $75.4 million, after deducting underwriting discounts and commissions and other estimated offering expenses. • Quench completed the acquisitions of Mirex AquaPure Solutions, L.P. and Flowline Canada, Inc. on October 1, 2019, acquiring substantially all the point-of-use water filtration assets of the Houston, Texas and Edmonton, Canada based companies, respectively. • Seven Seas Water extended its agreement with its customer in The Bahamas by nine years, effective August 1, 2019. Under the agreement, the Company will continue delivering potable water and wastewater treatment services to the Emerald Bay development in Great Exuma, The Bahamas.
FLC Price at posting:
43.0¢ Sentiment: Hold Disclosure: Held
(20min delay)
