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17:27
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Originally posted by Joffrey
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Over the last 10 years, capex has exceeded depreciation 8 times out of 10, however the accumulated depreciation ratio to gross PPE & leasehold improvements is 59%, when 5 years ago it was 42%. The difference is 17%, which if you multiply by current gross PPE & leases hold improvements, you get 39.56m. To me that sum looks like catch up capex TRS is going to have to spend over the next 5 or so years (if it wishes to restore PPE to more appropriate levels). Its quite a chuck given if you divide it by 5 you get 7.9m which is 21% of the most recent annual EBITDA, & this theoretical cost would roll for 5 years. Of course TRS might decide to maintain PPE & leaseholds at current rates, however surely they cant let it run to 70% or beyond. Depreciation is a real charge.
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Can you explain how TRS can be capital intensive?
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