Q: Will like to have your impression on their latest statements. Q results seem not so good but they still made $50M FCF and they decided to sell the Modular business. For me, its looks like a good decision. Do you agree?
Thanks
Thanks
5i Research Answer:
DXT missed EPS estimates of 12c for Q4, reporting EPS of nil. Revenue did come in at $270.53M , ahead of forecasts of $268.75M and displayed growth of 6.6% year-over-year. Adjusted EBITDA was also weak coming at $12.6M versus forecasts of $24.6M. While the positive FCF was good the company cited that "the Adjusted EBITDA conversion to FCF for 2023 met expectations at 52.7% as compared to 62.2% in the prior year" which highlighted further declines in efficiency over the full year. These were weak results from DXT and the we do agree that selling the Modular business is a good move as it had been a laggard.