Q: Can you comment on TVK's earnings please. Thanks.
5i Research Answer:
TVK still has no Bay Street analysts, so there is no consensus to beat. Q2 sales rose nicely to $214.9M, from $176.8M in the prior period. EBITDA rose ~50% to $43.9M. Net income was $25.7M, up an impressive 125%. Business was good, but the growth also represents a full quarter of the Highland acquisition. Dividend payout is 12%, leaving room for increases. TVK does not make specific guidance but indicates interest rates and labour shortages remain challenging. Financing costs did rise about 75% in the quarter and debt is $391M. But certainly these are good results and impressive growth. We would remain comfortable as buyers.