Q: Can you comment on their earnings release and the balance sheet? Is this company worth accumulating at these levels or best to look elsewhere? Thanks
5i Research Answer:
For the quarter, ADW.A reported a 1c loss, vs estimates of EPS of 6c. Revenue matched estimates coming in at $99.47M declining 1% year-over-year. The company said it saw some softness in the consumer throughout the quarter, but majority of metrics were relatively close to being flat from prior year levels. Debt continued to be high with a net balance of $225M. A relatively flat quarter with only a 1c improvement from the prior years net loss (2c). Our stance does not change here from these results and it did miss on both top and bottom line. There is potential for a turnaround, but we do not see anything too exciting from a growth perspective.