Q: Please give your opinion on their results, and the company .
Connie
Connie
5i Research Answer:
It is a relatively small entity at market cap $741M, but priced well at 9X earnings. Units are up 5.5% this year and 25% over 52-weeks. Q3 revenue of $41.55M beat estimates of $39.9M. EBITDA was $31.3M. Net loss was 3c per unit. The trust bought back $1.7M worth of units under its buyback. Loss decline from 9c last year. Adjusted cash earnings fell from 47c to 45c. It now has 26 royalty streams on 19 products. Two deals were closed subsequent to the quarter end. There were some serious management compliance issues in the summer (see prior answers) but these seem to have been addressed now. It has a decent record of distribution increases and is priced well. Still risky, but our views here have improved since July.