Q: Could you please comment on the third-quarter results for this company? Have they announced what they will do with the cash that they will receive from the renewable business when it closes? What do you think of the prospects for this company?
5i Research Answer:
EPS was 8c, vs estimates of 9.2c; revenue of $573M missed estimates of $639.5M. EBITDA of $264.4M missed estimates of $299.7M. EPS fell from 11c last year. Revenue fell 8.2%. EBITDA fell 6%. Regulated services saw growth though profit was dampened by higher expenses and deprecation. The company has not specifically allocated cash but we would see debt reduction as the main priority here. With two dividend cuts and declining revenue, we can't get too excited about its prospects right now. We would not miss it if it was sold.