Q: Please comment on the 3rd q and outlook. I listened to their conference call and it sounds like this is a growing business and they are leaders in their space.
5i Research Answer:
EPS of 34c matched estimates. Revenue of $108M beat estimates by 1%. EBITDA of $42M beat estimates by 3%. Revenue rose 8%. Higher channel contributions, higher equipment and installation sales and improved radio revenues were contributors to the results. Shares are up 16% YTD. Debt is still high but is coming down slowly. 20%+ EPS growth is expected this year. Historically, it has been a 'sleeper' stock and misunderstood. It is very cheap at 10X earnings and does have high market share. It has traded largely for its yield, but if can accelerate its growth rate investors should pay more attention. Insiders own 16%.