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17-11-2013, 05:03 PM
(17-11-2013, 11:46 AM)felixleong Wrote: so they have about 18-19 cents worth of debt per share? seems quite leveraged
On a gross debt basis - yes. On a net of cash basis, debt is $57mm or about 14 cents. Net debt to annualised operating cash flow is a bit under 3x which is manageable but I agree that this is not a debt free company so there is some risk. I would note that the debt is mainly from the Juken acquisition in late 2012. As of Dec 2011, the company only had $23mm of debt and cash was more than $30mm so debt free on a net basis. Hopefully, they will repay debt given the strong performance this year.