Thank you for the nice work. One issue with LMN is that the net cash exists mostly because of advance payments. Look at the balance sheet. How do you deal with this?
Thanks for the comment, and you are correct. There's no perfect way in dealing with this. I given them some credit for the cash, with the offset being that they are still in the "low season" in terms of cash generation, as cash into the business peaks in the summer season. Alternatively, you could simply value the business on a P/E or FCF multiple basis while given them no credit for the cash. This strikes me as a sensible method, but perhaps a bit more punitive.
Thanks for the comment! LMN gives the revenue from dynamic packages and the contribution % as well in their IR presentations. I also have a tab hidden in the model with the analysis, in case you want to take a look.
I see you have excluded leases from EV calc. Just wondering if you have adjusted EBITDA given IFRS has operating leases amortised and also part of the interest expense. Maybe a minor point in the grant scheme of things.
Thanks for the comment! Yes, that is correct. I should have subtracted a few million from the fcf calculation. Not a big delta, but still the more correct way of doing it.
Thank you for the nice work. One issue with LMN is that the net cash exists mostly because of advance payments. Look at the balance sheet. How do you deal with this?
Thanks for the comment, and you are correct. There's no perfect way in dealing with this. I given them some credit for the cash, with the offset being that they are still in the "low season" in terms of cash generation, as cash into the business peaks in the summer season. Alternatively, you could simply value the business on a P/E or FCF multiple basis while given them no credit for the cash. This strikes me as a sensible method, but perhaps a bit more punitive.
Great write up!
How did you estimate the dynamic packages %?
Thanks for the comment! LMN gives the revenue from dynamic packages and the contribution % as well in their IR presentations. I also have a tab hidden in the model with the analysis, in case you want to take a look.
Thank you and interesting.
I see you have excluded leases from EV calc. Just wondering if you have adjusted EBITDA given IFRS has operating leases amortised and also part of the interest expense. Maybe a minor point in the grant scheme of things.
Thanks for the comment! Yes, that is correct. I should have subtracted a few million from the fcf calculation. Not a big delta, but still the more correct way of doing it.
What's your take on the recent earnings and downplaying any repurchase program?