CAV - Cavalier Corp (Carpets)

[sb9]

The trend says it all...big numbers not seen for years will be reported in F19

After few quiet weeks looks like its about to breakaway......not go long to until actual results are out next month.

[biker]

Onwards and upwards.


3/7/2018, 9:04 am MKTUPDTE
Cavalier Corporation reduces debt, extends banking facility and reaffirms forecast

On the back of significantly improved debt position and financial performance, Cavalier Corporation (NZX: CAV) has successfully renegotiated its banking facility through until the 1st of January 2020.

Cavalier has reduced debt by more than $10 million in the past year from $40.2 million to around $29.5 million on the 30th of June 2018.

Cavalier CEO Paul Alston says this is a positive milestone for the business.

“This is the first time in many years Cavalier’s debt has been under $30 million, it’s the result of a strong debt reduction programme and another step towards long term profitability.”

Paul says with the recent close of the financial year (30th June 2018) the company is also pleased to be able to reaffirm its recent earnings guidance.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) is expected to be in the range of $9.6 million to $10 million (FY17: $2.6 million).

Net Profit After Tax (NPAT) is expected to be in the range of $3.7 million to $4 million, excluding any abnormal costs (FY17: Net Loss After Tax of $1.8 million, which excluded $0.2 million of net abnormal costs associated with the consolidation and restructuring in FY17 - Refer to Note 1).

Full year results will be reported on the 22nd of August 2018.

ENDS

[sb9]

Onwards and upwards.


3/7/2018, 9:04 am MKTUPDTE
Cavalier Corporation reduces debt, extends banking facility and reaffirms forecast

On the back of significantly improved debt position and financial performance, Cavalier Corporation (NZX: CAV) has successfully renegotiated its banking facility through until the 1st of January 2020.

Cavalier has reduced debt by more than $10 million in the past year from $40.2 million to around $29.5 million on the 30th of June 2018.

Cavalier CEO Paul Alston says this is a positive milestone for the business.

“This is the first time in many years Cavalier’s debt has been under $30 million, it’s the result of a strong debt reduction programme and another step towards long term profitability.”

Paul says with the recent close of the financial year (30th June 2018) the company is also pleased to be able to reaffirm its recent earnings guidance.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) is expected to be in the range of $9.6 million to $10 million (FY17: $2.6 million).

Net Profit After Tax (NPAT) is expected to be in the range of $3.7 million to $4 million, excluding any abnormal costs (FY17: Net Loss After Tax of $1.8 million, which excluded $0.2 million of net abnormal costs associated with the consolidation and restructuring in FY17 - Refer to Note 1).

Full year results will be reported on the 22nd of August 2018.

ENDS

That's solid reduction in debt over past year. I'm sure there going to be more nice surprises when they announce FY results next month. This update may help push the sp close to the 70c mark by that time.

[blackcap]

Whats not to like:

"Operating cashflow was $12.1 million, a significant turnaround on FY17.
Cavalier's debt position improved by $10.8 million to $29.4 million, and
inventory levels improved with yarn and carpet inventory reduced by $3.3
million.

Whilst FY18 delivered a strong improvement in results, dividend payments will
remain suspended as the company establishes sustainable earnings growth and
performance."

[sb9]

Whats not to like:

"Operating cashflow was $12.1 million, a significant turnaround on FY17.
Cavalier's debt position improved by $10.8 million to $29.4 million, and
inventory levels improved with yarn and carpet inventory reduced by $3.3
million.

Whilst FY18 delivered a strong improvement in results, dividend payments will
remain suspended as the company establishes sustainable earnings growth and
performance."

Yep, looks be in good shape for FY19. Expect to see 65c range soon.

[percy]

Certainly looking very good for the future.
I guess the low wool price will be helping to keep the value of inventory lower.
Lowering the debt has been a great achievement.

[blackcap]

Certainly looking very good for the future.
I guess the low wool price will be helping to keep the value of inventory lower.
Lowering the debt has been a great achievement.

The lowering of the debt and the operating cashflow of 12m does it for me.

Are you on board yet Percy? Or waiting for confirmation that this is not a flash in the pan?

[percy]

The lowering of the debt and the operating cashflow of 12m does it for me.

Are you on board yet Percy? Or waiting for confirmation that this is not a flash in the pan?

Not yet.
Like Alan Clarke.
Yes that great operating cashflow is stunning.
Also like the fact they have decided not to pay a divie in the meantime,while still strengthening the business.
Trying to hold onto the cash I have until the result season is over.Results have been good,and had nothing to sell, so far.

[Pintboy568]

I really can't figure how CAV can have an NTA of .97 and a turnover of $148m and still be valued at only $41m. Still suffering from historical mis-management?
Still, not too unhappy given I jumped in at 30c - primarily as I thought it might be a takeover target.

[sb9]

I really can't figure how CAV can have an NTA of .97 and a turnover of $148m and still be valued at only $41m. Still suffering from historical mis-management?
Still, not too unhappy given I jumped in at 30c - primarily as I thought it might be a takeover target.

Partly due to their chequered past history and heavy baggage that they come with. Takes bit of time to wipe off those....