KMD - Kathmandu

[Rawz]

Did Forbar and Craigs get FY23 right?

[winner69]

One thing Kathmandu do well is the size of their Annual Report

It’s 208 pages ….must be some record for the NZX ..if not the world

Must have a lot to rave about

[BlackPeter]

Did Forbar and Craigs get FY23 right?

Good question, and I don't track individual analysts - but I do track consensus forecasts.

The last forecast I had for KMD from early July (i.e. prior to the FY results) was Rev $1165m (which was pretty much spot on) and EPS 8 cents (which turned into 5 cents).

So, yes and no ... they got the important bit wrong. On the other hand - nobody can predict the future, and this includes analysts - the best they can do is outline one possible option how things might develop in future. If they are good, than at least they get it in average more often right than wrong.

[percy]

Forecast future earnings is near impossible to get 100% right.
However getting a good understanding of a company,and doing a lot of research, including reading brokers' reports ,you sometimes do get it right.
When you do the profits are worth the effort.

[winner69]

Our mate Phil Bowman bought some more shares (for himself and his investment company)

Averaging down nicely ….now the average is $1.21

But whst he’s down the gurgler by is only petty cash for our Phil

Where’s he living these days …last heard off back in the UK

[Rawz]

On the PnL the depreciation and amort expense is $123,713k and says to refer to section3.2-3.4 for the explanation.
However when I look at that section it has depreciation for the year of $22,824k (page 74) and amortisation of $14,132k (page 75).

So it doesn't add to $123m.. what am i missing??

Edit add: thought it was extremely high considering investing activities total $35.9m

[Fortunecookie]

On the PnL the depreciation and amort expense is $123,713k and says to refer to section3.2-3.4 for the explanation.
However when I look at that section it has depreciation for the year of $22,824k (page 74) and amortisation of $14,132k (page 75).

So it doesn't add to $123m.. what am i missing??

Edit add: thought it was extremely high considering investing activities total $35.9m

Lease depreciation?
3.4.1 Right-of-use assets

[Rawz]

Lease depreciation?
3.4.1 Right-of-use assets

Oh yeah thanks. I’ve been caught out by this so many times now

[Fortunecookie]

Oh yeah thanks. I’ve been caught out by this so many times now

It is certainly a good area to look at to see if amortization is material- non cash impact to the NP.

[Rawz]

If you look at FY20 cashflows you can see how one could get excited about KMD. They generated $73m. So if one day soon they got back to this sort of cash cow level at todays market cap of $611m it looks pretty good. $73m/$611m= 12%. Double digit cashflow yield good aye

This year they generated $24.6m fcf. Not very good. Paid out a dividend of $43m. Used debt to pay it.
One could think this big divvy is a good sign that management are confident the cashflows will one day get back up towards $70m level. Otherwise why payout so much cash?

SP has bounced nicely from the low of $0.77 back to $0.86 now.

I still think half year has been flagged as poor so this SP jump will be short lived imo and no need to rush in to buy.