ERD - ERoad. (Transport sector technology)

[Leftfield]

It's their biggest Australian customer, not their biggest customer.

Over the course of this calendar year, I estimate this one customer will add $1.5m+ annualised revenue (2500 units at $50+ revenue per month). EROAD tends to make around 65% EBITDA margin on additional revenue (prior to corporate and development, which I would not anticipate to be materially impacted by this one customer). Therefore, I expect this customer will add around $1m to annualised EBITDA. There might be an increase in depreciation and amortisation, but I would not anticipate a major increase.

Once fully implemented, I expect this customer will take the Australian operations from net losses to net profits.

I'm quite interested in seeing the Q4 unit numbers, which will presumably be released later this month. The net loss of 39 units in North America in Q3 was a bad sign. Hopefully we'll find out if that was a one-off blip, with growth returning, or if it signalled the point where the North American operations began to stagnate or (worse) decline.

Well said..... and of course Aus penetration had been a sore point for ERD, hence their re-launch there. So this announcement is more confirmation of steady progress now being made in Aus, but as you say, they need to notch up a few more successes particularly in USA.

Disc- I don't hold, but hope ERD succeeds.

[Getty]

Someone's hit the road.

Up 12.2% to $5.70 on good volume

[Davexl]

Seems that NZX Reg need to issue a speeding ticket - no news??

[winner69]

A $200m acquisition going to be transformational for Eroad

http://nzx-prod-s7fsd7f98s.s3-websit...595/350264.pdf

[percy]

A $200m acquisition going to be transformational for Eroad

http://nzx-prod-s7fsd7f98s.s3-websit...595/350264.pdf

ERD's market capitalisation is currently $503 mil.Add $200 mil for the acquisition will take it to $700 mil.
Current PE 229.48.I do not expect the acquisition with more shares on issue will see the PE lowered.
Therefore over 200 years [currently] future earnings built into the share price seems a lot to me.

[BlackPeter]

ERD's market capitalisation is currently $503 mil.Add $200 mil for the acquisition will take it to $700 mil.
Current PE 229.48.I do not expect the acquisition with more shares on issue will see the PE lowered.
Therefore over 200 years [currently] future earnings built into the share price seems a lot to me.

Good point - I trust, there is however a huge expectation of future growth build into the share price. Just a pity we don't see this growth now. Principle HOPE?

[BlackPeter]

Wow - just read the announcement:

Both EROAD and Coretex aspire to create a safer, more sustainable and more productive
society

Isn't this amazing? Politics failed so far to achieve this "safer, more sustainable and more productive society" - and now these two minor companies are aspiring to do it. Just watch them ... ;

Oops - there is however something to be said about the achievement of aspirational goals ;

[percy]

Well one broker seems keen.?

Dear Client,

You are receiving this email as you are currently on our Investment Opportunities list.

E-Road (ERD) has announced that it is making an offer of shares at a discounted price of $5.58. This represents a 9% discount to the last closing price.

This is an extremely fast issue, with bids due no later than 3pm today. Bids cannot be accepted after this time.

We anticipate that there will be significant scaling with this issue, and it is possible that allocations will be minimal as priority will be given to existing shareholders with a shareholding greater than 32,500 shares.

[Leftfield]

ERD's market capitalisation is currently $503 mil.Add $200 mil for the acquisition will take it to $700 mil.
Current PE 229.48.I do not expect the acquisition with more shares on issue will see the PE lowered.
Therefore over 200 years [currently] future earnings built into the share price seems a lot to me.

LOL...... enjoyed your analysis Percy! ( The announcement was a tab light on the revenue benefits expected from this purchase IMO!!)

[winner69]

LOL...... enjoyed your analysis Percy! ( The announcement was a tab light on the revenue benefits expected from this purchase IMO!!)

…but earnings accretive

Revenues about 50m and Ebitda about 16m