ARC - Capital Leases Inflate Operational Cash Flows
Current Valuation
ARC recently appeared in one of my screeners, most likely because the share price has fallen quite a bit in the last few weeks. Following some financials for the last four years:
| 2014 |
| 2015 |
| 2016 |
| TTM |
| Revenue |
| 423.8 |
| 428.7 |
| 406.3 |
| 396 |
| EBITDA |
| 64 |
| 68.8 |
| -14 |
| 36 |
| EBIT |
| 29.9 |
| 35.1 |
| -45.8 |
| 2.9 |
| Net Income |
| 7.3 |
| 97 |
| -47.9 |
| -6.7 |
| FCF |
| 36.7 |
| 45.7 |
| 41 |
| 44.1 |
| Market Cap |
| 477.5 |
| 207.9 |
| 233.6 |
| 110.1 |
| EV |
| 665.8 |
| 362.3 |
| 372.5 |
| 240.2 |
For the last two years revenue has been in a steady decline and net income negative (loss). However, I also