Investment Thesis
Cineplex’s (CPXGF) ((TSX:CGX)) Q3 2018 earnings was disappointing as the company saw its adjusted EBITDA decline by 9.3% year over year. The decline was mostly due to higher stock-based compensation, headcount reduction, and a non-recurring charge in its amusement business. The company also has diversification initiatives to grow its revenue outside of box office revenue. However, these initiatives are still in the early stages of execution. The company is currently trading at an attractive valuation and offers a 6.59%-yielding dividend. We believe the company is best suited for investors who are