Very healthy report today. A few take aways from the call today:
* Gross profit up 30.5% on 16% revenue growth
* Free cash flow has improved $26.8 million year-over-year.
* We will see older jobs fall off and replaced by better margin projects
* Acquisition pipeline is larger in number and deal size than what was done Q4 and Q1.
Overall no negatives to be found. I see profits ramping up through out this year.
Danin the majority of what you posted is correct with two caveats. First, the easy one - the buyout calculation is accurate as long as 90% of the company is acquired. The more important question is what effect does the issuance of a dividend have on the exercise price? This is covered on page12 of 39 under section 5.1 mechanical adjustments. Section (a) covers regular dividends and stock splits, with (b) addressing special dividends. The short story on the subject is that a regular dividend does reduce the exercise price. I refreshed my memory by pulling up the warrant information located on USCR's website.
The Barron's article was a good read. Also of worthy note were the earnings call for Eagle Materials (EXP) and MLM. All indicated that cement is essentially sold out in Texas for the foreseeable future (I.e. volumes to remain strong). Expectation for pricing was for two increases during the year.
I believe revenues and EPS are being drastically discounted by the analysts. My expectation is that they are off by a dollar on EPS. Something shy of $4 EPS on $900MM in revenue for fiscal 2015. Thursday's earnings call should be interesting.