Guidance Reduced for FY13 but Outlook for FY14 Appears Strong
PI Financial Corp
14 Nov 2013
Available for Immediate Download
EARNINGS UPDATE November 14, 2013 ENTREC CORP. (V-ENT) $1.46 (Intraday) RATING: BUY TARGET: $2.75 (unchanged) (unchanged) Guidance Reduced for FY13 but Outlook for FY14 Appears Strong VALUATION/RECOMMENDATION: We continue to recommend ENTREC Corporation (V-ENT) with a BUY rating (risk: ABOVE AVERAGE) and a 12-month target price of $2.75 (unchanged). Based on FY13 EV/EBITDA and P/E multiples, ENTREC is trading at 5.3x and 8.0x respectively, which are significantly below peer averages. Company Statistics Risk: ABOVE AVERAGE 52-week High/Low $1.95 / $1.05 Shares o/s ('000): 115,637 Shares o/s (fd) ('000) : 135,914 Market Cap (fd) ('000): $198,435 Market Float Value ('000): $83,655 Average Trading Volume 875,549 Cash ('000): $897 Debt ('000): $123,400 CEO: Rod Marlin President & COO: John Stevens CFO: Jason Vandenberg Shareholders: Mgmt/Insider 32% Institutional 15% Financial Summary (FYE Dec. 31) $CAD FY11a* FY12a FY13e FY14e Revenue ($K) 32,365 132,491 210,319 306,337 EBITDA ($K) 4,897 32,203 54,981 81,866 EBITDA (%) 15.1% 24.3% 26.1% 26.7% Net income ($K) 761 12,112 20,087 37,502 EPS($) 0.04 0.17 0.18 0.31 EV/EBITDA 59.5x 9.0x 5.3x 3.6x P/E 36.2x 8.7x 8.0x 4.7x Quarterly EPS($) Q1 Q2 Q3 Q4 FY12 0.06a 0.04a 0.04a 0.04a FY13 0.05a 0.04a 0.04a 0.04e * 14-month period ended Dec 31, 2011 Corporate Information ENTREC specializes in the lifting, transportation, loading, off-loading and setting of overweight and oversized cargo for large industrial projects in Western Canada and North Dakota.