Pason reported 2Q16 results modestly behind expectations as R&D spending was higher than we had anticipated. Pason has reduced its 2016e capital program to $25 mm from $30 mm as it tries to achieve positive FCF before dividend payments. Our forecast would suggest that the Company will achieve this with positive FCF of $16 mm (which includes a cash tax recovery of $11 mm). The Company’s operations in Saudi Arabia continue to capture market share which is increasing profitability. The
12 Aug 2016
Reports 2Q16 Results; Outlook Unchanged
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Reports 2Q16 Results; Outlook Unchanged
Pason Systems Inc. (PSI:TSE) | 0 0 -0.1% | Mkt Cap: 1,477m
- Published:
12 Aug 2016 -
Author:
Ian B. Gillies -
Pages:
6
Pason reported 2Q16 results modestly behind expectations as R&D spending was higher than we had anticipated. Pason has reduced its 2016e capital program to $25 mm from $30 mm as it tries to achieve positive FCF before dividend payments. Our forecast would suggest that the Company will achieve this with positive FCF of $16 mm (which includes a cash tax recovery of $11 mm). The Company’s operations in Saudi Arabia continue to capture market share which is increasing profitability. The