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I'm just a simple guy running a one man auto glass shop. Someone please tell me what is so terrific about borrowing up the ying-yang to pay a dividend to stockholders. The way this is being hyped you'd think it is a successful rocket launch.
This forum is not the place or does it have the space to give you a business education.
There are many layers to this financial decision.
Also this forum has so much hate for the Big B, I doubt you would get an answer that was even helpful.
don't confuse truth and honesty with arrogance just because you don't care for the answer.
A better question is why would anybody lend money to someone for the purpose of giving it away?
Perhaps the see-all and know-all and all-wise incredible intellect "banker bill" may possibly condescend to 'splain it to us peons instead of huffing and puffing his b.s. sarcasm. Or is he just too stupid to simply lay it out.
If they still had the guys from Windshields America running it they would make that money, not have to borrow it. For instance: my area did 9.1 million annually we put 2.7 in the bank. We merged with Globe/us Auto Glass/Vistar 13 months later we were grossing 5.1 million,put 720,000 on the bottom line. Merged with Safelite filed bankruptcy 14 months later. They need a total change in culture at that company.I stayed with them for three years,they have no clue. It's all politics and they DO NOT CARE about their employees.They are so proud of themselves, just for breaking even! This is what happen when you have people managing money that is not theirs.
Now I have a few shops,pay my people really well, have very little turnover. We do our jobs and go home and have a life !
I wouldn’t call employees a headache, but if treated well and compensated according to their skill levels their isn’t a lot of profit left over. And if you kowtow to insurance companies or networks you’ll go broke. So I agree, bigger doesn’t mean better.
The Norm. is you pay out Dividends on Profit!!!!! All there doing is borrowing money to give to there investors and adding the Debt to there Balance Sheet which will show over a 1.5 Billion of Debt.Down stream the Stock Holders will be holding the bag.It's amazing how a little imagination in accounting happens!!!! Good Luck
Pay attention to EBITDA forecast.. then you could speculate risk / investment.. focus on total debt and terms or repayment aggression.. Belron is at now at 4.9% EBITDA with an aggressive forecast post loan.
Benefits of the EBITDA Margin
Calculating the EBITDA margin allows people to compare companies of different sizes in different industries because it breaks down operating profit as a percentage of revenue. This means that an investor, owner or analyst can understand how much operating cash is generated for each dollar of revenue earned and use the margin as a comparative benchmark.
Considering the example above, if a small company earned $125,000 in annual revenue and had an EBITDA margin of 12%, its performance can be compared with a larger company that earned higher total revenue. If the larger company earned $1,250,000 in annual revenue but had an EBITDA margin of 5%, it becomes clear that the smaller company operates more efficiently as a way to maximize profitability while the larger company has likely decided to focus on volume growth in order to increase its bottom line. This allows people to make informed business and investment decisions.
Drawbacks of the EBITDA Margin
The exclusion of debt has its drawbacks when measuring the performance of a company. For this reason, some companies deceptively use the EBITDA margin as a way to increase the perception of its financial performance. For example, companies with high debt shouldn't be measured using the EBITDA margin because the larger mix of debt-to-equity increases interest payments, which should be included in the analysis of a company with high debt.