Google Finance
SEDAR Filing
Aug 20, 2012
2012 Data
Year end June. 30th
Check list:
1.Major Business.
Business sectors. Sales geographic allocation. Business seasonality.
2.Balance sheet.
Recent Price: $10.75, Tangible book value:$13.67, Share outstanding: 4.62m, Market Cap: $50m
Current asset:$61m, Current liability: $11.7, Debt: $0, Inventory: $25m, Cash: $34m.
Total liability: $13.1m. Current assets-Total liabitity =$48m Very close to net-nets.
3.Credit facility.
not important
4.Financial data by years.
| 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | AVE | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 148 | 158 | 164 | 162 | 164 | 158 | 148 | 166 | 175 | 173 | |
| EBITDA | 9.1 | 14.7 | 15.2 | 4.3 | 3.8 | 8.8 | (1.2) | 12.5 | 14.5 | 18.7 | |
| Income/s | 0.83 | 1.55 | 1.28 | (0.37)* | 2.03 | 0.25 | (0.84) | (0.03)** | (1.03)*** | 0.76 | |
| CF-WC | 7.9 | 11.9 | 11.7 | 3.6 | 1.0 | 8.0 | 1.9 | 10.2 | 13.3 | 11.7 | 8.1 |
| CAPX | 4.0 | 2.4 | 2.7 | 3.6 | 3.9 | 2.9 | 9.0 | 2.6 | 2.8 | 9.7 | 4.4 |
| Cash | 34.3 | 28.7 | 26.6 | 24.6 | 19.9 | 20.6 | 11.8 | 21.2 | 22.6 | 7.1 | |
| Shares | 4.65 | 4.68 | 4.57 | 5.91 | 6.28 | 6.43 | 6.55 | 6.55 | 6.94 | 6.92 |
**after 2.6m litigation reserve
**after 14.3m litigation reserve
5.Cost structure
Leasing obligations. Flexible cost structure or fixed cost structure? Cost controls.
6.Insider holding, options, Insider trading info, share buy back.
Jeffrey Wortsman(CEO): 1,224,329 shares(x10 in voting). 26% of total shares. Control 78% to total voting.
Chou RRSP: 2005: 550k, 2006: 770k, 2007:970k, 2009-present: 680k. Avg Cost is around $9.50.
7.Management compensation.
Top 5: 2011: $3m. 2010: $2.5m.. 2009: $1.9m.
8.Employee numbers. Revenue/Employee. Compensation/Employee.
Whether employees are unionized, etc.
9.Industry comparison.
Major competitors in the same industry. Whether the business is competitive?
10.Auditor
Better be among the big four.
11.Major events.
Business acquisition, law suit etc.
12.Comments.
(1) At first it appears cheap, but when exam 10 years data, the ave FCF-WC is just around 8.1-4.4=3.7m.
(2) Although the cash is build up, based on conference calls, they are very unlikely to declare dividend.
13.Links.
http://www.oddballstocks.com/2012/02/branding-this-canadian-leather-retailer.html
http://www.barelkarsan.com/2011/04/danier-leather-cheap-and-accretive.html
http://www.theglobeandmail.com/globe-investor/investment-ideas/behind-the-numbers/share-buybacks-put-a-shine-on-danier/article1750647/
Updates:
Dec. 06, 2012
(1) Recent price $12.25. Now the company completed $10m share buy back at $12.70. So now it has 3.85m share with book value around $13.50(after Q1 2013 losses which is normal for the business). Current market cap is around 47m.
(2) From its annual meetings conference call, it seems their main building worth more than the booked value. Need to check.
