Yahoo Finance
Filing
Sept. 12, 2014
2014 Q2 Data
Check list:
1.Major Business.
Small garbage collection company locate at Fredericton, New Brunswick. It also 2 major investment in real estate one in salt lake US another in Calgary for toally $2m. Its founded and controlled by Gordon Wheaton and his family. The family has several other small business which can be found at the website.
2.Balance sheet.
Recent price is $0.365. Shares 10.35m+1m options prices at $0.11. Market Cap $4.2m. Tangible book value $0.44. Debt less than $1m.
3.Credit facility.
Not important
4.Financial data by years.
5.Insider holding, options, Insider trading info, share buy back.
Gordon Wheaton(CEO): 3.35m 32%. + 300k options.
Robert Harrison (CFO) 100k options.
Andrew S Burgess(Director) 300k options +970k shares?
John M Robertson (Director) 300k options + 320k shares?
Management controls 45.6% of total shares.
6.Management compensation.
around $400k for CEO +CFO for year 2012
7.Employee numbers. Revenue/Employee. Compensation/Employee.
8.Industry comparison.
9.Auditor
EPR Daye Kelly & Associates
10.Major events.
(1)Before 2006, the rental business is its main business. At 2006, it sold the rental business back to Gordon Wheaton for $2m share of TRU (valued at $400k) which was cancelled at 2008. The name was changed to eCycling. At 2007, changed the name back to Trius investment.
(2) Since 2009, it start to invest in REIT in Utah US.
(2) Aug 2014, it sold several US investment which recorded close to $0 on book for around $1.3m. After tax should be around $1m. The $0.44 book value includes this in calculation.
(3) Up to Q2 2014, the company invest around $650k loan + $350 equity in Colt Builders which is Canada branch created by a Salt Lake company with the same name. Its business is housing framing. At Q2, 2014, it suspended paying interest for the $650k loan to TRU.
11.Comments.
(1) The problem on Colt Builders in unknown.. Don't know whether it is temporary or permanent. Its other REIT investment seems doing quite well except for the Colt Builders. The Colt Builders has a parent company at salt lake with the same name.
(2) The core business is performing very well since 2009 with high EBITDA margin. However, its major expense should include the depreciation of garbage trucks. Based on the gain on disposal of equipment number, its depreciation expense is just enough to cover the real cost.
(3) Estimate $4m revenue, 30% EBIDTA margin. $600k/year in depreciation, use 15% of EBIDTA for tax rate. Assume interest income will cover interest expense. It gives $1.2-0.6*0.85=$0.5m in real income. Current price is just 8x of earning. In addition, the REIT investment might generate good returns as well. However, it is a very small cap. So can't expect a high valuation.
(4) Overall the company is well managed. Although it is controlled by Wheaton and the REIT investment raise some concerns, I would not worry it too much. Also the $1m gain in recent sale might not recognized by the market. In Q3 there might be a boost in earning.
12.Links
Dec. 01, 2014
Q3 release
Current price $0.375
(1)Q3 income is $0.08/share and book value is $0.44/share now as I estimated. Cash $3m.
(2) It released last week but somehow the news is not shown any where except SEDAR website. I feel it is a good news which is not recognized by market.
Mar. 29, 2016
Current price $0.48
(1)The company agreed to sell the waste management business for $5m. Its book value or waste management segment at Q3 2015 is $1.7m. So there will be $3.3m gains. Using 25% tax rate, it would be $2.5m after tax income. Added to book value at Q3 of $6.2m. It would be $8.7m new book value, using 11.35 as shares number. New book value per share is around $0.77. Among the $8.7m, $2m is long term investment, $750k in short term investment and marketable securities. So it will have $6m in cash. I guess it might issue at least some of the cash as a special dividend($0.30-$0.50 maybe?) and keep some as well to continue the investment in US.
Apr. 20, 2016
Current price $0.50
(1)The company reported that the actually after tax gain is around $3m instead of $2.5m. So new book value should be at around $0.81/share. Net asset value is $9.2m including $7.2m cash and $2m investment.
(2)What the company will do is very interesting, I guess would be one of the following: 1)Pay out a special dividend 30c-50c and keep the rest in investment. 2)No dividend and put the cash to new investment. 3)Take the company private. I believe given the high insider ownership and past record, no matter what the company choose to do, it is quite cheap at current price(62% of book value).
Oct. 18, 2016
Current price $0.71
The company declared $0.58/share special dividend which is $6.5m. After paying the dividend, the company might have $0.5m cash + $2m investment which is $0.22/share in book value.
Apr. 28, 2017
Current price $0.205
The company released full 2016 data. Surprisingly now it has $3m in book value which is $0.27/share. The main contribution is actually the $188k payment from its directors to pay back the company for the lost from Colt Builders. Also, there are some $300k which I think I missed somehow. It has around $0.5m cash +$2.5m investment now. Total shares count still 11.27m.
Going forward, if the company can generate $200k income from its $2.5m investment in US, then could get around 1.5c/share annual income. Current price of 0.20 is actually quite a good one.
Sept. 18, 2017,
Current price $0.20.
(1) The company got a new director and issued 650k options to him at $0.20.
(2) Recently USD/CAD is down from 1.3 to 1.22 level. I estimate its NAV at Q3 might be $0.20 to $0.22. Down from the 0.27 in the previous quarter. In a long run, it is still worth holding if the investment works out.
Mar. 17, 2018
Current price $0.13. Share 11.3m, Cap. $1.47m
(1) The current NAV/share is only $0.175. Mainly caused by big wrote down of investment portfolio at Q3.
(2) At Mar. 2018, the company released news that one of its holdings which is "MV Property, LLC" was sold and its share will be around $650k less any expenses. The property was recorded as $330k on Q3 2017 book and $450k on Q4 2016.
(3) Current investments
(4) Assuming $550k will be received for MV at the end. Assuming fair vlaue of 10 times of annual distribution. Then there will be $250k for RL, $360k for RW, $520k for BM. There will be $220k+$60k+$90k+$190k=$600k increase in NAV, which makes a $23c/share NAV.
May 8, 2018
Current price $0.16. Share 11.3m, Cap. $1.8m
(1) The current NAV/share is $0.17.
(2) If using 5% expense for MV sale. It can receive 585k in net proceed.
(3) The company released today that it will sell its GS Chicago interest for net proceed US$475k. Which is around CAD$590k.
(4) Current investments
(5) Using the same formula of 10 times distribution for fair value, the fair value of above 5 will be $585k, $250k, $590k, $360k, $520k. The addition of NAV will be 250k+80k+130k+120k+180k=760k. That is 7c increase in NAV.
May 30, 2018
(1) Today the company released that it will sell the last 3 investment for around $900k. Also the MV property will not be received in cash but will be reinvested in other RE.
(2) Based on Q1 2018 numbers, it has around $400k in cash and other assets. Added together, it will be $400k+$590k+$900k=$1.89k in cash and around $585k in investment. Which is $17c in cash + $5c in investment.
EPR Daye Kelly & Associates
10.Major events.
(1)Before 2006, the rental business is its main business. At 2006, it sold the rental business back to Gordon Wheaton for $2m share of TRU (valued at $400k) which was cancelled at 2008. The name was changed to eCycling. At 2007, changed the name back to Trius investment.
(2) Since 2009, it start to invest in REIT in Utah US.
(2) Aug 2014, it sold several US investment which recorded close to $0 on book for around $1.3m. After tax should be around $1m. The $0.44 book value includes this in calculation.
(3) Up to Q2 2014, the company invest around $650k loan + $350 equity in Colt Builders which is Canada branch created by a Salt Lake company with the same name. Its business is housing framing. At Q2, 2014, it suspended paying interest for the $650k loan to TRU.
11.Comments.
(1) The problem on Colt Builders in unknown.. Don't know whether it is temporary or permanent. Its other REIT investment seems doing quite well except for the Colt Builders. The Colt Builders has a parent company at salt lake with the same name.
(2) The core business is performing very well since 2009 with high EBITDA margin. However, its major expense should include the depreciation of garbage trucks. Based on the gain on disposal of equipment number, its depreciation expense is just enough to cover the real cost.
(3) Estimate $4m revenue, 30% EBIDTA margin. $600k/year in depreciation, use 15% of EBIDTA for tax rate. Assume interest income will cover interest expense. It gives $1.2-0.6*0.85=$0.5m in real income. Current price is just 8x of earning. In addition, the REIT investment might generate good returns as well. However, it is a very small cap. So can't expect a high valuation.
(4) Overall the company is well managed. Although it is controlled by Wheaton and the REIT investment raise some concerns, I would not worry it too much. Also the $1m gain in recent sale might not recognized by the market. In Q3 there might be a boost in earning.
12.Links
http://www.siliconinvestor.com/readmsg.aspx?msgid=29343386
http://www.stockhouse.com/companies/bullboard/v.tru/trius-investments-inc/1
http://web.tmxmoney.com/news.php?qm_symbol=TRU#qmpage2
http://www.stockhouse.com/companies/bullboard/v.tru/trius-investments-inc/1
http://web.tmxmoney.com/news.php?qm_symbol=TRU#qmpage2
Dec. 01, 2014
Q3 release
Current price $0.375
(1)Q3 income is $0.08/share and book value is $0.44/share now as I estimated. Cash $3m.
(2) It released last week but somehow the news is not shown any where except SEDAR website. I feel it is a good news which is not recognized by market.
Mar. 29, 2016
Current price $0.48
(1)The company agreed to sell the waste management business for $5m. Its book value or waste management segment at Q3 2015 is $1.7m. So there will be $3.3m gains. Using 25% tax rate, it would be $2.5m after tax income. Added to book value at Q3 of $6.2m. It would be $8.7m new book value, using 11.35 as shares number. New book value per share is around $0.77. Among the $8.7m, $2m is long term investment, $750k in short term investment and marketable securities. So it will have $6m in cash. I guess it might issue at least some of the cash as a special dividend($0.30-$0.50 maybe?) and keep some as well to continue the investment in US.
Apr. 20, 2016
Current price $0.50
(1)The company reported that the actually after tax gain is around $3m instead of $2.5m. So new book value should be at around $0.81/share. Net asset value is $9.2m including $7.2m cash and $2m investment.
(2)What the company will do is very interesting, I guess would be one of the following: 1)Pay out a special dividend 30c-50c and keep the rest in investment. 2)No dividend and put the cash to new investment. 3)Take the company private. I believe given the high insider ownership and past record, no matter what the company choose to do, it is quite cheap at current price(62% of book value).
Oct. 18, 2016
Current price $0.71
The company declared $0.58/share special dividend which is $6.5m. After paying the dividend, the company might have $0.5m cash + $2m investment which is $0.22/share in book value.
Apr. 28, 2017
Current price $0.205
The company released full 2016 data. Surprisingly now it has $3m in book value which is $0.27/share. The main contribution is actually the $188k payment from its directors to pay back the company for the lost from Colt Builders. Also, there are some $300k which I think I missed somehow. It has around $0.5m cash +$2.5m investment now. Total shares count still 11.27m.
Going forward, if the company can generate $200k income from its $2.5m investment in US, then could get around 1.5c/share annual income. Current price of 0.20 is actually quite a good one.
Sept. 18, 2017,
Current price $0.20.
(1) The company got a new director and issued 650k options to him at $0.20.
(2) Recently USD/CAD is down from 1.3 to 1.22 level. I estimate its NAV at Q3 might be $0.20 to $0.22. Down from the 0.27 in the previous quarter. In a long run, it is still worth holding if the investment works out.
Mar. 17, 2018
Current price $0.13. Share 11.3m, Cap. $1.47m
(1) The current NAV/share is only $0.175. Mainly caused by big wrote down of investment portfolio at Q3.
(2) At Mar. 2018, the company released news that one of its holdings which is "MV Property, LLC" was sold and its share will be around $650k less any expenses. The property was recorded as $330k on Q3 2017 book and $450k on Q4 2016.
(3) Current investments
| Property | Size | % | Q4 2016 | Q3 2017 | Dis 3Q17 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| MV Property, LLC | 13,000 | 24.4% | $454k | $333k | $37k | |||||
| RL Property One, LLC | 16,000 | 20% | $199k | $166k | $19k | |||||
| GS Chicago, LLC | 27.8% | $671k | $459k | |||||||
| RW Austin Property, LLC | 17,500 | 10% | $470k | $233k | $27k | |||||
| Brunswick Members, LLC | 43,000 | 11.8% | $671k | $333k | $39k | |||||
May 8, 2018
Current price $0.16. Share 11.3m, Cap. $1.8m
(1) The current NAV/share is $0.17.
(2) If using 5% expense for MV sale. It can receive 585k in net proceed.
(3) The company released today that it will sell its GS Chicago interest for net proceed US$475k. Which is around CAD$590k.
(4) Current investments
| Property | Size | % | Q4 2016 | Q4 2017 | Dis 17 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| MV Property, LLC | 13,000 | 24.4% | $454k | $335k | $50k | |||||
| RL Property One, LLC | 16,000 | 20% | $199k | $167k | $25k | |||||
| GS Chicago, LLC | 27.8% | $671k | $461k | |||||||
| RW Austin Property, LLC | 17,500 | 10% | $470k | $235k | $36k | |||||
| Brunswick Members, LLC | 43,000 | 11.8% | $671k | $336k | $52k | |||||
May 30, 2018
(1) Today the company released that it will sell the last 3 investment for around $900k. Also the MV property will not be received in cash but will be reinvested in other RE.
(2) Based on Q1 2018 numbers, it has around $400k in cash and other assets. Added together, it will be $400k+$590k+$900k=$1.89k in cash and around $585k in investment. Which is $17c in cash + $5c in investment.
