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Howie Man  

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  • The Brick Offers A Unique Deep Value Opportunity [View article]
    The Brick reported a strong quarter earlier today with 17% EBITDA growth and 1.3% comps sales increase with over 1% EBITDA margin expansion. Still trading in the below 5x EBITDA with a mid-20s FCF yield despite the performance and following catalysts:

    -Announced plan to repurchase high cost 12% notes w $175M in excess cash
    -Adding 10-11 franchise stores and likely new corporate stores in 2012
    -Repurchase program for 5% of shares out, only 10% complete so far
    -HSBC credit card program expansion to capture $50M-80M in additional sales in 2012
    -Former CEO of Walmart Canada taking over CEO role Jan 1 (been COO since Feb 2010)
    -New IT/ distribution platform to reduce SG&A and potentially increase op margins by 1-1.5%
    Nov 10, 2011. 02:42 PM | 2 Likes Like |Link to Comment
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