Douglas results - leverage back up

All,
Results out this morning.
- Growth is good, but at the expense of margin. Nothing new here.
- Sales and Ebitda are a little better than we thought. 
- Adjusted Ebitda still down 27% yoy.
- importantly WC has moved out again - as per thesis.
- Leverage is back where it was before the end-of-year window dressing - now at 6x LTM.

Initial thoughts:
- The thesis has played out. The much improved stats the company showed in February were temporary. Ebitda is still falling, albeit less than we thought. We will look into that.
- Fundamentally, we still think the company will turn the corner, but it seemed the market has/had gotten ahead of itself after the last set of numbers.

More to come.

Wolfgang