Lycra - quasi reported via JPM Conference

All,

Lycra presented (presents) at a JPMorgan Conference at have shared some details of their Q4 numbers via the presentation.  Full release is 30th March, with a call on 3rd April.    We remain negative on the name at current levels, but the opaqueness of their reporting coupled with current pricing prevents from assuming a short position at this time.   Please find our updated model here. 

Brief outline of figures are net sales flat versus Q4 2018, but down for seasonal reasons versus Q3 2019.  EBITDA of $29m versus $38m in Q4 2018.  Full Year EBITDA of c. $125m leaving the Company c. 7.6x leveraged.  

Additionally, The Company has made an acquisition in Taiwan, of c. $15m, paid by the Company but should be covered by an equity contribution from shareholders (timing of this is unknown).  

We remain negative on the name.