Laurence Lytton's questions to CREATIVE REALITIES (CREX) leadership • Q4 2024
Question
Focused on the company's capital structure and cash flow, asking about the available credit facility, the need for potential equity raises, the nature of potential 'transactions', the pipeline's progress, and the cash flow profile of large projects. Also sought clarification on the 15% EBITDA margin target.
Answer
Executives stated that after the settlement, ~$6-7M remains available on the credit facility and they do not anticipate raising equity unless for a potential acquisition. The project pipeline is much closer to conversion than 6 months ago. Large project cash flow varies: private clients often pay large deposits upfront, while public projects can have negative cash flow for ~90 days. The 15% adjusted EBITDA margin is a goal for the full fiscal year 2025.