Michael Epstein's questions to MIL leadership • Q3 2015
Question
Michael Epstein of Northeast Securities asked why the company doesn't spin off discontinued operations, what the contingency plan is if the bank deal fails, and if other assets could be sold to fund a share buyback, while also noting shareholder frustration.
Answer
CFO Sam Morrow stated that a straight sale of the discontinued assets is currently seen as more viable than a spin-off. CEO Gerardo Cortina expressed high confidence in the bank deal closing. Both executives acknowledged shareholder disappointment. Cortina noted the focus is on the bank deal before considering other asset sales, while Morrow highlighted that over $50 million in cash would be generated from working capital improvements to fund the bank, after which a buyback would be seriously revisited.