Loewen Play: Numbers in line with guidance, no update on regulatory changes

All,

Loewen Play reported their numbers this morning, with conference call not due until next Friday evening. As expected leverage has continued to increase, at 3.7x, with our models showing 4.4x at year end. This is due to the regulatory change that occurred in November 2018 working through the numbers. However the management accounts offer no insight to steps taken by the company to counteract future changes in legislation and therefore the risks remain the same. The Company has the cash balances and no covenants to trigger any default during 2020 but the implementation of current legislation will drastically reduce EBITDA.

We remain negative on the name.

Please call with any questions.

Tomas