Nordion Earnings Call Nuggets: Buyback Rationale and Strategic Review
Nordion, Inc. (NYSE:NDZ) recently reported its third quarter earnings and discussed the following topics in its earnings conference call.
David Krempa – Morningstar: Can you talk about what your thought process was and why you didn’t do a buyback with the cash and why you’d rather let it sit? And then secondly, will any of the corporate expense go away with the sale of TheraSphere or should we plan on that staying the same?
Peter Dans – CFO: Thanks Dave. So, I’ll take those. So, again with the – looking at doing the buyback, we did look at a variety of options for returning cash to shareholders. And as Steve mentioned, we looked at the implications of that from a tax perspective and also, considered where we were at in terms of our strategic review and make – made a decision really based on those factors. In terms of the second question, from a corporate cost perspective, as we said last quarter, with the divesture of Targeted Therapies we wouldn’t see a reduction in G&A initially from that. We do plan following the completion of the transition services agreement to assess the requirements of the business at that point in time and take the appropriate actions to our adjust our cost structure.