The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Matthew Weekes - Industrial Alliance Securities Inc., Research Division - Analyst
: I think most of my questions have been answered at this point, but maybe just a little bit of clarification. I just wanted to touch on something that
was said earlier and just clarify. Did I hear it right when you guys said that at this point, based on your forecast, looking at the near term, you're
expecting Q4 to kind of be like the bottom, the worst quarter?
Question: Matthew Weekes - Industrial Alliance Securities Inc., Research Division - Analyst
: Is that just based on conversations with your customers? Kind of we look at Canada, we can expect things to be better out of the spring breakup.
But focusing on maybe the U.S. and internationally, are your conversations there just kind of indicating that there's not really going to be a recovery
sort of through the second half of the year as COVID-19 restrictions ease up a little bit?
Question: Matthew Weekes - Industrial Alliance Securities Inc., Research Division - Analyst
: Okay. Focusing on costs a little bit more, and I won't stay here too long because I know we've touched on it, but looking historically at the way the
fixed cost structure works, you can typically expect kind of somewhere in like a 70% to 80% range in terms of every incremental dollar of revenue,
gain or loss essentially translates into about $0.70 to $0.80 of EBITDA. In 2016, that was improved a little bit, and it was only about $0.50 of EBITDA
for lost revenue. Kind of going into this year and going forward in the short term, what do you guys expect that to look like, sort of that incremental
hit to the bottom line from a loss in revenue?
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MAY 01, 2020 / 3:00PM, PSI.TO - Q1 2020 Pason Systems Inc Earnings Call
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