EBITDAR

And so if we're now saying that the rent is financing, you would have to strip out the rent from your earnings.

So EBITDA would become EBITDAR.

You would add rent back.

Mm-hmm.

And then Tommy's does something interesting where when they show their numbers in their franchise disclosure document, you may be familiar with the term EBITDA, which stands for earnings before interest taxes, depreciation and amortization, which is basically what most people would call profit, right? Or net profit.

But they show EBITDAR, which is earnings before interest taxes, depreciation, amortization and rent.

And so this is a more common number that shown in industries that have very, very high rent.

And so they do give us an idea of what those margins are before rent, which is helpful.

Yeah.

And that's like our, I guess like it's like EBITDAR or whatever because like for us since we own the real estate it's like we're not, I mean like, well obviously we have like an op co and a prop co and that sort of stuff, but like I kind of view the, the all-in combined.

So part of it is because we own the real estate, but part of it too is that there's very real, um, you know, operating leverage in, in these businesses just given the way-

Wait, like wait, um, sorry Brendan.

So what is the R in EBITDAR and what's the, uh, the point of that measure?

Yeah.

So the R in that would be rent, so that would be like your, your rent payment.

Um, and, and we are gonna hear more about real estate here.

...

I've basically put a seven times EBITDAR on the steel and eight times on the foundry.

Got a bit of a pension deficit in the debt, and I was getting about seven, sorry, £5.70. And, and-

Oh, okay

the balance sheet's pretty good at Vesuvius.

So yeah, I think, um, that's an interesting angle on it, Paul.

And actually looking at it, it's got quite a bit of debt, 1.9 times EBITDAR net debt at Vesuvius.

So, uh, yeah.

Yeah.

It's like, if I, if oil were 250, uh, you know, you'd be making 10X EBITDAR or whatever the, the-

$10

... $10.