I took another look at the Dutton report and assumed that all the bond and warrants were converted and Igld received $69 million in cash. Also the share count went from 18.43 million in 2006 to 23.50 million after the conversion.
Depreciation and amortization: $16.80 million
Miniority shareholder $ 7.70 million
Profit $20.60 million
Interest saving on $69 million $4.14 million
Total cash flow $49.24
Per share based on 23.5 million $2.10
So based on the current $12.50 stock price Igld is selling at a 5.95 multiple of their 2007 cash flow and at a 5.32 multiple of their 2008 cash flow. I estimate that Igld's 2008 cash flow could be up 12% from 2008. The depreciation and amoritization should stay the same for both 2007 and 2008. The revenues for 2008 could approach $360 million.
Igld would have $69 million in debt after the conversions and they will generate $104 million in cash over 2007 and 2008 - $49.24 million in 2007 and $55.23 million in 2008.
I realize that Igld will be investing in the growth of their business over the next two years so the cash will not be in the bank but it does show the strenth of Igld over the next two years. After that who knows. We do know that Igld's mangement has grown revenues and profitability significantly over the past two years. The next two years looks good.
In 2006 Igld generated 70.5 million NIS or $16.69 million or $0.905 per share based on 18.43 million shares. In 2007 they should generate $2.10 per share in cash - more than double. They are also more than doubling their revenue year over year.