Numbers look pretty good. Ebitda a little better than expected on revenue a little better than expected. I was surprised that it would increase year over year. Guidance is solid, but unfortunately no news about rewarding shareholders. Now that all the bank debt is gone you are starting to see the cash balance build up. Good quarter. Lets see if anything relevant is mentioned on the call.
All the bank debt is gone? WTF are you talking about? This company still has a staggering $620 million of long term debt obligations and they only paid down $4 of the pricipal in the last quarter. That's like trying to fill up a swimming pool with a squirt gun!
This company is in debt up to its eyeballs and the business outlook for the rest of this year is not as rosy as Vince Sadusky would have you believe. It's an absolute CERTAINTY that auto advertising revenue will be cut, due to the parts shortages created by the earthquake and psunami in Japan. Toyota is hurting the most and they are the single biggest advertiser Lin has. Even domestic car makers like Ford are cutting back on production because of parts shortages. You think these companies are going to continue spending the same amount on advertising when they have HALF as many cars available to sell as last year?
Throw in the fact that this is a non-political year and there's a risk of the NFL season being cancelled, I wouldn't touch Lin or any other media company with a 10-foot pole. There's a much greater chance that TVL drops to $3 before it ever sees $7 or $8.
They have $0 bank debt. The debt they have is all in bonds. Doing a bond deal would not really lower the interest rate, but it pushes out the maturities and gives them great financial flexibility. If they do a bank deal to replace the bonds then the interest rate would be lower. But not by a real meaningful margin.
One thing I did forget was that TVL will do a bond deal soon. They won't announce a dividend prior to that. You never tell bondholders you are going to pay yourself right before you borrow money from them.