"Net Deferred Tax Asset Provision" Telegraphing No Profits Anytime Soon
As anyone who is a CPA or tax counselor understands, the Company's tax provision to reserve net deferred tax assets tells the wary that they have now told the world they do not think to the level of "more likely than not" that they will have sufficient profits (taxable income) to chew up their net deferred tax assts and NOL carryforwards during the turnaround period.
Their green eyeshade cfo dude said on the call that the "value of those is not in question" but that is at odds with SFAS # 109 and follow on bulletins which required their auditors to insist on the provisioning in the last Q.
This once great company is hosed now and the new mgmt team are meandering aimlessly toward further revenue destruction... with all the debt saddling the balance sheet and earnings, it is only a matter of time to bkr and bondholders wiping out the equity. The only rescue, it seems, would be a sale of the company, but any company that might have been interested 7 years ago and doing due diligence here now that no one who speaks english wants anything to do with buying or wearing these brands will value the brands about like Billabong's owner valued Billabong last Q (search that term on this board or goog if you do not understand what i mean). But don't take my word for that, just do a little work on it yourself if you have anything more than beer money on the line long here.
LOL. They tax effected the operations for peanuts... but no SFAF 109 reversal of the prior period reserve for the net deferred tax asset... again, meaning they don;t foresee taxable income in the filed returns as being "more likely than not" during the foreseeable (call it the next 5 or more years) turnaround period as far as their auditors are concerned.
If you listen to the new cfo talk about this technical accounting, it is obvious he has no F idea what he is talking about. LOL
Re my comment 13 months ago with the stock at $8:
"If you listen to the new cfo talk about this technical accounting, it is obvious he has no F idea what he is talking about. LOL "
Here is the update: the new CEO and CFO the clueless cheerleaders thought would rescue the mess that McKnight created and the salvage of the brands and balance sheet, are out the window.
"McKnight on Mooney's exit, go forward plans
We spoke with Bob McKnight Friday about the departure of CEO Andy Mooney, some reasons behind the change and plans for the future.
Bob said the board of directors decided to make changes to the executive leadership to improve its ability to execute against the operating challenges that have been facing the company these past few months...
Bob also noted in our conversation Friday that CFO Richard Shields, who will be leaving as well, will be helping new CFO Thomas Chambolle, Quiksilver Europe’s CFO, to settle into his new role as company CFO."
Now, if only the cheerleaders will chase this back above $5 we'll be happy to play it short again...
Debt debt debt, Dead dead dead brands... and $2500 wetsuits that look like suits with ties? "Graveyard stock" is right! They needed to bring back co-founder Randy 10 years ago before the ridiculous Rossignol deal sealed their fate.