not meaning to be lazy, but i recall some nice elaboration on bloated capex some time ago...can't seem to find it...do u keep track of ur old msgs? if so, would u be so kind to repost.
trying to go back and reconfig my #'s and they still make no sense whatsoever. surely opex (imho) is stuffed in capex...just can't figure out how much.
Thanks! So, just guessing, it looks like they might have enough left of the FY04 tax benefit from options to avoid paying any taxes this year either, FY05. Heck, the way things are going, who knows when they might actually have to pay taxes.
yes, should have been fy04 (not fy05).
Carried forward and carried back; kkd has been busy collection tax refunds for many quarters, now. This "source" of cashflow has largely disappeared as the previous tax payments have mostly been returned, I believe.
from the most recent 10-k:
INCOME TAXES. During fiscal 2004, we made $335,000 in estimated state income
tax payments and no estimated Federal income tax payments. Stock option
exercises during the fiscal year resulted in tax deductions for the Company
which offset any current Federal income tax liability for fiscal 2004 from
normal operations and created a net operating loss for income tax purposes. A
portion of the net operating loss is available for carryback to previous tax
years, resulting in an income tax refundable amount of $8.0 million at February
1, 2004. The remaining net operating loss will be carried forward and will
positively impact cash flow in fiscal 2005 by reducing required Federal and
state estimated tax payments for this fiscal year. In addition, during fiscal
2004, cash flow was positively impacted by $3.3 million in tax refunds related
to overpayments of estimated income tax made in fiscal 2003. While we try to
anticipate events which will impact the amount and timing of income tax
payments, it is difficult to anticipate the impact stock option exercises will
have on our overall tax position as stock option exercise decisions are at the
discretion of the option holder.
Income tax payments, net of refunds, were $6,616,000 in fiscal 2002 and
$5,298,000 in fiscal 2003. In fiscal 2004, the Company received a refund, net of
income tax payments, of $2,763,000. The income tax payments in fiscal 2002,
fiscal 2003 and fiscal 2004 were lower than the current provision due to the
income tax benefit of stock option exercises of $9,772,000, $13,795,000 and
$42,806,000 during fiscal 2002, fiscal 2003 and fiscal 2004, respectively.
well imho, i wouldn't give winn-dixie more than 18 mhts b/4 sniffing at ch 11...could well be quicker...but that's just in my opinion of course. winn dixie bonds still trading in the high 80s w/ yield to maturity of 13.5%, so not yet trading at distressed levels...although had some support of banks w/ a new $600 facility a few months back giving it life support...wachovia did that banking deal :).
Having just a superficial knowledge of accounting and kkd's numbers, it's a pleasure to read your postings. Now, if you don't mind bearing with me, a question.
"These entries [cash rec'd from options exercised and tax benefit] were 19.5 and 42.5, respectively, in fy05 [you meant 04 (?)]. This $61 million in cash creation will largely disappear now that the stock price has cratered."
While the 19.5 million was cold cash, the 42.5 million was a tax benefit. It would seem that only part of that benefit would have resulted in cash savings on income tax, since their total tax liability couldn't have been 42 mm, right? (Not being entirely lazy, but lack time to dig up the 10k right now.) If depreciation for tax purposes reduces taxes to near zero anyway, as you suggest it might, then the additional tax benefit from options exercised would not have an immediate effect on cash, although i suppose a tax benefit not used in one year carries forward. Is this right? Thanks for your help.
book overdraft...that's interesting...is that the norm of retailing/franchise biz??? i haven't come across that b/4...at least not broken out on the balance sheet...usually is netted straight away in the cash balance.
on the deferred tax asset...missed that on the call. thx. though that is truly amazing, racking up $20m of deferred tax assets in first 6 months, whilst reporting $14.9m of taxes in the p&l (of which $3.8m is related to impairment charge/store closings). i'd love to see how that came about in black & white.