329M in cash produced last 8 months; here is the rundown
Cash stood at 226M 13 months ago.
Management decided to initiate a $100M buyback when stock was at 72/share.
Stock still proceeded to fall and management blew through the first buyback and initiated a buyback of $200M the next quarter using our credit facility.
Our cash went from 226M to begin 2012 to 60M cash, debt 260M.
Management used 121M over the next two quarters to buy back shares.
2012 ened with 130M cash, 35M debt, 79M lremaining to buy back shares.
Tonight, earnings come out. Management reports growth and continuing growthj. Leaner inventory by end of 2013, with UGG pure starting this April to slowly come into play.
Management reports 60M cash on hand(in the bank), 10M Debt outstanding, and 79M not used to repurchase shares this quarter.
So in reality we have the 260M in debt 8 months ago, now just 10M. So that is a change of 250M!
Then we have the cash position at 60M with the 79M in cash being used to buyback = 139M.
So from 60M cash and 260 debt, we are now 139M cash(79M for buyback) and just 10 debt.
329M production of cash/turnaround in BALANCE sheet!!!!!
The 329M cash was produced with sheeskin prices on the 2nd year of a 40%+ rise.
Sheepskin prices were mentioned to be down 14% or so by Zohar Ziv in the 3rd quarter conference of 2012(if I am not mistaken) and foward trajectory seemed to be to the downside regarding to sheepskin price. So just imagine how much CASH can be produced when/if sheepskin price continues lower and based on the locked in sheepskin prices for 2013 and 2014!
You cannot beat this type of cash production! Show me another company trading at 2B producing 329M in cash. SHOW ME!!!