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Deckers Outdoor Corp. Message Board

  • johndoolittle46 johndoolittle46 May 16, 2013 11:04 PM Flag

    Cash is king

    Company makes 250M+ year and is able to wipe away 260M in debt in less than 8 months. It is all that matters. At the end of this year, there will be 300M+ on the books.

    Z

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • My simplified point is that the company isn't making anywhere close to $250 Million a year. They are making half of that.

    • Analyst projected income for 2013 is $3.70 per share (all in 4th qtr if a lot of things happen right), times 34.5 million shares gives you $127 million income for 2013. Where are you making these numbers up from?

    • You're going to have to explain this one to me. Income for the calendar years 2010, 11, and 12 is: $160 million, $202 million and $129 million (shrinking pretty badly), and debt for the same three years is $156 million, $305 million and $329 million.. Income is down and debt is up........

    • how are they able to make 250m a year. they just made $.03 in earnings past quarter and expect a loss next quarter, no?

      • 1 Reply to smartpantsandshirt
      • What am I making up? Their earnings this year was 128M but they produced 290M in cash in the 4th quarter that paid off all their debt. IT is their for anyone to see on the CC's that the balance sheet prior to the 3rd quarter was 60M cash, 266M debt(200M of which was used to buyback shares, the rest a result of operating costs). Coming out of the 4th quarter, cash was 133M and debt was just 30M. At the end of the 1st quarter, cash went down to 60M and debt went down to 10M. So in 8 months, there was a turnaround on the balance sheet of 250M. Not very hard to see. One just needs basic math skills.

        The cash production was actually brought up on the CC if you bothered to actually listen to it. It was asked by I think Sam Poser(of all people ironically but not 100% sure) that due to the tremendous amounts of cash this company obviously makes, is the company seeking to continue with aggressive buybacks or what are the plans for the cash? Management responded that they couldn't really comment at the time as there was still 79M available under the CURRENT buyback plan and they were waiting to get through that before deciding anything else. They did mention they were looking ahead for oppurtuniteis for future aquisitions.

        So tell me what I have wrong? Yes, earnings went down. It is not a shocker when your costs to sell somethng go up. But their sales were phenomenal in the 1st quarter and showed that UGGS are still relevant(with 1B in sales for 2nd year in a row despite warmer weather, higher cancellations and higher sheepskin costs).

        So now just imagine going foward with more stores opening up, UGG pure coming out with the lower price point which should obviously lead to much more growth(as it is cheaper and takes on the knockoffs), company has bought back back 4.5M shares and the balance sheet is pristine.

        What other company is being valued this cheaply for such cash production(which buffet notes is all the makret is about).

        Z

 
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