I'm assuming it's something in the presentation they have on their website. They had two conferences on Tuesday and I would think it is the amount of debt on their books projected after 4th quarter. They will finish 2012 with 2,182 of debt which is actually about 150 million higher than I had expected. Of course I did not know of the Rochester or Texas purchases which totaled 68 million.
I'm fine with the debt because it brings us growth in a non political year and then in 2014 we will do about 550 in cash flow. That's without any additional station buys. We all know Barrington is around the corner so more to come.
I'm one of the buy them now crowd. Once retrans gets to a fair level in the next 3-5 years these prices become enormous bargains. We are buying businesses at a 6 to 1 cash flow multiple which is a return of 17%. We pay 6% on the debt we borrow for this. These businesses cash flow are growing at double digit growth each year. Why not buy more.
I'm in for the long term and added a little more today. I will add more if it goes sub $10.
Value, I can tell you December is the hottest month of the year. We thought it was going to be good in November, it is plus 10% core on Local and National. Thow in a little retrans and we are looking at core mid teens growth from December.
Still too early to tell on 1st quarter but as soon as the tax crises is resolved you'll see more buys and have a bette feel. I haven't "crunched" the numbers but right now I would guess around 25-30% revenue growth in 1st quarter. Expenses plus around 12%.