I appreciate all on-topic posts with different points of view. Considering that I have 32 years of management experience while working for three different S&P 500 companies, I do disagree with the notion that earnings are unimportant. (The subject line came from one of those companies).
I've often compared management with plate spinners. The younger people on this board may have to Google that. The more mature people on this board will remember some guy on T.V. who kept something like 20 plates spinning on skinny poles, without letting any of them drop.
Well in management (or business), each of those plates might represent Recruiting, hiring, training, cost control, R&D, PROFITS, etc. The point is, in management, to be proficient in all areas and not let any part of the business fail (drop).
Yes, reducing debt is important. Cost control is also important. A lot of things in business are important. A good manager doesn't focus on any one or two areas and ignore the rest. (How many of you stop paying your mortgage or rent in order to pay down a credit card???)
Overall, I think LGF management has done a very good job. I previously posted my disagreement with the previous quarter's results. I think there is good reason for there being 14 million shares shorted. The company is seen as being unpredictable with a history of negative earnings.
Personaly, I'm excited about today's earnings report. I can't honestly say that there isn't some doubt in the back of my mind though. If the earnings come in at or above expectations, my hope would be more consistancy going forward. Well, as consistant as an entertainment company can be.
Yea, I also enjoyed watching the plate spinner on Ed Sullivan.
And the talking mouse.
But your summary lacks granularity.
Since you brought up the topic, what speific area(s) do you believe LGF's management "ignored"?
Curiosity may have killed the cat; inertia killed the plate spinner.
Gotta love the flamers. My point was aimed at the company's lack of ability to show a profit, with a little added humor. Paying down debt is always good, but you don't clean out the house to do so. (Hence my comment that you don't skip the rent or mortgage payment to pay down your credit card.) You do so in a consistant manner without neglecting other parts of your business. Not showing a profit is irresponsible of any company and has never been my experience. (All of this was in my original post and is MY opinion.)
I was talking about the previous quarter since we're still waiting on the latest earnings release. I believe the latest debt paydown was technically in the 3rd quarter, meaning a profit might be shown for the 2nd quarter. Timing is everything.