Apparently, ARL "sold" 335,900 shares of Treasury Stock that cost the company $3,779,000...which works out to be $11.25 each.
What did they "sell" it for? A Note Receivable...for $3,779,000...the cost...$11.25 a share.
How do I know this? Because it is listed in the Statement of Cash Flows Schedule of Non-Cash Investing and Financing Activities (it's at the bottom of page 8). Which, of course, means that we were not actually paid cash for the stock.
Why does this concern me? Because I cannot understand why anyone in their right mind would sign a Note to buy shares for $11.25 when the 52 week high for the stock on the NYSE is just $10.00 a share.
And, paradoxically, the stock never really got anywhere even near that $10.00 high during the 3rd quarter (actually it was generally heading downward towards $7 and some change)...just take a look at the chart.
You would think that such a curious transaction as this one would undoubtedly require some further explanation in the 10Q filing. Unfortunately, I don't seem to be able to find any verbal mentioning of it whatsoever. Obviously, just an oversight.
If anyone sees where this transaction is explained, could you be ever so kind as to post exactly what page I might find it on. (But, please don't waste lots of time looking for it...for I fear that it's not there).