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Vari-Lite International (LITE) Message Board

  • loriskhireward loriskhireward Feb 13, 2001 11:07 AM Flag

    LITE positives...(to combat negatives):

    1) strongest brand in the lighting industry, regardless of others' claims
    2) FY2000 PRODUCT SALES of $8.8MM
    3) POSITIVE EBIT of $4.7MM in 2000
    4) Financial restructuring resulted in decreased debt (and, surely, related 2001 interest expense, which was $5.2MM in 2000) from $48MM to $19MM. Note: the lawsuit settlement with Martin simply put cash in LITE's pocket and allowed Martin to continue sales of EXISTING product...if Martin infringes with possibly new products, we could see more cash(?)...same issue with Clay Paky, who, to my knowledge, hasn't paid us yet...sales of European offices also resulted in CASH in hand for debt reduction (let alone the associated rent expense for 2001 being reduced due to office consolidation - an overhead reduction and a smart move imo)...
    ok, so maybe they should've kept ShowCo, but would anyone disagree that streamlining your organization and getting back to a focus on your core business by selling off related businesses is a positive for the long term?...
    bottom line, financially I believe they're better off with the debt restructuring.
    5) New credit facility of $24.5MM expires on 12/31/03...is that enough time to increase sales? also includes $3MM capex allotment...can you say improved production capacity to support sales initiatives? the inventory is already on the BS.
    6) $4.3MM in cash at end of year
    7) Coemar and Clay Paky settlements, which should result in cash to VL in return for CP's continued sale of existing products
    8) NEW PRODUCTS for 2001 to increase rental/sales revenues
    9) Non-exclusivity among worldwide dealers, allowing expanded focus on dealer sales through a more elaborate dealer network

    All imo, of course. Best of luck to VL.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • you asked:

      1. Why all the cheerleading, what's your personal angle here?
      A: it's really not personal, just a minor investment in a company that, at $1.50 and change, provides an opportunity for future profits.
      Your motivation?
      A: like any other investor, it's financial, though not to the tune of anything significant. Believe it or not, neither I nor my friends or family invested heavily in LITE, the company simply intrigues me as an industry leader, popular entertainment show participant and beaten up equity issue.

      I believe some posters on this board who have either left the company, work for the competition or who held it too long tend to blame management for changes in the industry.

      2. How can you support management of any company, not just this one, when the numbers are the report card and if these guys were in school they would have been flunked out and expelled by now?
      A: 1) you make an assumption that mgt are "flunkies," which I do not. 2) I don't support management personally, but rather their strategic financial moves of late. You, on the other hand, apparently have let the relationship between your investment and LITE mgt get personal. Re: the numbers, who is complaining about the Y/E or last quarter's numbers? are you?

      "You seem to want to examine everyone who is not 100% behind this, so do it to yourself, if you've got the spine for it"

      ...to this, maybe I should repeat that I question intent, not individuals...if your intent, as I previously stated, is to "inform the board," then go ahead...it's MY belief that either 1) you're in at too high a price, and have ridden it to $1.50; 2) you got family into the stock and are paying a personal price; 3) you know what the other 10+ reasons one would have for badgering management when the company appears to be recovering from the days of "possible delisting." What a crock!

      I sure hope that your other stocks are doing better, because it takes a lot to question management of every company that's not doing well these days...do you hold any telecom or dot-com stocks by chance? any chip-makers, or optical networking companies? ...hope not...

      RE: press releases (the Oscars or any other newsworthy event)...news is not released with the intent of driving the stock price, so to tell you the truth, I couldn't care less if they're released. They do, however, relay company news that otherwise may not reach us common folk. Is that reason enough? I think so...a company keeping their investors informed...what a concept! And, it probably IS worth cheerleading about...

      "Can you tell me that they actually made money doing that show or was it a PR move and how long can they afford to do that?"
      A: I cannot tell you whether it's profitable, but the fact that they do it is a statement by the show's coordinators that LITE is PREFERRED! If you are a preferred vendor, you get additional work based on that status...

      Are you a doctor? if you were a preferred physician for a plan, 1) you would have to be pretty good, or the plan wouldn't have you; and, 2) you wouldn't have signed up to provide services at a loss, would you?

      If it was a reputable plan, would you drop out, even if it meant that many patients from OUTSIDE the plan were coming to your office?

      have a good day...and good luck!

      lo

    • Help me out here LO caused I'm realy confused.

      I've made more than a few positive statements about LITE, even complimented them, and I have also made statements to the effect that they are in trouble and I even made the normal statements that the BOD and CEO should be held resposible for the way they have, in my opinion, obviously made bad moves that have led to the demise of this stock value and that they should be held accountable like ANY other company leaders.

      Yet you always try to spin it that I am angry or some other dribble to take attention away from the ugly facts I, or anyone else for that matter, have presented.

      Now here's where I'm confused....The stock is in the toilet and has been for YEARS now, and the volume is anemic (that means bad by the way), and yet all you do is cheer them on. Evertime there is an inane little press release we, who watch this board on occasion, can almost set our watches by the next "oh they do the Grammys", or "another good move by Management", etc ad nauseum.

      So just to endulge my curiosty I have ask you these two questions:

      1. Why all the cheerleading, what's your personal angle here? Your motivation?

      2. How can you support management of any company, not just this one, when the numbers are the report card and if these guys were in school they would have been flunked out and expelled by now?

      You seem to want to examine everyone who is not 100% behind this, so do it to yourself, if you've got the spine for it

      YT

      PS I'll save you the trouble once again, I'm not angry, an ex employee, current employee, haven't lost big money here, don't feel responsible for anybodys decision to buy this, etc, etc, or any other spin you'd like to put on this.

      Let's see if you are capable of just being direct and letting us all know what you're about, and maybe give us something tangible and real about why you think the way you do about this piece of shit investment, day trade or whatever you think it is.

      And now the final question and I want your final answer.

      LITE will be doing the OSCARS in a week or two. That will be followed by another meaningless press release, and that will be followed by some "yippee look at them" comment by you. Can you tell me that they actually made money doing that show or was it a PR move and how long can they afford to do that?

      Thanks in advance for feeding my curious nature.

    • contracts...do you think HES, Martin and others don't wish they could make claims re: the Grammy's, the SuperBowl & others? or do they?

      When you are doing the BIGGEST SHOWS YEAR AFTER YEAR, you're doing something VERY RIGHT! "Keep up the good work and we'll reward you with the job next year"...nothing wrong with that, imo.

      lo

    • lo,

      you said

      >>2) FY2000 PRODUCT SALES of $8.8MM

      where did you get this number? i don't seem to see it broken out in any of the statements

      Lighten_up

      • 2 Replies to lighten_up
      • the 10K groups product sales & service revenues together, so I guess the $8.8 MM is sales & the remainder is service revenues. I like the $8.8 MM figure, given that they have tons of inventory (could be sold) on the rental side and new products being manufactured this year (the ones introduced in late 2000)...

        lo

      • did you get an annual report (10K wrap design saves money, too...lol)? it was mentioned in the intro under "Emerging Financial Strength" section:

        "In fiscal 2000, sales of lighting products totaled $8.8 million - or 9.4% of total revenues of $93.7 million - up 550% from the prior year."

        While I understand that 9.4% is not very large, it represents a significant contribution when you think about the fact that SALES was not a focus in 2000.

        They also seem to have a HUGE amount of raw materials on-hand to manufacture product this year. Do you know if they ramped up in anticipation of sales needs?

        Hope the reference helps.

        lo

 

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