When the 3 stooges get off the golf course for an extended period of time they might want to look at the opportunity to issue corporate debt to replace bank debt which would extend the maturity and get the company away from the awful bank covenants. Golf is important but there is still the fiduciary responsibilities to shareholders, or have the 3 stooges forgotten about the rest of the shareholders.
I should have been clear by saying the new FCC fees not licenses. I haven't seen any new stock sales to pay for the 48mil in licensing fees and they sure as heck didn't have enough cash on hand to pay for the fees. So my question is will it be wrote down as a long-term debt obligation or do they have a payment plan set up under an RTS using revolving credit. I’m sure the later, but I’m curious to see if the balance sheet changes this quarter.
FCC Licenses are reviewed and renewed every five years. Unless other special arrangements have been made under an RTS with the FCC. Since the company has new stations the frequency allocations have changed requiring a new license agreement. Contracts rarely change unless new frequencies are allocated for transport in a contract. Although auctions will come up if all timelines are not met within the specified 180 days submission of the renewal application package, or an extension to pay fees for freq access has not been processed. Since the company has new stations the frequency allocations have changed. It’s what I do for a living.
I don't feel the Hispanic pop had anything to do with it. I don't think EVC had a very decent contingency plan in place during the meltdown, and I’m sure they had real estate investments implode. I think Wall Street did more damage than other influences. Advertisers have found that local TV/Radio advertising is the most effective with the people who have cash to burn per capita and age. Especially in the auto industry where most of this companies revenues are generated. I think we can rely on experience now if the broader market influences take a turn for the worse. I’m optimistic.
About 235 million should do it with 105 million revolving.
Need to start pulling the triger on some contracts to set it up.
I would also like to see what management can do in the next 9 months to earn a higher credit rating and increase the return on equites.
Management has done fine with the debt management. They have been right in their forecast of being fine with the operating covenants. They have controled expenses to come in under set levels. Now they are begining to benefit from recovering revenue in a lot of sectors.
They are smart to hold out for better terms under better operating conditions. EVC will generate strong cash flows as it did before.