Still checking the details, but it certainly looks like we have a turnaround in full swing
* CONVERTIBLES: Recognized the second $6M tranche, so the cash numbers for September released just last week are clean of capital injections * POSITIVE EBITDA: Most of the negative operational cash flow is the recognition of payment conditions with the promoter (announced in the previous CC) and a hit in the allowance for doubtful accounts. * GROSS MARGIN IS BACK: Better than before, EXCELLENT. Now the cost structure * ONE TIMES: The typical cleaning up of a new CEO. There is $1.3M in the allowance for doubtful accounts. * SG&A: Still cluttered with the transition. 1,645 in bad debt expenses, 1,985 legal and professional, and 1,447 of others. I hope someone asks tomorrow about it. It looks like the only obstacle for a successful turnover.
They're doing more with less. The cost of rev is way down. Overall attendance is only down slightly yoy and I think there are less shows. It looks like they are executing their plan very well of booking bigger shows (higher profile) and doing better research on new show markets. This combined with an improving (fingers crossed) economy is very promising. If they can reduce their G&A a little and increase revs we could be looking at another .18c eps increase this quarter. I think the share buyback shows that they are confident they will easily clear .10 eps this quarter. This management obviously knows how to manage good PR and the fact that they have this CEO for at least the next three years is very comforting. This is a great turnaround play.
If they are already EBITDA positive, I now think they will be FCF positive by the end of the year, before I thought it was a 50/50 shot. I have more to say on this but I want to listen to the conference call before saying too much more.
These results are already old, they are through August. I think the current quarter is gonna be a big game changer.
Upcoming announcements should take us past $2.00 if they are what I think they are.