KNOT buys back 10% of their outstanding shares from Macy's for $10+ per share during the quarter, but in the share count, it still shows them as outstanding in the financial statements. So the $38 million in cash spent to buy the shares just disappears? Shouldn't the shares be retired like a buyback? What's the deal?
And they miss on revenues, which isn't good, and then find out $1 million of the revenues is a one-time payment from Macy's, so their real revenues for the quarter were just $26.5 million, 4% less than last year?! Huh?
I thought the registry sales had bottomed and would be more than offset by the improvement in advertising they talked about last quarter. Just awful.
And with a big chunk of their cash spent on the Macy's shares, that removes a lot of my comfort that there was a floor to the valuation.
Yuck. Sold my shares after hours (shockingly someone took me out at $9.89). This will have to get significantly cheaper before I am comfortable returning. But I'll keep my eyes peeled.
You are correct. I did misread. So $27.5 million in revs for the quarter. Not as bad as I thought. But still, the loss for the quarter doesn't make sense when higher % of revenues supposed to be coming from higher margin advertising. And there was very little cash flow this quarter even after adding back the Macy's share purchase. I think it's wait and see mode for this one. But then again, maybe someone buys them, which I think someday will happen. Just hopefuly not in the near term after I sold my shares... Wait and see.