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Seitel, Inc. (SEI) Message Board

  • komatinskys komatinskys Jun 7, 2002 9:33 AM Flag

    Interest Coverage going forward


    First want to clarify that the note covenants use EBIDTA not cash EBIDTA. Second, I took a look at what will happen to trailing 12 month EBIDTA going forward using Seitel's guidance of an improvement in Q2 (given Apr 01) and through the rest of the year. Looking back at revenue per quarter for 2001, Q1 and Q4 were the highest at about $38 million each. This leaves 60 million of revenue contribution from Q2 and Q3. Assuming that this is split 50/50 by quarter you get a 30 million revenue number per quarter. If you buy into the guidance provided by the company, trailing 12 month EBIDTA shouldn't decrease significantly when Q2 02 is included.


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    • The real question is what is their
      library worth or is the asset they
      are carrying on the books bogus.
      If they form a DIP the current
      noteholders are also screwed.

    • Forgive me for being a little slow, I know we are looking at financing issues here, but don't you think that the problem of the company is really one of cash flow.

      This revenue that has been deferred and is to be included in the future is already spent.

      We should be looking at more than just if the loans are called or not. Even with renegotiation of the loans will SEI survive, or do they have to sell assets to maintain adequate cash flow?

      The real question we should be asking is, IS THIS A VIABLE BUSINESS?