Operational loss matching last quarter's plus additional cap ex of approximately 8 mil. to repair Port Wentworth boilers. It's nice Krieger puts a happy face on things but the melt rate isn't anywhere near what it was in 2006-2007. Expect to hemorrage cash until this is fully addressed.
Well what sort of excuse did they sell you? If you won't share with the board I guess all we have to go by is from the Nov. 3rd press release: "Imperial Sugar Company (NASDAQ:IPSU) announced that its Board of Directors suspended payment of its regular quarterly dividend of $0.02 per common share until further notice in light of the continued pressure on its gross margins and liquidity primarily caused by sustained high raw sugar prices and competitive refined sugar pricing." So Accordion, what was the all time high on #16 sugar and where does it trade today? Let me look, I might just have a link.......
"The Credit Agreement has no financial covenants unless availability (defined as the borrowing base, less actual borrowings and letters of credit) is less than $20 million at any time or less than $25 million for a period of five consecutive business days. Should such minimum availability not be maintained, a minimum of $20 million of EBITDA (defined in the Credit Agreement as earnings before interest, taxes, depreciation and amortization, on a hedge accounting basis) for the trailing four quarter period would be required until availability has been greater than $30 million for three consecutive months. Had this financial covenant applied as of June 30, 2011, EBITDA for the trailing four quarter period would have been a negative $9.8 million" Yes folks, that's $25 mil. for 5 days and we just recently passed the $30 mil. mark. Now you have to add back the $5.5 mil. from the sale of Santos but we don't know the timing of that.
Here's a little tidbit from last 10-Q "The Credit Agreement limits the Company’s ability to pay dividends or repurchase stock if availability, after adjustment on a pro forma basis for such transaction, is less than $30 million." Also Everything BUT Santos was pledged to secure their loans. Selling anything else will take lender approval and most likely loan repayment. Now would you like to discuss further the loan covenant verbiage?
Ski, you're losing credibility here. If you're so bearish I hope you're short and while you're at it I hope you've got a hedge incase you're wrong. Sugar #16 hasn't hit any new highs and appears to be drifting lower...yes I too follow the ICE Sugar #16. While you've posted some interesting facts, I already know your opinions and for the most part why.