Wilhelmina International, Inc. Message Board

I was talking about signing talent in the WAM biz. 1000 shares aren't a drop in the bucket to that kinda talent.

They didn't generate any positive cash flow because of the IRS settlement and paying bonuses accrued in Q4. The balance sheet has been cleaned up, with just the line of credit liability left. The modeling biz is back to positive growth - no real lingering worries about losing biz because of the Patterson firing. The WAM biz is always lumpy. They just need to sign more talent to smooth those results. Should generate enough positive cash flow the rest of the year to either build the cash balance, repay debt or buyback stock. Again, its a long slow slog with this one.

Even a broken clock is right 2x per day!!!

You have valid points. That is why debt underwriting is so profitable for the big banks. Regardless, this issue is not going to make or break FTR or my investment in the common, so your point is fairly moot. FTR is a junk credit (BB). They aren't going to get a great deal on new paper. Not knowing all the internal workings of FTR's capital structure I would give them the benefit of the doubt here.

Again, much longer term debt...do you understand how the interest rate curve works? The further out the maturity the higher the rate - for any company. It's a decent rate considering the term.

Wrong you were. They need time to cook the books! Muhahahaha

They issued debt at a similar rate to the debt retired BUT the maturity on that debt is MUCH further out. Longer term debt for the same rate. They obviously wanted to take advantage of attractive financing terms...probably got told a story about how rates are rising by some enterprising investment banker. Net net I am okay with it.

Well said. I ran some cash flows projections through 2015. I don't think they can get to 2.5x leverage by the end of 2015...I'm still showing it over 3x. I can't believe no one of the call today asked about leverage. But regardless, net debt should continue to slowly decrease. I expect cash to remain elevated compared to a few quarters ago when it was closer to $300M. They probably won't tender for much more debt because it is already trading well above par. They will book a loss for every bond they have to tender for above par. It doesn't look like the near-term debt maturities are callable. Could a stock buyback be on the table? Probably not, but they continue to generate sizable cash flow in excess of the dividend. I too believe the dividend is safe. If they can continue to slow the rate of revenue declines and maybe even turn positive the stock should creep up. These haters on here seem quite out of touch. I will probably be reinvesting all the dividends.

Oh please, like you know what Warren Buffett would do. If you did have a clue you wouldn't be on a message board pretending to know what you are talking about.

he's fine with debt. He could refi all of it for dirt cheap and easily get a 10% annual cash return assuming a $2/share buyout.

Ron Chez adds another 269K shares to his stable...signs agreement with WHLM to not purchase more than 10% of shares outstanding.

It is back in the sea...on its way to Rio.

That is the most incoherent post I have ever seen from you, and that is saying a lot.

I first bought in 2010...doubled my stake last year. I see no reason to sell my shares anytime soon. As long as they continue to generate $3-$4M in FCF a year I will likely hold. Think what they can do with that money...they only need to keep a couple of million to run the business. I'll be interested to see how they did in Q4. I hear rumors that Patterson is looking to start his own agency or go to a rival and bring some of WHLM's male models with him...we will see. That could be a negative, but it seems like they are focusing on growing the artist management division right now...core modeling has been fairly stable...down a bit since Patterson left. Will know more how everything is doing soon...hopefully Monday if they file the 10-K on time. They were late with the Q3 10-Q for some reason...a first for them since I have been following them. I don't like late filings.

ethison doesn't know much of anything. Insiders own, what like 60%+ of the shares? Sounds like a super majority to me!

Someone is always paying attention...running a screener or something like that. We'll see how Q4 went...should have those results by next Monday at the latest...let's hope the artist mgmt division really starts to pick up some steam.