If one divides everything by 10 miliion shares or so, then every $10M liability is only $1 per share. Doesn't sound too bad.
Here's the problem: The company doesn't have the liquidity to pay all these potential liabilities ... so per share impact will actually be much larger, as the risk of bankruptcy becomes much higher. For example, General Growth Properties declared bk even though financial statement wasn't that weak.
They are accruing the Pole Tax liability on the financial statement, but one cannot tell from the SEC filings if they are deducting it for income tax purposes. Best guess is not.
So if the Pole Tax is ruled invalid, RICK would get the $2M already paid back and have to pay tax on it (as it was likely deducted when paid). Financial statement reversal on the unpaid but accrued liability wouldn't affect the remaining taxes.
If the Pole Tax is ruled valid, RICK owes an additional $13.8M that they would get a tax deduction for, but even on a net tax basis, that's still about $9M due (at a 34% corporate tax rate).
Don't see that in the 10-K... I see this: "Accordingly, as of December 31, 2013, the Company has approximately $13.8 million in accrued liabilities for this tax."
Need to rethink this ... Banc Funds Company specializes in community banks and seems to make a lot of money.
Remember, Ed on the conference call ... burgers and wings getting big! I would look at Red Robin.
So what about that?
Got to think homes and mortgages will soon tank ... can't be good for mortgage heavy banks.
Gee ... cabaret isn't the center of focus ... but hey ... it sounds good to still emphasize it while they check their burger grill!
Well ... according to the conference calls, the airplane is very economical ... you know, tax deductions and all that.
Shareholders are endless suckers ...
"REIT will be later this quarter ... wait, next quarter ... wait ..."
Can't go by the number of flights ... some or many were likely personal. Remember the CC ... we need to follow the IRS rules on reimbursement.
Also, acquirors will start looking around ... if they wait, there won't be any good targets left.