OTCPK:ERILF - Post by User
Comment by
poneon May 20, 2015 11:34pm
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Post# 23747824
RE:Free Cash Flow
RE:Free Cash Flowpone wrote: How is it that Empire cannot produce any free cash flow, even when it is transitioning to most of its business coming from the Media Based Attractions segment? They claim positive EBITDA, but free cash flow never materializes.
As best I can tell, the free cash flow is disappearing into increased receivables. The 2014 revenues were up 20%, but the 2014 accounts receivable was up 28%. The difference might be our potential free cash. Now the question is whether they are just not managing AR correctly, or is there a problem with the business model for Media Attractions that makes them unable to collect cash as quickly as they spend it.