RE: RE: Credit FacilityPoint taken about the CAPEX, however, when a company is struggling to survive, CAPEX can be delayed or reduced to emergency levels in order to conserve cash. In addition, salaries and wages can be frozen for a few years to reduce costs.
I have not included growth in revenues for the online media business, nor have I allowed for decreases in print. We are somewhat blind on the ratio. YLO says print media decline has stableized so I'm treating it as a 1:1 offset to growth.
Besides, if revenues will be down, then taxes will also be down. I think I've built in enough of a cushion in the interest costs and taxes ($30 million for each, in each quarter) to cover unexpected contingencies. As debt is repaid, interest costs go down.
The initial crunch will be the credit facility. The faster it iszeroed, the more likely it will be renewed at more 'favourable' rates.The credit facility can then be used as an emergency fund to draw uponfor critical debt payment periods. It should not be used as a credit card.
I'm comfortable with my projections, hence my additional investment. The coming quarter should give us a better picture, although there will still be a lot of noise in the numbers.