Bearer of Bad news I have not posted for quite some time.... I recently dissected the operations at yellow media and here are the findings.,,
When people think about the survival or yellow media, we think of how fast is the online growing... They post that this year compared to last year, online growth was 29 percent. That is true, but then I looked closer and found out that in this current year, online sales were less than a growth of 10 mil. or about a 10-12% growth in the past year. What s disturbing is 2 things... How much did they invest to make their extra 10 mil for the whole year? and 2, how much has their expenses increased.?? Im sorry but online growth seemed to have slowed down while online investment has increased (very bad sign).
If you look at their expenses, they have also increased (more than 10 mil) so you can cancel out their Growth right off the top. I dont know why their expenses would have grown since.. They pay much less interest expense, They do not have to pay for near as much printing expenses, layoffs, closing of places, divestment of businesses.. etc.. STRANGE. if anything, our expenses should be down.. Well in one case it is. That is the div payments expense. But, once you factor in how much they would have paid out, our expenses would have increase quite a bit anyway.
Whats also concerning is that it is obvious 360 solutions is not working like they thought it would. It is pretty bad when tellier in the summer said that we would see a significant noticable increase in the 360 solutions to offset print errosion and what has really happened is the same in the past year.. consistent low growth. they know their plan is not working and now what to do??
Well, they say they are doing strategic financial planning!!!.. without guidance etc.. is a very BAD sign. It almost certainly means credit protection/ restructuring if they cannot convince their lendors to help them out.
What I never understood was why sell trader when Im sure if they woule have cancelled all div to commons and pref, to satisfy the banks a year ago, I honestly dont think they woule be in this situation. Trader was a growing business and profitable. What banks want to see is not how much debt you have, but how well you are managing your debt and what growing businesses you have. If yellow made the case, I think now they would be in a MUCH BETTER position to re-finance. Because now, what do they have? They thought selling trader would have been sufficient , boy were they wrong... AGAIN and AGAIN and AGAIN. What a bunch of JOKERS.
What I got a kick out of was.. Hey maille, Why did you pull that 238 mil (or whatever that number is)?, she responded as: "we prefer cash on hand" LOLOLOL, REALLY? you think people are that stupid to give us that answer? A COMPLETE LIE. She knows they are going to be in trouble, there was an obvious motivation to do so and they just keep lying to us all and thinking we are stupid.
Tellier, If you are reading this, You need to fire yourself and all senior management. Appoint innovative management ect... and perhaps, the banks might let this company stay affloat. FIRE YOURSELF as you have driven one of the most profitable companies to the ground and then some. This honestly will be in business school textbooks of exactly how to not run a company. WHY IS HE STILL THE CEO????/