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Tuscany International Drilling Inc T.TID



TSX:TID - Post by User

Comment by dbeaudeon Aug 10, 2013 6:08am
237 Views
Post# 21661120

RE:RE:FACTS from CC...Further Improvement in Revenue and EBITDA in Q3, Q4

RE:RE:FACTS from CC...Further Improvement in Revenue and EBITDA in Q3, Q4 Nice summary Veronika....TID needs things to go their way. Walter made it obvious that they will not be able to make their first annual debt repayment in Q4. We have to trust that that he pulls a rabbit out of his hat. He indicated that if they collected full payment from CYA that they would be in much better condition and pull away from the cliff considerably. On the EBITDA, was not the $14.1 million adjusted for one time items already. You appear to indicate that it would have been $4-5 million higher had it not been for these one time items. I do not remember hearing this but I stand to be corrected. I believe if they would have had an EBITDA net of one time items of $18-19 million, their share price would have gone up not down which would have extrapolated into nealy $80 million of EBITDA which would have been seen as easily servicing their debt and meeting their operating capex requirements as if this was the case, then Q4 would be likely well in excess of $20 million. I believe they also indicated that they should know the outcome of the HRT arbitration in 2014.
Really about $150,000 of stock traded hands yesterday which is peanuts and the price dropped by 17% which appears to me to be weak hands letting go of their shares.  
TID is not out of the woods yet, but easily could be if some things went their way on a full collection of the outstanding receivables, a surprise sale of the two heli rigs for ~$30 million or so or a lower cost debt structure with a longer amortization period. Some things need to go Tuscany's way other than utilization and day rates. Some very bad luck got them into this precarious position and some good luck would certainly help to get them out.

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