RE:Cannery in the coal mine Jimmycash wrote: The canery in the coal mine is the 50M of current debt as in " pay in the next 12 months" thats on their books. That is owed before any unexpected or one time expenses like another law suit or more severance pay are added.
So 67M in bank as of Dec 31, 2022, 50M owed this year plus portion of long term debt
Lets see.....
ITS lost 27M last year and is not expected to totally turn around before mid 2024.... so if Wilan does not have another Apple like year and say....breaks even...or like most years is in the red between windfalls
COMPANY IS IN A WORLD OF HURT...WHAT A SHAME!!!
cut the dividend? sell shares? going to cause pain. long term debt non- compliance...ouch!!!
Sell Wilan?? Thats the only thing holding them up right now...how long to burn through another 100M from the sale and no more cash cow.
Seems like either ETC is not the profitable company we thought we were getting for our 150M or Bret got too many losing contracts that are sinking the ship.
Time to bail
Not only was current debt on the balance sheet $29M, but they stated in the conference call that the lender waived the covenant that made it "current", so most of it should revert back to long term next quarter.
The rest is working capital, which consists of assets of $78M (AR, Unbilled, Inventories) vs liabilities of $56M (AP, Deferred revenue).
Time to hone up your balance sheet reading skills.