Sinisgalli said that "if subscriber growth is as planned we would certainly have an earnings loss for fiscal 2000" and CKFR "could lose as much as 40 cents in EPS in FY2000 and still remain cash flow positive."
Charlie,
CF filed 8K report today.
freeedgar.com
I will be using use it as a source:
President and Chief Operating Officer Pete Sinisgalli explained that while plans were not yet finalized, he estimated that if the Company executed as planned, and subscriber growth was as planned, the investments would result in an earnings loss for fiscal 2000. "On the other hand," he said, "we are committed to maintaining positive EBITDA, and we could lose as much as about forty cents in earnings per share and still remain cash flow positive."
Wording could be more clear. This is the only place that mentions 40c. It doesn't sound as if CF expect to report 40c losses in Y2000 10K.
To me it sounds like:
1. If everything goes as planned, we will not get the earnings that we expected to see in Y2000, we are losing them. <38c?>
2. Still, EBITDA - Earnings Before Income Tax, Depreciation, Amortization <please correct if I'm wrong> will be positive or at least break even.
3. Even if we take 40c away from Y2000 earnings and spend them on our programs, we'll still remain cash flow < aka EBITDA?> positive.
I wonder how much is ITDA. This is the part that may show up as a losses in Y2000 10K. I wish I had better than vague understanding of accounting.
IF they don't report earnings, do they still have to pay Income Tax? It was mentioned on the thread that CF sold its real estate and now leasing its buildings. So, DA part will include mostly computers, software, furniture, etc. How much may it may cost in Y2000 10K: 5c, 10c? Sounds a little bit better than 40c. |
