Question regarding MDR.
Why does MDR report a net cash position of 55 million in their press release? When in reality actual cash and investments is over 500 million? Seem to be a strange way to report, which in my mind has caused a lot of confusion and makes cash appear much worse then it is. Is this a standard practice for the industry?
This was taken from the press release:
"The company's net cash and investments at the end of the September quarter were $55.2 million, compared to $733.5 million at the end of the company's most recent fiscal year. Several factors contributed to the decline in net cash and investment for the six month period. The acquisition of the minority interest in J. Ray McDermott used cash
of $526.6 million. The unwinding of an
accounts receivable financing program used cash of about $55.0 million. Working
capital also required cash, including $69.7
million related to the settlement of non-employee products liability asbestos claims, net
of insurance proceeds. "
However, the 10q cash and investments reports 512 million in cash and investments. Minus the debt you get to the "net cash position" as below table reflects. My read is that MDR's cash position is much stronger then the press indicates.
Any comments?
KEY BALANCE SHEET STATISTICS
(In thousands)
- - - - - - - - - - - - - - - - - - - - - - -9/30/99 - - - - - - 3/31/99
Cash, Cash Equivalents and
.....Short-Term Investments….......$ 224,629 ….....$... 237,149
Investments …….……...………….287,530 ……...... 851,253
…...Total Cash and Investmts ......$ 512,159 ……..$.1,088,402
Notes Payable and Current
...Maturities of Long-term Debt.. ..$..133,847.............$...31,126
Long-Term Debt...............................323,162................323,774
-----------------------------------------------------------
Total Debt....,................................$..457,009...........$..354,900
-----------------------------------------------------------
Net Cash and Investments.............$...55,150.............$..733,502
Thanks,
Rory |
