Wow. 88% dilution in one year and a quarter:
From the 10-K,
1996 shares outstanding = 12,495,161
1997 shares outstanding = 20,575,092
From the S-3,
1998 shares to be issued = 2,875,000
That's about 23,450,000 shares in total when this lot is sold,
or 88% increase from 12,495,161.
During that time, the stock price rose from about $8/share
to $29/share -- roughly a factor of six, considering dilution.
Debt dilution appears to be a winning strategy. (Unless you
expect the price to decline in response to this latest insult.
You don't, do you?)
1997's net loss was about $45 million, or about
$23.5 million before "extraordinary" refinancing item
of $21.5 million. From the footnote below, I guess another
"extraordinary" refinancing expense might occur in each
of the years 1998 ($67 million debt matures in 1999) and
1999 ($96 million debt matures in 2000).
Maturities of long-term debt (excluding the $22,555 aggregate principal
amount of the 13% Notes redeemed in January 1998) and future minimum payments
under capital leases together with the present value of future minimum rentals
as of December 31, 1997 are as follows:
LONG-TERM CAPITAL
DEBT LEASES TOTAL
--------- ------- --------
<S> <C> <C> <C>
1998............................................... $ 2,527 $ 3,498 $ 6,025
1999............................................... 67,054 3,129 70,183
2000............................................... 96,092 2,076 98,168
2001............................................... 1,118 1,523 2,641
2002............................................... 3,002 1,413 4,415
Thereafter......................................... 227,096 16,177 243,273
-------- ------- --------
396,889 27,816 424,705
Less amount representing interest.................. (14,690) (14,690)
-------- ------- --------
$396,889 $13,126 $410,015
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