Hvide Marine HMAR - High Growth, Undervalued Message Board

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Non-Tech : Hvide Marine HMAR - High Growth, Undervalued

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To: Michael Burry who wrote (388)	6/1/1998 9:06:00 PM
From: Grommit	Read Replies (1) of 547

I hope they learned their lesson and do not do acquisitions until after they get the capital structure established -- i.e. issue the stock before making the acquisition -- or use stock for the acquisition. The 10Q lists the current maturities (principal) of the long term debt as $7.6 million, and principal and interest at $63.8 million for the year. (So interest must be $56 million.) Add around $7 million for capital and operating leases and $50 million for capital equipment for the year and they have $120 million of financing needs. Assuming working capital can remain level (and it should since they are already operating at the higher run rate -- with the acquisitions), they should generate $60-80 million from operations in qtrs 2-4 (fingers crossed). So they have interest covered with operational cash flow and some of the capital requirements. They seem to have over $75 million still available under existing lines of credit. If push came to shove I would bet they could privately place some equity at $20 a share if they had to. I do not like to see things this tight either. www4.edgar-online.com Check my math.

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