Hvide Marine HMAR - High Growth, Undervalued Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Robert T. Quasius who wrote (390)	6/2/1998 10:37:00 AM
From: Grommit	Read Replies (1) of 547

Just talked to CFO. He was gracious and candid. We talked for a surprising long time. He said that at the stockholders meeting the point was made that HMARs supply boat exposure to the gulf was around 35% based on EBITDA. The point being that the exposure is less than one might think. (I think it is around 25% if based on revenue.) Repeated that they are comfortable with the quarter's EPS. Said that supply boats are going out in the gulf at rates in the high $79xx right now. And no trouble placing them at that price. No boats idle. Looking at redeploying 2 boats from the gulf. Always willing to optimize margins by moving boats. So if things got worse, they would move more boats. On the rumor side -- he has heard that TDW has a few idle boats. Does not know for sure. Has heard that a couple of rigs have moved from the gulf and maybe one is idle. Rest of World is still strong. Talked of cash flow and debt servicing. They have over $75 million of available credit line. They will generate $160 million EBITDA (which he uses as cash flow) in the year. Confirmed that working capital increase in Q1 was one time deal related to acquisitions. Interest on debt plus principal is around $65 million per year. So the cash flow from the business comfortably covers it. Mentioned that the preferred dividend is able to be withheld for 5 years also if they ever need to. Said that the revenue run rate is slightly under $100 million per qtr and cash flow is $40 million. That sounds good, doesn't it? Obviously, he is not impressed with the stock price. He mentioned that employees and mgmt are buying stock at least via the employee purchase plans. Would not tell me what dayrate assumption is used to get $2.20 EPS for the year. Anslyst can talk specifics but the company cannot, he explained. He is aware of what dayrate assumption analysts have in their models and if I talked to them, their dayrates are under present dayrates.... etc. reassuring but not terribly satisfying.... sigh

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next