true to form, TLC captured all the revenue of recently acquired co's, but forgot to use the full number of shares issued in the buy out...ah yes it's perfectly legal because GAAP interpretation allows for this if you want it to...mind you TLC isn't the only co doing this!!!
why with 60% of titles with coupons attached, rebates should be higher...they were higher for Brod & CD.
here's another glitch in the accounting,
if 20% of revenues are returns, where did TLC account for this?
it appears the 20% is netted with receivables on the balance sheet,
but the operating stmt claims all gross sales as revenue, boosting eps? if 20% is stripped out of the op stmt, there goes your $25 m...
well I guess that explains where all the money really goes...
there isn't any generated!!!
cash is actually generated when TLC issued surplus warrants on the CW deal, increased their short term borrowings and is depending on the cash Brod saved to improve ratios.
so oh wiseone,
why doesn't TLC clearly state that only net revenues are used in the op stmt? and please do not say it's standard industry practise, because we know the auditing firms don't care and other companies have
often done this, with the eventual blow up....remember CUC, SunBeam |
