Dale, I'm just learning the ropes for reading a 10q, but to me, DTLN's looks like a disaster. Check the cash flow statement: No cash is not a positive sign.
Also, accts recievables were up a very large 43%. Not good. Long term debt is I haven't read through the notes yet, but imho, this thing is a mess. Long term debt up a whopping 60% from 58mln to 93 mln. Don't the people who are long read these things? This stock should tank!
Anyone else with thoughts?
---------------------------
Nine months ended September 30, 1998 and 1997
Unaudited 1998 1997
----------------------------------------------------------------------------------------------------------------
Cash Flows from Operating Activities
Net income (loss) $ (3,056,029) $ 1,418,980
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation and amortization 35,599,623 31,327,819
Amortization of debt issue costs and discount 592,251 110,909
Deferred income taxes (1,164,049) 710,500
Change in assets and liabilities:
Accounts receivable (1,271,026) (981,924)
Inventory 702,618 --
Prepaid expenses (448,538) (444,606)
Deferred commission expense 724,429 (352,865)
Accounts payable (932,060) 1,531,125
Accrued expenses 1,203,727 (415,492)
Equipment deposits (648,281) (25,512)
Unearned revenue 2,462,720 3,416,542
------------------------------------------
Net Cash Provided by Operating Activities 33,765,385 36,295,476
Cash Flows From Investing Activities
Capital expenditures
Equipment used by subscribers (17,028,323) (15,821,232)
Equipment and leasehold improvements (6,573,292) (2,371,040)
Acquisitions (28,170,659) (5,361,289)
------------------------------------------
Net Cash Used by Investing Activities (51,772,274) (23,553,561)
Cash Flows from Financing Activities
Proceeds
Revolving Credit Line 38,000,000 2,000,000
Term Notes 16,000,000 --
Exercise of stock options 2,568,645 909,643
Payments
Term Notes (24,398,926) (16,118,542)
Subordinated Notes (15,000,000) --
------------------------------------------
Net Cash Provided (Used) by Financing Activities 17,169,719 (13,208,899)
------------------------------------------
Net Decrease in Cash (837,170) (466,984)
Cash at Beginning of Period 837,170 708,053
------------------------------------------
Cash at End of Period $ -- $ 241,069
-----------------------------------------------------------------------------------------------------------------
See notes to interim financial statements.
|
