Hi Gary,
Nice numbers. More of the story here.
From what I can determine, a Form SC 13G/A (01/30/1997) indicates that M&MC sold 463,545 shares to PI, a holder of 2,559,977 shares, This increases PI's percent of class to 3.9% from 3.3%.
M&MC = Marsh & McLennan Companies, Inc., a TYPE HC reporting person (which I think means Holding Company).
PI = Putnam Investments, Inc., a type IA (which I think is investment advisor).
Sounds like someone wanted out and another, larger shareholder agreed to buy the shares at a depressed price.
There is also several Registration statements (S-3's) and one RW, a withdrawl of registration statement.
This sounds like confusion.
During 1996, several acqusitions took place. These are apparently not reflected in comparisons. What I can make of this, the actual comparison should be (for 3Q's ending Sept. 30, latest 10Q N/A on Edgar yet):
3 mos 1996 : 289M Rev. and 20M Earn. : +38% and +43%
3 mos 1995 : 210M Rev. and 14M Earn.
9 mos 1996 : 809M Rev. and 53M Earn. : +37% and +43%
9 mos 1995 : 590M Rev. and 37M Earn.
Do you know if the prior year is adjusted for the acquisitions in the full year numbers?
Securitization Program:
Never seen this before for companies outside of financial industry. Could be common practice, I just don't know. Apparently, they sell accounts receivable for cash up front to retire long term debt. It seems to act like a collatoralized loan, the LCI has to pay interest on the money until it is transferred to the entity making the loan. The transfer occurs when LCI collects on the account, and LCI assumes all credit risk for the payment of the accounts.
On the surface, this "sounds" fishy. The net gain to LCI is the difference between the long term and SP interest rate. In addition, net assets is decreased as is LTD. Again, this could be a standard practice.
That's all of the comment I have time for tonight.
I welcome you input.
Cheers,
Rich |
