Here are the numbers showing that PMWI will soon have negative equity:
* shareholders total equity was $22.9 M at the end of Sept.,
* earnings have averaged ($12 M) per quarter.
Extrapolating, that means they will have negative share
holders equity of ($1.1 M) by the end of the March quarter. And you
can verify by going to nasdaq.com that the NASDAQ requires
a positive 'net tangible assets', which is shareholders equity less
any intangible assets, of at least $4 M.
So I would expect them to do a private placement, on terms
unfavorable to existing shareholders, sometime before Mar. 31, or
at least before May 15 when they must file their 10Q for that quarter.
You can verify the numbers given above in this MarketGuide report:
PageMart Wireless Ticker: PMWI CUSIP: 69553J104
BRIEF
PageMart Wireless offers local, multi-city, regional
and nationwide paging and other one-way wireless services in
the U.S., Puerto Rico, U.S. Virgin Islands, and the Bahamas.
For the 9 months ended 9/96, total revenues increased 36% to
$153.6M. Net loss decreased 13% to $35.7M. Revenues
benefitted from the rapid growth in the number of units in
service. Lower loss reflects decreased S/G/A expenses as a
percentage of revenues, and improved gross margins.
*PRELIMINARY: For the quarter ended DEC 1996, revenues were
67,980; after tax earnings were -12,865.
RATIOS AND STATISTICS AT A GLANCE
(As of 02/07/97)
Price $ 6.69 Avg Monthly Vol. 1.263 Mil.
52W High $ 13.25 Avg Daily Vol. 0.024 Mil.
52W Low $ 6.00
Beta NA
TTM EPS $ -1.30* Ann. Div. Rate $ 0.00
P/E NM* Div. Yield 0.00 %
5 Yr High P/E NA 5 Yr Avg Yield 0.00 %
5 Yr Low P/E NA Last Dividend Decl. $ NA
Last Div Ex-Date NA
Last Div Pay Date NA
INSTITUTIONAL OWNERSHIP
# of Institutions 40
% Shares Out. Owned 64.73 %
3 Month Net purchases 1.89 Mil.
COMPANY COMPARISON
TO THE TELECOMMUNICATIONS AND S&P 500 AGGREGATES
COMPANY INDUSTRY % S&P 500
PROFITABILITY RATIOS:
Net Profit Margin -21.93* 8.03 -273.1% 9.87
Return on Equity -882.40* 22.15 -3,983.2% 23.10
Interest Coverage NM 4.72 NM% 9.09
VALUATION RATIOS:
P/E Ratio NM* 23.88 NM% 23.64
Dividend Yield 0.00 2.35 0.0% 1.91
Price to Tangible Book -2.41 6.11 -39.5% 7.17
Price to Book 11.62 4.85 239.6% 5.36
Price to Free Cash Flow -3.81 40.91 -9.3% 34.53
FINANCIAL STRENGTH RATIOS:
Current Ratio 1.48 1.77 83.5% 1.46
LT Debt to Equity 10.17 0.80 1,269.7% 0.73
Total Debt to Equity 10.17 1.00 1,012.9% 0.97
GROWTH STATISTICS:
3 Yr Rev Growth 112.86 15.49 728.6% 11.36
3 Yr EPS Growth NM 6.84 NM% 18.82
3 Yr Div Growth NM 8.98 NM% 10.37
Reinvestment Rate 100.00 62.05 161.2% 65.82
EQUITY
Class A Common $.0001 Par, 11/96, 75M auth., 39,736,438
issd. Insiders own approx. 65%. Mellon Bank, N.A. owns
approx. 10%, 2 others own 13%. Class B 3.8M issd., Class C
1.4M issd., Class D 725K issd. IPO 6/96, 6M shares @ $13 by
Morgan Stanley & Co. LTD: $95M @ 12.25%, $114.9M @ 15%,
$5.1M @ Prime + 4%, $10M in capital leases.
HISTORICAL QUARTERLY RESULTS
REVENUE
(Thousands of U.S. Dollars)
1995 1996
1st Qtr MAR 32,703 48,545
2nd Qtr JUN 37,283 49,117
3rd Qtr SEP 43,342 55,950
4th Qtr DEC 45,863 67,980*
EARNINGS PER SHARE
(U.S. Dollars per share)
1st Qtr MAR -0.400 -0.330
2nd Qtr JUN -0.420 -0.340
3rd Qtr SEP -0.390 -0.300
4th Qtr DEC -0.350 -0.320*
SELECTED INCOME STATEMENT ITEMS
(Thousands of U.S. Dollars)
ANNUAL YEAR TO DATE
12 MONTHS 12 MONTHS 9 MONTHS 9 MONTHS
ENDING ENDING ENDING ENDING
12/31/94 12/31/95 09/30/95 09/30/96
Revenue 109,833 159,191 113,328 153,612
Operating Expenses 143,157 182,539 132,772 162,793
Operating Income -33,324 -23,348 -19,444 -9,181
Non-Operating Income -12,489 -29,765 -21,644 -26,552
Non-Operating Expenses 0 0 0 0
Income Before Taxes -45,813 -53,113 -41,088 -35,733
Income Taxes 0 0 0 0
Income After Taxes -45,813 -53,113 -41,088 -35,733
Adjustments to Income 0 0 0 0
Inc. for Primary EPS -45,813 -53,113 -41,088 -35,733
EPS Excl. Xord Items -1.724 -1.533 -1.206 -0.977
Disc Opns + Xord Items 0 0 0 0
EPS Incl. Xord Items -1.724 -1.533 -1.206 -0.977
Avg Primary Shs Out. 26,574.00 34,653.00 34,110.33 36,684.00
Common Dividends/Shr 0.000 0.000 0.000 0.000
F.D. EPS Excl. Xord -1.724 -1.533 -1.206 -0.977
F.D. EPS Incl. Xord -1.724 -1.533 -1.206 -0.977
SELECTED BALANCE SHEET ITEMS
(Thousands of U.S. Dollars)
YEAR ENDING QUARTER ENDING
12/31/94 12/31/95 09/30/96
Cash & ST Investments 14,507 26,973 29,865
Receivables 15,584 21,503 32,305
Other Current Assets 14,306 14,059 20,906
Total Current Assets 44,397 62,535 83,076
LT Investments 500 500 0
Fixed Assets 31,697 52,827 81,565
Other LT Assets 65,465 147,967 146,919
Total Assets 142,059 263,829 311,560
Accounts Payable 16,451 23,094 22,802
ST Debt & Curr LTD 3,513 5,479 0
Other Current Liab. 18,002 27,935 33,313
Total Current Liab. 37,966 56,508 56,115
LT Debt & Cap Leases 92,632 219,364 232,576
Other LT Liabilities 0 0 0
Total Liabilities 130,598 275,872 288,691
Preferred Stock 0 0 0
Common & Paid In Capital 124,697 154,604 225,239
Retained Earnings -112,977 -166,090 -201,823
Other Equity -259 -557 -547
Total Equity 11,461 -12,043 22,869
Shares Outstanding 29,326 23,277 39,731
SELECTED STATEMENT OF CASH FLOWS ITEMS
INDIRECT METHOD (Thousands of U.S. Dollars)
ANNUAL YEAR TO DATE
12 MONTHS 12 MONTHS 9 MONTHS 9 MONTHS
ENDING ENDING ENDING ENDING
12/31/94 12/31/95 09/30/95 09/30/96
Net Income -45,813 -53,113 -41,088 -35,733
Depreciation & Amort. 18,139 39,594 28,616 37,664
Non Cash Items 6,590 6,135 4,627 4,610
Other Operating CF -4,444 4,471 6,366 -17,083
Total Operating CF -25,528 -2,913 -1,479 -10,542
Capital Expenditures -75,799 -107,985 -98,966 -42,546
Other Investing CF 6,714 -2,174 -2,568 379
Total Investing CF -69,085 -110,159 -101,534 -42,167
Dividends Paid 0 0 0 0
Sale (Purch.) of Stock 77,058 29,609 29,584 70,645
Net Borrowings 6,488 97,376 98,529 -15,027
Other Financing CF 0 -1,447 -1,386 -17
Total Financing CF 83,546 125,538 126,727 55,601
Exchange Rate Effect 0 0 0 0
Net Change In Cash -11,067 12,466 23,714 2,892 |
