Silicon Investor (SI) -- The First Internet Community

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 : York Research (YORK) -- Ignore unavailable to you. Want to Upgrade?

To: Gunther Karger who wrote (794)	7/18/1999 5:27:00 PM
From: Gunther Karger	Respond to of 800

Comment on Projected earnings Projected net Earnings/share = (gross revenue - all expenses)/ present shares outstanding X VI where VI = growth in options grants. Options grants have been substantial over the years and reached 5% increase in shares just last year with the 3 million proposed options another 20% Expenses also are subject to significant change where just last year, the G/A increased by more than 30% thus negatively impacting earnings. Based on the trend, this will continue to increase. Last year alone, just increased benefits and salary increases of $1.1 million represented a 7 Cent/share reduction in earnings vs the earnings which would have been booked had management h eld this line item just unchanged from the prior year. The positive variable factor is a potential refinancing of the 12% bond but that savings will be negatively offset by a new round of refinancing costs to be amortized over the bond period. For example, last year, about $600,000 was amortized for this line item and this alone contributed a 4 Cent/share reduction. Another factor going forward in projecting the earnings is the impact of the next round of options and potential intereset free loans associated with these. If last year's granted options were exercized and the CEO used the "promissory Note at no interest" provision, that would create a $2.5 million effective loan at no interest. The interest alone represents an approximate 1 Cent/share earnings reduction while removing about $2.5 million from the cash assets of the company thus marginally reducing growth opportunities. What's the answer here for share value enhancement? It looks like either a corporate restructuring of expenses or a sale of the company where the present high yield loan and high rent Park Avenue office plus high corporate expense structure are significantly reduced. Could these factors explain the continued absence of street coverage i.e CSFB and others and a continued relative depressed share value and continued low institutional holdings level?

To: Gunther Karger who wrote (794)	7/19/1999 7:00:00 PM
From: Michael Stavy	Respond to of 800

Thank you for the details. I will miss your comments. What page of the 10-Q was this on? This is from the same May 31, 1999 10-Q: -------------------------------------------------------------------- The WestTexas LP, is a partnership in which a subsidiary of York is a 1% general partner and Primesouth Inc., a subsidiary of SCANA Corporation, is a 99% limited partner. Primesouth, Inc. purchased its limited partnership interest for a capital contribution which is being used to fund construction of the wind turbine facility as well as to pay York a fee for supervising construction and to reimburse York for certain expenses incurred in developing and constructing the project. ------------------------------------------------------------------ I do not know why York did not use its own funds (a ball park figure would be $6.6 million for 6.6 mW installed) and get the operating income and the Production tax credit (PTC) from the West Texas Partnership. The operating income would increase EPS and the PTC would increase the cash that York gets back from the Federal Government. While only a very, very minor York shareholder, I am a financial analyst of renewable energy projects and a member of the American Wind Energy Association.