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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: SargeK who wrote (63516)	3/31/2000 8:42:00 AM
From: SargeK	Respond to of 95453

FGH - Cash Flow/Working Capital Looks Adequate & Back Log Improving "The Company believes that cash generated from operations, including the collection of recoverable income taxes, ($38.7 million at December 31, 1999), the settlement of certain recoverable contract claims, and funds available under the New Credit Facility will be sufficient to fund its requirements for working capital (including contract losses), capital expenditures, and other capital needs for at least the next 12 months and to remain in compliance with the new loan covenants." biz.yahoo.com Comment: The statement appears to answer the question of liquidity for the remainder of the year. BACKLOG: The report says - "The Company's backlog at December 31, 1999 was approximately $689.1 million, of which $353.9 million was related to contracts acquired through the HMG merger." This suggests that charges taken on the Ocean Rig project in 3Q/99 are included in the annual report; but, the $43.m in the upward revisions of these contracts (Jan'00)are NOT included. Also, the $199m in new contracts announced in Jan'00 would not be included. Thus, total CURRENT backlog may be calculated as $931.1m minus work completed in the current quarter (I'll guesstimate $150m based on recent history). If accurate, it appears the Company has turned the corner on backlog, has recognized all of the unprofitable contracts and the path to profitability is well in hand. I suggest that after everyone (interested in FGH) has had time to thoroughly review the report, we establish a list of questions which may be posed during the conference call. Good luck SargeK