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Technology Stocks : SEITEL (SEI) -- Ignore unavailable to you. Want to Upgrade?

To: Don Earl who wrote (411)	3/20/2002 1:51:57 AM
From: Don Earl	Read Replies (1) \| Respond to of 427

FOLLOW THE MONEY Seitel management likes to talk about cash flow, but they don't talk too much about where the cash comes from. Stock Notes Asset Credit Accounts Issued Outstanding Sales Lines Payable less buybacks Outstanding Outstanding 1994 $39.3M $8.2M $23.8M 1995 $7M $52.5M $3M $9.8M 1996 $11.2M $75M $9M $15.2M 1997 $44.1M $75M $15M $45M 1998 $1M $65M $85.5M $59M 1999 $2M $184.7M $11.7M $40.5M $35.5M 2000 $9.6M $166.3M $16.9M $40M $35.1M Current $4.6M $255M $10M $43.2M Total Change $118.8M $255M $28.6M $1.8M $19.4 Since 1994, Seitel has had to issue stock, debt and asset sales to the tune of $423.6 million to fund negative cash flow from operations. Yearly cash burn runs on average $60 million per year over the 7 year period. Historically, library data assets have to be replaced at nearly the same rate those assets generate revenue, yet they are depreciated at a rate in excess of 10 years. Considering Seitel's actual results, those expenditures are in fact a current expense, day in and day out, month after month, year after year. The company has not had a free cash flow positive year from operations in it's entire history.