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Non-Tech : Loewen Group -- Ignore unavailable to you. Want to Upgrade?

To: Daniel Chisholm who wrote (137)	4/2/1999 1:15:00 PM
From: Demetre Deliyanakis	Read Replies (2) \| Respond to of 277

Daniel It is good to have you on the board.Your analysis is helpful to this situation. I prefer to do "number crunching" analysis on this company rather than to make optimistic or pessimistic comments without support. I will try to answer your questions 1. NRV refers to the net realizable value of the assets or their estimated selling prices. Funeral homes are usually sold on a multiple of revenue basis. The prices for funeral homes in the U.S. have declined from 3 times annual revenue to 2-2.5 times annual revenue this year. If LWN's funeral homes were sold , they would probably get this price. Thus the estimated NRV would be : (millions U.S. Dollars) 6302-2.5= 1,260-1,575 The cemetary values are lower. I have calculated the NRV of the cemetaries based on the following data selling price 193 cost 495 loss 302 selling price / cost = .39 selling price book value of cemetery per sept 30 98 .39 * 1,475 575 another way to calculate the nrv of the cemetaries would be as a multiple of revenue selling price of cemetaries / revenue of cemetaries sold =193/ 114 =1.7 ratio * annual cemetery revenue 1.7 * 408 =694 =1.7* 408 =694 to summarize nrv of funeral homes 1,260-1,575 nrv of cemetaries 575-694 total nrv 1,835-2,269 long term debt 2,113 shareholder's equity (278) - 156 - preferred equity 75 common equity (353)- 81 thus, if we use a very conservative estimate of the sellling prices the it would appear that the bonds can be fully paid off,and that there would be little left for the common shareholders I hope this helps regards Demetre