|Shares Out. (in M):||14||P/E||0.0x||0.0x|
|Market Cap (in M):||493||P/FCF||0.0x||0.0x|
|Net Debt (in M):||0||EBIT||0||0|
|(Figures in thousands)|
|Enterprise Value||$0||-||$10,000||Value of systems integration business implied by revalution of liability to Sony|
|Add: Cash from Assumed Options Exercises||14,062||14,062||All outstanding options; WAEP of $22.73|
|Add: Proceeds from Dispositions||181,000||-||181,000||$113 MM for Content Services; $68 MM for Creative Services|
|Add: Investments||96,906||-||96,906||Diversified corporate bond funds|
|Add: Income Tax Receivable||0||-||15,945||Unclear if this was included in one of the dispositions|
|Add: Net Operating Loss Carryforwards||0||-||26,592||$286 .2 MM of state NOLs and $30.9 MM of foreign NOLs|
|Less: Preferred Stock||0||-||0|
|Less: Non-Controlling Interest||0||-||0|
|Less: Non-Operating Liabilities||0||-||0|
|Series A Common Stock||13,556|
|Series B Common Stock||734|
|Effective Shares Outstanding||14,909|
|Value per Share||$38.30||-||$41.82|
|Margin of Safety - Equity||$34.00||11.2%||-||18.7%|
|Entry||12/03/2010 01:46 PM|
How long can he go without doing a deal and having a shell company with cash as an asset under SEC rules? Its basically a SPAC without the warrants now.
|Subject||RE: RE: Monitronics|
|Entry||12/08/2010 12:05 AM|
Olivia - Can you elaborate on the acquiring / amortizing relationships from dealers - are they capitalizing these purchases?
|Subject||RE: RE: RE: Monitronics|
|Entry||12/08/2010 12:39 AM|
It does seem that EBITDA is the wrong metric to evaluate Monitronics. The biggest line item is acquisitions of subscriber accounts - of which a large proportion seem to be maintenance related, rather than growth. For 2005 and 2006 the company invested ~200MM in acquiring subscribers while revenue grew by 18% from 165MM in 2005 to around 191MM for ttm of 2007 (EBITDA grew by less ~13% as cash margins dropped). A delta of 15 of EBITDA on the 2 year period implies a 7.5 cash on cash return (over 200MM investment) over two years. Granted economies will eventually improve margins and returns but still seems like an investment intensive model. There seems to be a lot of churn here, no?
On the 280MM in revenues and 185 EBITDA, if we assume D&A is around $133 or ~47% of revenues (as was in 2007), and assume 75% is maintenance (ballparking it based on cashflow statement), we get around $100 in EBIT. At $1 Billion still attractive if levered up appropriately and taxes are kept low. Do my assumptions / logic seem reasonable? Thoughts? These are all back of the envelop calculations, so I might be totally off.
Thanks for the idea....