I'm reading into this company & they claim they haven't used a dime under their multi-hundred million $ credit facility, but they report the full amount as a liability. I look further back and they reported this full multi-hundred million $ credit facility onto the cash flow statement, which took them from a very negative cash position to a seemingly healthy one. Then, that cash flow number shows up on the balance sheet so there's the offsetting multi-hundred million $ asset to match the liability.
They're claiming they have x amount of cash plus the full multi-hundred million $ credit facility, apparently to show they have no problems meeting cash committments in the near term. I've found this practice common in this high dividend paying industry. Obviously there are going concern issues if the company has a negative cash balance & are funding huge dividends with a loan they claim to not have drawn upon.
Something very curious is last quarter's 10-Q had a cash flow statement included. They've filed this as an 8-K and changed from cash flow to another industry cash accounting method which I believe is non-GAAP.
Is there anything that immediately jumps out to you as something I've missed? Also, for lawyers, what are the legal concerns involved with buying large options with the intentions of making money after letting this sort of info out?
They're claiming they have x amount of cash plus the full multi-hundred million $ credit facility, apparently to show they have no problems meeting cash committments in the near term. I've found this practice common in this high dividend paying industry. Obviously there are going concern issues if the company has a negative cash balance & are funding huge dividends with a loan they claim to not have drawn upon.
Something very curious is last quarter's 10-Q had a cash flow statement included. They've filed this as an 8-K and changed from cash flow to another industry cash accounting method which I believe is non-GAAP.
Is there anything that immediately jumps out to you as something I've missed? Also, for lawyers, what are the legal concerns involved with buying large options with the intentions of making money after letting this sort of info out?
