I'm not conveniently leaving anything out. I'm encouraging readers to actually go look at the public financials and see if they line up with the "sky is falling" mentality held by so many ...
Oh, but you do and you continue to do so.
So let me help try to cure your selective amnesia by attaching below a screen shot of the
'public record' accounts you refer to and, by way of explanation, quote
an earlier post:
<<
… off topic, but briefly: both this link and the
Silverfleet release are worth reading. The key point related to the liquidity ratio (cash plus receivables as a percentage of short-term debt). In 2012, it was about 75% and declining. Today, after the buy-out, it's at a much healthier 104%, predictably. In other words, they're covered on a short-term annual basis for at least the next 12 months. With return on equity and profits up ( primarily due to the reduction in debt) the situation is much improved and changed - as is the ownership.
The dealers never missed an opportunity to regale you with the tired mantra of 'increasing sales, increasing profits' etc etc - was (and is) true. What they didn't say though (and possibly didn't know or suspect) was that these were not enough to cover the ever increasing short term debt, hence the crisis. Continuing to refer to it as 'aggressive expansion financing' coupled with claims that 'PhaseOne had been both profitable and growing since 2008' bordered on disinformation.
The Press release was suitably ambiguous, but was clear in one thing - the proceeds of the sale were to be reinvested in the company 'for a minority stake'. They were, the debt much reduced, hence the improved financial outlook today.
It was a straightforward 'buyout'. If anyone tries to tell you otherwise, just ask them one simple question : " In what way did selling a 60% stake, ceding both control and ownership, benefit the company and its shareholders as opposed to a simple capital increase - IPO or bond issue ? "
ps
Liquidity Ratio in Danish is Likviditetsgrad.
>>
Doug,
Today, the liquidity ratio is up to 175%, from the 104% quoted a year earlier. So even better. PhaseOne today is a rejuvenated company - everything from the XF rollout to the strategic alliances smacks of professionalism - a far cry from the Phase of a few years ago. The pricing strategy may have stayed the same but at least now there seems to be cohesion which wasn't always evident before.
Time to drop the spin and the denial - you don't need it anymore.