Magna - one step away from bankruptcy ??

Originally Posted by SentToStud

Annual Financials
Mar 2006 Dec 2005 Dec 2004 Dec 2003 Dec 2002
Revenues $668 mil $625 mil $732 mil $709 mil $549 mil
Net Earnings $-99 mil $-105 mil $-96 mil $-105 mil $-14 mil
Net EPS $-0.92 $-0.98 $-0.89 $-0.98 $-0.14
Pre-tax Margin -16.2% -16.6% -13.3% -23.1% -4.2%
Net Margin -14.8% -16.9% -13.1% -14.8% -2.6%
EBITDA $-11 mil $-28 mil $-8 mil $17 mil $23 mil
Long-Term Debt $522 mil $517 mil $484 mil $340 mil $190 mil
Current Assets $ 273 mil $225 mil $149 mil $174 mil $163 mil
Current Liabilities $385 mil $324 mil $196 mil $184 mil $177 mil
Common Equity $468 mil $460 mil $579 mil $657 mil $721 mil


They're losing $9 million a month.

thanks stud, it looks like there current expeneses are funded by credit, look at the increase in long term debt,
the rebuiding of gulfstream may push them into bankruptcy.

it looks like the only asset they have is their Net operating loss carryforward income tax benefit.
$400 MILLION DOLLARS in NOL carryforward is $125 million in prepaid tax.

this is just awefull ....
they need 100 million more to operate a year, or 9 million more revenue a month.

where they gonna get that ???

at 25% take out, they need to increase their gambling handle
36 million dollars a month.

or...

they need to cut 10 million a month in expenses,
or 2.5 million a week. what can they not spend 2.5 million a week on that they currently are spending.

this is not a healthy financial statement summary,
in fact this is a picture of a company that you do not want to invest in. you could not audit this company and attach any thing other than an qualified audit report with a going concern clause.

they need investors

uh oh.........

[jpops757]

MEC has accomplished what they want, a reason to go to the states for leagalization of slots for all of ther tracks. Another step in there goal of a 5 star casino that has a racetrack. Creative bookkeeping.

Originally Posted by jpops757

MEC has accomplished what they want, a reason to go to the states for leagalization of slots for all of ther tracks. Another step in there goal of a 5 star casino that has a racetrack. Creative bookkeeping.

when you say to others your company is not a going concern,
the days of crerative bookkeeping have passed you by already.
the creative bookkeepping prolly took place a couple years back,
now they are in trouble.

going concern to an auditor is like my house is on fire to a fireman

And people jump ugly on NYRA? You have got to be kidding me.

[SentToStud]

Originally Posted by Secretariat

thanks stud, it looks like there current expeneses are funded by credit, look at the increase in long term debt,
the rebuiding of gulfstream may push them into bankruptcy.

It's generally not a good situation when debt and liabilities are the only items growing.