Quote:
Originally Posted by signupdamnit
I only used them because they are about the only public porn company I know of. So you have published numbers.
To be fair to them I think most of their debt is to the old owners of the company for the purchase. According to CBS they were making $115 million in payments every year for that debt alone. They paid $500 million to purchase the company. http://www.cbsnews.com/8301-505123_1...tag=bnetdomain
Interesting comments btw on the 2011 CBS article at the end about advertising revenue. |
It looks like an average of about $90 million per year of that is just the interest on their massive debt. If their net income is averaging around $40 million, that is a pretty easy equation.
Of the company's $452.2 in assets, $390.6 is listed as intangibles. Odds are that most of that is Penthouse, meaning that they may make the assets portion look stronger with that acquisition, but the overall debt to equity ratio is kinda ridiculous, especially when one factors in their clear overpayment for the Penthouse brand. Those intangibles should be heavily impaired, if anyone were paying attention.