http://seekingalpha.com/article/4038085-gnc-living-well
Poor Asset Composition and Massive Debt
1.5 billion dollars in long term debt looms imposingly on GNC's balance sheet, a majority of which bears interest at variable rates. The largest loan, with a balance of 1.17 billion as of September 2016, matures in March, 2019. GNC lacks the assets pay off this debt in full. As of 3Q 2016, the company holds cash of $37.2 million down a staggering 77% from the same quarter last year. Additionally, inventory is up 13%, from $551.8 million as of 3Q 2015, to $621.9 million as of 3Q 2016. These trends are extremely concerning for a firm so highly leveraged. PPE and intangibles comprise a majority of the remaining asset balance, both which provide little utility in alleviating the company's liquidity issues. Management will likely make every effort to extend the maturity date on its note, but in order obtain favorable terms, they need to demonstrate operational and financial improvement. The firm could raise cash through the issuance of common stock, but doing so would severely dilute the value of shares currently outstanding.
資產組成不良和巨額債務
1.5億美元的長期債務強加在GNC的資產負債表上,其中大部分債務以不同利率計息。截至2016年9月,最大的貸款餘額為11.7億美元,到2019年3月到期。GNC缺乏資產償還這筆債務。截至2016年第三季度,該公司持有現金3720萬美元,比去年同期的77%下降驚人的。此外,庫存增加了13%,從2015年第三季度的55180萬美元增加到2016年第三季度的6.2190億美元。這些趨勢對如此高度槓桿化的公司非常關注。 PPE和無形資產佔剩餘資產餘額的大部分,這兩者在緩解公司的流動性問題方面幾乎沒有用。管理層可能會盡一切努力在其票據上延長到期日,但為了獲得有利條件,他們需要展示運營和財務改進。公司可以通過發行普通股籌集現金,但這樣做會嚴重削弱目前尚未支付的股票的價值。
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