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Re: Wave 10k 2011 - cash-related commentary and revised 2012 income expectation***

By: Cactus Flower in ALEA | Recommend this post (0)
Fri, 06 Apr 12 11:18 PM | 69 view(s)
Boardmark this board | The Trust Matrix 		Msg. 07231 of 54959
(This msg. is a reply to 07227 by tkc)
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Hi tkc,

The $2 1/2m's an estimate.

To my level of approximation, Q4,11 numbers showed:

Depreciation was $0.6m

Stock-based compensation was $1.4m

So that makes $2.0m.

I think it is prudent to allow an upside to that (eg due to increases in staff as the company grows), so $2 1/2m meets that criterion.

The extraordinary loss was not excluded from the EBITDAS calculation, and EBITDAS is not a proxy for a cash measure in this case. EBITDAS is net income less interest, tax, depreciation, amortisation and stock-based compensation.

If you exclude the one-off error, you end up with an EBITDASE loss of $1.8m.

That's the basis of my approximation of $2m per quarter cash burn rate before balance sheet adjustments. On the other hand, the BP deal is flattering if there is no equivalent inflow in any particular quarter. Maybe I should use $3.5m in the absence of a major deal. Then there's the new Dell contract variable with its probably negative immediate effect. But then the outflow number will also contract as SMA volumes increase.

Does this change your expectations of Q1,12?


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The above is a reply to the following message:
Re: Wave 10k 2011 - cash-related commentary and revised 2012 income expectation*
By: tkc in ALEA
Fri, 06 Apr 12 10:46 PM 		Msg. 07227 of 54959

Hi CF, a couple of ?s and a comment. 1st: (assuming cashless items run around $2 1/2m per quarter). Q4 Wave lost $4.863M and had a negative EBITAS of $2.78M. Doesn't that pretty much mean their non-cash expenses were the diff. or $2.083? 2nd: Wasn't the $1.03M for the acct'g error a non cash item and a one time expense? Not for sure but I think the answer to both is yes. If so that would suggest Q1's non cash expenses would be a little more than $1M.

Comment: My penciled in Q1 loss is still ~$5.6M. W/ ~$1M in non-cash expenses that would leave a negative EBITAS of ~$4.6M. Wave began Q1 w/ $3.4M in cash and added ~$2.4M from the ATM machine. No big deals were announced so likely no up front cash was rec'd. Not considering A/R and A/P deltas Wave would (re my figures) end Q1 w/ cash ~$1.2M. (BTW 12/31/11 working capital was negative ~$2.0M [p 30]) (A/R was $7.2M)


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