I suppose we can all infer opinions from different sources.
Some of us read the papers
Some of us have CET email addresses.
Some of us can just do match and know things are unsustainable
On Tue, Apr 8, 2014 at 9:45 AM, <lee.crowell@sbcglobal.net> wrote:
James Beam-
Respectfully- you are not understanding the situation correctly. What the poster pointed out were expenses from last year- not the actual debt. That added expense is caused by the debt, but does not represent 20% of the actual debt as you state. You are mixing balance sheet items (debt) with income statement items (expenses). If you take a close look at the financial statements, you will see that in general, even in AC, the properties make money- specifically look at the property EBITDA statistics- Earnings Before Interest, Taxes, Depreciation and Amortization. Las Vegas is actually doing pretty well, but AC is hurting them from an operations standpoint. But in a highly leveraged company, expenses are created by more than just operations.I have no love for Gary Loveman, but operationally the company is not doing too bad- it is the debt load and the expenses related to that that is causing the problems Part of that $3 billion expense appears to be from them writing down the value of their AC assets- again, caused by the over-payment during the buyout, not from ongoing operations. The LBO was done at the top of the market- they thought the revenue streams could pay the interest expense and pay down the debt. Bad timing. Why do you think Loveman still has a job in a company that is loosing so much money? Because the Board knows he is dealing with a difficult situation fairly well. Don't you think they would get rid of him in a heartbeat if they could find someone better to do the job? Yes- politics plays a part- he helped then get through the buyout, which has earned him some goodwill, but ultimately it is the bottom line that matters..Just my .02- Lee.
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