Comments on: Local Matters Moving Toward IPO http://staging.blog.biakelsey.com/index.php/2006/03/22/Local-Matters-Moving-Toward-IPO/ LOCAL MEDIA WATCH. The Nexus of All Things Local Mon, 01 Jun 2015 22:23:47 +0000 hourly 1 https://wordpress.org/?v=4.2.39 By: blahblah http://staging.blog.biakelsey.com/index.php/2006/03/22/Local-Matters-Moving-Toward-IPO/comment-page-1/#comment-738 Sat, 25 Mar 2006 00:00:00 +0000 #comment-738 from 20 minutes reasing the LMI S-1, here’s what I see…

-There’s a $65m loss that won’t be treated as a NOL due to IRS regs.

-Consolidated revs of $8m (most of that through their acquired companies) in 2005 with a loss of $19m.

-Small # customers, disproportionate share of revs tied to a handful. Contracts can be nullified with 60 days’ notice by either party.

– 1/3 to 1/2 of the proceeds will be used to retire debt. This gives LMI enough cash for 12 months of operations

– One director has a $18k/month (no typo) car service expense.

– CEO’s base is $270k

People, this isn’t 1998! Massive SG&A expenditures, unreasonable expenses, no earnings with high exec salaries don’t send a good message…What am I missing? Wouldn’t buy this with a 10’ poll!

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