Originally Posted by
homer985
Losses and FCF are not the same thing. The $100 million improvement could all be non-cash related. That would do no help to increase cashflow.
Yes, my $50 million in FCF for the quarter is conservative -- but there were a number of contracts bought out at the end of the year that could have a negative effect on FCF. Plus, with a lot fewer gross additions (bad economy), that too would have a negative effect on FCF. My $50 million estimate (really a guesstimate... not really based on much else), was due to the benefits of the synergies.
But even if you doubled it... it doesn't help Sirius out with working capital much for the quarter here. One of the items I left off the list above was CAPEX, which I read could be a factor this quarter too.
There is just too much happening too soon to this little company. If these expenses were more spread out, perhaps they'd be okay... but for now, they need a cash infusion to get around this Feb09 debt -- then they can focus on the Dec09 maturities.
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