MTH-What a JOKE!!!
April 28, 2008
– Comments (2)
How does a company miss earnings expectations a few days after a public offering? Don't you think the banks knew EXACTLY what earnings would be in order to file for the offering a few days ago? How this game continues is beyond rational thinking.
MTH was oh soooooooooooo desperate to raise the $83 million it skinned in the offering. It ended the quarter with only $26 million in cash and about $250 million in accounts payables and accrued liabilities.....AND THAT IS AFTER LIQUIDATING A BUNCH OF SPEC HOMES!!!!!!!
The CEO brags he paid down revolver debt. Maybe because payables stayed so high? The company could have just as easily paid down payables. Now every dime of that offering will go to paying vendors.....it could be gone already.
Not only that, now MTH has to spend hundreds of millions to build out homes it took orders on in
Q1. That means it will have to draw down on the revolver or raise even more money. Good luck as banks are getting tighter and tighter.
One more thing, MTH brags about its Texas centric model....maybe FloridaBuilder would like to elaborate how skinny the margins are in Texas?
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