Fountain Files Chapter 11 Bankruptcy
#61
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You are correct, however, after taking a quick look at their financials, they are bleeding cash and have maxed out debt. The companies "assets" are tied to making good on the loans to acquire their facilities/equipment, which they have now admitted they can't pay by filing ch 11. With a trustee appointed by the court, there will have to be either a viable change in business plans, an acquisition, liquidation, or combination of those 3. In todays economy, no business in its right mind would buy a company and its assets while it is unprofitable, especially when they already went into ch 11. Some larger brand will wait for it to fail to emerge from ch 11 and then will buy the name on the cheap when the debt and assets (inventory, as all cash will be gone) are gone to the lenders. I think it's terrible for the employees and dealers and all related to the situation, but i think Fountain as we now know it is done.
I think its amazing that a company that sold a quarter billion dollars in boats over the past 4 challenging years is on the block for a handful of millions -- and they for certain won't get that.
Its funny how bad political policy -- policies that clearly make no sense (e.g., tax less, spend more, and cut personal taxes of high earners so its less taxing to such all the capital out of a company than to leave it in the company) come back and destroy those that boost such idiocy. Sorry, Reggie, but being a Republican can't save you from the parties idiocy. Everyone pays for those self-delusions.
Responsibility is the only way. Funny how the party that claims that everyone needs to be responsible for themselves is the least responsible with political power. Yup, liars never prosper.
How did that bunch of obscene liars ever claim moral high ground?
#62
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"For the three and six months ended December 31, 2008, the Company’s other comprehensive losses were $412,678 and $421,322, respectively. These amounts, together with net income or loss during the three and six months ended December 31, 2008 result in total comprehensive losses of $3,591,263 and $3,518,138, respectively. For the three and six months ended December 31, 2007, the Company’s other comprehensive losses were $161,045 and $318,910, respectively. These amounts, together with net income or loss during the three and six months ended December 31, 2007 result in total comprehensive losses of $926,100 and $810,586, respectively."
That is straight from their SEC filing 10-Q.
In a nutshell...they're done unless someone buys the name (they will, but they'll let the bank eat the assets and debt first). They're bleeding cash (appx 3 mil) and have over 18 mil in long term debt ($ they took a long time ago) coming due. the most interesting thing in there is the "general and administative expenses" payout about 800-900k per quarter...a general indicator that would be an easy way to pay yourself without calling it salary or bonus (but thats just speculation on my part)
That is straight from their SEC filing 10-Q.
In a nutshell...they're done unless someone buys the name (they will, but they'll let the bank eat the assets and debt first). They're bleeding cash (appx 3 mil) and have over 18 mil in long term debt ($ they took a long time ago) coming due. the most interesting thing in there is the "general and administative expenses" payout about 800-900k per quarter...a general indicator that would be an easy way to pay yourself without calling it salary or bonus (but thats just speculation on my part)
The thing that has always struck me as being odd, very odd, about FPB financials is: Why are their cost of sales so high? Those numbers simply make no sense to me, never have. They seem about TWICE what a well run company should be. What is buried in "cost of goods sold?"
While the company has a lot of debt, their debt service is low (low interest): less than $1M against costs of goods sold of maybe $50M or $60M. And these very high COGS have been there forever (15 years of SEC filings). Way over industry standard costs. Its clearly not the debt load that killed Fountain Powerboats. So shedding the debt is not the issue.
Where does all the money go? Is it the much too large plant?
They always call out racing, fishing tournaments, and airplanes. So its certainly not the obvious stuff (adds up to maybe $3M per year, 5% of those COGS).
Bizarre...
#63
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I am in discussions with a few billionaires (members of my yacht club, and my best man) about if Fountain could be a good investment. The very rich were not hurt in this downturn: they knew the "tax less, spend more, send trillions to the middle east" Bush concept was a short term play, and they played it so: they pulled out 12 months or less before Bush was done. Its all the poor suckers (the common rich) like you and be who kept their money in 401Ks, commercial real estate, and/or private corporate holdings "for the long term" that took it in the net worth. We'll see who ends up with Fountain, I expect it will be one of my buddies.
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But there customer service has not been that great for me. They take forever to get back with you they wont return emails or phone calls.
You have a great boat. I dont know were you bought it. I think that was your boat there the same time mine was april or may 09 I saw one like yours in one of the back buildings I think. They do need to do some improvements in order to get people to come back and refer them.
I do love the product, but when your trying to get your boat ready for the summer it gets old calling 8 or 10 times a day only to not get in touch with anyone all day and recieve a call back for two, three or four days later. I could not stay in business with what I do if my customer service was that bad.
Hell may be its me and I just like some anwers while I am doing business with someone.
#66
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I realize that all you idiots who voted for Bush even though he is clearly the worst President in US history have somehow forgotten that this entire economic meltdown happened on his idiotic watch.
But come on, do you have to keep proving to everyone else how retarded you are? Just keep your past mistakes to yourselves, move on. Mistakes happen. You made a REALLY BIG one that all these boat companies are paying for, but you made it. Move on. Sure, the lives and fortunes of many people were destroyed by his idiotic policies (spend more, tax less). But in the long run, we will all get over that disaster. Might take awhile, and a lot more people losing everything they ever worked for, but we'll get over it.
But really, please stop embarassing yourselves. Bush did this. Obama might barely be able to get us out of this mess, he's doing the right stuff so far. But Bush broke this economy. Don't be an ass.
But come on, do you have to keep proving to everyone else how retarded you are? Just keep your past mistakes to yourselves, move on. Mistakes happen. You made a REALLY BIG one that all these boat companies are paying for, but you made it. Move on. Sure, the lives and fortunes of many people were destroyed by his idiotic policies (spend more, tax less). But in the long run, we will all get over that disaster. Might take awhile, and a lot more people losing everything they ever worked for, but we'll get over it.
But really, please stop embarassing yourselves. Bush did this. Obama might barely be able to get us out of this mess, he's doing the right stuff so far. But Bush broke this economy. Don't be an ass.
Thank you, Diane Sawyer..........
#67
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I realize that all you idiots who voted for Bush even though he is clearly the worst President in US history have somehow forgotten that this entire economic meltdown happened on his idiotic watch.
But come on, do you have to keep proving to everyone else how retarded you are? Just keep your past mistakes to yourselves, move on. Mistakes happen. You made a REALLY BIG one that all these boat companies are paying for, but you made it. Move on. Sure, the lives and fortunes of many people were destroyed by his idiotic policies (spend more, tax less). But in the long run, we will all get over that disaster. Might take awhile, and a lot more people losing everything they ever worked for, but we'll get over it.
But really, please stop embarassing yourselves. Bush did this. Obama might barely be able to get us out of this mess, he's doing the right stuff so far. But Bush broke this economy. Don't be an ass.
But come on, do you have to keep proving to everyone else how retarded you are? Just keep your past mistakes to yourselves, move on. Mistakes happen. You made a REALLY BIG one that all these boat companies are paying for, but you made it. Move on. Sure, the lives and fortunes of many people were destroyed by his idiotic policies (spend more, tax less). But in the long run, we will all get over that disaster. Might take awhile, and a lot more people losing everything they ever worked for, but we'll get over it.
But really, please stop embarassing yourselves. Bush did this. Obama might barely be able to get us out of this mess, he's doing the right stuff so far. But Bush broke this economy. Don't be an ass.
Got to love the Left-Wing wack-jobs! Go puff some more off that pipe......
#68
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I am in discussions with a few billionaires (members of my yacht club, and my best man) about if Fountain could be a good investment. The very rich were not hurt in this downturn: they knew the "tax less, spend more, send trillions to the middle east" Bush concept was a short term play, and they played it so: they pulled out 12 months or less before Bush was done. Its all the poor suckers (the common rich) like you and be who kept their money in 401Ks, commercial real estate, and/or private corporate holdings "for the long term" that took it in the net worth. We'll see who ends up with Fountain, I expect it will be one of my buddies.
You obviously need to look further back and realize that the economic and political cycles can begin decades before you see the bubbles burst.
#69
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According to Crash, if Bush had just taxed us more we would've been ok. With economic advice like that, I have to doubt that you belong to a club or that you have rich friends.