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Did anyone here realize that the company guided

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Traderfan Member Level  Saturday, 10/31/09 10:24:07 PM
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Did anyone here realize that the company guided more than 8 dollar in EBITDA profit for 2010?? That is a huge number.

In the beginning I didn't even realize that there is such a huge difference between net income and EBITDA for 2010. I was only looking at the net income (4 dollar) which is obviously a mistake sometimes.

In the last few days I took a more in depth look why they could have so much difference. Obviously it looks like they have to start paying taxes but from all I read it will be only 15% for companies like SBAY because they get a special tax rate from the province.

So what else could be the reason? I assume depreciation/amortization could also be a reason and I'm not sure yet if there is that much to depreciate next year. Furthermore Drexion pointed out that it could be some hefty one time charges for financing or other stuff due to their restructuring and growth. Who knows but apparently that is very strange. I actually hope that it will a lot of depreciation/amortization because that would mean our cash flow will be huge.

If anyone has a possible proper explanation for the huge difference just tell me.

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