It seems like Huntington National Bank may have to offer shareholders an opportunity to recover asset value or make plans to have better management put in place...
Unless John Regan didn't file sells then he still may have many shares...
**************************************** The bank hasn't informed shareholders why they did the REPO manuever ahead of the stated due date for the note yet either...Its odd that they moved ahead of the 08-03-10 date when PDGE showed reducing debt by something like 7 million dollars in the 9 months reported thru 10-31-09...
NOTE 4 — TERM DEBT The Corporation maintains a $14.5 million line of credit with Huntington Bank (formerly Sky Bank). The current interest rate on the line of credit is Prime plus 0.75% with a floor for Prime of 4.25% (at October 31, 2009, Prime was 3.25%). On October 31, 2009, the balance on the line of credit was $7.8 million with an unused availability, based upon the asset based lending formula of $0.3 million. The majority of the Corporation’s property and equipment are pledged as security for the above obligations. Effective May 14, 2009, the Company and Huntington Bank amended the loan agreement which resulted in an extension of the maturity date from June 30, 2010 to August 3, 2010; a change in the interest rate to Prime plus 0.75% (with a floor for Prime of 4.25%); and includes various covenants relating to matters affecting the Corporation, including the annual required evaluation of the debt service coverage ratio, debt to worth ratio, and tangible net worth. The Corporation paid approximately $650,000 and $636,000 for interest costs during the nine months ended October 31, 2009 and 2008, respectively. The Corporation’s mortgage on its Pittsburgh operating location is at an interest rate of 4.875% fixed until July 31, 2011, and during the remainder of the term will be adjusted to 2.75% above the 3-year Treasury Index every three years. On October 31, 2009, the balance on the mortgage was $206,000.
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PDG ENVIRONMENTAL, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Nine Months Ended October 31, 2009 2008 Cash Flows From Operating Activities: Net (Loss) $ (3,611,000 ) $ (1,533,000 ) Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities: Depreciation and Amortization 1,248,000 1,353,000 Deferred Income Taxes — (391,000 ) Interest Expense for Series C Preferred Stock Dividends and Accretion of Discount 484,000 779,000 Stock Based Compensation 145,000 312,000 Loss (Gain) on Sale of Fixed Assets (55,000 ) 6,000 Provision for Receivable Allowance 114,000 1,307,000
(1,675,000 ) 1,833,000
Changes in Operating Assets and Liabilities: Contracts Receivable 9,549,000 (8,185,000 ) Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts 1,866,000 (1,795,000 ) Inventories 6,000 54,000 Accrued Income Taxes (128,000 ) (249,000 ) Other Current Assets 2,675,000 1,017,000 Accounts Payable (2,280,000 ) 2,838,000 Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts 132,000 1,320,000 Accrued Liabilities (411,000 ) (528,000 )
Total Changes 11,409,000 (5,528,000 )
Net Cash Provided by (Used in) Operating Activities 9,734,000 (3,695,000 )
Cash Flows From Investing Activities: Purchase of Property, Plant and Equipment (136,000 ) (275,000 ) Proceeds from Sale of Fixed Assets 91,000 4,000 Payment of Accrued Earnout Liability — (100,000 ) Changes in Other Assets (103,000 ) (107,000 )
Net Cash (Used in) Investing Activities (148,000 ) (478,000 )
Cash Flows From Financing Activities: Proceeds from Debt — 5,549,000 Proceeds from Exercise of Stock Options — 2,000 Payment of Premium Financing Liability (2,477,000 ) (1,090,000 ) Principal Payments on Debt (7,218,000 ) (304,000 )
Net Cash Provided by (Used in) Financing Activities (9,695,000 ) 4,157,000
Net (Decrease) in Cash and Cash Equivalents (109,000 ) (16,000 ) Cash and Cash Equivalents, Beginning of Year 314,000 90,000
Cash and Cash Equivalents, End of Period $ 205,000 $ 74,000
Supplementary Disclosure of Non-Cash Investing and Financing Activity: Decrease in Goodwill and Accrued Liabilities for Earnout Liability $ — $ (126,000 )
Financing of Annual Insurance Premium $ 2,730,000 $ 1,313,000
Non-Cash Purchase of Fixed Assets Financed Through Capital Leases $ — $ 27,000
See accompanying notes to consolidated financial statements.
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Right now the bank appears the bad guy but shareholders have been wondering for several years why the company produced so much revenue and posted ongoing losses at the same time...
Maybe somebody found out some answers that brought about recent changes...
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