5.5 mill EBITDA - thats "Earnings Before Interest, Taxes, Depreciation and Amortization" thats for the 2008 financial year - full stop, this includes first half losses.
EBITDA is a pointless metric - apart from the fact it makes CDR's reporting look better for the less informed.
Given CDR's large debt the interest charge for the second half will be around 15 million, then there's the depreciation and amortization (another 10 mill plus on the half year) and tax (not that they will have anything to tax). The first half saw the ITDA part of EDITDA at -$45 million. Then theres the impairment cost of a staggering - $193 million. So add on the second half interest and DA part and its a NPAT of around a -$256 million dollars. ( -45 plus -193 plus -15 interest plus -10 Dep & amor plus the 7 mill EBITDA - there will more than likely be more additional unspecified charges - wait and see).
CDR will record a huge loss for the 2008 financial year so unless your p/e is -5 I don't understand your math.
Noticably - "A common misconception is that EBITDA represents cash earnings." - It does not.
"EBITDA is often used as an accounting gimmick to dress up a company's earnings."
What happened to reporting NPAT? - cause it doesn't look good for CDR. No report of projected NPAT.
Cashflow positive is a good start - retaining and increasing earnings next. It's a long way out of this dark tunnel.
CDR Price at posting:
0.0¢ Sentiment: Sell Disclosure: Held
