I thought our Cash Flow was just fine? Where do you see Follett having issues as it relates to Cash Flow?
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"store revenue was likely off" is an understatement and future projections are not positive.
They have proven that you can't trust anything they say.
They also said the gate was open and bonuses were on track. That changed last week.
Where do you think the 50 million venture cap came from? All the new investments in POS and websphere? Really poor financial performance last year(ie no bonuses). The money comes from cash in bank/and cash flow from operations. Can they cut costs faster than the sales declines and new systems? That is the question and the only way to remain flat. Although previous leadership did a great job of no debt, that won't be the case going forward. But it never is in a declining industry.
Are your sales up or down? If they're down, are you acquiring merchandise at cost lower than your sales decline. Personnel are a wash. Some were paid severance while others were told to pound sand. Cost of benefits are much lower (however, who knows the value of the contract bringing the benefit package to Follett. No business expects less from its customer base, yet Follett shrunk itself). Does Follett have and investment business? The market has done well, so maybe the company made money off of that.
Bottom line is same store revenue was likely off. One may infer that revenues are off, too. If revenues are off, so too is cash flow.
Or, Follett is made up of the meanest executives ever and hurt hundreds of people who earned money for them all for a few dollars more.