There is a very good chance that they set up as accounts receivable contracts for up to a year in advance in prior quarters...
look at their accounting policy- its very hard to read- but allows such
so what does this mean if true?????
- a lot more bad debts if you call them that, in fourth quarter as contracts get cancelled or changed
-as rentals for fourth quarter and first quarter in 2013 may have already been set up in a/r and by definition included in IBITDA already in first three quarters 2012 then cash flow and earnings for fourth quarter will be sick in a word-
the company needs to state to analysts and public whether they have set up rentals in advance- what is their accounting policy on this????
this is the number one question
the answer will come out in audited financials- but that is not until March- until then you should go to Vegas
I am just speculating, but me thinks they set up contracts in advance- and that is the explanation for huge amount of receivables- the bad debts, and if true the next quarter will be a true disaster, as most of the rentals have already been recognized months earlier.