The loss widens to $518.9 million after amortization costs, which reflect how much owners paid to buy their teams.
It's easily the most profitable company on the planet: This year, after amortization of capital expenses, it should net upwards of $250 billion on $300 billion in revenue.
While results are closely held, Aramco stands to net, after amortization of capital costs, roughly $200 billion a year on revenue in excess of $350 billion.
What about net income after depreciation and amortization, and after interest (Libor plus 1.4%) on $900 million in debt?
Vedanta's deal, for instance, prompted a ratings downgrade, as it increased the company's net debt to 4.5 times the expected 2010 earnings before interest, taxes, depreciation and amortization after the acquisition, from around 0.4 times currently.
Even after subtracting depreciation, amortization and restructuring charges, Omnicare earned four times the interest expense.
An extension of the model, and arguably a more realistic description of business practice, may consider the effects on option premiums where Non-Performing Loans resume amortization after becoming thirty-days past due.
The ratings agency projected drops in sales of 10.0% this year, while earnings before interest, taxes, depreciation and amortization after buyouts and excluding certain operations will drop 30.0% to 35.0%, with only slight improvements in 2010.
Net income in the third quarter, after good will and amortization, fell to $151 million, or 46 cents a share, from $181 million, or 85 cents, in the period a year earlier.
At that time, the company reduces the employee's paid-in capital option account to zero, writes off the $500 remaining on the prepaid-compensation balance sheet (after the year-two amortization had been recorded), and recognizes a gain on the income statement of $400 to reverse the two prior years of compensation expenses.
The analysts forecast 2 cents a share of net; the result (after noncash compensation and amortization) was 54 cents.
