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Congrats to Tesla and Musk. The numbers are just insane: "The electric car-maker reported adjusted earnings of $2.90 per share on revenue of $6.82 billion, exc

by kumarm 8y ago

Congrats to Tesla and Musk. The numbers are just insane: "The electric car-maker reported adjusted earnings of $2.90 per share on revenue of $6.82 billion, exceeding average analyst expectations of losses of 15 cents per share on revenue of $6.32 billion."

tardo99 8y ago
What are "adjusted" earnings?
- fancyfish 8y ago
  They take the "official" accounting earnings and add back in charges they either 1) don't feel represent the true financial position or 2) are one-off charges. In this case they back out stock-based compensation (like most companies), turning GAAP earnings of $311m into adjusted earnings of $516m. Voila!
  - deleted 8y ago
    [deleted]
  - mandeepj 8y ago
    It can also include the fines payable after settlement with SEC
    - tanderson92 8y ago
      Worth noting that Tesla didn't really experience those losses due its special stock issuance to Musk to cover the portion of the fine that was due to Tesla. The only material effect to Tesla's corporate finances from that debacle was Musk now has more concentrated equity ownership of the company.
      - kgwgk 8y ago
        I think that money helps on the cashflows side, but not in the income statement.
      - erikb 8y ago
        > Musk now has more concentrated equity ownership of the company You mean Musk gained control through that, not lost it? How so? That's quite different an assumption from what I expected.
        tanderson92 8y ago
        Correct. Details can be found discussed in the "Tesla" section of this link: https://www.bloomberg.com/opinion/articles/2018-10-22/front-running-amazon-with-buildings https://www.bloomberg.com/opinion/articles/2018-10-22/front-... Yes, it's an interesting result of corporate mismanagement, that he gets to sign off (with board approval, but let's be honest about the control they have) on even more equity stake. However, he did have to give up the chairmanship, so overall he lost control of the company though in this dimension (portion of equity ownership) it is an interesting curiosity and contradiction.
- deleted 8y ago
  [deleted]
Dwolb 8y ago
Almost there but not out of the woods yet. Good: $1.3B cash from ops, $1B increase in receivables Bad: $2B current portion of debt coming due, $1.2B increase in payables Still need stellar numbers (and cash) in Q4.
- dragontamer 8y ago
  $2 Billion? I'm only aware of the $920 Million due in March 2019. Is there another major bond worth discussing? > $1.2B increase in payables That's a yearly increase. $500M-ish increase between Q2 -> Q3. I think its reasonable to expect payables to go up as they ramp up from 2000 M3/week to 4000 M3/week, but the number still gives me worry. I think you're right to worry about these numbers. But its important to worry about the CORRECT numbers.
  - btilly 8y ago
    Actually there are a lot of bonds outstanding Per http://ir.tesla.com/static-files/6db4f56e-1532-4cd6-b8dc-3ffbffe35e26 http://ir.tesla.com/static-files/6db4f56e-1532-4cd6-b8dc-3ff... they have $230 million due in Nov 2018, $920 million due in March 2019, $560 million due in Nov 2019, $113 million due in Dec 2020, $1,380 million due March 2021, and $977.5 million due in March 2022. Plus coupons on all of these payable regularly between now and then. By my count this totals $4.1805 billion. They claim to currently have $3 billion in cash and cash equivalents on hand. But there are various outstanding liabilities. Given a GAAP profit in the $300 million+ range this quarter, and a projected European market twice the size of the American one, this may all be doable. But it is still a balancing act.
    - dragontamer 8y ago
      A lot of companies have a lot of bonds out. Its not necessarily unhealthy to keep some debt around, especially through the 2013 through 2017 timeframe when interest rates were abnormally low. Elon will have to roll over the debt somehow: either into stock offerings or maybe into new bonds. The meager profits reported this quarter aren't anywhere near the amount they need to pay off those debts... even if the profits grow 2x or 3x larger in Q4 and Q1-2019. But, paying off some of those debts will put the company into a stronger position.

by kumarm 8y ago

tardo99 8y ago

What are "adjusted" earnings?

fancyfish 8y ago
They take the "official" accounting earnings and add back in charges they either 1) don't feel represent the true financial position or 2) are one-off charges. In this case they back out stock-based compensation (like most companies), turning GAAP earnings of $311m into adjusted earnings of $516m. Voila!
- deleted 8y ago
  [deleted]
- mandeepj 8y ago
  It can also include the fines payable after settlement with SEC
  - tanderson92 8y ago
    Worth noting that Tesla didn't really experience those losses due its special stock issuance to Musk to cover the portion of the fine that was due to Tesla. The only material effect to Tesla's corporate finances from that debacle was Musk now has more concentrated equity ownership of the company.
    - kgwgk 8y ago
      I think that money helps on the cashflows side, but not in the income statement.
    - erikb 8y ago
      > Musk now has more concentrated equity ownership of the company You mean Musk gained control through that, not lost it? How so? That's quite different an assumption from what I expected.
      - tanderson92 8y ago
        Correct. Details can be found discussed in the "Tesla" section of this link: https://www.bloomberg.com/opinion/articles/2018-10-22/front-running-amazon-with-buildings https://www.bloomberg.com/opinion/articles/2018-10-22/front-... Yes, it's an interesting result of corporate mismanagement, that he gets to sign off (with board approval, but let's be honest about the control they have) on even more equity stake. However, he did have to give up the chairmanship, so overall he lost control of the company though in this dimension (portion of equity ownership) it is an interesting curiosity and contradiction.
deleted 8y ago
[deleted]

Dwolb 8y ago

Almost there but not out of the woods yet. Good: $1.3B cash from ops, $1B increase in receivables Bad: $2B current portion of debt coming due, $1.2B increase in payables Still need stellar numbers (and cash) in Q4.

dragontamer 8y ago
$2 Billion? I'm only aware of the $920 Million due in March 2019. Is there another major bond worth discussing? > $1.2B increase in payables That's a yearly increase. $500M-ish increase between Q2 -> Q3. I think its reasonable to expect payables to go up as they ramp up from 2000 M3/week to 4000 M3/week, but the number still gives me worry. I think you're right to worry about these numbers. But its important to worry about the CORRECT numbers.
- btilly 8y ago
  Actually there are a lot of bonds outstanding Per http://ir.tesla.com/static-files/6db4f56e-1532-4cd6-b8dc-3ffbffe35e26 http://ir.tesla.com/static-files/6db4f56e-1532-4cd6-b8dc-3ff... they have $230 million due in Nov 2018, $920 million due in March 2019, $560 million due in Nov 2019, $113 million due in Dec 2020, $1,380 million due March 2021, and $977.5 million due in March 2022. Plus coupons on all of these payable regularly between now and then. By my count this totals $4.1805 billion. They claim to currently have $3 billion in cash and cash equivalents on hand. But there are various outstanding liabilities. Given a GAAP profit in the $300 million+ range this quarter, and a projected European market twice the size of the American one, this may all be doable. But it is still a balancing act.
  - dragontamer 8y ago
    A lot of companies have a lot of bonds out. Its not necessarily unhealthy to keep some debt around, especially through the 2013 through 2017 timeframe when interest rates were abnormally low. Elon will have to roll over the debt somehow: either into stock offerings or maybe into new bonds. The meager profits reported this quarter aren't anywhere near the amount they need to pay off those debts... even if the profits grow 2x or 3x larger in Q4 and Q1-2019. But, paying off some of those debts will put the company into a stronger position.