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Hat tip to BoomBustBlogger shaunsnoll for bringing this one to our attention. Unfortunately this one is for subscribers only, but can be accessed with a retail monthly plan. Here are the highlights of a company drowning in debt, barely able to be meet debt service, susceptible to a falling euro and facing gloomy prospects trading at multiples that are higher than all of its peers.

• The company has a high debt-to-equity of over 107% and a net debt-to-equity of over 111% as of quarter ended March 31, 2010.

• Interest coverage for 1Q2010 was low at jut over 1.ox, however higher than 1Q09. Annual interest coverage ratio has continuously declined from just under 2.8x in 2007 to about 2.6x in 2008 to less than 1.7x in 2009.
• The business can be hurt by a Euro drop, which is currently occurring at a historically unprecedented pace, as the company is expanding its business outside US (primarily in Europe).

• Approximately 15% of the debt is payable in 2010, which accounts for 76.0% of annualized operating cash flows for 2010.

• The Company’s ROIC over the last few quarters has been continuously declining except its recent improvement in 1Q2010. The Company’s weighted average cost of capital has been far higher than the recent figures shown for ROIC. What we have here is a classic case of destruction of economic value!

• Currently the share is trading at a very high P/E of over 35x. The share price has more than doubled over the last one year without any significant improvement in fundamentals

Subscribers may access the review here: 050510 Release Candidate