POST HOLDINGS RISKS INSOLVENCY: $1 BILLION ANTITRUST LIABILITY, $4.6 BILLION DEBT & $306 MILLION ANNUAL INTEREST EXPENSE
Posted on 21 November 2016
Robert Vitale CEO of Post Holdings (“Post”) since November 2014 has grown principal outstanding debt to $4.6 billion as of 30 September 2016.
With (“Post”) revenue declining by 6% in the Q4 2016 on a comparable basis to Q4 2015, a loss of $37 million reported in Q4 2016 and (“Post”) largest business Michael Foods reporting in the (“Post”) 2016 10K revenue will continue to decline in 2017 and (“Post”) locked in antitrust lawsuits with plaintiff claims exceeding $1 billion, (“Post”) is heading towards insolvency in 2017.
From left to right: Robert Vitale CEO at ("Post"); and William Stiritz Chairman at ("Post")
10 REASONS WHY NOT TO HOLD ("POST") STOCK IN 2017
POST HOLDINGS, INC 2016 FORM 10-K
(From page-11) Loss of a significant customer may adversely affect our results of operations.
The success of our businesses depends, in part, on our ability to maintain our level of sales and product distribution through high-volume food distributors, retailers, super centres and mass merchandisers. The competition to supply products to these high-volume stores is intense. Currently, we do not have long-term supply agreements with a substantial number of our retail customers, including our largest customers. These high-volume stores and mass merchandisers frequently reevaluate the products they carry. A decision by our major customers to decrease the amount of merchandise purchased from us,sell a national brand on an exclusive basis or change the manner of doing business with us could reduce our revenues and materially adversely affect our results of operations. In addition, our customers offer branded and private label products that compete directly with our products for retail shelf space and consumer purchases. Accordingly, there is a risk that our customers may give higher priority to their own products or to the products of our competitors. In the event of a loss of any of our large customers, or the bankruptcy or serious financial difficulty of any of our large customers, our sales may be adversely affected.
(From page 17) Risks Related to our Indebtedness
We have substantial debt and high leverage, which could have a negative impact on our financing options and liquidity position and which could adversely affect our business. We have a significant amount of debt.
We had $4,600.3 million in aggregate principal amount of total debt as of September 30, 2016. Additionally, our secured revolving credit facility has borrowing capacity of $388.2 million at September 30, 2016 (all of which would be secured when drawn). Our overall leverage and the terms of our financing arrangements could: