We’re all singing “Happy Days are here again” right? Everyone has had their salaries restored to pre-mortgage meltdown rates, right? Your bonuses and commissions have all been restored by Mr. Foley right? Everybody is holding hands and singing “We are the World” at the Evil Empire, right? Oh let’s just quote the earnings call. During the earnings call Al Stinson said:
Open order counts continue to accelerate in October, as we averaged nearly 10,000 open orders for the first two weeks of October. We focused on moderate head count reductions during much of the third quarter eliminating about 850 positions. Despite a 16% sequential drop in closed orders and $101 million or 7% reduction in total title revenue, we were still able to generate pretax title profits that only decline about $13 million and an 8.9% pretax margin that was only a 30 basis points or 3% sequential decline from the second quarter.
Yep, Bill lopped off another 850 heads and turned in Q3 EPS of .32 per share to the Captains of Industry. Nice job asshat.
The Evil Empire continues to balance the books and bring profits to his Wall Street lords on the backs of the employees. Splendid. Restore your staff’s salaries, commissions and bonuses and THEN post profits for Wall Street. Any question that Bill Foley is a reprehensible character? Any question about his morally bankrupt business practices? Ask one of his employees, they’ll tell you.
You see a little bit of a food fight broke out when my pals over at AWB picked up on my pounding of the drums. They get why I have called for a boycott of Foley Wine Group. But they took it on the chin because the wine consuming public, or maybe it’s just a couple of morons that commented over there, don’t get why Bill Foley must be stopped. The thing in the Wine Spectator article that just jumps out at me is how Bill never said “I bought Sebastiani because I wanted to preserve a 104 year old tradition.” Nothing like that. He bought Sebastiani so that he would have more control over distribution. He never said and doesn’t give a crap about what kind of wine they make or the people who make it. It’s about distribution. So when some little wanker says “Oh he saved Sebastiani”, I say get a clue. Sebastiani’s time had run. Businesses have a life, and maybe Sebastiani was at the end of it’s life and needed to be laid to rest. Not to be further bastardized by a corporate raider. Mark my words, if he’s not stopped by the consumers, he will irrevocably change the wine industry forever, but not for the better.
Old Repulsive released earnings last week too. Well, earnings isn’t really the right word. The loss per share after an accounting adjustment was .20. They paid a .17 cent dividend per share so essentially they’re pretty close to stopping the bleeding. More importantly, they laid off less staff and retained more long term employees than any of the other title companies. They acted as if they knew business was cyclical and they had saved for that rainy day. They continue to behave in a much more admirable manner than any of their competitors. They have their problems, that’s for sure, but they don’t seem to bow to their Wall Street gods like Bill and Parker Kennedy do and here at PBE that’s a good thing.
The Bloodless Empire and Dinty Moore will be reporting on Thursday of this week. I will guess that one posts earnings the other doesn’t. Anyone want to venture a guess? I know, that was a softball. Speaking of softballs, this guy was truly the diameter of a softball. I saw him walking across the street, couldn’t believe it so I pulled over and snapped a picture, since I was up in Round Hill Country Club checking on one of our listings anyway and had the camera.