Public Companies in Deep Debt

Barbara Miracle | 6/1/2009

As the economic downturn has deepened, many companies among the Florida Trend 350 find themselves dealing with both pressure on their revenues and big carrying charges on their debt. Some have landed among 283 companies that Moody’s Investors — a credit ratings, research and risk analysis service — cites as debt-troubled. The companies on Moody’s “bottom rung” list haven’t defaulted and many won’t — the list just identifies those most likely to default.

Following is a rundown of Florida public companies on Moody’s list for the first quarter. Included is information from the companies’ own reports on some of the circumstances that have contributed to their difficulties.

AirTran Holdings (No. 24) Orlando

While lower costs from fleet and route adjustments allowed Orlando-based AirTran to post a record first-quarter profit, its revenue was down 9.1% from the year-earlier period. As of the end of March, the company’s long-term debt totaled nearly $1 billion, of which $798.1 million was related to aircraft. The company says it believes that its liquidity and cash flows will be sufficient to fund operations and financial obligations through the end of 2009.

Quality Distribution (No. 52) Tampa

The transporter of bulk chemical products and tank cleaning operation is a subsidiary of Quality Distribution Inc. (QDI), formed in 1994 as MTL Inc. QDI’s 2008 revenue was $815.3 million, up $63.7 million, or 8.5%, from 2007 primarily because of an acquisition. The total number of miles driven fell by 11.5%. QDI reported $362.6 million in long-term and current debt at the end of 2008.

Bluegreen Corp. (No. 55) Boca Raton

As of December, approximately 5.7% of Bluegreen’s vacation ownership receivables and 10.7% of residential land receivables were at least 30 days past due. The company, which develops vacation ownership resorts and residential communities, has about $100 million of debt due in 2009.

Tags: Banking & Finance