L-3 Curious Balance Sheet

L-3 (LLL) has a curious balance sheet. They announced an additional stock buy back program to goose up the EPS. They have refinanced some long term debt at reduced rates and extended maturities. They have $1 Billion of long term debt which is now current. They have about $1 Billion in cash. They make no mention of short term borrowings or lines of credit. They rely on pre-payments in excess of costs billed to provide working capital. This can slide the wrong way. Investors have no clear picture. Debt costs have already negatively impacted guidance.


Disclosure: No position in any stocks mentioned in this post.