Originally Posted by
Ladloy
Rex just announced that they expect a 'breakeven situation' for this FY
I don't know who put that
ASX announcement together but it is full of nonsense like this:
Rex’s cash position has improved exponentially. Without counting the cash injection of $50
million from the convertible note issued to PAG (out of a maximum of $150 million), Rex’s
unencumbered cash reserves increased by 1,000% compared to March 2020 due to the very
strong advanced bookings on its five new domestic and two new regional routes. Rex expects
this to improve further as more routes are introduced.
Monies received from ticket sales are not unencumbered, they are covered off on a dollar for dollar basis as Unearned Revenue under Current Liabilities.
It's worth noting that breaking even would likely mean that their jet ops is losing around $3 million a month, back of the napkin.