The Free Cash flow of IDT (Updated)
I’ve been building a position in IDT Corporation (IDT) over the last month. The more time I spend looking at the company, the more compelled I am to hold a substantial position in the stock.
I was putting it all together today and I was really struck by the free cash flow when I put it together in the table below.
Note that I have updated this table from the original post to distinguish the total reported cash flow from operations versus the cash flow from continuing operations. In my estimate of cash flow from continuing operations I tried to eliminate all one time items that impacted cash. The free cash flow estimate is based on the continuing cash flow from operations:
In addition to the above cash generation, cash and cash equivalents on the balance sheet work out to about $7 per share. If you account for restricted cash (which given the nature of the restricted cash on the balance sheet I am admittedly not sure you should) then cash is over $8 per share.
The only significant debt on the balance sheet is the “notes payable” item, which is $29 million (or a little over $1 per share), and relates to mortgages on two buildings the company operates in. The other significant liabilities are accrued expenses and deferred revenues.
The current share price has been fluctuating in the $10 range.
I’ve been looking into the businesses that IDT operates and will post on that in the near future.
Reminiscences of a Stockblogger 
saw another IDT write-up somewhere else, what’s ur email address?
You should look up genie energy, an IDT Spin off. pilot test should be catalyst
Quick 2 questions:
If IDT has aboout $7-$8 share in cash….and the only significant debt they owe, why is Yahoo! reporting book value to be $4/share?
Could it be that IDT owes HUGE & HUGE amounts of that cash to current accounts payable? I see they have a current ratio of only .92
And they are generating SIGNIFICANTLY more cash flow in Q1 13 than they were in Q1 12? CapEx is about the same for YoY periods?
IDT is a “cheap” stock, but I’m not so sure that it is as cheap as you think it be…
I do not see a “huge” accounts payable item you are referring to. In fact trade accounts payable are about half of trade accounts receivable (35mm vs. 70mm). What I do see is exactly what I referred to in the post: deferred revenue and accrued expenses.
Deferred revenue is self-explanatory. Accrued expenses is explained here:
http://google.brand.edgar-online.com/EFX_dll/EDGARpro.dll?FetchFilingHtmlSection1?SectionID=7132940-6792-18642&SessionID=rLklHFq_OCp6n47
and here:
http://www.faqs.org/sec-filings/111220/IDT-CORP_8-K_FORM2/f8k121911ex99i_idt.htm