OTCPK:ERILF - Post by User
Comment by
poneon May 26, 2015 11:35am
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Post# 23764993
RE:RE:RE:Quoting Coasters in USD?
RE:RE:RE:Quoting Coasters in USD?InstitutionalPM wrote: I agree homie. Profit can swing quite a bit from quarter to quarter especially when you are hovering around the breakeven level. But the growing backlog ensures we have a big ramp in revenue forthcoming and we will surely see some operating leverage resulting in a big rise in profit further enhanced by a beneficial move in the dollar. Also keep in mind that future ride sales should be even easier now that the first generation of rides is commissioned and the profitability of new sales should also be better.
The problem isn't revenue growth.
The problem isn't backlog growth.
The problem isn't even earnings, which will be spotty but should eventually reflect higher product mix to roller coasters and attractions.
The problem is their customers are not paying them. You guys need to look at the cash flow statement. You need to take apart the receivables and ask to see how it breaks down from 30 to >90 payments. It's very very clear when you do those things in the 2014 annual report that EIL is having a very serious receivables problem, and management is simply ignoring it and hoping that no one notices. I don't find any management discussion of this issue.