Q2 filled-in blanksPretty sad that shareholders have to fill in the numbers for their financial results NR's but that is that way that these characters seem to want to operate. Not sure how they would expect to attract serious investors.
EBITDA (adjusted): $863K
Operating cashflow: $815K (but total cashflow $145K). Note that they do not show what happened last quarter, but rather show what happened over the last 6 months, and that can cause confusion for the uninformed or give fodder for the pumpers to suggest more of a loan payment this quarter than actually occured.
Net income: $100K
Balance sheet improvement: I guess we can pick what we want.
Book value (total equity): $2.300 million compared to $2.185 million in Q1.
Working capital (current assets-current liabilities): negative $7.7 million vs negative $8.1 million
Current liabilities in form of revolver and term loans: $11.371 million vs $11,692 million; therefore $321k reduction from last quarter.
The FBA has been extended until January 2024. Not a surprise as long as they meet new requirements.
So, there you have it. It is an indebted company which is making due with a core business that annualized based on latest generates a positive bottom line, positive cashflow and an EBITDA of ($863K*4) about roughly $3.5 million.
PG has often talked about acquisitions and many are dreaming that KNR would be acquired by a biggy. First, PG said that as a target you become interesting to biggies when your revenues hit between $50 and $100 million. We are not even halfway to the bottom of that range. Second, PG said he likes to acquire companies at 4 to 5 times of their EBITDA. If KNR was private and he was buying it, this would amount to about $12.25 million but I would doubt that he would pay this amount and not adjust for the outstanding loan and a negative working capital. You wouldn't pay $1 million for a market value of a home and add previous owner's outstanding morgage on top, I would think. So, we are talking about somethig worth not much more than half a dozen million and then add the premium for a listed company and incorporate some growth rates. In other words, at $18 million market cap, this is not a bargain based on the latest financial statements.
It will be a long wait for many of us to recover losses to some reasonable degree (unless there is something huge strategic that happens like some new revolutionary technology....nevermind), so hopefully you have a comfortable seat.
Comments and opinions welcome, mostly sensible ones.