GREY:LGLTF - Post by User
Post by
TheRock07on Jun 17, 2015 8:48am
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Post# 23838735
Q3 Forecast
Q3 ForecastSales and service revenue of $20 million.
Direct costs of $11 million same as 2014
G $ A down to $4 million from $5 million in 2014
Interest of $500,000 vs $150,000 in 2014.
We have $9 million gross margin less $4 million less $0.5 million.
Net income becomes $4.5 million.
Probability
Revenue.....highly predicatble
Direct costs.....used same as in 2014 but will decrease going forward
G & A......this is easily cut and $4 million down from $5 million seems quite reasonable.
Going into Q4, most of the fat triming and optimization measures should be fully expressed in the cost structure.
If they close and sell low margin schools, so much the better.
These are not difficult tasks to achieve.