2021-1Q Earnings AnnouncementI was pleased with the 1Q profit report (and that they didn't eliminate the other 50% of the dividend).
I am cautiously optimistic about 2Q results. Their press release reported that August shipments were $36m. If this continues for the next two months then 2Q revenue will be $108m. This would compare to last year 2Q of $120m ... still a little ways to recover. But much better than the $56m they reported in 1Q (vs $103m in the prior year).
Accounts Receivable were another positive sign. DSO were 60 days at July-31 compared with 76 days for April-30 (MD&A page 10). I was worried that US customers were not paying them because of the COVID crisis. US companies tend to stop paying their suppliers in times of stress and dare you to sue them. They know that takes forever in US courts.
I love how the company's financial reporting is so concise. None of the normal boilerplate that says nothing at all.
I am concerned about one thing, however. I am worried that they have a leak in their Financial Department or in their Board Room. Somewhere. There was a suspicious drop in the stock price ahead of the full year earnings announcement. They prereleased their dividend cut decision shortly after. For 1Q there was also a surge in volume and a price drop several weeks ago. If there is a leaker, I hope the company finds them and prosecutes. If this happens again, I will likely sell all my shares. This kind of thing makes me nervous.