RE:RE:RE:Results are outstinkdetector wrote: It is great they got the subsidies, But to state 'Earnings' when they aren't (they are emergency subsidies) is kinda misleading.
The company lost money on the quarter and also was not clear about thier very large decline in GM.
Could be semanitics, but one has to wonder why the sematics always seem to make the reporting company better look than they are.
Hold this company to account folks. Hold them all to account if you are a shareholder. I've been around long enough to see all sorts of monkey business.
It's standard accounting to consider subsidies against costs. Say you have a $100M project where you receive a $20M subsidy. Without the subsidy, the project generates losses. With the subsidy, the project generates positive earnings. Should the company say their project generate losses? Not at all, from the company standpoint, they generated gains and it's the proper way to report it.
I'm pretty sure that without the subsidies, the temporary layoffs would have been higher. Maybe in the end the results would have been the same for the quarter. In the end, one way or another, the company made money during the quarter. Even more, they generated $43M of positive cashflows, or more than $2 per share, which was used to pay back $32M in net debt. During the worst economic quarter that's happend in the past 30 years!
As to gross profit margin, this is taken directly from their report: "Gross profit Gross profit decreased $18.2 million, or 23.2%, in the second quarter of 2020 compared to the same quarter last year due to lower volumes, lower new and used equipment margins and a higher overall mix of lower margin equipment sales, partially offset by a higher proportion of ERS sales and the recovery of personnel expenses from the CEWS."
They aren't hiding it...
Not sure what your agenda is... Considering COVID-19, this was a GREAT quarter.