RYU Apparel Inc V.RYU.H

How much revenue = no loss?

[had2chimeIN]

by my calculation they need to make 5.5x more revenue to break even. Is that right? And they have to somehow do that without spending a dollar more. Is that accurate?

[Sal1958]

@had2chimeIN I understand your frustration. I to not truly impressed with the results. I was expecting more. The positive from this earning are controlling costs and reducing costs. Back of on the brick & mortar expansions. Stop the bleeding. Go side ways. Focus on branding and sales. This I have never seen as much as they started doing. Put products on sale. Drive more through e commerce

[had2chimeIN]

agreed.

[candele]

This post has been removed in accordance with Community Policy

[athleticsguy]

Unfortunately it's basically what we've been saying for over a year now (i've forgotten the official time frame since it's been so long)... They went with the kit and ace model (build it and they will come strategy before the brand was strong enough) but their stores aren't generating enough sales growth to offset the incredible increase in expenses from expanding their b&m

[WHOAstocks]

The brand is definitely picking up in sales and burn rate is decreasing:  • Revenue of $1,473,136 as compared to $1,223,524, an increase of 20%. • Gross profit of $734,242 as compared to $710,545, an increase of 3%. • Operating expenses of $4,539,997 as compared to $4,877,002, a decrease of 7%. • Net loss of $3,805,755 as compared to $4,166,457, a decrease of 9%.

[athleticsguy]

Yes, the burn rate is decreasing but the gap is still huge. Their Q3 net loss was 3.9m on 1.4m revenue!!! Even if Q4 is extremely successfully they will likely lose another 3m+. It takes $ to operate a business and the money has to come from somewhere. Can RYU continue to obtain financing long enough to reach profitability?

[gardy]

That is the big question. Are they going to run out of runway??? There product is without a doubt best in the industry. I was at my Cadillac dealer today getting my vehicle done and the receptionist at the front desk commented on my RYU jacket. So I gave her a bit of a sales pitch and she replied that she was going to get one for her boyfriend. She didn't even know RYU existed until she met me

[Sal1958]

The private placement with the warrants will generate 13m. This should get them though 2020. IG, RYU site, Zappos, and Elisabeth r on full steam ahead. What will they do to continue to reduce costs and increase sales? Will they start to shut down stores? Will they increase their target market, 13-55 year old male/female? Are there other sales opportunities? Is it a take over target? The financing

[had2chimeIN]

if they made 20% revenue gains year over year it would take them what 4-5 years to break even? Then they'd have to pay back the 40 mil they're in the hole by that point so that's another 5 years of profits eaten up and that's assuming a 20% increase year over year. I don't see it happening. They need a miracle. F*** me.

[invest2profit]

To see REAL growth, have a look at Peak Positioning Technologies (PKK.CN). Look at the quarterly growth, and the recently announced deal. This is not depending on hope or celebrities.

[Sal1958]

had2chimeIN I like when u contribute to the conversations. Take your time and put in a little more effort.

[athleticsguy]

That's why i'm suggesting that they need to make some pretty big changes to cut expenses at a faster rate.  Just look at the Q3 2019 MDA that was prepared for Nov 28th.  Their Depreciation & Interest & Bank Charge categories on their Q3 report.  The majority of that expense is due to rent/lease.. Cherry Picking some numbers: Q3 revenue:  1.48m Q3

[Riddler76]

I read it. It is a legal cover your @ss that certainly lists a lot of risks. They need to rely on cash to survive (which is low) and private placement funding (which is hard to get due to the sp performance or lack thereof). I see the potential and there are a lot of things they do right but unfortunatley a lot of things also have not materialized. It's a very frustrating operation for sure. I

[mba123ccu]

Riddler76, you've summed it up nicely. The scenario is like one step forward and two steps backwards. You're right, the volume needs to pick up and the SP is presently almost stagnated. I

[Sal1958]

Riddler 76 nice summary. Yes the sp is stangnant with little movement. We should be getting private placement news soon. There has been no mention and no push. Is the private placement secured if so to whom? If there has not been a push on the private placement more than likely there are not many investors involved. Who are these investors? Can they assist in expanding the bussiness. Will this be

[athleticsguy]

Yes it is a CYA but don't forget that the MDA is a selling tool.  If there was positive news then you can damn well bet that the leadership team would've spun that to the moon.  I'm waiting on the private placement news that will allow RYU to survive through 2020.  They are sitting on 0 cash so unless something has developed in the last week since the MDA was published

[Sal1958]

athleticsguy if it was going to bankruptcy there would be acknowlegable signs. There is nothing showing that they r not paying their bills. They clearly state that the private placement will be mostly for 2020. A small portion of it for 2019. I still am on the hold patern and believe there is something we r not being told yet. I believe we will get through 2020. There is lots of positive drive. We

[athleticsguy]

Did you read their MDA?  It's clearly stated that they are at a very high risk for bankruptcy.  They are down to ~70k in cash.  I'm sure they will work to get their debt refinanced but they need millions of dollars and in very short order.  I apologize for my tone but I've been waiting for this company to turn the corner for 2+ years and all I've seen is the

[Sal1958]

athleticsguy The private placement doesn't seemed to be pushed. If they r where u say they r. They would be screaming. I don't hear any screaming. Could be that your white knight with the shining armour holding the 5m bag is on hand. I don't believe this company is going to be left in the trenches. The product is to good for someone not to want to make it successful. If they r in the

[Sal1958]

athleticsguy to add to their MD&A reading. That is standard language required in the MD&A for all public companies that r not yet profitable or cash flow positive.

[athleticsguy]

They have cash on hand of $73k as per the MDA and cash flow is the most important thing in any business. No cash flow = bankruptcy. These are the facts as per Nov 28, 2019.

[Sal1958]

athleticsguy over 7m shares traded today on stockwatch. It's hard to believe the facts will come into play. Its showing that the white shining knight will come into play. Food for thought on assumptions. In all you r correct. Fortunately it's not going to happen.

[athleticsguy]

Well i hope you are right. Hopefully it plays out that way.

[WHOAstocks]

that is standard language required in the MD&A for all public companies that are not yet profitable or cash flow positive