A Comparison of Current vs Former Management I thought I'd extract a few tidbits of information from my records just to see how the current management of UZZ stacks up against the previous administration. (Numbers don't mean everything, of course.) I took the last 6 quarters as representing the current group and the previous 5 years (or 20 quarters) as representing the former group. Warning: while I did the best I could, there might be some errors in this; unfortunately, I have no one around to check my work. Also, please note that a recession started and ended during the previous management's tenure. I would appreciate comments. BTW, ttm = trailing twelve months. Enjoy!
Revenue Growth...
Previous Management - approx 19% per year
Current Management - approx 14% per year
Gross Margin Percentage...
Previous Management - highly variable but it declined from about 22% to about 18% (and, on occasion, a lot lower)
Current Management - stabilized in the 19-21% range
Expense Control as Measured by SG&A...
Previous Management - SG&A was highly variable but overall up about 30% per year
Current Management - ttm SG&A was down about 8% from the last ttm of the former administration (I'm not entirely happy with this measure, but it does tell you something.)
Adjusted Pre-tax Net Income...
Previous Management - 12 of 20 quarters were positive, but the total for the 20 quarters was negative $749k
Current Management - all 6 of 6 quarters were positive (Q4 2011 had about $200k of one-time expenses in it which I excluded), and the total for the 6 quarters was positive $1,675k
Adjusted Cash Flow from Operations...
Previous Management - total of negative $43k over 20 quarters
Current Management - total of positive $597k over 6 quarters
Cash on Hand...
The company never did have much of this
Debt...
Previous Management - it went from $0.5M to $3.2M over 20 quarters
Current Management - it went from $3.2M to $7.6M in 6 quarters
My takeaway from all of this is that the previous management grew revenue nicely, but didn't have as good control over expenses as the current group does; hence, improved profitability and cash flow over the past 6 quarters. Most people already know this, I'm sure, but it helps to see the numbers displayed, I think.
Regards
i22