Luxor Industrial Corp. V.LRL

Q2 Outlook

[TheRock07]

Sales were $2.6 million in Q1, with substantially increased overhead due preparations for delivering on their rapidly increasing contracts in the US.

That will have diminished in Q2.

Further, Work commenced on two contracts in the latter part of the first quarter resulting in minimal sales in Q1 but will be  invoiced in Q2.

In addition, all contracts delivered in Q2 have come in on budget or below budget.

So, I think that margins will be very robust in Q2.

What sales could we expect in Q2 ?

From information provided in the Q1 report, we know that
 sales for the five-month period ending May 31, 2016, exceeded $7-million.

That is, about $4.5 million in sales in April and May......roughly $2.5 million per month.

This suggests that sales in Q2 will be about $7 million.....maybe a bit higher, if contract delivery rates were increasing throughout the quarter.

Soi, perhaps net earnings in the 3 cent to 5 cent range for Q2.

Luxor will have about $20 million in US contracts to deliver in Q3 and Q4.

These should deliver superb earnings gains.

As for their regular core business in Canada ( but including new product types ), perhaps $4 to $5 million.....its hard to say as they have been going flat out in the US ( but I do recall them starting a new contract in late 2015 ).

This is a superb growth story ( 8-10 times 2015 ) which, with a much weaker Loonie and economies of scale should turn into a very strong earnings story