GREY:CLRYF - Post by User
Comment by
Trelawnyon Aug 18, 2017 5:31pm
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Post# 26598280
RE:RE:Q2 2017
RE:RE:Q2 2017lscfa and Cabbie (Cabbie your answer it nearer the bottom),
the increase in the cash burn is on 4 line items. This comparison is the YoY from Q2 2016 to Q2 2017:
1) wages, benefits and consulting increased from $733 to $1,204.
This is a 64% increase and is to be expected given the acquisitions which have happen over the course of the year. On a dollar amount this is the biggest increase at $471. Revenue meanwhile increased by $2.34M or 191%. So this is showing exceptional efficiency in the business model.
2) "Other" increased from $53 to $172.
This is a 225% increase, $119 of the total dollar increase. I don't have exactly what this is from but "other" is almost by definition a one time expense and therefore I don't expect it to continue.
3) Public company costs increased from $73 to $137.
This is an 88% increase and $64 amount increase. Given the amount of restructuring and the debt payment this too will be a one time increase and would expect that once the cap structure is cleaned up this will go back to a more normal level.
4) Amortization of intangible assets increased from $233 to $391.
This is an increase of 68% or $158 and is the 2nd largest dollar amount of increase. This is a non-cash item and given the acquistions is not abnormal. I would expect this to continue to drift lower in time. But again isn't a cash item so I am less concerned.
The increase in costs is in large part due to the financing, public company costs around the restructuring and amortization.
The biggest part of the increase in costs is due to the increased wages. This is to be expected from both the acquisitions and the onboarding of the new clients. These I am really OK with.
Revenues have increased for the 4th quarter in a row and margins have continued to expand for the 3rd quarter in a row.
I would say that is an excellent trend and expect it to continue.
Cabbie,
regarding seasonality. There is indeed some seasonality in the summer months. There is a decrease in demand for some of the asset appraisal work (Wall Street type work). There is another revenue line that shows some reduced demand as well in the summer months, but I am blanking on which one it is right now.
This accounts for why there is still growth, but not as much as would have been hoped for.
I hope this helps.
Best regards,
Colin Fisher