The good, bad and uglyGood: Q1 2018 vs Q1 2017 is obviously a huge beat and has shown that even in the off season they can make money.
Michael Burns, CEO and Director of Global UAV stated: “These revenue numbers are very significant for Global UAV. They only represent approximately two full operating months of our services division due to the Christmas holiday season. Further, the financials prove that our services can generate substantial revenue year-round. Traditionally, many UAV service companies that focus on remote sensing and photogrammetry products have limited work streams over the winter months. Global UAV was able to maintain its revenues through adverse weather-conditions due in large part to the high-level experience and operational abilities of our field crews and UAV products. We also successfully completed our first night-flight survey operations which are critical in maintaining productivity during the shorter daylight hours of northern winters. As our international markets continue to expand, we look forward to increasing our winter-month revenues in 2018.”
Also, balance sheet is looking healthier imo with more cash, receivables and a current ratio of 2.11.
Bad: Expenses are at $825,000. The majority of expenses are consultant fees and share based compensation (i think about 40-50%). It seem as though every quarter we get higher expenses in these areas. I understand the accounting structure for this, but it makes it hard to predict.
Also if we keep buying companies and issuing more shares we will become diluted very quickly.
Ugly: I have a feeling investors were hoping for a huge bang coming out of 2017 (myslef included), but are now disappointed even though these numbers arent terrible for the low sesason. Im patient enough to wait a few more quarters to see what the busy season looks like, especially given all the great news since February, however I fear many short-termers will sell off their positions. That being said it will probably effect the share price negatively.
We'll see!
Over all im seeing the positives in this year old company. I know some will bash this little stock down, but those who are following closely will see all the progress!!!
Have a great day!