DKM’s Catch Up – part 1 DKM’s Catch Up – part 1
Up early Saturday morning, no plans, weather not so great, lots of food/drink in the house, decided it was a stay at home day. Hadn’t posted much since the Q3 statements were issued the end of November, thought I would start the day by catching up on SH. Pot of coffee made, music on, put the Xmas fireplace channel on the big screen, appropriate stimulants at hand, got started. Reading all the posts, checking my notes/DD, updating DD and writing – the whole day literally disappeared.
In the end I had written pages and pages.
Now reviewing/editing/organizing those pages into
this and maybe another 2 or 3 posts. I know the product, the people, the company and own a couple shares so I put in the time, it’s a longer term investment for me. If you truly believe that the current share price of .06 - .065 or anything close to that number represents the
actual value of the company then I recommend you just stop reading this post and my subsequent posts. Find something you like
:<) *****
1.
Financial Statements a7833 wrote: What concerns me here is that Q3 sales were well below Q2 sales…
ezemoney wrote: Clearly a revenue slow down pretty well across the board. Maybe … the novelty is wearing off… the financials are looking pathetic…
MustBuyloW wrote: …. its selling and distribution expenses are more than their revenu without digging any deeper… They are gonna need to raise more money to pay the bills and even more to make it profitable…..
**
Prior to the release of the Q3 financial statements I suggested looking at
the chart in this post and the
table of quarterly revenues by year from 2013 - > 2019 in this post. I would like to see NSP update their chart with Q2 & Q3 actual results and add the quarterly average as a graphic. I have updated my table of quarterly revenues and reproduced the last 3 years below.
Initially I was only going to show the last two years since the quarterly average has increased every quarter since Q1Y18 but showing three years actually IMO shows a better picture of the improvement during this time period.
Chris Parry stated
“Mistakes were made. Recently”, absolutely agree. On Sept 18
th “I posted: Do I want to be invested in a company that is stuck on one plan? NO”. Changes have been made, are being made, as the rest of Parry’s article indicates – “
Top tip: NSP is doing serious deals.”
| | | | | Quarter $ | Annual $ | Q Average since Q1Y17 |
| 2019 | 31-Dec | Annual | Apr ?? 2020 | ????? | ???? | ???? |
| | 30-Sep | Q3 | Nov 28 2019 | 635,984 | 6,206,628 | 564,239 |
| | 30-Jun | Q2 | Aug 28 2019 | 950,738 | 5,570,644 | 557,064 |
| | 31-Mar | Q1 | May 29 2019 | 772,803 | 4,619,906 | 513,323 |
| 2018 | 31-Dec | Annual | Apr 30 2019 | 769,736 | 2,073,776 | 480,888 |
| | 30-Sep | Q3 | Nov 22 2018 | 499,538 | 3,077,367 | 439,624 |
| | 30-Jun | Q2 | Aug 23 2018 | 483,675 | 2,577,829 | 429,638 |
| | 31-Mar | Q1 | May 30 2018 | 320,827 | 2,094,154 | 418,831 |
| 2017 | 31-Dec | Annual | Apr 30 2018 | 388,666 | 1,773,327 | 443,332 |
| | 30-Sep | Q3 | Nov 29 2017 | 315,712 | 1,384,661 | 461,554 |
| | 30-Jun | Q2 | Aug 28 2017 | 481,746 | 1,068,949 | 534,475 |
| | 31-May | Q1 | May 17 2017 | 587,203 | 587,203 | 587,203 |
Quarterly average for 2017 = 443,332
Quarterly average for 2018 = 518,444
Quarterly average for 2019 to date =
786,508 **
There are many possible reasons for the drop between Q2 & Q3 – shut downs for SQF2 testing/cert., shut downs for new client product trial runs, timing of client purchase orders, etc.
Sometimes a bit of “digging” is required to get a clear picture of what is actually going on. If the increase in revenues from Q1 to Q2 and the subsequent drop from Q2 to Q3
really concerns you, then I recommend you review the news releases, FS’s & MS&A’s for 2019 and make a list of the significant activities/changes during the period.
One significant deal among those changes was
announced on Nov 13th : “
Under the direction of our client and to their exacting specifications, Naturally Splendid is manufacturing a popular plant-based energy bite at our Safe Quality Food Level 2 certified facility in Pitt Meadows, BC. This line is expected to generate revenues to NSE in excess of $1,000,000 Canadian annually.”
No doubt the addition of this client will significantly increase quarterly revenue averages going forward presumably starting with Q4Y19. Agreed there is never enough cash; it’s an ongoing issue that is not easily solved and will eventually have to be addressed.
*****
“NSP is a very viable business without the Processor’s License!” *****
“Living in the sunshine”
Always DYODD DKM