A. RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDE
Post# of 2290
Posted On: 02/04/2016 4:44:10 PM
A. RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2015 COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2014
Comparison of three months ended June 30, 2015 to the three months ended June 30, 2014
The Company reported a net loss of $314,296 and $87,793 for the three month periods ended June 30, 2015 and 2014, respectively, an increase in net loss of $226,503. The details of this increase in net loss are discussed in the paragraphs below.
For the three months ended June 30, 2015 and 2014, we reported sales of $591,262 and $680,671, a decrease of $89,409 or 13.1%. This decrease is attributable to decreases in one gallon sales of $39,150, decreases in co-packing sales of $22,191, decreases in label sales of $16,955, decreases in transportation sales of $1,173, decreases in house brand sales of $7,151 and decreases in miscellaneous sales of $2,789.
For the three months ended June 30, 2015 and 2014, cost of sales were 86% and 78% and the gross profit percentages were 14% and 22%, respectively. The increase in cost of sales and the resulting decrease in gross profit is a direct result of lower sales as explained above.
Selling and general administrative expenses increased $15,330 to $185,862 for the three month period ended June 30, 2015 from $170,532 reported for the comparable period in 2014. As a percentage of sales, selling and general administrative expenses increased to 31% for the quarter ended June 30, 2015 from 25% for the same period in 2014. Direct selling expenses increased $6,530, to $70,070 in the quarterly period ended June 30, 2015 from $63,540 reported for the comparable period in 2014. Direct selling expenses are comprised of delivery, advertising, and related travel costs.
General administrative expenses increased $8,800 to $115,792 for the three month period ended June 30, 2015 from $106,992 reported for the comparable period in 2014. The increase in general and administrative expenses is attributable to increases in salaries of $32,435, increases in bank fees of $6,360 and increases of $191 in other expenses, partially offset by decreases in professional fees of $19,519, decreases in utilities of $585, decreases in late fees of $8,518 and decreases in miscellaneous expenses of $1,564.
For the three month period ended June 30, 2015 and 2014, we reported interest expense of $128,379 and $38,104, respectively an increase of $90,275. Debt obligations and interest paid against these debt obligations are discussed in Note 8-9 to our financial statements for the three month periods ended June 30, 2015.
Other income totaled $0 and $1,463 for the three month periods ended June 30, 2015 and 2014, respectively, a decrease of $1,463.
For the three month periods ended June 30, 2015 and 2014, the Company did not pay any federal income taxes.
A. RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2015 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2014
Comparison of six months ended June 30, 2015 to the six months ended June 30, 2014
The Company reported a net loss of $616,034 and $313,165 for the six month periods ended June 30, 2015 and 2014, respectively, an increase in net loss of $302,869. The details of this increase in net loss are discussed in the paragraphs below.
For the six months ended June 30, 2015 and 2014, we reported sales of $1,122,676 and $1,130,758, a decrease of $8,082, or .72%. This decrease is attributable to decreases in house brand sales of $5,150, decreases in co-packing sales of $30,940, decreases in label sales of $1,579 and decreases in miscellaneous sales of $3,769, partially offset by increases in one gallon sales of $33,181 and other sales of $175.24
For the six months ended June 30, 2015 and 2014, cost of sales percentages were 89% and 84%, and the gross profit percentages were 11% and 16%, respectively for both periods. Selling and general administrative expenses increased $41,253 to $343,632 for the six month period ended June 30, 2015 from $302,379 reported for the comparable period in 2014. As a percentage of sales, selling and general administrative expenses increased to 31% for the six months ended June 30, 2015 from 27% for the same period in 2014. Direct selling expenses increased $8,948, to $122,006 in the six month period ended June 30, 2015 from $113,058 reported for the comparable period in 2014. Direct selling expenses are comprised of delivery, advertising, and related travel costs.
General administrative expenses increased $32,305 to $221,625 for the six month period ended June 30, 2015 from $189,321 reported for the comparable period in 2014. The increase in general and administrative expenses is attributable to increases in salaries of $60,865, increases in bank charges of $9,119, increases in public trade fees of $4,026, and increases in other expenses of $1,063, partially offset by decreases of $26,519 in professional fees, decreases in late fees of $8,519 and decreases in other expenses of $7,730.
For the six month period ended June 30, 2015 and 2014, we reported interest expense of $212,993 and $69,685, respectively an increase of $143,308. Debt obligations and interest paid against these debt obligations are discussed in Note 8-9 to our financial statements for the six month periods ended June 30, 2015 and 2014. Other income totaled $0 and $2,813 for the six month periods ended June 30, 2015 and 2014, respectively, a decrease of $2,813.
For the six month periods ended June 30, 2015 and 2014, the Company did not pay any federal income taxes. For the six months ended June 30, 2015 and 2014, the Company recorded an income tax and a tax benefit of approximately $1,875 and $74,625, respectively. The tax benefit recorded in June 30, 2014 represents the change in the difference between book and tax basis of assets originally acquired in a bargain asset purchase.
As promised, the CEO did release information/news this week. Fran was on-time with her news announcement. As a shareholder, this does make me happy that she followed through on the text conversation she had with James. With the quarterly report being released, hopefully it is followed up with information on a new auditor. With the last three years being incorrect, I can only imagine that audited financials will show that the company is in much better shape than what some had said. My gut feeling tells me, the financials get audited.... and we will find the numbers to be MUCH higher than what is reported in the unaudited quarterly financial report. By higher, I mean.... MORE IN THE GREEN! Higher sales, high profit, etc.
Comparison of three months ended June 30, 2015 to the three months ended June 30, 2014
The Company reported a net loss of $314,296 and $87,793 for the three month periods ended June 30, 2015 and 2014, respectively, an increase in net loss of $226,503. The details of this increase in net loss are discussed in the paragraphs below.
For the three months ended June 30, 2015 and 2014, we reported sales of $591,262 and $680,671, a decrease of $89,409 or 13.1%. This decrease is attributable to decreases in one gallon sales of $39,150, decreases in co-packing sales of $22,191, decreases in label sales of $16,955, decreases in transportation sales of $1,173, decreases in house brand sales of $7,151 and decreases in miscellaneous sales of $2,789.
For the three months ended June 30, 2015 and 2014, cost of sales were 86% and 78% and the gross profit percentages were 14% and 22%, respectively. The increase in cost of sales and the resulting decrease in gross profit is a direct result of lower sales as explained above.
Selling and general administrative expenses increased $15,330 to $185,862 for the three month period ended June 30, 2015 from $170,532 reported for the comparable period in 2014. As a percentage of sales, selling and general administrative expenses increased to 31% for the quarter ended June 30, 2015 from 25% for the same period in 2014. Direct selling expenses increased $6,530, to $70,070 in the quarterly period ended June 30, 2015 from $63,540 reported for the comparable period in 2014. Direct selling expenses are comprised of delivery, advertising, and related travel costs.
General administrative expenses increased $8,800 to $115,792 for the three month period ended June 30, 2015 from $106,992 reported for the comparable period in 2014. The increase in general and administrative expenses is attributable to increases in salaries of $32,435, increases in bank fees of $6,360 and increases of $191 in other expenses, partially offset by decreases in professional fees of $19,519, decreases in utilities of $585, decreases in late fees of $8,518 and decreases in miscellaneous expenses of $1,564.
For the three month period ended June 30, 2015 and 2014, we reported interest expense of $128,379 and $38,104, respectively an increase of $90,275. Debt obligations and interest paid against these debt obligations are discussed in Note 8-9 to our financial statements for the three month periods ended June 30, 2015.
Other income totaled $0 and $1,463 for the three month periods ended June 30, 2015 and 2014, respectively, a decrease of $1,463.
For the three month periods ended June 30, 2015 and 2014, the Company did not pay any federal income taxes.
A. RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2015 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2014
Comparison of six months ended June 30, 2015 to the six months ended June 30, 2014
The Company reported a net loss of $616,034 and $313,165 for the six month periods ended June 30, 2015 and 2014, respectively, an increase in net loss of $302,869. The details of this increase in net loss are discussed in the paragraphs below.
For the six months ended June 30, 2015 and 2014, we reported sales of $1,122,676 and $1,130,758, a decrease of $8,082, or .72%. This decrease is attributable to decreases in house brand sales of $5,150, decreases in co-packing sales of $30,940, decreases in label sales of $1,579 and decreases in miscellaneous sales of $3,769, partially offset by increases in one gallon sales of $33,181 and other sales of $175.24
For the six months ended June 30, 2015 and 2014, cost of sales percentages were 89% and 84%, and the gross profit percentages were 11% and 16%, respectively for both periods. Selling and general administrative expenses increased $41,253 to $343,632 for the six month period ended June 30, 2015 from $302,379 reported for the comparable period in 2014. As a percentage of sales, selling and general administrative expenses increased to 31% for the six months ended June 30, 2015 from 27% for the same period in 2014. Direct selling expenses increased $8,948, to $122,006 in the six month period ended June 30, 2015 from $113,058 reported for the comparable period in 2014. Direct selling expenses are comprised of delivery, advertising, and related travel costs.
General administrative expenses increased $32,305 to $221,625 for the six month period ended June 30, 2015 from $189,321 reported for the comparable period in 2014. The increase in general and administrative expenses is attributable to increases in salaries of $60,865, increases in bank charges of $9,119, increases in public trade fees of $4,026, and increases in other expenses of $1,063, partially offset by decreases of $26,519 in professional fees, decreases in late fees of $8,519 and decreases in other expenses of $7,730.
For the six month period ended June 30, 2015 and 2014, we reported interest expense of $212,993 and $69,685, respectively an increase of $143,308. Debt obligations and interest paid against these debt obligations are discussed in Note 8-9 to our financial statements for the six month periods ended June 30, 2015 and 2014. Other income totaled $0 and $2,813 for the six month periods ended June 30, 2015 and 2014, respectively, a decrease of $2,813.
For the six month periods ended June 30, 2015 and 2014, the Company did not pay any federal income taxes. For the six months ended June 30, 2015 and 2014, the Company recorded an income tax and a tax benefit of approximately $1,875 and $74,625, respectively. The tax benefit recorded in June 30, 2014 represents the change in the difference between book and tax basis of assets originally acquired in a bargain asset purchase.
As promised, the CEO did release information/news this week. Fran was on-time with her news announcement. As a shareholder, this does make me happy that she followed through on the text conversation she had with James. With the quarterly report being released, hopefully it is followed up with information on a new auditor. With the last three years being incorrect, I can only imagine that audited financials will show that the company is in much better shape than what some had said. My gut feeling tells me, the financials get audited.... and we will find the numbers to be MUCH higher than what is reported in the unaudited quarterly financial report. By higher, I mean.... MORE IN THE GREEN! Higher sales, high profit, etc.
(0)
(0)Boreal Water Collection Inc (BRWC) Stock Research Links
Scroll down for more posts ▼