IPD.V Q1 Results (Ending October 31st 2015)
My Notes:
- Another Profitable Quarter
- Major deal signed with Rinowa s.r.l who is a major distributor in the Italian market
- All IPD products sold in US dollars, this will add additional revenue in conversion to CAD
Symbol: IPD
Price: $0.08c
Common Shares: 15,617,670
Insider Holdings: 10,141,992 (65% as per SEDI)
Website: www.lenspen.com
Assets
Cash: $215,960
Accounts Receivable: $184,898
Inventory: $210,488
Prepaid Expenses: $84,678
Short-Term Investments: $225,481
Equipment: $630,248
Licensing Rights: $114,276
Total Assets: $1,666,029
Liabilities
Accounts Payable: $196,527
Customer Deposits: $47,917
Total Liabilities: $244,444
Q1 2015
Sales: $926,373
Net Income: $41,997 or $0.0027c eps
**Cost of trade shows was up substantially, next quarter will be better**
Recap of 2014 Year End Results
Sales: $4,214,046
Net Income: $319,127 or $0.02c EPS.
Over 5 quarters:
Sales: $5,140,419
Net Income: $ $361,124 or $0.023c EPS
Stock is trading at less than 4 times earnings which is very low
I was hoping for a dividend this year, but perhaps something more important is on the horizon and it will require additional funds from the company to carry forward. I believe this because IPD has been pushing harder to market its products, especially the recently added Peeps to the world. At this point it’s better if sales had the potential of growing 50% or more with additional marketing funds, I would prefer that over a dividend anyway.
Management Discussion Highlights
During the period, the Company attended CTIA 2015 in Las Vegas in support of its mobile device accessories and Vision West 2015 (Las Vegas) and Silmo (Paris) in support of its eyewear lens cleaning accessories, adding new customers in the United States and Europe. The Company also began sales to a new distributor to the Italian photo market, Rinowa s.r.l
The Company began to see sales of the eyewear lens cleaning product PEEPS increase and is now pursuing a selling agreement for this item.
In addition to the above, the Company has paid off all loans outstanding; consequently, the Company is completely debt-free except for current trade payables.
Main expense that increased this quarter:
Trade shows of $68,528 (2014 - $39,208) The Company continues to attend various International trade shows and in this period attended the Vision West Expo in Las Vegas, Silmo in Paris and CTIA in Las Vegas. These shows are a valuable tool to find new distributors and assist existing distributors.
The Company is not exposed to a significant amount of liquidity risk. As at the three month period ended October 31, 2015, the Company had positive working capital of $677,061 (October 31, 2014 - $617,948). The accounts payable and accrued liabilities balance is expected to be covered through the collection of accounts receivable balances and from current cash balances. The Company is not reliant on external financing. |
