I just talked with the company. They have many things going on behind the scenes that should be released in the next few weeks along with 1st quarter earnings which should be good. The price is way down on low volume and this might be a good time to get in on both a great short term play and long term investment. I am posting the earnings report for ESRS's first six month reporting period.
BusinessWire, Wednesday, October 30, 1996 at 08:16
WEST ORANGE, N.J.--(BUSINESS WIRE)--Oct. 30, 1996--Essential
Resources Inc. (OTC BB:ESRS), Wednesday announced results for the
transitional six month period ended June 30, 1996.
Essential Resources only initiated trading in the U.S. in
January 1996.
For its first six months reporting, the company posted revenues
of $2,340,671 with net income before taxes of $463,196. The company
noted that the actual shares outstanding prior to its two for one
forward split (record date Aug. 26, 1996) at June 30, 1996 were
1,140,198 with pre-tax earnings per share of $.406. The shares
outstanding at Oct. 21, 1996 total 2,254,884 (post-split), with
$.203 earnings per share. The company is particularly pleased with
the annualized percentage return on capital (pre-tax) of 279% and
after-tax return of 177%.
Year-end results were slightly lower than the company originally
anticipated, primarily due to the adoption of certain U.S.
accounting practices, which differ from the previously employed
Australian accounting procedures.
According to Phillip Cook, chairman of Essential Resources:
"Following our debut on the Nasdaq Bulletin Board in January
1996, we have enjoyed tremendous support in the market from our valued
shareholders and look forward to the coming fiscal year with great
enthusiasm and anticipation. We are confident that as we continue
enhancing our product mix, increasing global market penetration and
building a strong and solid foundation on which to propel revenues
and earnings even more dramatically, our following on Wall Street
will continue to grow." The company further stated that it is
proceeding with its application to have its securities listed for
trading on the Nasdaq Small Cap Market.
Essential Resources Inc., through its wholly owned subsidiaries
Collage International Health Pty Ltd., Essential Nature Products Pty
Ltd., and Essential Care USA Inc., develops, markets and distributes
a wide variety of health, nutritional, beauty-aid and lifestyle
products derived from the extracts and tissues of Asian-Pacific
region plants, flowers and animals.
*T
Essential Resources Inc. results for
fiscal year ended June 30, 1996 (with only 6 months reporting)
% of revenues
Total revenues $2,340,671 100.0%
Gross profit 1,257,984 53.7%
Operating expenses 870,734 37.2%
Net income (pre-tax) 463,196 19.8%
Income tax 170,000
Net income 293,196
PRE-SPLIT EARNINGS PER SHARE
EPS (Before income tax) $.406
EPS (After income tax) $.257
No. of shares outstanding
as of June 30, 1996 1,140,198
Weighted average common
shares outstanding 1,239,640
Common stock equivalents 385,360
Weighted average common
shares outstanding and
common stock equivalents 1,625,500
POST-SPLIT EARNINGS PER SHARE
EPS (Before income tax) $.203
EPS (After income tax) $.101
No. of shares outstanding
as of June 30, 1996 2,280,396
Weighted average common
shares outstanding 2,479,280
Common stock equivalents 771,720
Weighted average common
shares outstanding and
common stock equivalents 3,251,000
*T
The company wished to advise that, when considering the earnings
per share recorded in the accounts of the company, that the following
significant accounting policy and regulations be taken into account:
"Primarily and fully diluted earnings per common share are computed
using the treasury stock method, modified for stock options
outstanding in excess of 20% of the total outstanding shares of
common stock. Under this method, the aggregate number of shares
outstanding reflects the assumed use of proceeds from the
hypothetical exercise of the outstanding options, unless the effect
on earnings is anti-dilutive. The assumed proceeds are used to
repurchase shares of common stock at the average market value during
the period to a maximum of 20% of the shares outstanding. The balance
of the proceeds, if any, are used to reduce outstanding debt and
invest in treasury bills with the assumed interest expense savings
and interest income being added to the results of the operations for
the reported period. Fully diluted earnings per share also reflects
the assumed use of proceeds from the hypothetical exercise of options
to purchase common stock at the ending market price for the reported
period." |
