IPD.V Year End Results(Ending July 31 2015)
My Notes:
- Very strong year for earnings and growth
- Good chance of a dividend being reinstated. Between 2012-2013 it was $0.01ceps for the year.
- Q1 2016 results will be out in December, only a few weeks from now
Symbol: IPD
Price: $0.065
Common Shares: 15,617,670
Insider Holdings: 10,141,992(65% as per SEDI)
Subsidiary website: lenspen.com
Company website: www.ipd.ca (currently be updated)
ASSETS
Cash: $185,100
Accounts Receivable: $273,704
Inventory: $207,648
Prepaid Expenses: $38,373
Investments: $261,063
Equipment: $644,766
License Rights: $166,150
Total Assets: $1,726,804 (July 31 2014 was $1,537,338)
LIABILITIES
Accounts Payable: $259,313(July 31 2014 was $391,039)
Sales Revenue: $4,214,046
Gross Profit: $1,809,704
Expenses: $1,496,254
Net Income: $321,192
Earnings per share: $321,192 / 15,617,670 = $0.02056 or $0.021c EPS.
An established profitable junior should be trading at minimum 10 times earnings per share. Adding a dividend would increase the value substantially.
MD&A Highlights
Description of business
The Company, through its wholly owned subsidiaries, Parkside Optical Inc. (“Parkside Optical”) and EIC Energy Interface Inc. (“EIC”), is in the business of producing and marketing innovative optical, screen cleaning and eyeglass cleaning products using the Company’s patented carbon black technology and the new light carbon formula for international distribution. Parkside Optical manufactures and distributes to wholesale distributors the following optical lens cleaning devices: LensPen, PEEPS, DigiKlear, Mini-Pro, Mini-Pro II, MicroPro, Smartphone camera cleaner, Laptop Pro, ScreenKlean, FilterKlear, DSLR Pro Kit, SensorKlear, SensorKlear Loupe Kit, SmartKlear, HunterPro Kits, Outdoor Pro Kits, FogKlear, Photo Pro Kits, Hurricane blower and Microfiber cloth. Since the first shipment of LensPen in August 1993, the Company has expanded sales of these products to over 80 distributors in over 85 countries, and is continuously seeking to add new distributors and items to its range of cleaning devices.
Performance summary
The Company experienced a decrease in revenue - $4,214,046 during the year ($4,491,769 for 2014). This translates into a revenue decrease of $277,723. The Company sells its products globally in U.S. dollars but reports in Canadian dollars, causing distortions in period to period comparisons.
During the year Asian customers were hit by a decline in the SLR camera market, as were customers in Russia and Ukraine. Additionally, disruptions due to war, economic problems and currency decline against the USD have negatively impacted Russian and Ukrainian customers’ ability to purchase the Company’s products and sell them through in their retail markets. Revenues from Russia have decreased by 85% since fiscal 2013 and revenues from the Ukraine are down 80%. Markets in Japan, Germany and the UK however are up between 10 and 25% and Management remains optimistic in these areas. The Company’s Board of Directors responded to the negative events in the important Russia and Ukraine markets by directing management to begin cost cutting measures. The Company’s financial statements are a testament to the success of those measures instituted by management.
Parkside attended the Vision West Expo in Las Vegas, Vision East Expo in New York, Photokina in Germany, the SHOT Show and CES in Las Vegas, MIDO Optical Fair in Milan, Italy, the Photography Show in the UK and the FVF show in Lodz, Poland. These shows are a valuable tool to find new distributors and assist existing distributors.
Following the trade shows, new distribution was added in the USA, Norway, Spain, Portugal, Andorra, Serbia, Poland, the Czech Republic, Slovakia and India. Other major prospects are still in development and the Company has an extremely bullish outlook for its new eyeglasses and sunglasses lens cleaner PEEPS.
In the second quarter, Essilor began a private label program with the Company’s PEEPS product. Essilor is one of the largest manufacturers of corrective lenses in the world and is the single largest manufacturer of ophthalmic lenses.
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. |
