GB.V Ginger Beef Corporation 2017 Year End Results (Financials + Management Discussion)
All Information Can Be Found At www.sedar.com
Price: $0.16
Common Shares: 13,411,945
Insider Holdings: 10,581,019 or 79% of shares. Recent Insider buying in April occurred.
Financials
ASSETS
Cash: $275,456
Accounts Receivable: $826,013
Due From Related Parties: $168,126
Inventory: $328,116
Tax Recoverable: $19,.452
Prepaid & Deposits: $6,143
Property, Plant & Equipment: $1,457,732
Deferred Income: $24,800
Total Assets: $3,105,838 (2016 - $2,879,800)
LIABILITIES
Accounts Payable: $528,014
Wage Payable: $121,446
Employee Deductions: $1,376
Income Payable: $48,214
Current Portion Of Capital Lease: $27,040
Current Portion Of Long Term Debt: $57,035
Deferred Income: $75,000
Capital Lease Obligation Remaining: $73,562
Total Liabilities: $931,687 (2016 - $906,867)
Sales Performance
Revenue: $6,149,743 (2016 - $5,707,046)
Net Income: $256,838 (2016 - $222,572)
Earnings Per Share in 2017: $0.019
Earnings Per Share in 2016: $0.016
Earnings Per Share in 2015: $0.011
Ginger Beef has now had three years of consecutive profits with increased sales and a stronger Asset/Debt ratio.
Management Discussion Highlights
The Corporation’s gross revenue in 2017 was $6,149,743 compared to $5,707,046 in 2016. The Corporation’s net income in 2017 was $256,838 or $0.019 per share, compared to net income of $222,574 or $0.016 per share in 2016. The increase in the Corporation’s gross revenue in 2017 was due primarily to increase in quantities sold from economic recovery.
The Corporation’s deli Chinese food products are sold nationally across Canada. Gross revenue in 2017 was $5,919,004, 8.9% higher than in 2016. The increased revenue was primarily due to increase in quantities sold from economic recovery.
The Corporation’s other source of revenue, royalties and franchisee fees had experienced some good results. Net royalties and franchise fees in 2017 were $ 230,739, 15.4% less than in 2016. The increase was primarily due to more royalties collected as a result of more sales generated by franchisees as consequences of economic recovery.
The Corporation’s gross profit in 2017 was $ 1,262,576 or 21% of gross revenue compared to $ 1,257,553 or 23% of gross revenue in 2016. Decreased gross profit margin was due to increased cost of raw materials and labour.
The Corporation’s net income in 2017 was $ 256,838 or $ 0.019 per share, compared to net income of $ 222,574 or $ 0.016 per share per share in 2016. The Corporation’s EBITDA in 2017 was $ 544,904 compared to $ 466,931 in 2016. Increased EBITDA were primarily resulting from higher revenue and lower G&A costs. Management believes that EBITDA, in addition to net income (loss), provides investors with a basis to evaluate the Corporation’s operating performance, its ability to incur and service debt and fund capital expenditures.
Cash generated from the Corporation’s operating activities in 2017 was $ 222,136, compared to cash generated from operating activities of $ 460,516 from 2016. Decreased cash flow from operations resulted primarily from slow collection of accounts receivable in 2017 from its franchisees and one of the major customers. Cash used in financing activities in 2017 was 167,502, compared to a net reduction of $ 98,335 in 2016. The increase was primarily resulted from share redemption made in 2017. Expenditures on property, plant and equipment totaled $ 312,243 in 2017, compared to $ 80,386 in 2016. Increased investments in equipment were due to worn-out of aged old equipment.
The Corporation’s trade and other receivables totaled $ 826,013 at December 31, 2017, compared to $ 584,997 at December 31, 2016. Increase in trade and other receivables were primarily due to slow collections of accounts receivable from its franchisees and one of the major customers. Trade and other payables were $ 528,014 at December 31, 2017, compared to $ 347,153 at December 31, 2016. The increase in trade and other payables primarily resulted from increased purchases at end of 2017 for increased storage of inventories. Under normal operating conditions, receivables and payables levels may increase or decrease by as much as 25% in a given period depending on the timing of sales orders, purchases and payments.
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