Hi folks, just spoke to Ira. He says calls from the board are taking too much time and from now on, he will only take questions in writing. My guess, though, is that he will probably take an occasional call from Brad or Cheryl. But I suggest we stop calling and asking for him, except perhaps once a week in the person of Brad or Cheryl, someone he is familiar and comfortable talking with.
He also said that we can talk to IR in house now--just ask for Rob.
The .11 eps figrure is NET BEFORE TAXES, according to IRA. The audited financials from the accountants will be out any day--they are working on it.
As far as gross margins, net margins, etc., there was no direct answer--what he said was that there were many different aspects to the business, a couple like the Morton Downey stuff (scheduled for this week), which might not always be directly a part of the employee staffing business. And he is open to other such opportunities. Certain aspects of the business such as the permanent staffing (which was apparently about 2.5+MM in revenues for the year have very high profit margins--over 40% and some aspects as high as 80%, if I understood correctly. So that would account for the higher eps.
As for the money he borrows from the line of credit, yes, it will result in further dilution, but he reiterated the shareholder friendly nature of the deal. He said he might use some of the money for a buyback, although personally I can't see much sense in borrowing to buy back shares if you are borrowing on shares valued at .30 and you expect the price to rise.
So, that is basically all he said. Anyone know what sort of bite taxes will take out of the .11 eps? |
