Short Analysis for all...
I set up an excel sheet to run through some numbers to determine how
well a company's position is according to some of rules/guidelines
for picking a value stock.
Company: Boundless Tech.
financials: There statement from this March 2nd
Here are the numbers:
Total Assets $54,548,000
Intangible Assets $0
All Liabilities $39,141,000
Stock Issues $0
# Common Shares Out. 514,000
Total Share Holders Equity $15,407,000
Current Assets $34,078,000
Current Liabilities $25,298,000
Inventory $13,682,000
Long-Term Debt $8,000,000
Share Price $0.75
Earnings per Share $0.60
Gross Profit/Loss $2,627,000
Total Sales $26,898,000
Results:
Book Value $29.97
Debt/Equity 2.54
Net Current Asset Value - WC $8,780,000
Net Current Asset per Share $17.08
Current Ratio 1.35
Net Quick Asset Value ($4,902,000)
Quick Ratio 0.81
Net Net 1.02
Net Net Current Assets per Share$1.52
Price/Earnings Ratio 1.25
Profit Margin 9.767%
Intrinsic Value $13
My conclusion is something must be wrong...these numbers look too
good to be true. Besides the Asset Value, with strong forward
momentum with new contracts and partnerships, good management and the
current price...this is something I'd like to drop $5K on and look
back a year from now. Can any one point out what I may be
overlooking.
-BB
Numbers look aligned in the text editor...don't know how to enforce the tabs...sorry.
Boundless Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
1997(a) 1996(a) 1997(a) 1996(a)
Revenue $ 26,898 $ 38,569 $ 98,271 $ 138,225
Cost of revenue: 19,209 31,890 73,505 109,668
Gross margin 7,689 6,679 24,776 28,557
Operating expenses:
Sales and marketing 1,842 2,003 7,417 10,433
General and administrative 1,582 2,781 6,213 8,120
Research and development 908 1,529 2,912 4,855
Total operating expenses 4,332 6,313 16,542 23,408
Operating income 3,357 366 8,224 5,149
Other (income) expense:
Interest expense, net 825 640 3,731 3,794
Other (95) 1,992 (255) 1,980
Total other expense 730 2,632 3,476 5,774
Income (loss) before income
taxes and discontinued
operations 2,627 (2,266) 4,748 (625)
Income tax expense (573) 319 (134) 962
Income before discontinued
operations 3,202 (2,585) 4,883 (1,587)
Loss from discontinued
operations - (7,111) - (9,652)
Net income (loss) 3,202 (9,696) 4,883 (11,239)
Dividend on preferred
stock of subsidiary $ 123 $ 124 $ 497 $ 497
Earnings available for
common shareholders $ 3,079 $(9,820) $ 4,386 $(11,736)
Weighted average common
shares outstanding 5,101 4,805 4,925 4,702
Earnings (loss) per
common share:
Continuing operations $ 0.60 $ (0.56) $ 0.89 $ (0.44)
Discontinued operations $ 0.00 $ (1.48) $ 0.00 $ (2.06)
Basic earnings (loss) per
common share $ 0.60 $ (2.04) $ 0.89 $ (2.50)
Earnings (loss) available
for common Shareholders
adjusted for income
impact on assumed
conversions $ 3,079 $(9,820) $ 4,426 $(11,736)
Weighted average dilutive
shares outstanding 5,308 4,805 5,103 4,702
Diluted earnings (loss)
per common share $ 0.58 $ (2.04) $ 0.86 $ (2.50)
(a) Basic and diluted earnings per share adjusted to account for
retroactive application of the proposed reverse split
-0-
Boundless Corporation and Subsidiaries
Consolidated Statements of Financial Condition
(In Thousands)
December 31, December 31,
1997 1996
ASSETS
Current Assets:
Cash and cash equivalents $ 2,929 $ 5,213
Trade accounts receivable, net 14,395 20,928
Income tax refund receivable 800 1,118
Inventories 13,682 18,525
Deferred income taxes, net 1,561 -
Prepaid expenses and other
current assets 711 256
Total current assets 34,078 46,040
Property, Plant & Equipment, Net 10,614 11,474
Goodwill, net 8,428 9,505
Other assets 1,428 2,506
Total assets $ 54,548 $ 69,525
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Notes payable $ 7,650 $ 13,950
Current portion of long-term debt 3,250 8,009
Accounts payable 8,840 10,891
Accrued expenses 5,378 6,346
Deferred revenue 180 180
Net liabilities of
discontinued operation - 3,492
Total current liabilities 25,298 42,868
Long-Term Liabilities
Long-term debt, less
current maturities 8,000 13,382
Deferred income taxes 1,561 -
Other 727 918
Total long-term liabilities 10,288 14,300
Total liabilities $ 35,586 $ 57,168
Commitments and contingencies
Mandatorily redeemable preferred
stock of subsidiary 3,555 3,555
Shareholders' Equity:
Preferred stock -
Common stock 514 486
Additional paid-in capital 33,631 31,440
Accumulated deficit (18,738) (23,124)
Total stockholders' equity 15,407 8,802
Total Liabilities and
Shareholders' Equity $ 54,548 $ 69,525
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