Hi Omni! Yes, I think the EPS number DOES add up. We just have to keep in mind the period of time we are talking about.
The Total Shares Outstanding RIGHT NOW is about 40 million.
BUT, The Total Shares Outstanding for 1997 WAS about 20 million (Weighted Avg).
When "adjusting the EPS for 1997, you would have to start with the 20 million shares FAMH had for 1997.
On the basis of the 4:1 exchange ratio, the adjusted shares going into the NASDAQ company (for the purposes of figuring adjusted 1997 comparisons) would be only 5 million (that's 20 million divided by 4 because we are talking about 1997 EPS).
So the Total Shares Outstanding for 1997, adjusted to reflect the EPS for 1997, would be...
NASDAQ company shares... 1.4 million
FAMH company shares........ 5.0 million
TOTAL for 1997 Adjusted.... 6.4 million shares
So, $2.2 million net income divided into 6.4 million shares = an Adjusted 1997 EPS of .34375
This figure is only close to the .36 because we don't have exact numbers for our calculations.
If we had the "exact" figures ALL the way through as FAMH and the auditors have (for example, we only have $2.2 million for Net Income and it could actually be something like $2,289,824), we would probably hit a number very close to 36› EPS in round numbers (like .358 or .362).
My point here is that the numbers DO ADD UP when we apply the correct numbers to the time period we are figuring... 1997.
I feel like I'm about to say, "Right, Marty! Now we must go BACK... TO THE FUTURE----->>>>> !!" (from Dr Emmitt Brown)
:-)
Hope this helps.
Best wishes,
Brad |
