American Eco (ECGOF, ECX on Toronto exchange) Message Board

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Gold/Mining/Energy : American Eco (ECGOF, ECX on Toronto exchange)

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To: Nero who wrote (2405)	4/21/1998 7:58:00 AM
From: david james	Read Replies (2) of 2841

sec.yahoo.com The 10k was filed today. Here are some excerpts I found interesting with respect to going forward. The reduction in revenues from existing businesses was attributable to slower plant turnaround activity in the refinery and power generating industries. The Company believes that this activity will increase during the next two quarters. and this The Company believes that its selling general and administrative costs will decline in future quarters as a percent of revenue as the revenue base continues to expand while these fixed costs can be spread over a larger base. It looks like they were cash flow positive despite the fact that the DBCO "investment" was logged last quarter. The Company's cash increased by $1.8 million from November 30, 1997 to $3.0 million at February 28, 1998. Typically, the Company maintains cash levels of between $1.5 million and $3.0 million for general corporate needs, with any excess cash used to reduce borrowings under the Company's line of credit. In First Quarter 1998, the net cash provided by operating activities was $635,000 compared to a usage of cash in First Quarter 1997 of $11.4 million. The primary difference between the periods related to a significant reduction in accounts receivable, offset in part by an increase in costs and estimated earnings in excess of billings. The Company's investing activities in First Quarter 1998 used net cash of $2.8 million primarily representing the $5.0 million Dominion Bridge investment partially offset by payments on notes receivable. It looks like overall they are saying fairly clearly that the next quarters will be better. The question is 'how much' better. David

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