Omer, one question that I'm hoping the auditors or someone can answer is about Hungarian magnet sales.
Here is the reported level of magnet revenues and profits as contained in the annual report of YBM Magnex for the year ended December 31 1996 (published on March 4 1997):
(NB all figures are in thousands $US)
Net sales - 1994 - 1995 - 1996
Magnets - $24,393 - $33,714 - $61,907
Operating profit - 1994 - 1995 - 1996
Magnets - $2,273 - $9,657 - $16,330
During the years 1994 - 1996, the company's only magnet manufacturing subsidiary was Magnex Rt, located in Budapest, Hungary. Financial statements for Magnex Rt (with amounts converted from Hungarian forints into US $ at the official currency rates for each respective year) record sales of Magnex Rt in 1994 of $1.2 million dollars; in 1995 sales of $3.3 million dollars; and in 1996 sales of $1.9 million dollars. In 1996, Magnex Rt in Hungary reported a pretax profit of 20 thousand dollars.
What I can't figure is why there is such an enormous variance in the figures reported by YBM Magnex and those put out by Magnex Rt. Am I comparing apples and oranges? I'm sure there is a logical answer to this question - I'm just not an accountant. Could the excess sales be accounted for through United Trade Limited, the Cayman Islands entity that replaced Arigon Co. of the Channel Islands behind YBM Magnex in 1996? What's the answer? Anyone know?
Maybe Richard Lam or some posters who used to talk with Magnex management could come back now that things are a little confusing. Or maybe a broker with a pipeline to management, like Nesbitt's Peter Sklar, or a supportive mutual fund manager, like Steve Misener of BPI funds, or advisor, like Wayne Deans of Deans Knight Capital, could come out and explain how they analyze YBM Magnex.
|
