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

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

ECX 1.665

+4.1%

11:55 AM EST

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To: Hawkmoon who wrote (2631)	7/7/1998 2:12:00 PM
From: JimieA	Read Replies (2) of 2841

"$345 million dollars in revenue over the next 12 months @ 10% margin (sheer WAG) would net $34.5 million in income/earnings." I'll bite. Even using your optimistic WAG assumptions, I get something like this. Revenues $345M Operating Income $34.5M Interest Expense $5.5M * Pre Tax Income $29M Income Taxes $10.2M Net Income $18.8M Shares outstanding 24.5M ** EPS - Diluted $.77 I think this is as good as it will get. And it probably will be a lot worse. It takes more then a quarter to turn around poorly operating subsidiaries. So either Eco keeps the poor performing subs. And slowly nurses them back to health. If Eco is successful it will take more ten two quarters. And they may not be! Or, as I stated previously, Eco sells the losers, eating a loss. Remember Eco has never earned 10% on recurring operations. That is without sales of subsidiaries, joint ventures, or litigation settlements. But I will give it to them. Since, these are WAG projections * Eco has $120 in 9.625% notes outstanding. Cost $11.6M. This is my WAG of net interest. ** This is my WAG of diluted shares outstanding. Does it seem strange to anyone else that Eco never reports in the press release diluted earnings per share? Although, to the rest of the financial world EPS is diluted EPS and not basic EPS. Jim

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