You never did answer my question about the compensation amount for the PR firm of Porter, LeVat and Rose - or why there is no disclosure whatsoever on their web site for compensation they receive for services contracted.
From:
sec.yahoo.com
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses ("administrative expenses") as a percent of sales were 16.4% and 17.0% for the first quarters of 1998 and 1997, respectively. The decreased percentage of administrative expenses from the 1997 quarter is primarily the result of the 77.4% increase in sales and the corresponding spreading of these costs over a larger sales base.
Actual amounts expended increased by $1,484,000 ($792,000 attributable to Cenco) from the first quarter of 1997 to the same quarter of 1998. Factors contributing to the higher dollar level of administrative expenditures (excluding Cenco) were increased marketing costs, professional and consulting fees relating to development of internal production and information systems, certain insurance costs, administrative staff and related costs and travel-related costs incurred to support the higher current and expected sales volumes.
The compensation amount is not detailed here either, except, I would guess, as "some" part of the above listed expenses. Do you happen to know what the amount of the compensation is? Is it all cash?
Also:
LIQUIDITY AND CAPITAL RESOURCES
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The Company has historically met its working capital and longer term capital needs through operating cash flow, short and long-term bank debt and leasing arrangements on certain items of capital equipment. The Company financed its 1997 acquisition of Cenco with long-term bank debt and the issuance of its common stock.
During the first quarter of 1998, capital was used principally to fund the Company's inventory and accounts receivable. Management expects to gradually reduce its present level of investment in inventory during 1998 and to increase its present level of investment in plant facilities, production and information system technology, tooling and equipment for improved manufacturing efficiency and quality enhancement. The Company will also continue to seek acquisition opportunities to expand and/or diversify its markets.
At the end of the quarter, the Company maintained a $9,000,000 unsecured credit line with a bank, $2,524,000 of which was available at March 31, 1998, after consideration of actual line of credit usage and credit line commitments to support foreign exchange contracts and letters of credit. The Company also had outstanding approximately $11,702,000 of secured term debt, and $1,323,000 of subordinated notes.
They acquired Cenco by means of issuing stock and adding to the long-term debt. There is no detail in this filing as to how much stock was issued for this acquisition. Do you know how many shares were issued? Are these shares restricted?
Do you consider the $11.7M secured term debt to be an acceptable amount? It would be preferable if there was further information on the $1.3M subordinated notes. What were these used for? What are their terms?
TIA |
