Charles and Marty, I hate to get into the middle of your most valuable discussion of prospective EPS, but I have a couple of caveats:
1) I read the $500,000 net profit per unit as manufacturing profit, prior to G,S&A for GRNO. And its hard to know what that will be, given that GRNO hasn't been paying cash to anybody for much of anything all year--converting accounts payable into stock, paying M&K Engineering in stock, in default on all interest and debt payments, etc.
2) I read the "90%" efficiency for the units to mean that although they are rated to produce, for example, 400 gallons per hour, and may occasionally approach that amount, on an extended basis they are more likely to produce an average of 360 gallons per hour. I used that, along with the estimate of 35 days per year down time for maintainence, etc. in my calculations.
Based on the above qualifications, and taking a stab at the GS&A expenses, and not knowing for sure how many partnership units have been sold for the Charleston site, and making some allowance for tax credits for that unit, I came up with an estimate of $0.53 per share for 1997. I also tried to be conservative, so that things like the one month delay in getting the unit operating (which became official after I did my calculations) would not unduly affect results. Murphy's Law, etc.
I've been very appreciative of the helpful information on this thread--thanks to you all, Merry Christmas to everybody, and a Happy New Year to GRNO, especially.
Norm |
