Gator.. and remember this gem of a press release...
Message 4104073
... stating that Myriad was a "$55 million company" and that the acquisition made FAMH a "$75 million company". Uh oh, some money missing. Check Arif's couch.
As usual, FAMH pulling figures out of the air.
I find it interesting the wonderful "money saving" procedures attributed to Sukey. How long has he been back... a month? If these procedures were so easy to implement, why weren't they done years ago?
I'm reminded of the "Ira has FAMH back on track financially" and "Randy has straightened out our money problems" releases... looking forward to the "now that Mike Sukey is gone, we have our finances back on track" PR a few months from now.
Looks like Gervais will inherit the role of "fall guy" once Sukey is gone. Expected him to be promoted to president soon. (Don't get too excited, Bob, president is a "temp" position at Firamada).
Now... using the numbers FAMH supplied in the release...
"Actual revenue" for 1998:
.....$32,427,000 (First 11 months revenue)
....+$4,865,000 (December)
_______________________
.....$37,292,00 (Myriad and temp staffing combined since Myriad acquired in April).
Myriad was acquired on April 17. So, FAMH has had that revenue for the last 7.5 months of the year.
$37,292,000 (total 1998 revenues)
-$2,277,000 (claimed temp staffing revenues where $909,000 = 66% increase)
___________
$35,015,000 (total brought in by Myiad in 7.5 months)
Estimate of what temp staffing will bring in during December = $189,750 ($2,277,000 divided by 12)
December estimate of company revenue = $4,865,000 - $189,750 = $4,675,250, equaling the Myriad projection for December.
$35,015,000 (1998 Myriad revenues in 7.5 months since acquisition)
-$4,675,250 (Dec. 1998 Myriad projection)
__________
$30,339,750 (April 17 to Nov. 30 Myriad portion)
Per month average (4/17 - 11/30), divided by 6.5 months (Half of April, plus six months) = $4.667 million per month
December Myriad revenue projection = $4.675 million for the month
Hmmmmmm.... three observations.
Number one, monthly Myriad revenues seem to be awfully consistent, on average, from the acquistion in April until the end of the year. They haven't appear to increase at all since the acquisition, no matter what the release claims.
Number two, revenue figures staying almost exactly the same from one period to another is an old FAMH trick. (Remember Ira announcing that first quarter earnings were .03... 2nd quarter .03.... 3rd quarter .03....?)
Number three, if they are gaining new customers, the old ones are leaving (amazingly enough) at the exact same rate. |
