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Non-Tech : GRIN (Grand Toys International Inc) -- Ignore unavailable to you. Want to Upgrade?

To: Frank McVerry who wrote (203)	7/8/1999 8:39:00 PM
From: katmando	Read Replies (1) \| Respond to of 495

Frank, Very interesting so far. Sales 2Q last year of $5.8 mil is well-under your forecast for 2Q99 of $11.6 mil. Since GRIN already pre-released the notion of this volume in a recent press release, we should see these BIG NUMBERS in a few weeks. Looking forward to your EPS in part two. Any idea of when they will release??? Go GRIN!

To: Frank McVerry who wrote (203)	7/12/1999 3:40:00 AM
From: Frank McVerry	Read Replies (2) \| Respond to of 495

2Q earnings guesstimate. Part 2 SG&A - SGA tends to be the 'solid granite' of any company's expenses though as I've said in earlier posts, GRIN has had some success in reducing SGA over the past few years, as a percentage of net sales. For example, the annual SGA figures for years 1995 to 1998 have been 36%, 33%, 29% and 26.8%. Over the past few quarters, SGA has been roughly in the range $1.7M - $2.3M, usually higher when net sales are high (more transport, utility, overtime costs etc). As I'm estimating sales at $11.6M , my SGA guess is $2.5M. INTEREST - GRIN has a line-of-credit for inventory purchases which at times can spike-up to the $10M range, especially for Christmas inventory. For this reason, interest costs are around $0.5M per year. and are quite volatile quarter to quarter, from a low of $19k (2Q98) to $128k (1Q99). Therefore to keep the estimates conservative and given the high 2Q sales estimate, I'll use $150k for 2Q interest costs. In the third and final part of this series, I'll consider bad debt expense, foreign exchange adjustment and net earnings before and after taxes.