TVCP filed their 2nd qtr 10-Q on 8/13/02. The following is their 2nd quarter P&L results:
RESULTS OF OPERATIONS
For the three months ended June 30, 2002, compared to the three months ended
June 30, 2001:
Revenue increased $1.11 million or 104.4% to $2.18 million for the quarter ended
June 30, 2002, from $1.07 million for the quarter ended June 30, 2001. This
sales growth is primarily due to the sales efforts by the Sales Division, which
increased sales to $1.43 million up from $0.13 million for the quarter ended
June 30, 2001. The Retail Operations Division, which consists of 9 stores
operated by the Company in the New York City/New Jersey area, generated revenue
of $0.75 million for the quarter ended June 30, 2002 compared to $0.94 million
for the quarter ended June 30, 2001. The decrease in revenue for the Retail
Operations Division is due to the sale of one store and a reduction in the
average revenue per minute of usage. Revenue is recognized and recorded at the
time of customer usage.
Cost of Sales increased $0.56 million or 59.6% to $1.50 million for the quarter
ended June 30, 2002, from $0.94 million for the quarter ended June 30, 2001.
This increase is directly attributable to the increase in traffic volume in 2002
over the comparable period in 2001.
Gross Profit increased $0.55 million to $0.68 million for the quarter ended June
30, 2002, from $0.13 million for the quarter ended June 30, 2001. This increase
is due to the changes discussed in Revenue and Cost of Sales.
Selling, General & Administrative (SG&A) expenses as a percentage of revenue
decreased to 40.8% for the quarter ended June 30, 2002 compared to 113.4% for
the quarter ended June 30, 2001. The amount of SG&A expenses incurred decreased
$0.32 million or 26.4% to $0.89 million for the quarter ended June 30, 2002,
from $1.21 million for the quarter ended June 30, 2001. The major elements of
SG&A are as follows:
11
2002 2001
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Salaries and benefits $ 384,895 $ 421,280
Travel 28,615 60,740
Office & all other 94,974 372,362
Rents, licenses and other expenses 143,105 144,038
Consultants 70,575 97,710
Legal and other professional 33,790 71,099
Sales & Marketing 132,883 41,828
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Total $ 888,837 $1,209,057
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Salaries and benefits have decreased as a result of the closing of unprofitable
stores during 2001. Other expenses incurred were reduced for the quarter ended
June 30, 2002 as part of cost reduction measures implemented by the Company and
the elimination of advances to foreign subsidiaries.
Depreciation and Amortization expenses increased $10,897 or 12.9% to $95,352 for
the quarter ended June 30, 2002, from $84,455 for the quarter ended June 30,
2001. This increase is due to additional purchases of property and equipment
over the last 3 months.
Loss from Operations decreased $0.86 million or 73.6% to $0.31 million for the
quarter ended June 30, 2002, from $1.17 million for the quarter ended June 30,
2001 due to the increases in revenue and gross profit, and the decrease in
overall operating expenses.
Other Expenses decreased $711 or 5.9% to $11,250 for the quarter ended June 30,
2002, from $11,961 for the quarter ended June 30, 2001.
Loss from Discontinued Operations decreased $471,750 to $64,196 for the quarter
ended June 30, 2002 from $535,946 for the quarter ended June 30, 2001. This
decrease is primarily due to the sale of the Company's property in Toronto,
Canada which was sold at a loss of $492,766 in June 2001.
Net Loss Applicable to Common Shares decreased $1.34 million or 77.6% to $0.38
million for the quarter ended June 30, 2002, from $1.72 million for the quarter
ended June 30, 2001 primarily due to the increases in revenues, increase in
gross margin percentage, cost reductions implemented and the reduction of losses
from discontinued operations during 2002. |
