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To: SGJ who wrote (37823)	7/29/2005 7:04:38 PM
From: Carl Worth	Read Replies (1) \| Respond to of 120406

you are confusing a tax benefit (credit) with a tax loss carry forward in 2004 EZEN had significant tax benefits, which were reported in addition to earnings...in Q4, these were related to the job creation act passed in 2002 (i don't know where the benefit in Q2 came from, possibly the same place)...as a result, for example, in Q4 EZEN reported .05 in earnings from operations (untaxed) and .04 in tax benefits related to the job creation act, for a total of .09 in Q1 2005 there were no such tax benefits, and EZEN reported .05 in operating earnings (again untaxed), though the actual operating earnings increased 10% sequentially (.05 vs .05 was largely due to rounding, as the share count barely increased) tax benefits/credits are occasional one time items which can't be included in EPS calculations since they don't recur tax loss carry forwards are applied against earnings, so that no taxes are due on those earnings...in this area, EZEN has the stated 56M in TLCF...for a company like EZEN, where years of earnings will still be earned tax free, it seems reasonable to use their untaxed earnings to calculate the P/E for the time being, as it will be a long time before taxes will affect their bottom line in any event, the results speak for themselves, any dip in the stock caused by misunderstanding of their earnings, or for any other immaterial reason, is just an opportunity to buy more IMHO