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Biotech / Medical : Medical Industries Of America, MIOA -- Ignore unavailable to you. Want to Upgrade?

To: Jamessmith who wrote (397)	11/15/1997 5:35:00 PM
From: The Pope	Respond to of 570

James, the following table is copied directly from the 10Q. Of interest are the Revenue, Other income, and Total Expense numbers: Revenue $1,189,419 Interest income 36,483 Other income 1,102,657 Total 2,328,559 Expenses: Cost of revenues 947,623 General and administrative expenses 707,290 Depreciation and amortization 48,062 Interest expense 25,015 Other -- Total expenses 1,727,990 Income (loss) from continuing operations 600,569 Loss from discontinued operations-net of income taxes (3,735) Net income (loss) 596,834 Read the paragraph you posted. In the discussion for the 3 months ended Sep 30, it says, "Revenues increased to $1,189,419 for the three months ended September 30, 1997". It goes on to say, Cost of revenues, which included medical supplies, technical salaries and benefits and other expenses directly associated with the Company's services increased to $947,623 . That only leaves $242K, and doesn't include G&A (which was $707K), depreciation, etc. The clue is in the next line: "Other income for the three months ended September 30, 1997 consists of a cash legal settlements less $117,343 of direct expenses." It goes on to talk about the settlement with Glick, which amounted to $1.5MM. The cash legal settlements is the $1.1MM in "other" income. How they get to call that "continuing operations" is beyond me.

To: Jamessmith who wrote (397)	11/15/1997 5:47:00 PM
From: The Pope	Read Replies (1) \| Respond to of 570

The more I sniff, the worse it smells. I looked at you post again, and pulled out this little nugget: As of percentage of revenue, costs of services increased to 80% of revenue from operations from 69% of revenue from operations for the three months ended September 30, 1997 and 1996, respectively. This resulted from the seasonality of the practice during the off season. How can seasonal fluctuations account for differences in the same quarter? The reason quarterly comparisons are made in the first place is to eliminate "seasonal fluctuations". Something stinks.