Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : KWIN Kenwick Industries -- Ignore unavailable to you. Want to Upgrade?

To: Little Engine who wrote (118)	4/29/1999 9:11:00 PM
From: Brad	Read Replies (1) \| Respond to of 264

Little Engine, Please explain to me how "pooling of interests" works. And is it required that a company specify in their press releases when they are using a "pooling of interests basis" for calculations? Also, if "pooling of interests" was used, does that mean that a company cannot include those earnings when calculating "Pre-tax earnings per share?" You said... "Besides, it obviously doesn't apply here. If it had, the acquisition costs would have been written off during fiscal year 1998, which they clearly did not report in their Feb. 23 PR." Do you recall the acquisition cost for AutoMax and AutoMax Finance? I think a PR said they gave 1 million shares for these. Do you remember that? Is that the "acquisition cost?" And would those 1 million shares be accounted for in the earnings per share calculation? Please sort this out for me. Thanks.

To: Little Engine who wrote (118)	4/30/1999 8:26:00 AM
From: Brad	Read Replies (3) \| Respond to of 264

Oh, by the way, Little Engine, in Post #118, you said... Funny, I see nothing in their release regarding pooling of interests... guess KWIN never heard of it. But here is the part of the PR from Aug 24 that pretty clearly states the pooling of interests... -------------------------------- KENWICK INDUSTRIES COMPLETES ACQUISITION OF TWO PROFITABLE Business Wire Aug 24 1998 11:12AM ET Companies; Deals to Add Over $4.5 Million in Annual Revenues to Kenwick Business Editors FT. LAUDERDALE, Fla.--(BUSINESS WIRE)--August 24, 1998--Kenwick Industries, Inc. (OTC BB:KWIN) announced today they have completed the acquisition of Automax USA and Automax Finance, Inc. one week ahead of schedule. Kenwick Industries agreed to pay a total of 1 million shares of restricted Kenwick stock for both the dealership and finance companies combined in the "stock only" tax-free transaction. These acquisitions signify a pooling of interests and increase Kenwick's annual revenues by over $4.5 Million. Additionally, these acquisitions are accretive to earnings and share value. Kenwick is also pleased to announce that the original 1998 earnings (EBIT) projection of $1.2 Million provided by Automax should be exceeded by a considerable margin. Automax, Inc.'s accounting department has presented an earnings report to Kenwick's accountants showing unaudited six-month earnings of $905,000 (EBIT) through June 1998. This earnings rate, projected over the remainder of 1998, would add approximately $.46 per share to Kenwick's pre-tax earnings.