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Read, read, read the PR's ... go back 3 years. Everything that was said was happening and promised, never materialized. Military contracts, Not!
The easiest thing is to do is invent stories, make excuses, and not deliver, all while soaking investors out of their hard earned money.
If SFIO was waiting for the FDA ruling in their favor, why wouldn't they have a gazzilion e-cigs ready for sale ... oh, that's because they were never contracted to be made and they have no money to pay for them nor to promote the product.
You should all know when you respond, I cannot get back to you until "tomorrow". For nearly a year I have been limited on this board to 1 post a day.
Someone replied yesterday when I wrote an analogy that if the company could ever make 1¢ a share they would have to net $5,000,000, and the responder said that would be great, the share price would be 15¢. My point was they would have to make $5,000,000. There is no way that's happening. If they had a 25% net profit margin, they would need $20,000,000 in sales. That's a fantastical dream. Someone else said because they have a vaporless e-cig they'll capture the entire market. Not if they have no money to produce the product and advertise it. Moreover, did anyone ever consider that people like to exhale the vapor. It gives them pleasure after taking a drag.
If this product ever gets produced, and remember they did say it was being produced two years ago, and sold through distributors, and that they were forecasting $10,000,000 in sales, it might have a market. But mark my words, SFIO will have to do a reverse split because they are out of money and need it for their pockets and if they are ever going to produce the product, they'll have to pay for it.
If they don't do the reverse split, they'll have no other income source and their story will come to an end. Trading SFIO will trickle to death if they don't do the reverse split, because they'll never ramp up sales, because they have no money to pay for the product to be manufactured nor to advertise it.
Lastly, when they do the reverse split, they will not change the authorized number of shares. They are not required to. That's how it works to their favor and they get to continue milking investors.
Your example regarding a surgeon becoming dependent on a technology is not valid.
Would it be better that we not have calculators and go back to using slide rules?
We had X-Ray machines; are we not better off with MRI's?
I am up on VKNG ... I bought it because I thought they came through a tough period in the economy and were introducting a cutting edge technology that would take off. I am waiting to buy more of it.
So like much of society today, I am looking for some immediate gratification. In this case, I am not looking for the share price to sky rocket. I am keenly watching for rising product sales and end user praise.
Everything else will fall into place, including better financing.
3 Years of promises.
All I can say to the longs, I wish for you.
But while some may believe SFIO has been waiting for all of their ducks to be in a row, the competition has be "showing" everybody they are "walking the walk", and spending far less time talking.
SFIO is never going to leap frog over all the competition that's out there with the head start they have.
Even once you have an e-cig if they ever bring it to market, then you're going to have the problem that people will no longer be buying on future hype and promises. They are going to say "show me" and look at the fundamentals.
One look at the number of outstanding shares, and the realization that a 1¢ EPS equals more than $5,000,000 in earnings, and it becomes apparent that either a Reverse Split is a necessity, or if they have a 25% net margin of profit, they'll have to post revenue in excess of $20,000,000.
I predict the R/S comes this summer. As for a 25% net margin of profit or $20,000,000 in revenues, I give that a slim to non existent chance of happening with SFIO's management team and advertising savvy.
Full disclosure: I did sell everything at .006. If SFIO's fundamentals show a pulse I'll buy back in. That's why I hang around and keep watching.
I stand corrected.
I just want to fast forward the "Viking sales clock".
Doctor and hospital "user" testimonials are going to be needed to help ramp up sales and the stock price.
I would like to hear from some of the people who presently have their hands on the machines singing praise for the equipment.
With plenty of machines in distributor hands, and some being sold to end users, it's not unreasonable to be on the edge of my seat waiting to read "user reviews".
As upbeat as I was for years about the introduction of Rheingold and it's expansion, it is just so disappointing to see ZERO promotion and advertising to pump up sales.
Nothing is being done to pre-sell it. DKAM has to take one market and make Rheingold a star. It's not the distributors' job.
Though all along, I kept asking the same thing you mentioned; who the heck is buying all of this stock. Millions of new shares get printed and someone is giving them a home, without voting rights.
Nope. Have you?
Shareholders are expected to accept management's slow motion progress and watch it in super slo mo replay.
Management can't stop promising future spectaculars, and stop selling shares. It's the same story for years, only now things are moving even slower. Even though competitors are selling product everywhere. You can't walk through an airport without being able to buy a competitor's product.
Say what you want about OTC and Pink Sheets needing to sell stock to raise capital. SFIO hasn't needed to raise money for anything other than lining their pockets. They're not busy buying components, manufacturing them, advertising them, and distributing them.
The reverse split will happen this summer. If the authorized shares are not reduced by an equal amount, expect to witness a repeat of the prior 3 years.
I am very pleased with the distribution network and the commitment made by them to carry the product. Distributors are sales multipliers.
I would like to see the product being demonstrated and sold domestically and don't understand why it is not?
I would also like to know more about what the PR firm is doing. The amount of news is deafening.
Misguided flight resulting from a fear of dilution, was the trigger for the drop.
AEN is lightly traded and has very few shareholders. It doesn't take much to move the price one way or another.
In the last 4 months, 3 private equity investors bought newly issued shares at open market rates. The fear is the evidence of dilution. The fear is unwarranted.
The last investor bought their shares at about $2. The prior 2 investors during the winter bought their shares for about $1.40. All bought in because of their belief in management and the products. I am assuming they have more "inside" information than we do; that being knowledge about the progress of product trials.
The company raised more than $4,000,000 dollars from them and more than $1,000,000 in research grants from organizations looking for cures. The National Institute Of Health being one of them. "Crack-Pot" companies don't win those kinds of grants.
Production of the Alzheimer Food Supplement was recently designated to be manufactured by a third party. The royalties from that will be realized in coming quarters.
At these prices I am doubling my position, and averaging down. I first bought in at $1.40 after the first wave of investors bought at that price.
I am following the smart money, not fleeing from it.
I wonder if the endless dilution is only going to pay lawyers, accountants, DKAM salaries, other fixed expenses, and the brewery, or if anything we can cheer about like the previously planned radio and neon signs is in the works? For that matter, has anyone seen a Rheingold tin sign? I have not.
Those are two huge remaining issues.
At this point in DKAM's history, I can't imagine attractive financing becoming available until PK accepts the poison pill to reduce fixed costs. It's clear as day where the money goes. No bank will come on board to simply funnel money into his pocket.
So it's a chicken and egg thing.
A real bank would also want to put it's own people on the board of directors to protect it's money. Remember, DKAM doesn't have collateral. PK has also done what he needed to do to protect his income stream; shareholders have no vote.
As I see it, unless reported revenues jump 5 - 10 times in the next financial report, indicating a trend, there's no end in site for dilution and reverse splits.
As long as there continues to be an endless appetite for DKAM's shares, PK has no reason to change his habits.
The only way shareholders can influence him is by drying up the buying market for his shares. Then DKAM either goes under or PK HAS TO reduce fixed costs and share our pain.
I'll call it....R/S will be announced between Aug 1 - Aug 31.
That is unless they have an uptick in spring PR's. Then the printing press will run out of paper in July.
VKNG is excitement in slow motion.
The 3-D innovation is so cool. If it helps surgeons, the technology will be in world-wide demand.
If it turns out to be a novelty, it won't amount to a hill of beans.
That said, I can't imagine how surgery can't be improved with the aid of seeing what you could not see before, the way your eyes would see it, if it was right in front of you.
I cannot predict when this is going to kick into gear, but once it seems to become accepted outside the USA, I can't imagine how demand within the USA won't be like the start of a drag racer heading down a 1/4 mile strip.
I am patient, but it does feel like I am watching VKNG in Slo-Mo.
CUGI seems to be a bore to own. It's a long wait.
The share price basically doesn't move. The bid and ask are close, and there's little interest to trade it.
With a little luck they'll submit a revenue and net surprise soon enough, and excite a few more people.
BTW, this information needs to be updated.
Shareholders of Record 3,000 a/o Apr 01, 2008
Next Earnings 05/30/2011
Shares Outstanding 190,384,990 a/o Mar 15, 2011
per http://www.otcmarkets.com/stock/DKAM/company-info
In round numbers that's about 150 million new shares in 4 months, or 1.2 million diluted shares a day. You can pretty much count the days until the next R/S.
It's just too bad. It almost seems criminal. No matter how fast and far Rheingold gets distributed, it can't happen fast enough.
If DKAM's Rheingold sales only reach 20% of The Boston Beer Company's (Sam Adams) $463 Million in revenues, DKAM's fixed cost structure will only allow them to reach breakeven. Before then, they'll need to commence brewing their own product.
Since PK has never mentioned anything like that, and unless PK becomes serious about restructuring, DKAM won't be able to get out of it's own way.
I can't fathom whose behind buying today's 18 million shares?
This number is long over do to be updated:
Shareholders of Record 660 a/o Aug 13, 2010
MGI reported financial results for the first quarter of 2011.
I started buying MGI at $2.70 in December 2010, and continued to buy 4 more times, stopping when it reached $3.15.
MGI is just 1 good earnings surprise (this wasn't it, but this was good) from popping over $5.
The new management is great, and they are making all the right moves.
MoneyGram International, Inc. (NYSE:MGI), a leading global payment services company, today reported financial results for the first quarter of 2011.
•Money transfer transaction volume increased 14 percent driven by 17 percent growth in non-U.S. sends in the first quarter of 2011 versus prior year.
•Money transfer fee and otherrevenue increased 8 percent in the first quarter of 2011 versus prior year on both a reported and constant currency basis. The difference between transaction growth and constant currency revenue growth is due to lower revenue per transaction primarily related to the continuation of the $50 price band in the United States.
•Global agent locations increased 18 percent over the prior first quarter to 233,000.
•Total revenue in the first quarter increased 3 percent to $294.0 million, compared with $286.5 million in the first quarter of 2010. Total fee and other revenue increased 3 percent to $290.0 million, from $280.9 million in the first quarter of 2010.
•Net income for the quarter was $14.0 million, up from $10.8 million in the prior year quarter, and EBITDA was $51.3 million. Both net income and EBITDA were impacted by $4.6 million of stock-based compensation, $2.9 million of restructuring and reorganization costs and $1.5 million in costs associated with the recapitalization. Net income benefited from a lower income tax rate and a $3.5 million discrete tax benefit from the release of valuation allowances.
•Adjusted EBITDA for the quarter was $60.3 million versus $61.7 million in the prior year. First quarter 2011 Adjusted EBITDA reflects lower net investment revenue of $1.6 million compared with the same period in 2010. Adjusted EBITDA margin was 20.5 percent in the first quarter of 2011, compared with 21.5 percent in the same period last year.
“It’s been an extremely busy and exciting 2011 for MoneyGram, and clearly the highlight for the quarter was the announcement of the recapitalization agreement and the subsequent completion of the syndication process to secure a new senior credit facility. The recapitalization is recognition of the tremendous progress we’ve made and a testament to all the hard work toward rebuilding MoneyGram,” said Pamela H. Patsley, chairman and chief executive officer at MoneyGram. “At the same time, we are aware that there is still much work to be done. The company and our core money transfer business continue to strengthen and we remain diligently focused on investing in our brand and driving productivity across the organization. We continue to refine what is working well and are taking the necessary steps to improve those areas that are under-performing. We look forward to the rest of 2011 with great enthusiasm.”
Recapitalization Activities
During the quarter, the Company entered into a recapitalization agreement with affiliates of Thomas H. Lee Partners (THL), THL co-investors, and affiliates of Goldman, Sachs & Co. Under the terms of the Recapitalization Agreement, THL and its co-investors will convert all of their Series B Preferred into common stock, and Goldman Sachs will convert all of its Series B-1 Preferred into shares of Series D Participating Convertible Preferred Stock, a non-voting equivalent to common stock. Through the agreement, THL and its co-investors will receive approximately 28.2 million additional shares of common stock and $140.8 million in cash, and Goldman Sachs will receive approximately 15,504 additional shares of Series D Preferred (equivalent to 15.5 million shares of common stock) and $77.5 million in cash as consideration for completing the transaction. THL and its co-investors are expected to own approximately 55.1 percent and Goldman Sachs is expected to own approximately 30.3 percent of the shares of common stock outstanding after the transaction on a fully diluted basis.
Earlier this month, MoneyGram announced that a syndication process had been completed for a new $540 million senior secured credit facility consisting of a $150 million, five-year revolving credit facility and a $390 million, six-year term loan. The net proceeds from the term loan under the new credit facility will be used to consummate the company’s previously announced recapitalization and to refinance the Company’s existing credit facility. Closing on the new credit facility is subject to finalization and execution of the new credit agreement with the lenders and customary terms and conditions. Closing on the new credit facility will take place in conjunction with the closing of the recapitalization.
Market Development
The Company continued its focus on enhancing its product offerings and expanding its agent network. MoneyGram recently:
•Announced the launch of MoneyGram’s cash-to-account program in the Philippines with Banco de Oro, enabling consumers to transfer money from select MoneyGram locations in the United States, Malaysia, Greece and Hong Kong directly into the bank accounts of recipients in the Philippines.
•Increased its presence in Brazil with the addition of super agent OM D.T.V.M., which launched MoneyGram’s services at sub-agent locations throughout the country. Its network is expected to grow to 200 locations by the end of the year.
•Announced our agreement with InComm relating to the MoneyGram® Xpress service, the company’s new in-lane money transfer product. InComm will assist MoneyGram in the distribution and activation of MoneyGram Xpress packages, which will be available to U.S. consumers in select outlets in InComm’s network of more than 225,000 retail locations.
•Expanded its agreement with Uniteller, an important agent in Mexico, to include Banorte, Uniteller’s parent company, in a deal that will bring MoneyGram’s services to nearly 1,200 locations throughout Mexico.
•Reached the 10,000 location milestone in Ukraine with the recent signing of three new agents Index Bank, Universal Bank and Credo bank, which added more than 400 locations across the country.
•Signed an agreement with Volksbank in Romania, adding key locations in this important send and receive country.
•Launched MoneyGram’s first money transfer kiosk in Vietnam with agent partner DongA Bank, expanding its service delivery from bank branch locations and home delivery to also include the convenience of kiosk locations.
•Celebrated the 10 millionth-transaction milestone with the UK Post Office. As part of its longstanding partnership that began in 1997 and today includes nearly 12,000 locations.
Global Funds Transfer Segment Results
Total revenue for the Global Funds Transfer segment increased 5 percent to $269.8 million in the first quarter of 2011 compared with $256.7 million in the first quarter of 2010. The segment reported operating income of $26.4 million and an operating margin of 9.8 percent in the first quarter of 2011. Adjusted operating margin was 11.3 percent in the quarter, down compared to 13.1 percent in the prior year quarter. Segment margin was impacted by increased marketing spend and increased commission expense, which resulted from revenue growth and changes in corridor mix.
Money transfer transaction volume increased 14 percent, with fee and other revenue increasing 8 percent to $239.6 million in the first quarter of 2011 compared with $222.7 million in the first quarter of 2010. On a constant currency basis, money transferfee and other revenue improved 8 percent. The difference between transaction growth and constant currency revenue growth is due to lower revenue per transaction primarily related to the continuation of the $50 price band in the U.S. In the first quarter, money transfer transactions originating outside of the U.S. increased 17 percent over the prior year.
In the Americas, the money transfer business continued to deliver solid results led by 17 percent growth in U.S.-to-U.S. transaction volume. Money transfer transactions originating in the U.S. excluding transactions sent to Mexico increased 9 percent versus the first quarter of 2010. During the quarter, transaction volume to Mexico increased a strong 10 percent, which is a significant improvement from last year’s first quarter transaction growth rate of negative 11 percent.
Bill payment transaction volume decreased 8 percent, while fee and other revenue decreased 11 percent to $30.1 million in the first quarter of 2011 from $33.8 million in the first quarter of 2010. The decline in both transaction volume and revenue continues to be related to transaction mix. While the business continues to perform well in new emerging verticals, these verticals generate lower revenue per transaction compared with our traditional consumer credit verticals, which continue to experience secular and economic declines.
Financial Paper Products Segment Results
Total revenue in the Financial Paper Products segment was $23.9 million in the first quarter, down from $28.4 million in the first quarter of 2010. Operating income was $8.4 million in the first quarter of 2011 down from $8.9 million in the first quarter of 2010. Operating margin in the first quarter of 2011 was 35.1 percent. Adjusted operating margin was 37.7 percent in the quarter up from 34.9 percent in the same period last year.
Non-GAAP Measures
In addition to results presented in accordance with GAAP, this press release and related tables include certain non-GAAP financial measures, including a presentation of EBITDA (earnings before interest, taxes, depreciation and amortization, including agent signing bonus amortization), Adjusted EBITDA (EBITDA adjusted for significant items) and Adjusted EBITDA margin. In addition, we also present Adjusted operating income and Adjusted operating margin for our two reporting segments. The following tables include a full reconciliation of these non-GAAP financial measures to the related GAAP financial measures.
We believe that these non-GAAP financial measures provide useful information to investors because they are an indicator of the strength and performance of ongoing business operations, including our ability to service debt and fund capital expenditures, acquisitions and operations. These calculations are commonly used as a basis for investors, analysts and credit rating agencies to evaluate and compare the operating performance and value of companies within our industry. In addition, the Company’s debt agreements require compliance with financial measures based on EBITDA and Adjusted EBITDA. Finally, EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are financial measures used by management in reviewing results of operations, forecasting, assessing cash flow and capital, allocating resources and establishing employee incentive programs. Although MoneyGram believes the above non-GAAP financial measures enhance investors’ understanding of its business and performance, these non-GAAP financial measures should not be considered an exclusive alternative to accompanying GAAP financial measures.
Description of Tables
Table One – Consolidated Statements of Income (Loss)
Table Two – Segment Results
Table Three – Segment Reconciliations
Table Four – EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
Table Five – Consolidated Balance Sheets
Table Six – Assets in Excess of Payment Service Obligations
Conference Call
MoneyGram International will host a conference call today at 9:00 a.m. ET, 8:00 a.m. CT, to discuss its first quarter 2011 results. Pamela H. Patsley, chairman and chief executive officer, will host the call. The conference call can be accessed by calling 1-877-591-4959 in the U.S. and 1-719-325-4821 internationally. The participant confirmation number is 5322393. Slides are available on MoneyGram’s website at www.moneygram.com. A replay of the conference call will be available at noon ET on April 28 through 11:59 p.m. ET on May 5, 2011. The replay of the call is available at 1-877-870-5176 (U.S.) or 1-858-384-5517 (outside the U.S.). The replay confirmation code is 5322393.
About MoneyGram International, Inc.
MoneyGram International, Inc. is a leading global payment services company. The Company's major products and services include global money transfers, money orders and payment processing solutions for financial institutions and retail customers. MoneyGram is a New York Stock Exchange listed company with 233,000 global money transfer agent locations in 191 countries and territories. For more information, visit the Company's website at www.moneygram.com.
Forward Looking Statements
The statements contained in this press release regarding MoneyGram International, Inc. that are not historical and factual information contained herein, particularly those statements pertaining to MoneyGram’s expectations, guidance or future operating results, are forward-looking statements and are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are only as of the date they are made, and unless legally required, MoneyGram undertakes no obligation to update or revise publicly any forward-looking statement. Words such as “estimates,” “expects,” “projects,” “plans” and other similar expressions or future or conditional verbs such as “will,” “should,” “could,” and “would” are intended to identify such forward-looking statements. These forward-looking statements are based on management's current expectations and are subject to uncertainty and changes in circumstances due to a number of factors, including, but not limited to the following: (a) our substantial dividend and debt service obligations and our covenant requirements which could impact our ability to obtain additional financing and to operate and grow our business; (b) sustained illiquidity of global financial markets which may adversely affect our liquidity and our agents’ liquidity, our access to credit and capital and our agents’ access to credit and capital and our earnings on our investment portfolio; (c) weak economic conditions generally and in geographic areas or industries that are important to our business which may cause a decline in our money transfer growth rate and transaction volume and/or revenue; (d) a material slow down or complete disruption of international migration patterns which could adversely affect our money transfer volume and growth rate; (e) a loss of material retail agent relationships or a reduction in transaction volume from them; (f) our ability to develop and implement successful pricing strategies for our services; (g) stockholder lawsuits and other litigation or government investigations of the Company or its agents which could result in material costs, settlements, fines or penalties; (h) our ability to maintain sufficient banking relationships; (i) our ability to attract and retain key employees; (j) our ability to maintain capital sufficient to pursue our growth strategy, fund key strategic initiatives and meet evolving regulatory requirements; (k) our ability to successfully and timely implement new or enhanced technology and infrastructure, delivery methods and product and service offerings and to invest in products, services and infrastructure; (l) our ability to adequately protect our brand and our other intellectual property rights and to avoid infringing on third-party intellectual property rights; (m) competition from large competitors, niche competitors or new competitors that may enter the markets in which we operate; (n) the impact of laws and regulatory requirements including the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations required to be developed thereunder, and other industry practices in the U.S. and abroad, including changes in laws, regulations or other industry practices and standards that may increase our costs of doing business, reduce the market for or value of our services or change our relationships with our customers, investors and other stakeholders; (o) our offering of money transfer services through agents in regions that are politically volatile or, in a limited number of cases, are subject to certain Office of Foreign Assets Control restrictions which could result in contravention of U.S. law or regulations by us or our agents which could subject us to fines and penalties and cause us reputational harm; (p) a breakdown, catastrophic event, security breach, privacy breach, improper operation or other event impacting our systems or processes or our vendors’, agents’ or financial institution customers’ systems or processes, which could result in financial loss, loss of customers, regulatory sanctions and damage to our brand and reputation; (q) our ability to scale our technology to match our business and transactional growth; (r) our ability to manage our credit exposure to retail agents and financial institution customers; (s) our ability to mitigate fraud risks from consumers, agents and other third parties; (t) our ability to successfully manage risks associated with running Company-owned retail locations and acquiring new businesses; (u) our ability to successfully manage risks associated with our international sales and operations including the potential for political, economic or other instability in countries that are important to our business; (v) our compliance with the internal control provisions of Section 404 of the Sarbanes-Oxley Act of 2002; (w) the outcome of positions we take with respect to federal, state, local and international taxation; (x) additional risk factors described in our other filings with the Securities and Exchange Commission from time to time.
TABLE ONE
MONEYGRAM INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
March 31,
2011 vs
(Amounts in thousands, except per share data) 2011 2010 2010
REVENUE
Fee and other revenue $ 290,009 $ 280,866 $ 9,143
Investment revenue 4,015 5,638 (1,623 )
Total revenue 294,024 286,504 7,520
EXPENSES
Fee and other commissions expense 129,060 122,410 6,650
Investment commissions expense 140 204 (64 )
Total commissions expense 129,200 122,614 6,586
Compensation and benefits 59,295 57,562 1,733
Transaction and operations support 50,409 47,586 2,823
Occupancy, equipment and supplies 11,753 11,169 584
Depreciation and amortization 11,666 12,511 (845 )
Total operating expenses 262,323 251,442 10,881
OPERATING INCOME 31,701 35,062 (3,361 )
Other expense (income)
Net securities gains - (2,392 ) 2,392
Interest expense 20,613 24,407 (3,794 )
Total other expense, net 20,613 22,015 (1,402 )
Income before income taxes 11,088 13,047 (1,959 )
Income tax (benefit) expense (2,957 ) 2,235 (5,192 )
NET INCOME $ 14,045 $ 10,812 $ 3,233
Basic and diluted loss per common share $ (0.26 ) $ (0.26 ) $ -
Net loss available to common stockholders:
Net income as reported $ 14,045 $ 10,812 $ 3,233
Accrued preferred stock dividends (33,209 ) (29,369 ) (3,840 )
Accretion recognized on preferred stock (2,559 ) (2,845 ) 286
Net loss available to common stockholders $ (21,723 ) $ (21,402 ) $ (321 )
Weighted-average outstanding common shares (1) 83,638 82,632 1,006
(1) The following weighted-average potential common shares are excluded from diluted loss per common share as their effect is anti-dilutive. All potential common shares are anti-dilutive in periods of net loss available to common stockholders.
Shares related to stock options and restricted stock
41,078
35,159
Shares related to preferred stock
445,034
393,496
TABLE TWO
MONEYGRAM INTERNATIONAL, INC.
SEGMENT RESULTS
(Unaudited)
Global Funds Transfer
Three Months Ended
March 31,
2011 vs
(Amounts in thousands) 2011 2010 2010
Money transfer revenue:
Fee and other revenue $ 239,630 $ 222,732 $ 16,898
Investment revenue 74 99 (25 )
Bill payment revenue:
Fee and other revenue 30,073 33,839 (3,766 )
Investment revenue 4 24 (20 )
Total revenue 269,781 256,694 13,087
Commissions expense 128,389 121,157 7,232
Operating income $ 26,447 $ 27,781 $ (1,334 )
Operating margin 9.8 % 10.8 %
Financial Paper Products
Three Months Ended
March 31,
2011 vs
(Amounts in thousands) 2011 2010 2010
Money order revenue:
Fee and other revenue $ 14,904 $ 16,847 $ (1,943 )
Investment revenue 826 1,057 (231 )
Official check revenue:
Fee and other revenue 5,362 6,491 (1,129 )
Investment revenue 2,804 4,008 (1,204 )
Total revenue 23,896 28,403 (4,507 )
Commissions expense 811 1,106 (295 )
Operating income $ 8,380 $ 8,903 $ (523 )
Operating margin 35.1 % 31.3 %
TABLE THREE
MONEYGRAM INTERNATIONAL, INC.
SEGMENT RECONCILIATIONS
(Unaudited)
Global Funds Transfer
Three Months Ended
March 31, 2011 vs
(Amounts in thousands) 2011 2010 2010
Revenue (as reported) $ 269,781 $ 256,694 $ 13,087
Adjusted operating income $ 30,394 $ 33,621 $ (3,227 )
Stock-based compensation expense (3,947 ) (5,840 ) 1,893
Total adjustments (3,947 ) (5,840 ) 1,893
Operating income (as reported) $ 26,447 $ 27,781 $ (1,334 )
Adjusted operating margin 11.3 % 13.1 %
Total adjustments (1.5 %) (2.3 %)
Operating margin (as reported) 9.8 % 10.8 %
Financial Paper Products
Three Months Ended
March 31,
2011 vs
(Amounts in thousands) 2011 2010 2010
Revenue (as reported) $ 23,896 $ 28,403 $ (4,507 )
Adjusted operating income $ 9,018 $ 9,900 $ (882 )
Stock-based compensation expense (638 ) (997 ) 359
Total adjustments (638 ) (997 ) 359
Operating income (as reported) $ 8,380 $ 8,903 $ (523 )
Adjusted operating margin 37.7 % 34.9 %
Total adjustments (2.7 %) (3.5 %)
Operating margin (as reported) 35.1 % 31.3 %
TABLE FOUR
MONEYGRAM INTERNATIONAL, INC.
EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
(Unaudited)
Three Months Ended
March 31,
(Amounts in thousands) 2011 2010
Income before income taxes $ 11,088 $ 13,047
Interest expense 20,613 24,407
Depreciation and amortization 11,666 12,511
Amortization of agent signing bonuses 7,948 7,330
EBITDA
51,315 57,295
Significant items impacting EBITDA:
Net securities gains - (2,392 )
Severance and related costs (1) (31 ) (59 )
Restructuring and reorganization costs 2,939 -
Stock-based compensation expense 4,599 6,857
Recapitalization costs(2) 1,476 -
Adjusted EBITDA $ 60,298 $ 61,701
Adjusted EBITDA margin (3) 20.5 % 21.5 %
(1) Severance and related costs from executive terminations occurring prior to the second quarter of 2010,
including adjustments to amounts previously accrued.
(2) Represents professional and legal fees related to the 2011 Proposed Recapitalization.
(3) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Total Revenue.
TABLE FIVE
MONEYGRAM INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Amounts in thousands, except share and per share data) March 31,
2011
December 31,
2010
ASSETS
Cash and cash equivalents $ - $ -
Cash and cash equivalents (substantially restricted) 2,776,009 2,865,941
Receivables, net (substantially restricted) 956,945 982,319
Short-term investments (substantially restricted) 411,299 405,769
Available-for-sale investments (substantially restricted) 145,168 160,936
Property and equipment 111,100 115,111
Goodwill 428,691 428,691
Other assets 146,842 156,969
Total assets $ 4,976,054 $ 5,115,736
LIABILITIES
Payment service obligations $ 4,045,265 $ 4,184,736
Debt 640,090 639,946
Pension and other postretirement benefits 119,394 120,536
Accounts payable and other liabilities 91,944 113,647
Total liabilities 4,896,693 5,058,865
MEZZANINE EQUITY
Participating Convertible Preferred Stock-Series B, $0.01 par value, 760,000 shares authorized, 495,000 shares issued and outstanding
651,773 628,199
Participating Convertible Preferred Stock-Series B-1, $0.01 par value, 500,000 shares authorized, 272,500 shares issued and outstanding
383,348 371,154
Total mezzanine equity 1,035,121 999,353
STOCKHOLDERS' DEFICIT
Preferred shares, $0.01 par value, none issued - -
Common shares, $0.01 par value, 1,300,000,000 shares authorized, 88,556,077 shares issued
886 886
Additional paid-in capital - -
Retained loss (790,314 ) (771,544 )
Unearned employee benefits - -
Accumulated other comprehensive loss (28,292 ) (31,879 )
Treasury stock: 4,845,555 and 4,935,555 shares at March 31, 2011 and December 31, 2010, respectively
(138,040 ) (139,945 )
Total stockholders' deficit (955,760 ) (942,482 )
Total liabilities, mezzanine equity and stockholders' deficit $ 4,976,054 $ 5,115,736
TABLE SIX
MONEYGRAM INTERNATIONAL, INC.
ASSETS IN EXCESS OF PAYMENT SERVICE OBLIGATIONS
(Unaudited)
(Amounts in thousands) March 31,
2011
December 31,
2010 September 30,
2010 June 30,
2010
Cash and cash equivalents $ 2,776,009 $ 2,865,941 $ 2,791,083 $ 2,791,226
Receivables, net 956,945 982,319 1,081,521 1,047,768
Short-term investments 411,299 405,769 501,435 700,921
Available-for-sale investments 145,168 160,936 189,133 216,894
4,289,421 4,414,965 4,563,172 4,756,809
Payment service obligations (4,045,265 ) (4,184,736 ) (4,272,734 ) (4,472,692 )
Assets in excess of payment service obligations $ 244,156 $ 230,229 $ 290,438 $ 284,117
See full article from DailyFinance: http://srph.it/maOsJ1
MAN, it's too bad PK took all the FUN out of DKAM.
It had such great possibilities. Now it just looks like an SEC poster child in need of review. Statements that come out of his mouth in an interview are proven to be untrue within minutes when it comes to dilution.
I don't need to wait until June to get a real read on where sales are going. My guess is they are going to be close to unchanged.
Does anyone know what happened to the plans for Florida?
Thank heavens I look for great buys at real companies too. Remember I told you guys about MGI in the $2's just a few months ago. It's turning into a home run and tracking right with WU.
Now that's FUN.
250 units is in the ballpark of where they are operating now. It is what they are ramping up to produce. It's to be seen if they really sell that many units for more than a year above and beyond distributor models.
My wild guess is that if they are selling 1,000 units a year they can scale up manufacturing to lower the unit costs and obtain better financing.
One question that nobody here can answer is if the distributors are put in a position of buying units and then installing them for protracted test periods in hospitals? That will force more units to be bought by them as they generate interest, without end user purchases. Also, to make it attractive, what kind of discount Viking is selling the product to them for, ala putting their own skin in the game?
I don't know how the sales process works with units like this, nor how the money flows. However, if they do sell 250 units in the next 12 months I will be VERY happy. That means they either added that many distributors (not so great), distributors have those units in the field being tested (pretty good), or hospitals are buying them (great). If the later, it could snowball from there as docs start getting excited about the technology and improved surgical capabilities.
Try going to:
http://www.otcmarkets.com/stock/VKNG/company-info
The web site is a good resource.
We're all scoreboard watchers now. The fraternity isn't too big; most are "longs" hoping for a technology breakout.
I'll be happy if it goes back to $2 on hype.
If it goes to $5 on fundementals, it's going to go much higher than that.
I was a long haul holder for two years believing these guys were for real, honest and just stumbling.
Then it all became clear when I saw the web site they had spent years building up to.
I hope you make it back to even.
I was just glad to get out with enough skin to put it elsewhere that's helping me get back to even now.
The baton is passed ... if you keep looking at DKAM through rose colored glasses you'll eventually develop macular degeneration. Only when you become completely blind will you see the light.
Keep the dream though. I hope someone can pump this back up over a penny ... imagine that ... How Sad!
I've never sold, but it will be a day to chuckle when the next R/S happens and I watch my holdings shrink to really almost zero in the same amount of time it took the share price to drop to it's present price since the last R/S.
This guy won't be averaging down.
Units sales, revenues and net profits; the fundementals are going to drive this company if it is going to be driven anywhere.
Thier high tech 3D product is being shown and sold by motivated sellers. That's so far ahead of so many penny stock companies it's noteworthy.
Hospital demand is going to dictate Viking's future. If they see 3D as a necessity, not a luxury, Viking will obtain whatever financing they need at favorable terms. Lenders will see the hand writing on the wall.
If hospital demand doesn't grow, Viking will be forced to accept unfavorable financing deals in order to fight another day, and the shareholders will either have to wait, or accept that their investment is burnt toast.
There is a middle ground, and it's not good for shareholders. That being sales continue to grow, but at too slow of a pace to lure more favorable financing. If that happens, manufacturing won't be able to ramp up to a point whereby unit costs can be brought down.
It seems pretty clear cut to me. Viking has reached the "put-up-or-shut-up" point in the company's timeline. They have the product. Now they have to sell enough of it to make the revenue and net profit jump significantly enough to attract the interest of some angel investors.
Naked ... the business plan is so transparent. I bought long ago, and waited for the Rheingold roll-out. Though it's happening and product is selling, the roll-out plan is a failure, and nothing more than a lure to attract new investors.
No advertising, no promotion, and other than the addition of a few more distributors, sales are not growing organically. With the lack of manufacturer support, I wonder how much longer the distributors will keep re-ordering.
Though the stock's precipitous price decline seems to have nearly stopped, the continued dilution seems to be happening at a quickening pace.
That can only mean one thing if the company isn't going under. Several hundred million more shares will have to be sold, further diluting our positions, followed by yet another reverse split in the neighborhood of 1 for 25 to 30.
It's in the cards and they are being played face-up now which at least makes the game a little fairer. What we cannot see, we know to be happening.
After that split, the share price will once again race to the bottom like it's done before.
The future here is so obvious to predict now. Rheingold needs to increase sales at least 40 times to reach breakeven. At one time I thought sales could grow into the millions of dollars per quarter. I don't see that happening anymore.
The dream at DKAM is over.
Wow, it hasn't totally tanked today. There must be no good news.
If the technology is a success, don't you agree, more agreeable financing will present itself to management?
Both recent investor groups that put a couple of million into the company in exchange for common stock, did so at substatially higher share prices than the stock is at now. I assume their money, was smart money, but I really don't know. Nothing is a sure bet, but this seems like it has to be a great buy now assuming they were not hoodwinked.
... and I'll buy more when sales start to be more regular. Some steady progress will drive the stock up.
Just checking in ... I travel for 3 weeks, pay no attention to DKAM and you know what ... the board hasn't changed. Same story different day.
And I'm still buying Rhiengold trying to get back to even.
Viking Systems Expects Record Quarterly Revenues for First Quarter 2011
Business Wire
Posted 7:00 AM 04/06/11
Viking Systems, Inc. (OTCBB: VKNG), a leading worldwide developer, manufacturer and marketer of 3D and 2D visualization solutions for complex minimally invasive surgery, expects to report record sales for the quarter ended March 31, 2011 that will exceed $3.0 million, an increase of more than 50% compared with $1.9 million in revenue reported for last year’s first quarter, and more than a 30% sequential increase over the fourth quarter of 2010.
During the quarter, Viking has processed orders for 22 of its recently-released 3DHD Vision Systems as well as for four of its previous generation systems. Of the 22 3DHD systems, the Company has shipped 19 of them, with the other 3 units being delayed due either to financing or regulatory delays in the receiving countries. Of the 19 shipped systems, 7 were sold to customers, 10 were sold to distributors as demonstration systems, and the 2 others were shipped at no charge—one for research and the other for market development. The 4 previous-generation 3Di systems had been sold in an order that had been in process prior to the launch of Viking’s new system.
Jed Kennedy, President and CEO of Viking Systems said, “We are pleased to be off to such a good start with Viking’s 3DHD system. Considering a typical capital equipment sales cycle is six to twelve months and that the first demonstration units essentially did not get deployed by distributors until early January 2011, this is a very encouraging start. All reports from our distributors indicate that the product is well-received and the purchasing process for systems is underway in most markets. Many of our distributors are now inquiring about purchasing additional demonstration systems to keep up with their demonstration schedules.”
All of the customer system sales in the quarter were in markets outside the United States. Viking has 11 distributors covering major markets outside the United States, with more planned. The Company believes that a majority of its 3DHD sales in 2011 will be through these distributors.
Mr. Kennedy commented, “We have always believed that sales would ramp up more quickly outside the United States, especially in those markets where our distributors previously carried our earlier generation product, and our first quarter sales confirm this belief. In the United States, we first instituted the distributor model in conjunction with the launch of 3DHD in the past six months. Additionally, in the United States, we believe current 2D suppliers and existing buying group contracts will affect our rate of market penetration.
Viking Systems also reported that as of March 31, 2011 a cumulative total of 21 demonstration units, including the 10 units mentioned above, have been placed since initial shipments began in December 2010. Since nearly all customer sales require “hands-on” demonstrations, placement of these units is critical to future sales success. Additionally, since distributors are required to purchase demonstration systems, such purchases represent their confidence in the product.
“We are pleased with our first quarter results, and we remain on target with our production schedule. We plan to continue the placement of demonstration units, as we believe they will be one of the keys to our market success. The sales process has three distinct steps: a surgical demonstration of the system, then a quotation for the configuration requested by the customer and, finally, working through the administrative process to get the purchase approved. The process varies a little depending on the particular market, but the three steps are fairly consistent and it usually starts with a successful demonstration. We look forward to increasing our footprint in the industry as end-users are introduced to the benefits of our 3DHD visualization systems for complex minimally invasive surgeries,” concluded Mr. Kennedy.
Viking Systems will report its full first quarter results when it files its first quarter 2011 Form 10-Q with the SEC, which is due not later than May 15, 2011.
About Viking Systems, Inc.
Viking Systems, Inc., is a leading worldwide developer, manufacturer and marketer of 3D and 2D visualization solutions for complex minimally invasive surgery. It markets and sells the only stand alone, cost-effective 3D system for use in minimally invasive surgery. Viking partners with medical device companies and healthcare facilities to provide surgeons with proprietary visualization systems enabling minimally invasive surgical procedures, which reduce patient trauma and recovery time. Viking, through its OEM business, also manufactures and assembles 3-D and 2-D cameras and components for several leading medical instrument companies worldwide. For more information, please visit our website at www.vikingsystems.com.
This press release contains forward-looking statements. These forward-looking statements are estimates reflecting the best judgment of our management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These forward-looking statements should, therefore, be considered in light of various important factors as described in our annual report on Form 10-K under the heading "Risk Factors" as updated from time to time by our quarterly reports on Form 10-Q and our other filings with the Securities and Exchange Commission. Statements concerning forecasts, revenue growth, profitability, production and shipment of units, future financial results, and statements using words such as "estimate", "project", "plan", "intend", "expect", "anticipate", "believe" and similar expressions are intended to identify forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
See full article from DailyFinance: http://srph.it/eH47m0
It would be nice if PK issued a few reports about shipment amounts. If it's good news, let's see it. So far I can only remember 1 PR with the info; that being the $50,000 shipment to Michigan.
The selectiveness is telling.
I just checked in. What's happening.
It's all so impossible to watch.
CEO Pay: How Long Can the Pillaging Persist?
By Alyce Lomax
March 25, 2011
The financial crisis focused a lot of attention on outrageous CEO and executive compensation. Unfortunately, while the general public may now be all too aware of these excesses, the folks approving or accepting these massive pay packages seem to remain blithely ignorant. But with shareholders rapidly growing fed up with getting so little bang for so many bucks, these overpaid execs had better get their act together -- fast.
Shareholders have had enough...
The recent Dodd-Frank Act mandated a slate of shareholder-friendly policies, including giving investors a say on pay, as well as allowing them to chime in on how frequently they should vote on compensation (also known as "say when on pay").
According to The Corporate Library's examination of this year's data thus far, out of 100 "say when on pay" votes that have already taken place, an overwhelming majority of shareholders prefer annual votes to biennial or triennial ones. Clearly, shareholders demand an active say on compensation on a regular basis. But while apathetic shareholders may be yesterday's news, questionable pay packages for CEOs and other bigwigs remain very much in the headlines.
... But executives apparently haven't
Last year, Occidental Petroleum (NYSE: OXY ) reined in its compensation policy after a withering shareholder uproar over CEO Ray Irani's pay, which far exceeds levels at peer corporations. Though Irani will step down from his post this year, he's going out with a bang. His 2010 compensation skyrocketed to $76.1 million, more than double his pay the previous year.
Although Ford's (NYSE: F ) arguably the best game going in Detroit's auto biz, CEO Alan Mulally's pay has come under fire. United Auto Workers' President Bob King called Mulally's $54.5 million worth of stock, disclosed earlier this month, "morally wrong." And this figure doesn't even encompass Mulally's total pay package; that information hasn't even been disclosed yet. (In fairness, Mulally did achieve the performance goals the company set for him several years ago.)
After looking over their company's squandered shareholder capital, Pfizer (NYSE: PFE ) shareholders could probably use an entire array of the company's pharmaceutical products. Pfizer nearly doubled new CEO Ian Read's pay in 2010 to $17.4 million, even though he had just started the job on Dec. 5. Do the math on that one. Meanwhile, it also kicked in an extra $10 million on top of the existing $24.7 million windfall for exiting CEO Jeff Kindler.
Shelved in the "No, seriously, you've got to be kidding" section of the fiction department (right around where they keep Dan Brown's best-sellers and the Twilight series), busted Borders Group is trying to get permission from the bankruptcy courts to dole out as much as to $8.3 million in bonuses to its executives, including a $1.7 million payout to its president. Since when is bankruptcy considered a bonus-worthy job well done? No fair citing AIG as a precedent, guys.
The world is clearly changing, though, with shareholders increasingly saying "no more" to excessive compensation. Yesterday, a majority of Hewlett-Packard (NYSE: HPQ ) shareholders voted down executives' pay. And after Beazer Homes (NYSE: BZH ) shareholders shot down the companies' pay policies already this year, a union-affiliated pension fund has also filed a lawsuit against the homebuilder.
Time to get the message
The rampant greed that defined our most recent economic bubble might be a difficult habit for some corporate leaders to break. In a more humble post-crisis world, compensation committees would rein in pay, and CEOs might even request a pay cut, to nobly suffer alongside their workers. Despite increasing shareholder scrutiny, you shouldn't hold your breath for any of these pipe dreams to actually materialize.
However, major news outlets such as The Wall Street Journal and CNN are more actively covering the sort of controversies I listed above, and plenty of more focused sites and services like BNET, The Corporate Library, and Footnoted.com -- not to mention The Motley Fool -- are digging through the data, too.
If pay and performance don't start to find a reasonable balance, the issue may move beyond debate in the media and among the public. The Securities & Exchange Commission has already eyed regulating Wall Street bonuses. At the end of March, it's planning to draft rules concerning increasing the independence of corporate compensation committees, and decreasing conflicts of interest among compensation consultants and other advisors.
Frankly, it's pretty sad that some of corporate America's top brass simply don't understand that their greedy glory days are over. One way or another, though, they're going to get the message
Dilution is an equity killer. It's as simple as that.
There are far too many OTC companies that are pretenders. They shamelessly print new shares, and do reverse splits, all the while putting out tantalizing press releases giving hope to "longs", and opportunities for "traders" to play a bounce. The whole time, the "share printing press" stuffs their pockets with cash, which is/was the whole purpose to their going public in the first place.
VKNG is very different from all of the above statements. They are a genuine company, selling products, and introducing new state-of-the-art cutting edge technology.
The only thing holding this company back at this point is the time frame it will take for hospitals to start installing the machines, get trained, and "test drive" the equipment.
I believe as more and more "test drives" are completed, a back log of orders will start filling the sales funnel. As that is seen by private equity groups and banks, more attractive financing arrangements are going to present themselves.
"Paid Sales" and better financing could easily take a year or more. I'm fine with that, and accept at this point what they have to do to "get there". As positive progress is made, I will increase my position.
I've lost hope for DKAM, but like a 52-week lottery ticket the money is already down the drain.
There still remains a chance to win ... "it ain't over till it's over" ... I just won't buy any more DKAM ... and haven't in a long time ... POWERBALL is a better bet.
The madness won't stop because the only currency they have is stock. As long as vendors are willing to accept it, DKAM will live for another day.
I just cannot believe anyone is willing to buy the vendors' shares after the 10Q. It just doesn't matter how low it goes because the printing press just goes into overdrive.
At this point I would like to see a list of vendors. There can only be a few.
I read the PR earlier. I'm thrilled, but either this wasn't written correctly, I misunderstood an earlier materials, or the equipment has never been used before, anywhere.
I thought a complimentary unit was given to a hospital in St. Louis. Am I wrong?
If I am right, why has it not ever been used?
Maybe that's why there are no testimonials.
Maybe that's why when I tried to follow-up with the St. Louis hospital I got no where.
So I am happy and not, all at the same time.
Rheingold can save the company ... Rheingold cannot save the company from PK.
PK cannot or WILL not try to get loans or other private investment. He doesn't need to as long as he keeps grabbing his money and others are willing to take stock.
DKAM probably has to pay cash to Lions Brewery.
Everyone else is taking stock.
The revenues were approximatly 70% of what he said they were going to be, only 6 weeks ago.
There can be no promotions; we won't even see neon signs.
... and I waited for this.
What happened to the $200,000 he said?
Net sales for the three months ended January 31, 2011 were approximately $142,000 ...