Yankee,
welcome to the forum. I understand you have some questions, perhaps we can work together to give you your answers. I'm not a CPA, so I won't even pretend to be able to tear it apart. I trust Dexter, and I'm also just greatful that LBWR reports and is cash flow positive.....does that not already put them in rare air in the pinks? Anyway, I don't know if you have read airdale's post or not, but he has addresses K9's and accounts receivable.
Posted by: airdale1
In reply to: None Date:5/19/2006 11:53:17 AM
Post #of 1277
Disclaimer: Mr. Morris is very willing to reveal information in greater detail to a caller so if you want more information, dial the man. The interpretation of information received from Mr. Morris is subjective and based on my understanding of the conversation. He is sensitive when asked if the information provided can be placed on a message board, therefore some of the conversation has been withheld. Any competitor can read this board and glean information.
K9 services were indeed part of Services on Income. This sector has become large enough to split out, hence this quarters income reflects two income sources. K9 is attached primarily to one client and this client’s slow payment for this service is greatest cause for the large rise in AR.
Collections on AR average less than 45 days for standard drug testing Services. Because of the size and strength of clients, bad debt will remain extremely low and cash flow is good. IMO, this is a very low turnaround time for clients of this magnitude and shows the respect and relationship Mr. Morris has developed with his clientele.
Training a new client to use LBWR’s contracted service providers is an ongoing process. If you use their contract’s you get the quoted price of service. If you use a non-contract provider, you are invoiced the difference in price. Cost managers for clients can view the quantity and additional costs online.
Computer costs are about where they will remain as a percent of Revenue. The majority of this has been payment to a contracted Programmer. Labwire leased computer space until last week, they now have their own server and contract with said Programmer to maintain and upgrade proprietary software packages. The new platform is running superbly, is located off-site in a cool room, has a first class firewall and extreme security and backup resources. Because of these qualities its location is a showcase for future clients. Information is still accessible for clients on an immediate basis, one of LBWR’s greatest assets.
They have secured new clients as PR’s have stated. However, as a large ship takes a long time to turn, a large client takes a long time to integrate into full service. Don’t expect next quarter to be a huge growth quarter. The following quarter will show a quantum move in revenues.
Expect a new large client in the next several weeks in the energy sector. A giant in this business segment is accepting bids and as mentioned in a prior post, Dexter is 100% on closes to this point.
Upbeat, energetic and positive would still describe his attitude as he continues to build and promote this business. IMO our stock price won’t rocket but like the company will grow very steadily as new clients feed the income statements.
AIMHO
Airdale
