Koil Energy Solutions Inc. (KLNG)

[darwindows]

Good question about margins Morning Money!

The links are simply the quarterlies themselves, namely the Consolidated Statement of Operations (usually on page 2 of the full filing).

The calculations are as follows.

For Q2 we have:

Gross Revs of - $5,144,788
Pre-adjusted net income of $949,466
BUT as I say this is pre-adjusted. You will notice a one time debt reduction for a net of $723,230 that falls to net income. This does NOT represent real profit, it is an accounting transaction. So adjusted (by simple subtraction) we get real net income of $226,236.

So our margin of net income to gross revs is $226,236/$5,144,788 or 4%.


For Q3 we have:

Gross revs of $4,885,555
Net Income of $195,969

So our margin of net income to gross revs is
$195,969/$4,885,555 or 4%

This is what the market has reacted to with the downturn. Don't believe the hype about MMM. It's the fact that Q over Q did not improve AND 4 million shares were added to the float. Please understand that I think it was good for the company long term (the float increase), but we need to start hearing more from the company about how they are going to improve net income in the near future. Hopes and good management are only part of a winning formula. We need to see it reflected on the bottom line as higher margins (which MAKO should help with).

~Darwindows