Revenue, Margins, etc.
With all of the talk about revenues and margins, I thought it might be a good idea to state the facts rather than the vague statements made by some folks out there.
REVENUE
$6M (approx)– Annual revenues which management has positioned San West Inc. for via acquisition, partnership, and other agreements.
>$1.6M – Buggy World annual revenues.
- $3.2M – Annual sales acquired with the countyimports.com partnership
- $700,000- Annual sales acquired with SD Sports Cycles deal
- $150,000 to $200,000 – Annual sales (in addition to national TV coverage) acquired with TrophyKart agreement
Note: Management has stated that Buggy World Revs and Margins will grow substantially in 2009 and that ALL of the agreements listed above have the potential toEXCEED their historical sales and margins in the future, under the SNWT umbrella.
Revenue from the most recently reported quarter: $150,098. This marks a 945% improvement over the corresponding quarter of 2008.
1st half 2009 revenues: $329,52. This marks a 1,235% improvement over the 1st half of 2008.
GROSS PROFIT MARGIN
30% - Gross Profit Margin from the most recent quarter
34% - Gross Profit Margin for 1st Half '09
Note on GPM: Management has stated that Buggy World margins will improve significantly during 2009. The shift to a more online-centric business model (major sales increase through countryimports.com deal) should also be positive for near-term margins. Furthermore, management is dedicated to fostering improved margins from many other aspects including, but not limited to: better product and part servicing via wholesale opportunities enabled by Bryan Britton's position as an industry insider, parntership & acquisition of synergistic companies and brands with solid margins and continuous evaluation and improvement to the current biz model.
Net Loss
Net loss was $152,238, or $0.01 per share, for the three months ended June 30, 2009 compared to a loss of $18,810, or $0.00 per share for the three months ended June 30, 2008.
Net loss was $312,393, or $0.02 per share for the six months ended June 30, 2009 compared to a loss of $27,627, or $0.00 per share for the six months ended June 30, 2008.
Note: Despite the net loss per share - in my opinion - the actual dollar amount is not alarming for a company in the aggressive stage of its growth through acquisition strategy. Moreover, the substantial sales increase and low margins should be positive for this category. It should be interesting to see what the net income/loss situation looks like in the 10K Annual Filing. Apparently, patents and processes sold off from the old company will bring corp debt down to roughly $500K. In addition, the 4th quarter, which management feels will be BY FAR the best in company history sales-wise coupled with the higher margin online biz should be positive.
