Six Year High in EBITDA for American Security Resources
09/15/2010
New York, NY, September 15, 2010-Ebitda News reports that negative EBITDA for American Security Resources Corporation (OTC:ARSC.E) for its quarter ended June 30, 2010 was $(319,790), a 32% improvement over the year earlier same quarter when American Security Resources generated $(472,751) in negative EBITDA. American Security Resources has generated twenty-six consecutive quarters of negative EBITDA. EBITDA for the most recent quarter also reached a six year high.
For American Security Resources' twelve months ended June 30, 2010 EBITDA was $(1,726,889), compared with $(1,997,691), a 13.6% improvement over the comparable year earlier twelve months. EBITDA for the most recent twelve months also reached a six year high.
The shares of American Security Resources were recently trading at $0.0004.
EBITDA defined by Ebitda News:
EBITDA is an acronym for (Earnings Before Interest Taxes Depreciation & Amortization) and it is calculated by taking Operating Income and adding or subtracting depreciation and/or amortization.
EBITDA is a relatively new performance metric that came into vogue during the 1980s.
The reason why is because corporations in the 1980s significantly increased the use of debt to finance their operations and acquisitions. Many investors and analysts believe that the increased interest expense as a percentage of total income due to the significant increase in debt masks the performance of an operating business and thus reduces the valuation of that business when traditional valuation metrics such as after tax income are utilized. EBITDA was created so that investors and analysts would be able to understand a company’s cash earnings power before non-cash items such as depreciation and amortization and interest and taxes were expensed. EBITDA has also become an increasingly popular performance measure for global investors and analysts because many countries have varying corporate tax rates. The simple theory behind EBITDA is that it is the actual profit that a business or corporation would generate if it were to be sold to an all cash buyer.
Ebitda News is currently the only "EBITDA" news source for over 8,000 public companies for monitoring and reporting on EBITDA. It currently publishes over 30,000 stories per year related to EBITDA and is the leading global source for EBITDA related news. Ebitda News’s company, industry, indices, sector and ETF news and archives are available at www.StockTrendNews.com.
Copyright 2010 StockTrendNews.com
