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Wednesday, August 24, 2011 10:55:38 AM
I dont think anyone new about a bad quarter, because the quarter was not bad. It was a one time write off from pulling out of UAE and their plans to expand there.
No one new anything about any bad quarter. The financials still look fantastic, a loss of one penny due to a one time write off is no big deal. Here is the financial summary copied and posted right from the 10Q .
Consolidated Results of Operations for the Six Months Ended June 30, 2011 Compared to the Six Months Ended June 30, 2010
Revenues . Total revenues for the six months ended June 30, 2011 increased to $75.4 million, or 91.13%, as compared to $39.4 million for the six months ended June 30, 2010. The increase was a result of a gradual pickup we experienced mostly in our construction and development business in 2011 and substantially higher prices for apartments and commercial space; no assurance can be given that this trend is sustainable.
Cost of Sales . Cost of sales increased by $20.6 million, or approximately 72.7%, to $48.9 million for the six months ended June 30, 2011, from $28.3 million for the six months ended June 30, 2010. We attribute this increase primarily to an increase in revenues in 2011 from increasingly profitable projects located mainly in the city of Moscow.
Selling, general and administrative costs . Selling, general and administrative costs increased by $3.3 million to approximately $4.9 million for the six months ended June 30, 2011, as compared to approximately $1.5 million for the six months ended June 30, 2010. This was primarily due to the anti-crisis measures our company implemented during the fiscal year 2010, such as a reduction in force and more efficient utilization of the remaining personnel, as well as the savings we realized on the costs of transportation, communications, security and lease of an additional office space offset by increases in professional fees and approximately $2.0 million in costs in setting up planned operations in the Middle East, which plan was abandoned by the Company in the second quarter of 2011.
Income from Operations. Income from operations increased by approximately $12.0 million, from $9.5 million for the six months ended June 30, 2010 compared to $21.6 million for the six months ended June 30, 2011, primarily due to the increase in sales.
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Other Income(Expense). Other income decreased from $2.0 million for the six months ended June 30, 2010 to $0.68 million for the six months ended June 30, 2011, primarily due to a decrease in interest income.
Provision For Income Taxes . Provision for income taxes increased to $4.4 million for the six months ended June 30, 2011 as compared to $2.3 million for the six months ended June 30, 2010. The increase is primarily due to the increase in net earnings during 2011.
Net Earnings . Net earnings increased to $17.9 million for the six months ended June 30, 2011 as compared to $9.2 million for the six months ended June 30, 2010. The Company contributes the increase in earnings primarily to the substantial increase in sales offset by an increase in operating expenses.
Consolidated Results of Operations for the Three Months Ended June 30, 2011 Compared to the Three Months Ended June 30, 2010
Revenues . Total revenues for the three months ended June 30, 2011 increased to $35.6 million, or 78.6%, as compared to $19.9 million for the three months ended June 30, 2010. The increase was a result of a gradual pickup we experienced mostly in our construction and development business in 2011 and substantially higher prices for apartments and commercial space; no assurance can be given that this trend is sustainable.
Cost of Sales . Cost of sales increased by $19.0 million, or over 138.2%, to $32.7 million for the three months ended June 30, 2011, from $13.7 million for the year ended June 30, 2010. Cost of sales increased substantially during the second quarter of 2011 as compared to 2010 primarily due to an increase in estimating the percentage of completion costs of ongoing projects. We attribute this increase also to an increase in revenues in 2011 from increasingly profitable projects located mainly in the city of Moscow.
Selling, general and administrative costs . Selling, general and administrative costs increased by $3.1 million to approximately $3.9 million for the three months ended June 30, 2011, as compared to approximately $0.8 million for the three months ended June 30, 2010. This was primarily due to the anti-crisis measures our company implemented during the fiscal year 2010, such as a reduction in force and more efficient utilization of the remaining personnel, as well as the savings we realized on the costs of transportation, communications, security and lease of an additional office space offset by increases in professional fees and approximately $2.0 million in costs in setting up planned operations in the Middle East, which plan was abandoned by the Company in the second quarter of 2011.
Income (Loss) from Operations. Income from operations decreased to a loss of approximately $1.1 million, from income of approximately $5.3 million for the three months ended June 30, 2011, primarily due to significant increases in cost of goods sold and selling, general and administrative expense during the three month period ended June 30, 2011.
Other Income(Expense). Other income decreased from $1.0 million for the three months ended June 30, 2010 to $0.3 million for the three months ended June 30, 2011, primarily due to a decrease in interest income.
Provision For Income Taxes . Provision for income taxes decreased to a benefit of $.02 million for the three months ended June 30, 2011 as compared to $1.2 million for the three months ended June 30, 2010. The decrease is primarily due to the decrease in net earnings during the three months ended June 30, 2011.
Net Earnings . Net earnings decreased to a loss of $.05 million for the three months ended June 30, 2011 as compared to net income of $5.1 million for the three months ended June 30, 2010. The Company contributes the decrease in earnings primarily to increases in cost of goods sold and selling, general and administrative expense during the three month period ended June 30, 2011.
No one new anything about any bad quarter. The financials still look fantastic, a loss of one penny due to a one time write off is no big deal. Here is the financial summary copied and posted right from the 10Q .
Consolidated Results of Operations for the Six Months Ended June 30, 2011 Compared to the Six Months Ended June 30, 2010
Revenues . Total revenues for the six months ended June 30, 2011 increased to $75.4 million, or 91.13%, as compared to $39.4 million for the six months ended June 30, 2010. The increase was a result of a gradual pickup we experienced mostly in our construction and development business in 2011 and substantially higher prices for apartments and commercial space; no assurance can be given that this trend is sustainable.
Cost of Sales . Cost of sales increased by $20.6 million, or approximately 72.7%, to $48.9 million for the six months ended June 30, 2011, from $28.3 million for the six months ended June 30, 2010. We attribute this increase primarily to an increase in revenues in 2011 from increasingly profitable projects located mainly in the city of Moscow.
Selling, general and administrative costs . Selling, general and administrative costs increased by $3.3 million to approximately $4.9 million for the six months ended June 30, 2011, as compared to approximately $1.5 million for the six months ended June 30, 2010. This was primarily due to the anti-crisis measures our company implemented during the fiscal year 2010, such as a reduction in force and more efficient utilization of the remaining personnel, as well as the savings we realized on the costs of transportation, communications, security and lease of an additional office space offset by increases in professional fees and approximately $2.0 million in costs in setting up planned operations in the Middle East, which plan was abandoned by the Company in the second quarter of 2011.
Income from Operations. Income from operations increased by approximately $12.0 million, from $9.5 million for the six months ended June 30, 2010 compared to $21.6 million for the six months ended June 30, 2011, primarily due to the increase in sales.
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Other Income(Expense). Other income decreased from $2.0 million for the six months ended June 30, 2010 to $0.68 million for the six months ended June 30, 2011, primarily due to a decrease in interest income.
Provision For Income Taxes . Provision for income taxes increased to $4.4 million for the six months ended June 30, 2011 as compared to $2.3 million for the six months ended June 30, 2010. The increase is primarily due to the increase in net earnings during 2011.
Net Earnings . Net earnings increased to $17.9 million for the six months ended June 30, 2011 as compared to $9.2 million for the six months ended June 30, 2010. The Company contributes the increase in earnings primarily to the substantial increase in sales offset by an increase in operating expenses.
Consolidated Results of Operations for the Three Months Ended June 30, 2011 Compared to the Three Months Ended June 30, 2010
Revenues . Total revenues for the three months ended June 30, 2011 increased to $35.6 million, or 78.6%, as compared to $19.9 million for the three months ended June 30, 2010. The increase was a result of a gradual pickup we experienced mostly in our construction and development business in 2011 and substantially higher prices for apartments and commercial space; no assurance can be given that this trend is sustainable.
Cost of Sales . Cost of sales increased by $19.0 million, or over 138.2%, to $32.7 million for the three months ended June 30, 2011, from $13.7 million for the year ended June 30, 2010. Cost of sales increased substantially during the second quarter of 2011 as compared to 2010 primarily due to an increase in estimating the percentage of completion costs of ongoing projects. We attribute this increase also to an increase in revenues in 2011 from increasingly profitable projects located mainly in the city of Moscow.
Selling, general and administrative costs . Selling, general and administrative costs increased by $3.1 million to approximately $3.9 million for the three months ended June 30, 2011, as compared to approximately $0.8 million for the three months ended June 30, 2010. This was primarily due to the anti-crisis measures our company implemented during the fiscal year 2010, such as a reduction in force and more efficient utilization of the remaining personnel, as well as the savings we realized on the costs of transportation, communications, security and lease of an additional office space offset by increases in professional fees and approximately $2.0 million in costs in setting up planned operations in the Middle East, which plan was abandoned by the Company in the second quarter of 2011.
Income (Loss) from Operations. Income from operations decreased to a loss of approximately $1.1 million, from income of approximately $5.3 million for the three months ended June 30, 2011, primarily due to significant increases in cost of goods sold and selling, general and administrative expense during the three month period ended June 30, 2011.
Other Income(Expense). Other income decreased from $1.0 million for the three months ended June 30, 2010 to $0.3 million for the three months ended June 30, 2011, primarily due to a decrease in interest income.
Provision For Income Taxes . Provision for income taxes decreased to a benefit of $.02 million for the three months ended June 30, 2011 as compared to $1.2 million for the three months ended June 30, 2010. The decrease is primarily due to the decrease in net earnings during the three months ended June 30, 2011.
Net Earnings . Net earnings decreased to a loss of $.05 million for the three months ended June 30, 2011 as compared to net income of $5.1 million for the three months ended June 30, 2010. The Company contributes the decrease in earnings primarily to increases in cost of goods sold and selling, general and administrative expense during the three month period ended June 30, 2011.
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