More on FMNL Share Structure - The Series “A” preference convertible shares and the Series “B” preference convertible shares are not included in the calculation of basic earnings per share, because management considers these shares to have barriers to conversion, excluding them from the calculation of basic earnings per share.
For the year ended September 30, 2011, the weighted average number of shares outstanding was 29,990,231. The fully diluted weighted average number of shares outstanding, which assumes the conversion of all Series “A” preference convertible shares and Series “B” preference convertible shares was 89,880,427. However, in a loss year, common shares equivalents are excluded from the calculation of diluted earnings (loss) per share as the effect would be anti-dilutive.
For the year ended September 30, 2011 expenses decreased by 28% or $1,024,648 due to corporate cost cutting measures. The largest expense decrease was general and administration of $489,055 (2010 - $420,428) due to corporate restructuring and cost cutting measures.
For the year ended September 30, 2011, the second largest decrease in expenses of $427,752 occurred in wages expense to $1,070,953, (2010 - $1,498,705, 2009 - $1,689,385). The decrease was a direct result of streamlining the company’s staffing levels and disposing of the Company’s wholly-owned subsidiary, International Fitness Vacations Ltd. during the year.
For the year ended September 30, 2011, the third largest decrease in operating expenses of $72,341 occurred in bad debts expense to $8,954, (2010 - $81,295, 2009 – $212,364). The decrease was the result of recoveries of previous provisions for the allowance for doubtful accounts. The Company recognized an impairment of $500,000 on the motor vessel during the year ended September 30, 2011 ($825,000 – 2010, $2,348,595 – 2009).
For the year ended September 30, 2010 expenses decreased by 19% or $1,067,326 due to corporate cost cutting measures. The largest expense increase was amortization of property and equipment to $649,508 (2009 - $337,256) due to the full year of amortization of the 120 foot Motor Vessel .
