Replies to post #1518 on RCMW Group Inc (fka RCMW)

[palmspringsbum]

Mercurial Mike - thanks for the private reply. I'm a freebee and I don't expect that to change anytime soon.

Anyway, regarding "core margin", I've taken accounting courses, and worked as a full-charge book-keeper, and cost accounting...

So, I know there are all kinds of margins and it appears to me a "core margin" is not just any old generic margin.

Looking it up in the first online dictionary that came up when I Googled "dictionary" gives this definition for something which may or may not be what they mean by "core margin".

Operating Income Before Depreciation and Amortization - OIBDA definition

Sometimes OIBDA is also considered to not include items such as: changes in accounting principles that are not indicative of core operating results, income from discontinued operations, and earnings (losses) of subsidiaries.

http://dictionary.reference.com/browse/operating+income+before+depreciation+and+amortization

28% is a good profit margin, if that's what they're essentially talking about. But, "profit margin" and "core margin" are not the same thing. For one thing, that financial dictionary states that OIBDA is not GAAP (Generally Accepted Accounting Principles). "profit margin" is GAAP.

So the done deal is about $7M/year, giving $1.96M profit/year at 28%.

And the great yellow hope is $40M/year, giving $11.20M profit/year at the same %.