COMPARISON OF RESULTS FOR THE NINE MONTHS ENDED JUNE 30, 2005 AND 2006
REVENUES. From the nine month quarter ended June 30, 2005 to the nine month quarter ended June 30, 2006 revenues increased by $363,118 or 15.6% from $2,321,550 to $2,684,668. The increase in revenues is due to the addition of new customers and products during the nine months ended June 30, 2006. Clancy's Remit-online.com service has processed 129,504 transactions totaling $5,192,061 for the nine months ended June 30, 2006. Revenues are generated based on a per transaction fee less bank processing costs. The gross amount of cash flowing through Remit-online.com cannot be presented as revenue based on the SEC accounting guidance. The Company only presents its net profit from each transaction as revenue in the statements of operations.
COST OF SERVICES. For the nine months ended June 30, 2005 compared to the nine months ended June 30, 2006, cost of services decreased by $13,041 or 2.3% from $557,299 to $544,258 for the Company. Cost of services as a percentage of service contract income was 29.7% for the 2005 quarter and 24.4% for the 2006 quarter.
RESEARCH AND DEVELOPMENT. The Company's parking enforcement systems research and development costs decreased from $45,020 to $35,358, or 21.5%, from the nine months ended June 30, 2005 to 2006. Product development and improvement is still paramount to the Company, and costs are being incurred for development of several new items.
GENERAL AND ADMINISTRATIVE. General and administrative expenses increased by $120,309 or 8.5% from $1,412,168 to $1,532,477 for the nine months ended June 30, 2005 and 2006, respectively. The increase relates primarily to increased rent, salaries, office supplies, health insurance, repairs and maintenance, and UTS opening offices in additional cities.
-12-
NET INCOME. For the nine months ended June 30, 2006, the Company reported net income of $279,016 compared to $152,692 for the nine months ended June 30, 2005. The primary reason for the increase in net income is the increase in net revenue which is discussed above.
posted
Yes, Blue, a very healthy financial report.
I am pleased to read, not the good net income but rather CLSI making good progress at keeping costs of sales, research and all that under control, if not reducing those costs. Those percentage decreases are actually very good.
This report continues to support my confidence in this company as a very long term hold. Each year, we read slow steady improvement and growth, which is difficult for a company to accomplish.
Clearly this is not a Jacobson ALMI but management is equal in terms of playing it safe and cautious making for a very secure stock to hold for long term profits. I am completely comfortable I will never lose money with CLSI stock.
Should the Wolfson family continue to grow their company as they have been, and I expect they will, eventually their bottom line can no longer be ignored by traders and investors. In time, share price must snap and move upward.
I remain firm in my conviction this is an excellent stock for a college fund, for retirement, for whatever very long term goal. This is a very good stock for young married couples just starting out to buy and hold for years down the road.
The Wolfson family continues to expand, continues to "sew up" the market, and continues to display safe and sane company growth.
An added benefit is demand for parking services continues to grow very briskly. Clancy is right up there as a leader in this industry. As our gasoline prices continue to climb, Clancy will continue to benefit and grow.
I have nothing but confidence in this one as a very long term hold.
Sure pleased to read you Blue. I sincerely have missed your bringing reason and calm to the storms around here, along with your great stock picks which I always give close attention.
posted
i hope to be around more next month, just completely wrapped up in work at the moment. actually hasn't been the greatest of stretches in the market for me lately - safe and sane picks seem to be dropping as of late. and some - what can you do? GACF for example: i still think that buying in the low 1.10's a few weeks back was the "correct" move. all you can do is try to stack the odds in your favor as best you can, when buying stocks. sometimes the dice just don't come up in your favor though - who could guess about the big one-time damaged motor charge. you can only hope that over time in the long haul, picking attractive stocks like GACF in the low 1.10's works out in your favor.
luckily some gains in other stocks like ROK.V and PVCT etc and some quick swing trades have helped picked up the slack, but still am about at -2% overall return in individual stocks the last few months, disappointing. hopefully things will pick up in the fall, we'll see.
hope you're having a great summer purl, and will check in next week
IP: Logged |
posted
most impressive Q for a long time by CLSI this week - up at .02 again. revs and profit both up sharply, finally broke that $1M revs and $200K profit barriers. nowhere near purl-amounts, but - still hold 200K shares, definitely will keep holding after this week's report. keep it up, CLSI!
IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
