ALANCO TECHNOLOGIES INC. (ALAN, Financial) filed Quarterly Report for the period ended 2010-11-22.
Alanco Technologies Inc. has a market cap of $8.37 million; its shares were traded at around $1.61 with and P/S ratio of 0.57. ALAN is in the portfolios of Robert Bruce of Bruce & Co., Inc..
Corporate expenses reported for the current quarter of $302,700 represents an increase of $141,900, or 88.2%. compared to $160,800 reported for the comparable quarter ended September 30, 2009. Corporate expenses in the prior year quarter ended September 30, 2009 included the results of a decision by the Arizona Court of Appeals vacating an award of attorney s fees and damages awarded to the Plaintiff in the Arriad Property lawsuit resulting in the reversal of related accruals in the amount of $126,800. If the quarter ended September 30, 2009 was adjusted for the unusual credit, the corporate expenses would reflect an increase of $15,100, or 5.3%.
The Company believes that (loss) earnings before net interest expense, income taxes, depreciation, and amortization of intangible assets, (EBITDA), is an important measure used by management to measure performance. EBITDA may also be used by certain investors to compare and analyze our operating results between accounting periods. However, EBITDA should not be considered in isolation or as a substitute for net income, cash flows or other financial statement data prepared in accordance with US GAAP or as a measure of our performance or liquidity. EBITDA for Alanco s 2011 fiscal year first quarter represents a loss of ($985,300) compared to a loss of ($252,500) for the same quarter of the prior fiscal year, a change of $732,800. EBITDA before Stock-based compensation and Corporate Expense for the current quarter was ($344,700) compared to $77,100 for the comparable quarter of the prior year. A reconciliation of the EBITDA calculations are presented below:
Net Loss Attributable to Common Shareholders for the quarter ended September 30, 2010 amounted to ($1,363,000), or ($.27) per share, a $157,100, or 13%, increase when compared to a loss of ($1,205,900), or ($.30) per share, in the comparable quarter of the prior year. The Company anticipates improved future operating results, however, actual results may be affected by unfavorable economic conditions and reduced capital spending budgets. If the economic conditions in the United States deteriorate or if a wider global economic slowdown occurs, Alanco may experience a material adverse impact on its operating results and business conditions.
Consolidated accounts receivable of $2,224,300 at September 30, 2010 reflects a decrease of $269,600, or 10.8%, when compared to the $2,493,900 reported as consolidated accounts receivable at June 30, 2010. The accounts receivable balance at June 30, 2010 includes $204,900 of receivables from business segments reported as “Assets Held for Sale” since the Company had anticipated retaining the accounts receivable balances in a sales transaction. By September 30, 2010, the operations had been sold and any accounts receivable related primarily to the sales transaction and were appropriately reported as “Assets Related to Discontinued Operations”. If we exclude the $204,900 of accounts receivable related to operations held for sale at June 30, 2010, the remaining balance of $2,289,000 represents the Wireless Asset Management segment, the Company s only continuing operation.
The Wireless Asset management accounts receivable balance at September 30, 2010 was $2,224,300, a decrease of $64,700, or 2.8%, when compared to the comparable balance at June 30, 2010 of $2,289,000. The $2,224,300 balance at September 30, 2010 represents fifty five days sales in receivables compared to an accounts receivable balance at June 30, 2010 of $2,289,000 representing fifty seven days sales in receivables.
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Alanco Technologies Inc. has a market cap of $8.37 million; its shares were traded at around $1.61 with and P/S ratio of 0.57. ALAN is in the portfolios of Robert Bruce of Bruce & Co., Inc..
Highlight of Business Operations:
Selling, general and administrative (“SG&A”) expenses for the quarter ended September 30, 2010, excluding corporate and stock based compensation expense, were $1,547,800, a $353,200, or 29.6%, increase when compared to the $1,194,600 reported for the comparable three month period of the prior year. The increase was primarily due to an approximate $154,000 increase in sales expenses due to increased sales activity, an increase of $49,800 in network costs, a $49,100 increase in field operations and customer service and $24,000 in increased legal costs with the remaining balance spread among the remaining operations. The Company had increased the Selling, General and Administrative expense in anticipation of additional sales volume.Corporate expenses reported for the current quarter of $302,700 represents an increase of $141,900, or 88.2%. compared to $160,800 reported for the comparable quarter ended September 30, 2009. Corporate expenses in the prior year quarter ended September 30, 2009 included the results of a decision by the Arizona Court of Appeals vacating an award of attorney s fees and damages awarded to the Plaintiff in the Arriad Property lawsuit resulting in the reversal of related accruals in the amount of $126,800. If the quarter ended September 30, 2009 was adjusted for the unusual credit, the corporate expenses would reflect an increase of $15,100, or 5.3%.
The Company believes that (loss) earnings before net interest expense, income taxes, depreciation, and amortization of intangible assets, (EBITDA), is an important measure used by management to measure performance. EBITDA may also be used by certain investors to compare and analyze our operating results between accounting periods. However, EBITDA should not be considered in isolation or as a substitute for net income, cash flows or other financial statement data prepared in accordance with US GAAP or as a measure of our performance or liquidity. EBITDA for Alanco s 2011 fiscal year first quarter represents a loss of ($985,300) compared to a loss of ($252,500) for the same quarter of the prior fiscal year, a change of $732,800. EBITDA before Stock-based compensation and Corporate Expense for the current quarter was ($344,700) compared to $77,100 for the comparable quarter of the prior year. A reconciliation of the EBITDA calculations are presented below:
Net Loss Attributable to Common Shareholders for the quarter ended September 30, 2010 amounted to ($1,363,000), or ($.27) per share, a $157,100, or 13%, increase when compared to a loss of ($1,205,900), or ($.30) per share, in the comparable quarter of the prior year. The Company anticipates improved future operating results, however, actual results may be affected by unfavorable economic conditions and reduced capital spending budgets. If the economic conditions in the United States deteriorate or if a wider global economic slowdown occurs, Alanco may experience a material adverse impact on its operating results and business conditions.
Consolidated accounts receivable of $2,224,300 at September 30, 2010 reflects a decrease of $269,600, or 10.8%, when compared to the $2,493,900 reported as consolidated accounts receivable at June 30, 2010. The accounts receivable balance at June 30, 2010 includes $204,900 of receivables from business segments reported as “Assets Held for Sale” since the Company had anticipated retaining the accounts receivable balances in a sales transaction. By September 30, 2010, the operations had been sold and any accounts receivable related primarily to the sales transaction and were appropriately reported as “Assets Related to Discontinued Operations”. If we exclude the $204,900 of accounts receivable related to operations held for sale at June 30, 2010, the remaining balance of $2,289,000 represents the Wireless Asset Management segment, the Company s only continuing operation.
The Wireless Asset management accounts receivable balance at September 30, 2010 was $2,224,300, a decrease of $64,700, or 2.8%, when compared to the comparable balance at June 30, 2010 of $2,289,000. The $2,224,300 balance at September 30, 2010 represents fifty five days sales in receivables compared to an accounts receivable balance at June 30, 2010 of $2,289,000 representing fifty seven days sales in receivables.
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