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Premier Exhibitions Inc (OTCPK:PRXI)
Beneish M-Score
-3.56 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Premier Exhibitions Inc has a M-score of -3.56 suggests that the company is not a manipulator.

PRXI' s Beneish M-Score Range Over the Past 10 Years
Min: -5.3   Max: 4.54
Current: -3.56

-5.3
4.54

During the past 13 years, the highest Beneish M-Score of Premier Exhibitions Inc was 4.54. The lowest was -5.30. And the median was -2.83.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Premier Exhibitions Inc for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.7204+0.528 * 1.6611+0.404 * 0.5181+0.892 * 0.9723+0.115 * 1.9381
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8678+4.679 * -0.1728-0.327 * 1.8447
=-3.56

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Aug15) TTM:Last Year (Aug14) TTM:
Accounts Receivable was $0.89 Mil.
Revenue was 6.739 + 7.249 + 6.875 + 6.727 = $27.59 Mil.
Gross Profit was 1.083 + 1.74 + 1.552 + 1.943 = $6.32 Mil.
Total Current Assets was $7.02 Mil.
Total Assets was $35.90 Mil.
Property, Plant and Equipment(Net PPE) was $21.10 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.78 Mil.
Selling, General & Admin. Expense(SGA) was $11.29 Mil.
Total Current Liabilities was $21.91 Mil.
Long-Term Debt was $0.26 Mil.
Net Income was -3.096 + -2.277 + -5.477 + -2.133 = $-12.98 Mil.
Non Operating Income was 0 + -0.006 + -0.339 + 0.004 = $-0.34 Mil.
Cash Flow from Operations was -1.909 + -1.369 + -0.672 + -2.49 = $-6.44 Mil.
Accounts Receivable was $1.27 Mil.
Revenue was 8.297 + 7.491 + 6.197 + 6.392 = $28.38 Mil.
Gross Profit was 3.027 + 3.084 + 2.333 + 2.35 = $10.79 Mil.
Total Current Assets was $9.26 Mil.
Total Assets was $29.71 Mil.
Property, Plant and Equipment(Net PPE) was $8.01 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.47 Mil.
Selling, General & Admin. Expense(SGA) was $13.39 Mil.
Total Current Liabilities was $9.72 Mil.
Long-Term Debt was $0.23 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(0.886 / 27.59) / (1.265 / 28.377)
=0.03211308 / 0.04457836
=0.7204

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(1.74 / 28.377) / (1.083 / 27.59)
=0.38037848 / 0.22899601
=1.6611

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (7.017 + 21.096) / 35.899) / (1 - (9.262 + 8.008) / 29.707)
=0.21688626 / 0.41865554
=0.5181

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=27.59 / 28.377
=0.9723

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(4.467 / (4.467 + 8.008)) / (4.781 / (4.781 + 21.096))
=0.35807615 / 0.18475867
=1.9381

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(11.294 / 27.59) / (13.385 / 28.377)
=0.40935121 / 0.47168482
=0.8678

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((0.258 + 21.914) / 35.899) / ((0.226 + 9.72) / 29.707)
=0.61762166 / 0.33480325
=1.8447

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-12.983 - -0.341 - -6.44) / 35.899
=-0.1728

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Premier Exhibitions Inc has a M-score of -3.56 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Premier Exhibitions Inc Annual Data

Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15
DSRI 0.78850.83410.57631.61070.63950.89840.81090.79191.30641.0631
GMI 0.68611.06671.11831.56880.94291.76650.55390.86771.10221.4574
AQI 0.83770.39931.65040.99550.36982.54771.15271.350.86621.0203
SGI 1.90192.30712.04250.8770.80581.03050.70861.24460.74361.0014
DEPI 1.151.09531.04241.20730.88710.93021.03661.00190.89131.0879
SGAI 0.79160.63990.98321.62251.09480.75691.02990.83931.16541.0076
LVGI 0.41940.47361.23613.71340.63181.63931.16031.22260.69521.7349
TATA 0.1372-0.1539-0.0956-0.2209-0.3909-0.3157-0.1945-0.0918-0.0446-0.2384
M-score -1.22-2.15-2.13-3.73-5.01-3.17-4.05-2.86-2.58-3.52

Premier Exhibitions Inc Quarterly Data

May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15Aug15
DSRI 1.07830.64931.27311.30641.17081.03930.9051.06311.00660.7204
GMI 0.84941.03371.07971.10221.26651.30531.33671.45741.48851.6611
AQI 1.89881.22851.40330.86620.92661.40961.49481.02030.59360.5181
SGI 1.10460.81050.7390.74360.75510.90560.9631.00141.04480.9723
DEPI 0.77361.00470.82920.89130.87880.62860.74331.08791.8751.9381
SGAI 0.87631.0521.16371.19271.21471.12731.04080.98460.91740.8678
LVGI 0.92961.07931.1020.69520.88771.10781.56961.73491.69611.8447
TATA -0.0541-0.109-0.0596-0.0446-0.1223-0.1812-0.1226-0.2384-0.1912-0.1728
M-score -2.27-3.41-2.62-2.58-3.02-3.15-3.02-3.51-3.35-3.56
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