rmeek1
Serious Contributor
Iron sharpens iron...so one person sharpens another Proverbs 27:17
Posts: 757
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APOA
May 8, 2006 12:34:10 GMT -5
Post by rmeek1 on May 8, 2006 12:34:10 GMT -5
Anybody watching this one? JPHC fans need to see this. It's up .007 w a Bid ask of .013 and .014 respectively. Move is probably based on the 10% divy going to APOA shareholders as of 10 May 2006. Terry
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APOA
May 8, 2006 12:37:36 GMT -5
Post by Eagle1 on May 8, 2006 12:37:36 GMT -5
Thanks Terry!
Yes, interesting!
Eagle1, ;D ;D ;D
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rmeek1
Serious Contributor
Iron sharpens iron...so one person sharpens another Proverbs 27:17
Posts: 757
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APOA
May 9, 2006 16:30:34 GMT -5
Post by rmeek1 on May 9, 2006 16:30:34 GMT -5
APOA's current 10-Q for those interested.
10-Q: APO HEALTH INC /NV/ 5/9/2006 5:22:34 PM (EDGAR Online via COMTEX) -- ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
FORWARD-LOOKING STATEMENTS
This quarterly report on Form 10-Q contains forward-looking statements. All statements other than statements of historical fact made in this annual report are forward looking. In particular, the statements herein regarding industry prospects and future results of operations or financial position are forward-looking statements. Forward-looking statements reflect management's current expectations and are inherently uncertain. The Company 's actual results may differ significantly from management's expectations.
RESULTS OF OPERATIONS
Revenue for the six months ended March 31, 2006 was $3,994,968, a decrease of $4,611,612, or 53.6%, from $8,606,580 for the six months ended March 31, 2005. The decrease in revenue has been categorized into two areas. First, sales in 2005 to customers that were either no longer in business in 2006 or who were no longer buying from the Company and are using alternative sources decreased by approximately $1,500,000. The Company purchased many different products which were imported from both Canada and Europe. In fiscal 2006, the Company reduced the amount of imports from those areas as the United States dollar decreased in value against the Canadian dollar, British pound and the Euro, and also the loss of major suppliers resulted in a reduction of sales of approximatley $3,000,000.
Cost of revenue for the six months ended March 31, 2006 was $3,348,637, a decrease of $4,420,753, or 56.9%, from $7,769,390 for the six months ended March 31, 2005. The decrease in cost of sales is approximately the same as the percentage in revenue. The gross profit percentage for the six months ended March 31, 2006 was 16.2% compared to 9.7% for the six months ended March 31, 2005. Wholesale revenue accounted for approximately 75% of total revenue for the six months ended March 31, 2005 and had a gross profit of approximately 6%. Retail sales during the same period accounted for 25% of the total revenue and had a gross profit of approximately 20-20%.For the six months ended March 31, 2006 wholesale revenue accounted for approximately 60% of total revenue with a gross profit of approximately 7.5% and retail sales accounted for 40% of the total revenue with a gross profit of approximately 25-30%. These factors accounted for the overall increase in gross profit percentage.
Selling expenses for the six months ended March 31, 2006 were $117,188, a decrease of $95,741 from the six months ended March 31, 2005. Shipping costs decreased by $53,970 and commissions decreased by $28,036 for the quarter ended March 31, 2006 due to the decrease in revenue to wholesale customers. Advertising and related costs declined by approximately $8,000 as the Company reduced its mailing of advertising materials. There were minor increases and decreases in other selling expenses with an overall decrease which was directly related to the decrease in revenue.
General and administrative expenses for the six months ended March 31, 2006 were $692,348, a decrease of $104,052 from $796,400 for the six months ended March 31, 2005. Total compensation, including payroll taxes and employee benefits increased by $6,843. The increase in compensation reflects an accrual of salaries that had been reduced during the period to preserve cash flow. Consulting fees decreased by $35,000 to $5,000 in the period ended March 31, 2006. For the period ended March 31, 2005 consulting expense represented the balance of a one year contract that expired in January 2005. The Company reduced its allowance for bad debts by $20,000 in the period ended March 31, 2005 after writing off $151,214 of uncollectible receivables. There was no comparable cost in 2005. Professional fees for the six months ended March 31, 2006 were $181,173, an increase of $83,134 over the six months ended March 31, 2005. The entire amount of the increase is attributed to legal fees incurred in the lawsuits with Proctor & Gamble and Alcoa.
Interest expense for the six months ended March 31, 2006 was $17,514, a decrease of $10,040 from the six month period ended March 31, 2005. The decrease in interest expense is due to a reduction of the credit facility with Rosenthal & Rosenthal, Inc which reduced the monthly minimum interest expense.
LIQUIDITY AND FINANCIAL CONDITION
As of March 31, 2006, the Company had a working capital deficit of $318,878, a decrease of $172,816 from the working capital at September 30, 2005. The Company 's losses from continuing operations of $180,719 for the six months ended March 31, 2006 was funded by the decrease in working capital and increase in accounts payable and accrued expenses of $225,378. At March 31, 2006 the APO had available a $300,000 credit facility with Rosenthal & Rosenthal, Inc., of which $112,915 was outstanding at March 31, 2006 (see Note 4 to the accompanying financial statements). The credit facility is collateralized by all of APO's assets and is personally guaranteed by Dr. Jan Stahl, Chief Executive Officer of the Company. Under terms of the credit facility, the lender may call the loan if APO is in violation of certain restrictive covenants. At March 31, 2006, APO is in violation of its net worth and working capital covenants. Rosenthal & Rosenthal has not waived the violations, and accordingly, the entire amount of the obligation is callable. The credit facility matured on October 31, 2005 and was extended through December 31, 2005 under substantially the same terms as the original agreement. APO and the lender have agreed to continue the credit facility on a month to month basis through May 31, 2006.
OFF-BALANCE SHEET ARRANGEMENTS
The Company does not have any off-balance sheet arrangements that are likely to have a current or future effect on the Company's financial condition, revenues or expenses, results of operations or capital resources.
May 09, 2006
(c) 1995-2006 Cybernet Data Systems, Inc. All Rights Reserved
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rmeek1
Serious Contributor
Iron sharpens iron...so one person sharpens another Proverbs 27:17
Posts: 757
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APOA
May 9, 2006 16:45:16 GMT -5
Post by rmeek1 on May 9, 2006 16:45:16 GMT -5
APOA is bringing down costs, needs more revenue generating clients, needs aggressive sales campaign, and the scary part is the liquidity of the company, "APO is in violation of its net worth and working capital covenants". Ouch!
Now is JPHC helping to create more solvency for APO? I don't know. Terry
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same53
Serious Contributor
Posts: 599
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APOA
May 9, 2006 17:00:02 GMT -5
Post by same53 on May 9, 2006 17:00:02 GMT -5
rmeek IMO
Yes I spoke with the CEO of APO you see they are having a name change coming. I think APO in NY will be past tense and JPHC will fill their needs. This is why APO bought JPHC.
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rmeek1
Serious Contributor
Iron sharpens iron...so one person sharpens another Proverbs 27:17
Posts: 757
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APOA
May 9, 2006 17:03:10 GMT -5
Post by rmeek1 on May 9, 2006 17:03:10 GMT -5
Thanks Same53, I see some good going on here with the reduction in cost outlays and the violation a little disturbing. Me thinks well find out soon. Terry
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