Forum Archive Index - October 2002

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

>
>
Rockbottom wrote:
>
>Snoopy wrote:
>>
>>Rockbottom wrote:
>>
>>>On page 1 (Financial Summary) it states the Earnings per share 
>>>was 41.5cents yet on page 55 of the notes it states Earnings 
>>>per share on a consolidated basis was 27.9 cents.
>>>
>>>Why the difference?
>>>
>>
>>The difference you refer to is 41.5 - 27.9 = 13.6c per share.
>>
>>There are 204,688,892 (weighted average) shares on issue, so in
>>dollar terms this difference equates to:
>>
>> 0.136 x 204,688,892 = $27.8 million
>>
>>There was a lot of goodwill written off after Sky City acquired
>>Force Corporation.  Have a look on page 52, under note 13 
>>(intangible assets).  There goes $16.7m.
>>
>>Now turn to page 47 and look at Note 8 under 'Minority Interests'.
>> There you will see a figure of -$10.5m.
>>
>> That brings it up to $27.2 million lost which is within $600,000 
>>or so of the $27.8million figure we are after.
>> 
>
> 
>You were mostly right. There is actually very small print on P1
>which says "Before non-recurring item (Force right-off) of $27.9
>million."
> 
>I should have got my magnifying glass out!
> 
>However on  P32 the Non-Recurring Expenses were $39.1 million not
>$27.9 m as used in the EPS. So in effect SKC apparently is writing
>back some NRE's and not others for this statistic
>
>

I must admit I didn't pick that up- you are right Rockbottom!  That 
seems am odd way for SKC to go about things.

The only thing I can think of is that SKC has written off the 
rest of the 39.1 million at balance date so it isn't included in the 
2002 results.  I guess if I'm right the rest will appear in the 
accounts as non-recurring item in the 2003 accounts.

>
>
>The $85.1m profit (before Non-Recurring Items emblazoned on P1 is
>before NRI's of $39.1 m has been written off.
> 
>Me thinks we are comparing apples with pears.
>
>

As a shareholder I am more interested in the ongoing profit picture 
than the effects of a one off right off.  I'm satisfied the results 
quoted in big print are an apples with apples comparison.

>
> 
>Also what is the difference between a Non-recurring Expense and a
>Non-recurring item?
>
>

I don't know, but i'll wager a guess.  There is no difference.

SNOOPY


 

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