LVT Expenses, page-60

I have to confess, the premise of this entire thread makes absolutely no sense.

Its as if nobody has done any fact checking on the OP's opening statement that $7 million is a high staffing cost.

The reality is LVT has done an astonishing job of controlling staff costs.

Since June 2018 to June 2018, the Annualized Recurring Revenues have increased from $15 million to $40 million . Quarterly cash receipts have increased from $3.4 Million to $7.9 million. The company has acquired its largest European competitor and increased its presence and sales force in Europe by a factor.

For a company that has grown revenues by 267% and grown geographical presence....how much did you expect the cost of staff to go up in what is essentially a people business?
Did anyone go back and look at staff costs in the C4 over the past 4 quarters?

Staff costs in June 2019 were $7,086 K ($7 million). Staff Costs in June 2018 were $7,074k ($7 million)........They are static for a company that has nearly tripled in size!

Even that doesnt tell the whole story. The reality is that LVT has been continually trimming staff costs, ever since it announced cost cutting measures in November 2018. Staff costs were down dramatically from December to March....and then when staff costs should have gone up in June when the full cost of Wizdom's employees joined LVT, they were flat, suggesting that LVT moved incredibly swiftly during the integration to take out duplicated staff costs. In addition, since June last year they have an additional CFO and have hired one of the more senior managers from Microsoft in A-Pac. All while keeping staff costs flat to down.

There is much to worry about in the world......but staff costs per dollar of ARR growth at LVT is not one of them.