wow, thats convoluted attempt, raises more question about its actual accounting and comparisons than it attempts to hose down imo.
quite assessment of the clarification vs previous data
last night they said this to pump the GP metric up to 22%
View attachment 37648911 Excludes jobkeeper 4.5MThey are going amortize the cost of bendigo revenue share lol, its a cost of the additional revenue stream purchased
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Its not a non cash item
Last year gross profit 119.4M as per the accounts
119.4M was the number they used to make % comparisons to the previous year, its all about the graph but the figure off 119.4M included Job keeper of 4.5M revenue and terminal fees rental relief of 1.0M but excluded Bendigo revenue share (which is essentially a trailing commission ((refer to accounts notes 1b and c)),,,,,,the gross profit excluded the .7M expensed below the line which increased headline gross profit.
They calculate EBITDA as follows
View attachment 3765077So the accounts
note the trailing commission for bendigo was below the line , expensed, not depreciated and amortized as a non cash item, Ill argue its a direct cost and should be included in gross profit calculations but it doesnt matter for the purpose of this
They cant include the revenue for 100% of bendigo terminals in the top line of transactions value, payments revenue and income and then put the costs of that bendigo terminal payments and revenue below the line imo , that just pumps up the metric they want you to look at GROSS PROFIT, which then makes the comparisons they used in the annual report look larger than reality.
Most added this back.
Its a bit like some of the major BNPL models that direct you to EBITDA figures which they paint as improving when thier business model is - they borrow money and effectively lend it for a margin so INTEREST on growing debt funding is a cost, and therefore the push to look at the EBITDA is misleading as it doesn't really tell you what is going on for a business whose main business is to borrow and then lend money
anyhoooo
these are the accounts
View attachment 3764894So the company attempt to provide additional disclosure is very poor IMO
last night is a bit misleading imo
It cant come out now and say for the 4 months JULY-OCT 2020 Gross profit was 33.8M and note it excludes job keeper when it included jobkeeper in the gross profit last year in the annual report (refer to notes above),,,,its not a like for like comparison and merely serves for them to lift the Gross profit increase from 14% (as per AGM) to 22%...
So easiest rough way (in the absence of accounts) to get a comparison
119.4 M Gross profit declared 30 june 2021 (includes jookkeeper, terminal relief , excludes bendigo commissions) they used jobkeeper to lift GP last year to lift the comparison vs previous year so they cant now exclude it to get a bigger % following yesterdays move to the exits
Gross profit declared in aftermarket scramble clarification 33.8M July to Oct 21 2020 excluding jobkeeper of 4.5M
Add that jobkeeper back 38.3M to make the comparison like for like,,
as per their own ebitda methodology I would have thought it was a one off and should not have been incuded in GP last year anyway. They included it in GP for the total year last year they should try to exclude it now to pump up the comparison estimation for the full year
Rough annual run rate for GP ,
They say is is 41.2M as bendgo revenue share isnt deducted (it wasnt last year either)
multiply by 3 as its a four month period over a year
So GP run rate after all the growth s approximately 123.6M VS 119.4M
It should be noted that there will be other terminal costs that should flow through to the costs and expect the GP to be a bit lower in reality
So where does it go today, who knows, most will just see a clarification and 22% and not do the like for like
Reality is the total GP after all the growth is not exactly lifting much in Dollar terms. Sure alot of restriction but one would expect from the weekly report showing solid month on month comparisons that the $ GP declared/ clarified would have been bigger imo hence the share price move, especially considering the number of terminals that came across in the bendigo transaction. IT clearly a profitable acquisition but hardly a stella earner when you look at the current and non current liabilities / cost of acquiring the terminal network.
Ill let others trade it until i get to see a full set of accounts mid year, other costs which are not included in the GP declared / GP calculation will be the additional staff etc to maintain the acquisition of the bendigo terminals which will be below the line.
Suggest there needs to be a much larger jump in transaction values for EBIT to move positive this FY
EBIT is the one to watch on this one imo as it smooths out some of the costs put below the line which cant produce GP figures
Good luck
(20min delay)