Hi David Between the two of us we can work out this means, if...

Hi David

Between the two of us we can work out this means,  if you can share your experience first hand experience of their contract structure and with the concept example below.


An example unearned would be:

I sign a 12 month contract on May 31 for 12 months on a monthly payment plan for a minimum cost of 12 months.  to avoid confusion - Minimum cost 12 months  ...but I pay monthly. I have only been paid 1 month in June which is recognized in the profit and loss but I recognise the 11 remaining months on the balance sheet as an asset.

Three numbers I really like looking at closely with this company is
*Recurring Revenue....................................improved
*Unearned Income ......................................improved
* Delinquencies and Days Debtors..............has gone up but less average days and smaller delinquencies dollars as a % of total sales. Deliquincies go up if you grow ,,,,, we like the percentage going down.

James Auslebrook is the CFO and he has it rude health.....Canning/Auslebrook partnership have done a remarkable job getting this thing tip top after the usual rubbishing of companies at this end of town are used to. I have commented a couple of times before about related party transactions that the previous CEO/Chairman got up to including paying  over a $100,000 plus for their corporate website... a gig the daughter of the EX CEO got to do.  There was a whole bunch them paying over inflated prices for crap workmanship.  I dont think anyone was pleased to see the CEO go .........he was the major shareholder......when he left all shares were disposed of out his name.

No more of that rubbish... Compare the last 3 annual reports and you will see what I mean... the attention to detail now is phenomenal and absolute joy to read as a shareholder.