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VCAMPUS CORP Message Board

  • whats_going_to_happen whats_going_to_happen Apr 12, 2006 4:03 PM Flag

    Acquisition

    This acquisition is as exciting as the last one these guys made � anyone remember HTR?

    Let�s look at the numbers:

    VCMP
    FY�05 Rev 4,564; EBIT (4,711); NI (5,866)
    FY�04 Rev 4,864; EBIT (3,998); NI (6,579)
    FY�03 Rev 6,066; EBIT (3,146); NI (3,259)

    POSO
    FY�05 Rev 7,032; EBIT ( 938); NI (2,608)
    FY�04 Rev 8,048; EBIT (1,263); NI (1,566)
    FY�03 Rev 12,020; EBIT (2,019); NI (2,308)

    COMBINED
    FY�05 Rev 11,596; EBIT (5,649); NI (8,474)
    FY�03 Rev 18,086; EBIT (5,165); NI (5,567)

    And they only paid $2.3 million for this (and assumed certain liabilities). With these trends, this will be cash flow positive in no time.

    How many more investors (with convertible debt at 16% interest plus warrants) do you think it take to finance this action?

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    • There is one positive, using your numbers they go from a (100%) EBIT to a consolidated (49%) EBIT. A few more of these acquisitions and they might get to a 0% EBIT. Let the pumping begin!

    • Exactly. It was an act of desperation on there part.

      $2.3M upfront

      Assume outstanding liabilities.

      Assume transition liabilities (Severance etc)

      All of this to acquire a company that is no where near profitable themselves

      Given VCMP can only get loans from preferred shareholders at near loan shark rates, it does not take a mathematician to figure out the common shareholder is about to get his ass screwed so tight to the wall to that they will never escape with there skin.

      And they did this with exactly 10 trading days left before the 26th....Where did I read that?

 
VCMP
0.00010.0000(0.00%)Dec 31 2:57 PMEST

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