Reported Q3 EBIT (operating income + financial expenses)
2013 7.8m vs. 2012 8.1m
However after backing out the results from Wabush (10.6m vs. 7.1m) leaves the following result for the remainder of MFC's businesses:
2013 -2.8m vs. 2012 0.9m
So once again it is clear that MFC, excluding its lucrative iron-ore royalty, earns nothing. But what makes this particularly unusual is that the company has completed a whole range of acquisitions, accompanied by a sizeable cash outflow. Sales were up almost 220m. But earnings fell!!??
Think it should be mentioned that MJS follows a philosophy of paying as little taxes as possible and think that they definitely do everything they can (using every trick in the book) to report a lower income number. I'm not a CPA but doesn't the oil & gas industry offers a lot of tax write-offs, etc.?
Nothing wrong with saving taxings but reported income and taxable income are seldom the same. Besides which the cash situation is even more dire; i.e. net debt rose by 20m in 9 months, despite the reported earnings.
Michael Smith utilised the Compton acquisition to book a massive accounting gain. This of course resulted in a higher book value. Book value is the metric that Smith incessantly reiterates to shareholders is the metric that counts. The book value is now substantially higher than it was last year, but earnings and cash flow are less!? Much of the conference call was devoted to floods in Alberta, etc., but the sad fact remains that the company is bleeding cash.