EVO - Evolve Education

[winner69]

Adjusted NPAT up 12.7% on pcp in line with revenue growth

So t_j its all honky dory .....no worries

[winner69]

T_j me old mate - methinks we need to read the financials in the presentation pack

They are much better reading when you adjust for this and adjust for that and get a different result.

[Beagle]

Evolve announces strong growth and all the rest of their public relations corporate speak. My bean counting radar is always switched on high alert when there's not a single mention of net profit after tax in the headline news release. Creative accounting 101, ignore the most fundamental measuring stick of corporate performance and accentuate any other possible financial measuring sticks you can find !
Why am I not surprised that they are using the old smoke and mirrors to paint a glossy picture ? I call if the Norah factor.
8.9 cps v 8.8 cps last year. Strong growth LOL. Thanks Evolve, its always great to start the business week with a good laugh.
No doubt they'll have their bean counters working overtime to highlight how on a "normalised basis" there was strong growth but on a really quick review of the financials I did pick up one area of very strong growth, they moved from a NTA of -17 cps to an NTA of -25 cps a whopping 47% increase in their net negative NTA, extremely impressive !

[trader_jackson]

Y

I think you have read it right

Of the $14.0m increase in revenues only a miserable $0.2m flowed through to the bottom line

But t_j no need to despair - it'll all come right one day

Divie up though - did you miss that in the headline

Yea... I knew when they had that headline something was wrong, but didn't know how bad it was till I opened up the attachment... Late Jan old Forsyth increased their rating from $1.40 something to $1.53 with a FY17 estimate of 10 cps... then on 16 May they promptly removed it from their "Conviction list"... hmm... they have a tea cup meeting last week you think? (got the old wink wink nudge nudge...)

[trader_jackson]

hmm share price hasn't crashed... defying gravity really

[winner69]

There was a favourable $1.3m 'earn out' adjustment that boosted F16 profit (not normalised by them but noted)

So of course it's OK to 'adjust' F16 profit by this amount to compare F17 against a lower prior period.

But at the end of the day F17 profit of 8.9 cents a share is what matters and the market wil see top line growth and assume eps growth and send the share price towards 120 in no time.

[Antipodean]

Also the repayment of the $20m senior revolving facility in the F17 year is a good sign.

[sb9]

Evolve announces strong growth and all the rest of their public relations corporate speak. My bean counting radar is always switched on high alert when there's not a single mention of net profit after tax in the headline news release. Creative accounting 101, ignore the most fundamental measuring stick of corporate performance and accentuate any other possible financial measuring sticks you can find !
Why am I not surprised that they are using the old smoke and mirrors to paint a glossy picture ? I call if the Norah factor.
8.9 cps v 8.8 cps last year. Strong growth LOL. Thanks Evolve, its always great to start the business week with a good laugh.
No doubt they'll have their bean counters working overtime to highlight how on a "normalised basis" there was strong growth but on a really quick review of the financials I did pick up one area of very strong growth, they moved from a NTA of -17 cps to an NTA of -25 cps a whopping 47% increase in their net negative NTA, extremely impressive !

Pretty poor result overall whichever way you slice and dice it. No wonder Milford been reducing their holding leading upto results date in past few weeks.

Glad I've sold mine last month at 1.09 after basically watching it go no where for about 2 months or so....costed me brokerage both ways, that's it!!!

[Beagle]

There was a favourable $1.3m 'earn out' adjustment that boosted F16 profit (not normalised by them but noted)

So of course it's OK to 'adjust' F16 profit by this amount to compare F17 against a lower prior period.

But at the end of the day F17 profit of 8.9 cents a share is what matters and the market wil see top line growth and assume eps growth and send the share price towards 120 in no time.

That a bit of dry humor there mate ? Can't see it, even scraping the bottom of the barrel and normalizing this its an underwhelming result from a financial perspective but of course they paint it as strong growth...they couldn't possibly be trying to be creative for more bonus's and directors and management salary increases... surely not !

A very average share with below par growth, lest just call a lemon a lemon and be done with it !

[winner69]

'Normalising' the F16 tax expense to make F17 growth better is quite a good trick.

Cash Flow is harder to 'normalise'. That showed Operating Cash Flow of $22.3m with Investing Cash Flows of $21.8m.

Good they investing profits for growth but free cash flow didn't cover the dividends - why pay divies?