Tuesday, 15 May 2007

Brainhunter No Longer Little Elephant



With a firm hand on expenses and revenues up substantially, Brainhunter Inc. announced its strongest quarter ever.
For the second quarter ending March 31, 2007, revenues stood at $58,552,545, a 7% increase over the first quarter and a 35% jump over the same quarter last year.
It shows that organic growth is firmly feeding the company.
Equally good, expenses in the second quarter stood at $6,672,534, a rise of just 10.8% over the same quarter last year.

EBITDA was even more dramatic with a 97% increase over the same quarter last year.
EBITDA as a percentage of gross profit for the second quarter was 24%, whereas it was 15% for the first quarter, showing expenses are rising at an appreciably slower rate than revenues and that economies of scale are evident.

And while net income calculations show Brainhunter's net loss in the most recent second quarter was $232,428, it actually was cash flow positive before considering the impact of non-cash balance sheet items to the tune of $1.46 million. We view this similar to a LIFO/FIFO situation - a real benefit to Brainhunter and disappointing to the CRA. The company is making money, but due to the huge amortization of intangibles, which is essentially meaningless to the success of the company, it does not have to pay income tax.
All in all, the numbers have transformed Brainhunter from the smallest elephant in the industrial jungle three years ago to a contending bull. Click here to read the release.