|
SNF.V - Sunora Foods Inc.
Sunora Foods Inc. Due Diligence Report
Symbol: SNF.V
Price: $0.12
Common Shares: 42,254,332
Insider Holdings: 32 million (75.7%, CEO owns 30 million alone)
website:
Most Recent Financial Results (Ending September 30th 2015)
Assets
Cash: $2,752,139
Accounts Receivable: $1,163,447
Inventory: $486,377
Prepaid Expenses: $4,501
Deferred Tax: $150,062
Total Assets: $4,556,526
Liabilities
Accounts Payable: $819,939
Income Tax: $120,165
Total Liabilities: $940,104
Quarterly Earnings Summary:
2014 Total - $189,073
2015 Q1 - $189,073
2015 Q2 - $110,940
2015 Q3 - $198,771
Revenue After 9 Months
Sales - $8,452,570
Gross Margin - $945,250
Total Costs - $211,985
Income Before Tax - $733,265
Net Income - $549,949 or $0.013c EPS
MD&A Highlights
Sunora is a Calgary‐based trader and supplier of canola, soybean, corn, olive and other food oils. Currently, the Company is a relatively modestly‐sized player participating in an international business populated by some of the largest companies in the world. It has successfully maintained a niche position that has been achieved by building strong relationships with its suppliers and customers through a history of reliable and responsive service. While the Company regularly cooperates with many of these companies, it also occasionally competes with companies that have far greater resources.
Sunora had sales in line with expectations for the nine month period ended September 30, 2015. Sales were negatively impacted by a decline in oil related commodity prices of over thirty percent and bulk oil sales declined in the third quarter.
The $549,949 of net income and comprehensive income in the nine months ended September 30, 2015 was due to better gross margins attributable to a continuing higher percentage of packaged oil sales versus bulk oil sales. Profitability also benefitted from the positive impact of the foreign exchange gains.
The foreign exchange gain or loss arises primarily as a result of inventory purchases and sales, to the extent that they are denominated in US currency.
Sunora's cash balances increased $967,992 in the nine months ended September 30, 2015. This increase since December 31, 2014 resulted primarily from higher income for the nine month period, the reduction of inventory, and a decrease in accounts receivable affect slightly by a decrease in accounts payable and accrued liabilities during that period. Sunora
|