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| INVA.PK > SEC Filings for INVA.PK > Form 10-Q on 16-Mar-2009 | All Recent SEC Filings |
16-Mar-2009
Quarterly Report
The information contained in this Management's Discussion and Analysis of Financial Condition and Results of Operation contains "forward looking statements." Actual results may materially differ from those projected in the forward looking statements as a result of certain risks and uncertainties set forth in this report. Although our management believes that the assumptions made and expectations reflected in the forward looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual future results will not be materially different from the expectations expressed in this Annual Report. The following discussion should be read in conjunction with the unaudited Consolidated Financial Statements and related Notes included in Item 1.
RESULTS OF OPERATIONS FOR THE THREE MONTH PERIOD ENDED JANUARY 31, 2009
Cost of sales increased from $676,320 in the three-month period ending January 31, 2008 to $3,249,600 for the three-month period ending January 31, 2009. The increase came from the revenue generated by the newly-acquired Desert Communications and Trakkers.
Operating expenses increased from $752,705 for the three months ending January 31, 2008 to $1,940,366 for the same period in 2009. This was mainly due to the expenses incurred by the newly-acquired Desert Communications and Trakkers.
Net loss from continuing operations decreased from ($851,194) for the three months ending January 31, 2008 to ($427,476) for the same period in 2009. This is due to the profit generated from the newly-acquired Desert Communications and Trakkers.
RESULTS OF OPERATIONS FOR THE NINE MONTH PERIOD ENDED JANUARY 31, 2009
Net revenues increased from $1,494,919 in the three-month period ending January 31, 2008 to $18,012,044 for the three-month period ending January 31, 2009. The increase in revenue mainly came from the income generated by the newly-acquired Desert Communications and Trakkers.
Cost of sales increased from $886,838 in the nine-month period ending January 31, 2008 to $12,246,387 for the nine-month period ending January 31, 2009. The increase came from the revenue generated by the newly-acquired Desert Communications and Trakkers.
Operating expenses increased from $1,007,178 for the three months ending January 31, 2008 to $4,843,046 for the same period in 2009. This was mainly due to the expenses incurred by the newly-acquired Desert Communications and Trakkers.
Net loss from continuing operations decreased from ($997,267) for the three months ending January 31, 2008 to $(432,870) for the same period in 2009. This is due to the profit generated from the newly-acquired Desert Communications and Trakkers.
LIQUIDITY AND CAPITAL RESOURCES
Cash provided by operations for the nine month period ended January 31, 2009 was $1,082,605, as compared to cash provided by operations of $1,180,644 for the nine months ended January 31, 2008. This change is primarily due to the income generated from Desert and Trakkers' operations. Cash used in investing activities for the nine month period ended January 31, 2009 was $2,651,286, as compared to $4,052,215 for the nine months ended January 31, 2008. This change was because of the money spent by the Company for the businese acquisitions. Cash provided by financing activities for the nine month period ended January 31, 2009 was $1,873,319, as compared to $3,144,411 used for the nine months ended January 31, 2008. This change was due to several significant loans obtained by the Company during the current year.
Our operating activities for the nine months ended January 31, 2009, have generated adequate cash to meet our operating needs. As of January 31, 2009, we had cash and cash equivalents totaling $316,805, and accounts receivable of $3,197,010.
EBITDA for the 3 month period is $540,842 and $1,749,037 for 9 months. EBITDA is Earnings before interest, tax, depreciation and amortization:
3 months ending 1/31/09 9 months ending 1/31/09
Net income $ (427,476) (432,869)
Interest $ 576,198 1,355,480
Tax $ 30,000 45,000
Amortization/Depreciation $ 494,046 796,034
EBITDA $ 672,678 1,763,645
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Management believes that existing cash, cash equivalents, together with any cash generated from operations will be sufficient to meet normal operating requirements including capital expenditures for the next twelve months.
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