Avantair reports Financial Reseults

[gunfyter]

Am I reading this right. The market capitalization of Avantair is less than $16 million?

 

[glasspilot]

According to Yahoo the market cap is $19.89 million. That may be after the share price soared to $1.30.

 

[gunfyter]

OK thanks.

 

[Cavpilot]

Cavpilot is wrong. Positive ebidta and record sales are the key. 53 cards and 17 shares most coming from competitors. The progress in the financials is nothing less than astonishing. When others are letting people go AvantAir continues to hire. AvantAir has a lot to be proud of. The jealousy of others will not get us down. I guess the bad quarter caused the stock to go up.

I wish Avantair well. I think you guys have a great market niche with a lot of future potential. However, I do know how to read a financial statement.

First off, let me say that the bottom line is just that, the bottom line. If your expenses are greater than your income, then you lose money. It makes no difference how much product you have sold. If the delivery of your product costs more than what you sold it for, you lose money. That is exactly what the Avantair financials are telling us.

Second, EBITDA (earnings before interest, taxes, depreciation, and amortization) doesn't mean jack. If you don't believe me, read what the Motley Fool has to say about it.

I want Avantair to succeed. But let's please keep it real.

 

[johnsonrod]

I wish Avantair well. I think you guys have a great market niche with a lot of future potential. However, I do know how to read a financial statement.

First off, let me say that the bottom line is just that, the bottom line. If your expenses are greater than your income, then you lose money. It makes no difference how much product you have sold. If the delivery of your product costs more than what you sold it for, you lose money. That is exactly what the Avantair financials are telling us.

Second, EBITDA (earnings before interest, taxes, depreciation, and amortization) doesn't mean jack. If you don't believe me, read what the Motley Fool has to say about it.

I want Avantair to succeed. But let's please keep it real.

That depends on how you define "losing money." You can have a net loss as a result of a big one-time charge (a non-cash charge similar to the ones you see in the airline business every quarter). What really counts is cash.

I haven't seen the cash flow statement - what were the net cash flows? What is the trend? If Avantair is adding debt to sustain operations, are they able to pay the additional interest payments (debt service in general). Cash is king. It's true that Avantair is a public company and earnings is always emphasized in that case, but cash is what people should always be focusing on. In this time of frozen bank credit, internal cash flow becomes even more critical. Does cash inflow match or exceed cash outflow? Again, what's the trend? Those are the questions I would be asking as a shareholder.

 

[Cavpilot]

That depends on how you define "losing money." You can have a net loss as a result of a big one-time charge (a non-cash charge similar to the ones you see in the airline business every quarter). What really counts is cash.

I haven't seen the cash flow statement - what were the net cash flows? What is the trend? If Avantair is adding debt to sustain operations, are they able to pay the additional interest payments (debt service in general). Cash is king. It's true that Avantair is a public company and earnings is always emphasized in that case, but cash is what people should always be focusing on. In this time of frozen bank credit, internal cash flow becomes even more critical. Does cash inflow match or exceed cash outflow? Again, what's the trend? Those are the questions I would be asking as a shareholder.

Good points.

 

[HazMat]

When we see the financials of the other fractionals we can compare. Cash flows (that's what I think u guys are talking about and have not seen) are always better because the sales get amortized over the course of the management agreement. Since the other fractionals bury their financials there is no way to tell how well they are doing. Avantairs are transparent and getting better by the quarter. Post yours and we can compare

 

[Flex-ible]

Cavpilot is wrong. Positive ebidta and record sales are the key. 53 cards and 17 shares most coming from competitors. The progress in the financials is nothing less than astonishing. When others are letting people go AvantAir continues to hire. AvantAir has a lot to be proud of. The jealousy of others will not get us down. I guess the bad quarter caused the stock to go up.

Sales and EBIDTA don't mean squat. Making money is what matters, and the company continues to lose money. "Getting better" doesn't mean it's good. Of real concern to me would be the dramatic erosion in the cash position over the last six months - more than half of it is gone. At that rate, the paychecks won't clear sometime in April......

No, I don't hope that will happen. I don't even think that will happen. But I think it COULD happen. I am sure the folks at Avantair are working to improve the cash position. Soon.

 

[HazMat]

The cash position is the same from q1 to q2 and debt was paid down. Please stop and just give the company it's props u are just going to look silly.

 

[gunfyter]

Stock is down to $1.30 from $5 or $6 a share not too long ago.

When the economy turns and frac flying with it ... I wonder if the stock will return to previous levels. I mean within 2 years from now. Could be an amazing return.

Any of you guys buying shares?