For the nine months ended September 30, 2005, the registrant currently estimates that it had revenues of approximately $915,000 and a net income of approximately $43,000. Results for the nine months ended September 30, 2005 remain subject to further adjustment and actual results may differ significantly from the foregoing estimates.
Filing this document gives Petrol an extra five days to finalize its official 10-Q, but lets assume that these numbers remain the same. We need to back out the results from the first six months of the year because those involved the discontinued exploration & production business. According to the 10-Q filed in August, the company had revenues of $392,582 and net income of ($256,418) for the first six months of 2005.
If my calculations are correct, that means that the company had sales of approximately $522,500 and net income of approximately $299,500 for the third quarter of 2005. That is phenomenal for a company that, as of today, has a market cap of less than $1 million.
This seems rather high to me. I wonder if the company meant to refer to nine month operating earnings rather than net income. If so, we would back out operating earnings (losses) from the first six months of 2005 of ($33,610) and still come up with operating earnings of approximately $76,500 for the third quarter. Not quite as much of a blockbuster but still very respectable.
DISCLOSURE: I am long PTLD.OB. Not a recommendation to buy or sell any security. For informational and educational purposes only.
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