2Q Earnings

tpltblogger17 Comments

Full Press Release

SEC version

2q snapshot

$49,586 / $87,310 = 56.8% Q219 margin

$52,503 / $73,844 = 71.1% Q218 margin

Revenue up 18.4%

Net income down 5.6%

Tough quarter.  Back out the $4.9MM in land sales and it looks even worse.

The word expense is only used in the release twice and the context there was income tax expense.

Share count unchanged on the quarter at 7,756,156.

Time for change.

 

 

17 thoughts on “2Q Earnings”

  2. Why did they not buy back any share? # of shares outstanding is 7,756,156, exactly the same as March 31st, 2019. Did they spend this quater’s complete cash flow on legal advice?

    Liked by 1 person

  3. The income statement is obviously heavily weighed down by legal expenses.

    Consider this — we paid similar taxes in both quarters. Lets assume that means we had similar pre-tax income in both quarters, i.e. we paid the same tax rate in both periods. That implies total Opex of $21.8m vs $8.3m yoy. Since water grew, I’d assume water related expenses grew, but other than that, the difference must be mostly legal.

    There may be some tax differences in the periods, so this is quick and dirty.

    Q2 2018:
    Rev- $73.8m
    Opex- $8.3m
    Pre-tax income- $65.5m

    Q2 2019:
    Rev- $87.3
    Opex- $21.8m (implied)
    Pre-tax income-$65.5m (assumed)

    Liked by 3 people

  4. The fact that they don’t detail expenses is one of the biggest items that want us to fight for ‘transparency. They have effectively hidden all the litigation costs. The ‘Committee’ had better use this as a hammer to force change, and the General can show his gonads by proving his views of governance with what he espouses, that being a Board, not trustees..

    Liked by 1 person

  5. I’m with everyone on transparency and disclosure of course, but I’d just like to point out that the earnings release never contains much item level detail. Lets wait for the 10-Q for more color on legal expenses. They may very wail bury it, but it should be more apparent in the 10-Q.

    Liked by 1 person

  7. The only salvation that we have is that it takes 5 votes to make things happen, and only 3 votes to stop anything that investors don’t care for.

    Liked by 1 person

  8. They couldn’t buy shares because they used the money for the proxy battle and legal fees. No they are going to pay HK & others $1+ million in for their legal fees which I support. We’d still be in the dark forever without their efforts.

    Liked by 1 person

  9. In a normal quarter, with this revenue, we should have a net income of around 62 m$ and not 49.5m$. (so 12,5m$ in legal expenses and others…? LOL). Next quarter if everything keeps normal, with these numbers, I expect EPS $8, and that’s incredible. Imagine the future if we convert to a c-corp…

    A hug from Galicia, Spain

    Liked by 4 people

  10. Water revenue for the quarter not so hot. I’m guessing that is rig related, as we went from 485 in Permian Basin on 12/31/18 to 442, 3/31/19 was 461, and then 442 on 6/30/19. That guess about the rig count could be way off. The oil and gas royalties quarter over quarter is promising.

    Liked by 1 person

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