What does this mean?

[Garrick Daft]

Seriously, I have a hard time reading this and understanding exactly what is being said.

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Form 10QSB for IFSA STRONGMAN, INC.

15-May-2006

Quarterly Report

Results of Operations

Following is management's discussion of the relevant items affecting results of operations for the quarters ended March 31, 2006 and 2005. These results are in no way indicative of expected future operations.

Revenues. The Company generated net revenues of $32,243 during the three months ended March 31, 2006, which represents a 90% decrease compared to $317,847 in net revenues during the first quarter of 2005. This decrease was mainly due to not organizing the Arnold's Classic event in 2006 which had been a losing effort in the past. The Classic alone constituted over $220,000 in revenue during the first quarter of 2005.

Cost of Sales. Cost of sales for the three months ended March 31, 2006 were $16.394, a 93% decrease from $251,116 during the first quarter of 2005. This decrease corresponds with the decrease in revenues for the same period. As discussed above, the Arnold's Classic event was not held in 2006 and the cost of sales for this event was over $220,000 in 2005.
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[Matt Nickerson]

It means the IFSA has lost a poop load of money in 2006 as compared to their 2005 earnings in the first quarters of eac year.

[Matt Brouse]

poop load

That's what I was thinking.

[Garrick Daft]

I can understand poop...easy word!! and it looks the same backward which helps cause when I read something hard I go crosseyed!!

How bout I ask specifically what I want.

What is the difference between Revenue and Cost of Sales?

What is behind these two comments?

1.... This decrease was mainly due to not organizing the Arnold's Classic event in 2006 which had been a losing effort in the past.

2.....As discussed above, the Arnold's Classic event was not held in 2006 and the cost of sales for this event was over $220,000 in 2005.

[Barry Perkins]

I can understand poop...easy word!! and it looks the same backward which helps cause when I read something hard I go crosseyed!!

How bout I ask specifically what I want.

What is the difference between Revenue and Cost of Sales?

What is behind these two comments?

1.... This decrease was mainly due to not organizing the Arnold's Classic event in 2006 which had been a losing effort in the past.

2.....As discussed above, the Arnold's Classic event was not held in 2006 and the cost of sales for this event was over $220,000 in 2005.

Revenue verses COST of sales...means...the cost of doing business..how much money does it cost to make the sell..like advertising, prize money, accomodations cost a poop load..but revenues (income) were less...
IFSA was not involved with the arnold this past year...so..they didn't have the $220 gees as income...and in '05..it actually cost about $250 gees to run everything...a net loss of about $30 gees...
so in order to "justify" the massive decline in sales/revenues..they basically are saying.."look, we didn't bring in as much money this past quarter..cuz we usually do the arnold, which brings in a butt load of money..but everytime we do the arnold..we lose our a**es...so..we didn't do the arnold" that's why the numbers don't look so good...

I am sure from a percentage standpoint..IFSA may have done better in "net" dollars than last yr 1st quarter..just not as much volume...

one more thing.. if you actually look...at the numbers...IFSA..made a net profit of around 50%...if profit is the correct word to use.. but their cost of sales was about $16 gees, where as thier "income" was about $32 gees....

[Matt Makousky]

Plain and simple, they are still making money or they would not be around, just as any business.



M2

[Scott Porter]

Plain and simple, they are still making money or they would not be around, just as any business.



M2

Not true. Plenty of businesses are around that do not always turn a profit.

[Barry Perkins]

Not true. Plenty of businesses are around that do not always turn a profit.

correct....ever heard of Enron?...granted..they eventually took a nose dive..but they spent years...losing money ..before they closed up shop..

you can operate...indefinitely at a loss....as long as someone..or something ..is contributing money to make up for the loss..

IFSA..lost more money in 05' first quarter...than it grossed in '06 first quarter...

[Garrick Daft]

Thanks Barry.... that was hard to decipher but your explanation made it simple. That's a bum deal that the Arnold Strongman costs more to run then they make....I wonder why they were so eager to be the only organization involved with the Arnold if that is the case.
It's not like the Arnold is an entirely spectacular Strongman contest...sure it is OK but boring as watching grass grow. The events take entirely too long to set up and get through and they all seem to be the same...even though they aren't. I can't imagine why it costs $250,000 to put on that contest...someone is getting ripped a new one!!

[Brandon Campbell]

Thanks Barry.... that was hard to decipher but your explanation made it simple. That's a bum deal that the Arnold Strongman costs more to run then they make....I wonder why they were so eager to be the only organization involved with the Arnold if that is the case.
It's not like the Arnold is an entirely spectacular Strongman contest...sure it is OK but boring as watching grass grow. The events take entirely too long to set up and get through and they all seem to be the same...even though they aren't. I can't imagine why it costs $250,000 to put on that contest...someone is getting ripped a new one!!


stage fees, athletes, hotels, it all addes up. I pretty sure a stage at the arnold isnt a cheap thing to come buy. I know at conventions like Sema it cost liek 300k+ for car companys to get a stage to do that little fancy intro to a new car or something :p

[Ryan Brown]

it is not particulary helpful to just look at the limited information that you have put in your post as it does not tell the entire story.

it does not mean they are making or losing money. For that you must look at more info. Looking at their financials you can see that they were losing money last year and they are losing money this year (although less than last year). This is common for businesses. Many businesses have a net loss. They continue because they are able to get financing (loans) or capital contribution (stockholder investment).

These numbers are so small that they are really not that meaningful. A few hundred thousand dollar loss for a public company is not a big deal in the short term. By this I mean that if they get one decent contract or something it coud easily fix this and put them in the black.

if anyone would like to see more info you go to www.sec.gov and put in the name of the company. Presenting/drafting info in sec filings such as IFSA's 10-Q is what I do for a iiving.

[Garrick Daft]

I wasn't concerned about the money, I just wanted to understand what they were saying about the Arnold and what those terms meant.. I could care less how much money they make.