Monday, May 23, 2005
The decrease in gross profit percentage was primarily the result of higher material costs, which increased as a percent of sales by 7% in Fiscal 2005 as compared with Fiscal 2004.They bought Snake River Log Homes LLC to expand into construction, but it doesn't seem to help pull them into profitability. They included results from Snake River in Nov 2004, but then they go on to say:
We expect our revenues to increase by a similar rate as that of the current year (36% increase) based on the increase in our backlog of undelivered contracts at January 31, 2005 and the continued favorable economic climate for home construction in the United States.Ummm... I wouldn't bet the farm on housing construction continuing at the current rate. And it seems like a big part of that 36% increase is due to an acquisition. Do they still expect 36% increases in the future? I might visist one of the dealers this Summer.
Here's a competitor. (BPAB)
UPDATE OCT 7, 2005: The stock seems to have disappeared except OTC BB seems to still recognize it somewhat.