GB.V - Ginger Beef Corporation

[StockDude]

Ginger Beef Corporation (GB.V) Due Diligence Report

Price: $0.17
Common Shares: 13,670,997
Insider Holdings: 9,799,819 or 72% (As per the July 28th Information Circular Sheet)
Website: www.gingerbeef.com

ASSETS
Cash: $296,655
Accounts Receivable: $591,043
Due from parties: $61,882
Due from shareholder: $150,000
Inventory: $310,578
Tax Recoverable: $17,310
Prepaid Expenses: 25,905
Property & Equipment: $1,296,455
Total Assets: $2,749,829 (2015 - $2,456,841)

LIABILITIES
Accounts Payable: $337,817
Wage Payable: $1,447
Employee Deduction: $3,435
Current portion of capital lease: $23,963
Current portion of long term debt: $85,905
Deferred Income: $91,667
Deferred Income Tax: $34,000
Capital Lease obligation: $102,348
Long term debt: $79,037
Total Liabilities: $760,219 (2015 - $706,482)

9 Month Sales - $4,033,706 (2015 - $4,000,019)
9 Month Net Income - $239,251 (2015 - $106,419)
Earnings Per Share - $0.018 (2015 - $0.008)

Quarterly Profit Breakdown
Q1 2016 - $92,117 (2015 - $85,520)
Q2 2016 - $70,381 (2015 - $1,795)
Q3 2016 - $74,388 (2015 - $22,104)
In 2015 the company earned $152,233 on $5,288,698 in sales

MD&A Highlights from Q3

Ginger Beef Corporation is a food company based in Calgary, Alberta, which operates through two wholly-owned subsidiaries, Ginger Beef Express Ltd., (“Express”) and Ginger Beef Choice Ltd. (“Choice”). Express oversees a number of franchised take out/delivery service restaurants in Alberta, while Choice produces a number of frozen and ready-to-serve deli Chinese food products for distribution to retail outlets. After the modernization of its facility in the winter of 2002, the Company was certified and granted a license by the Canadian Food Inspection Agency that allows the Company to ship its products, fresh or frozen, to all provinces in Canada. The Company has been actively engaged in the development of new food products, as well as in the improvement of its existing product lines in order to increase its market share.

The Company’s gross revenue was relatively stable compared to comparative periods in prior year. However, the Company’s gross margins had been improved significantly, which had resulted in increased net income before taxes in the first three quarters of 2016 by $212,832 as compared to the same period in 2015.

The Company’s gross revenue in the third quarter of 2016 was $1,477,239, 3.2% higher than the same period in 2015. The Company’s gross revenue in the first three quarters of 2016 was $4,215,279 or 0.7% higher than for the same period in 2015. Slightly higher revenues are primarily a result of increased selling price. Furthermore, the improved gross margin had resulted in increased net income.

The Company’s deli Chinese food products are sold nationally across Canada. Gross revenue in the third quarter of 2016 was $1,418,951, 5.1% higher than in the same period of 2015. Gross revenue in the first three quarters of 2016 was $4,033,706, 0.8% higher than in the same period of 2015.

The Company’s other source of revenue, royalties and franchisee fees are relatively stable. Net royalties and franchise fees in the third quarter of 2016 were $58,288, 26.57% less than in 2015. Net royalties and franchise fees in the first three quarters of 2016 were $181,573, 0.9% less than in 2015. Total royalties and franchise fees for the three quarters of 2016 and 2015 were relatively stable. It varied slightly during each quarter as a result of normal business cycles.

The Company’s net income in the third quarter of 2016 was $ 74,388 or $ 0.005 per share, compared to net income of $ 22,104 or $ 0.002 per share for the same period in 2015. The Company’s net income in the first three quarters ended September 30, 2016 was $ 239,251 or $ 0.018 per share, compared to net income of $ 106,419 or $0.008 per share for the same period in 2015. The Company’s EBITDA in the third quarter ended September 30, 2016 was $ 144,403, compared to $57,966 in 2015. The Company’s EBITDA in the first three quarters of 2016 was $434,581, compared to $216,887 in 2015.The increased EBITA was duty from increased revenue and gross margin.

As of November 29, 2016, the Company had 13,670,997 issued and outstanding common shares. The Company announced on November 5, 2013 that it had filed with the TSX Venture Exchange a Notice of Intention to Make a Normal Course Issuer Bid (the “Bid”) which shall commence on November 8, 2013 and terminate on November 7, 2014 or the earlier of the date all shares which are subject to the Normal Course Issuer Bid are purchased. As of November 29, 2016, the Company has acquired for cancellation 155,500 common shares at an average price of $0.11

[StockDude]

GB.V touched a 10 year higher this week, still very inexpensive given their balance sheet, earnings, insider holdings and common shares issued.

[StockDude]

Ginger Beef arranges 683,540-share buyback



2017-02-15 16:33 MT - News Release


Mr. Stanley Leung reports

GINGER BEEF CORPORATION ANNOUNCES PLANS TO REPURCHASE COMMON SHARES

Ginger Beef Corp. has filed with the TSX Venture Exchange a notice of intention to make a normal course issuer bid which is expected to commence on Feb. 21, 2017, and terminate on Feb. 20, 2018, or the earlier of the date all shares which are subject to the normal course issuer bid are purchased.

In the opinion of the board of directors of Ginger Beef, the market price of the common shares of Ginger Beef does not accurately reflect the value of those shares. As a result, the corporation intends to repurchase Ginger Beef's common shares that may become available for purchase at prices which make them an appropriate use of funds of the corporation.

Ginger Beef intends to attempt to acquire up to an aggregate of 683,540 of its common shares over the next 12-month period, representing approximately 5 per cent of the issued and outstanding common shares of Ginger Beef.

Purchases subject to the normal course issuer bid will be carried out pursuant to open market transactions through the facilities of the TSX Venture Exchange. The member through which the normal course issuer bid will be conducted is Raymond James Ltd., Calgary, Alta. All common shares purchased by Ginger Beef under the normal course issuer bid will be cancelled.

© 2017 Canjex Publishing Ltd. All rights reserved.

[StockDude]

Heavy insider buying on GB. Three weeks until year end results and seven weeks for Q1 2018 results. Leung family already owns around 10 of the 13.3 million shares, but their still adding stock. 134,000 shares is equal to 1% of the common shares.

as per Canadian Insider:

Apr 6/18Apr 5/18 Leung, JamesIndirect OwnershipCommon Shares10 - Acquisition in the public market154,000$0.190
Apr 6/18Apr 5/18 Leung, JamesIndirect OwnershipCommon Shares10 - Acquisition in the public market29,000$0.180
Apr 6/18Apr 5/18 Leung, JamesDirect OwnershipCommon Shares10 - Acquisition in the public market2,000$0.170
Apr 6/18Apr 5/18 Leung, JamesDirect OwnershipCommon Shares10 - Acquisition in the public market7,000$0.180

[StockDude]

GB.V Ginger Beef Corporation 2017 Year End Results (Financials + Management Discussion)
All Information Can Be Found At www.sedar.com

Price: $0.16
Common Shares: 13,411,945
Insider Holdings: 10,581,019 or 79% of shares. Recent Insider buying in April occurred.
Financials

ASSETS
Cash: $275,456
Accounts Receivable: $826,013
Due From Related Parties: $168,126
Inventory: $328,116
Tax Recoverable: $19,.452
Prepaid & Deposits: $6,143
Property, Plant & Equipment: $1,457,732
Deferred Income: $24,800
Total Assets: $3,105,838 (2016 - $2,879,800)

LIABILITIES
Accounts Payable: $528,014
Wage Payable: $121,446
Employee Deductions: $1,376
Income Payable: $48,214
Current Portion Of Capital Lease: $27,040
Current Portion Of Long Term Debt: $57,035
Deferred Income: $75,000
Capital Lease Obligation Remaining: $73,562
Total Liabilities: $931,687 (2016 - $906,867)

Sales Performance
Revenue: $6,149,743 (2016 - $5,707,046)
Net Income: $256,838 (2016 - $222,572)

Earnings Per Share in 2017: $0.019
Earnings Per Share in 2016: $0.016
Earnings Per Share in 2015: $0.011

Ginger Beef has now had three years of consecutive profits with increased sales and a stronger Asset/Debt ratio.

Management Discussion Highlights
The Corporation’s gross revenue in 2017 was $6,149,743 compared to $5,707,046 in 2016. The Corporation’s net income in 2017 was $256,838 or $0.019 per share, compared to net income of $222,574 or $0.016 per share in 2016. The increase in the Corporation’s gross revenue in 2017 was due primarily to increase in quantities sold from economic recovery.

The Corporation’s deli Chinese food products are sold nationally across Canada. Gross revenue in 2017 was $5,919,004, 8.9% higher than in 2016. The increased revenue was primarily due to increase in quantities sold from economic recovery.

The Corporation’s other source of revenue, royalties and franchisee fees had experienced some good results. Net royalties and franchise fees in 2017 were $ 230,739, 15.4% less than in 2016. The increase was primarily due to more royalties collected as a result of more sales generated by franchisees as consequences of economic recovery.

The Corporation’s gross profit in 2017 was $ 1,262,576 or 21% of gross revenue compared to $ 1,257,553 or 23% of gross revenue in 2016. Decreased gross profit margin was due to increased cost of raw materials and labour.
The Corporation’s net income in 2017 was $ 256,838 or $ 0.019 per share, compared to net income of $ 222,574 or $ 0.016 per share per share in 2016. The Corporation’s EBITDA in 2017 was $ 544,904 compared to $ 466,931 in 2016. Increased EBITDA were primarily resulting from higher revenue and lower G&A costs. Management believes that EBITDA, in addition to net income (loss), provides investors with a basis to evaluate the Corporation’s operating performance, its ability to incur and service debt and fund capital expenditures.
Cash generated from the Corporation’s operating activities in 2017 was $ 222,136, compared to cash generated from operating activities of $ 460,516 from 2016. Decreased cash flow from operations resulted primarily from slow collection of accounts receivable in 2017 from its franchisees and one of the major customers. Cash used in financing activities in 2017 was 167,502, compared to a net reduction of $ 98,335 in 2016. The increase was primarily resulted from share redemption made in 2017. Expenditures on property, plant and equipment totaled $ 312,243 in 2017, compared to $ 80,386 in 2016. Increased investments in equipment were due to worn-out of aged old equipment.

The Corporation’s trade and other receivables totaled $ 826,013 at December 31, 2017, compared to $ 584,997 at December 31, 2016. Increase in trade and other receivables were primarily due to slow collections of accounts receivable from its franchisees and one of the major customers. Trade and other payables were $ 528,014 at December 31, 2017, compared to $ 347,153 at December 31, 2016. The increase in trade and other payables primarily resulted from increased purchases at end of 2017 for increased storage of inventories. Under normal operating conditions, receivables and payables levels may increase or decrease by as much as 25% in a given period depending on the timing of sales orders, purchases and payments.