The quarterly is really all about cash - received and spent in several different ways (ie: operating or business or revenue sourced, investing or capital sourced, and financing or borrowing sourced). If anything the quarterlies only go to one part of what is eventually reported (in more detail) in the Annual Report (even, in the Preliminary Financial Report. That is, the Consolidated Cashflow Statement.
As a matte of obligation, companies are required to report on the following:
1. Profit & Loss;
2. Balance Sheet;
3. Cashflow;
4. Movements in Capital (equity);
5. Directors and Executives Remuneration, etc (more commonly swept up as part of a suite of statements covered off in the Directors Report);
6. Review of Operations (narrative, etc);
7. Notes to the Accounts (covering off against 1-4, in terms of either providing guidelines to how the accounts have been organised, or in providing more complete data in reference to particular account entries such as OPEX, loans and operating leases, fixed assets, SBU reporting outcomes, etc);
8. Ttop20 shareholders (at a given date), etc.
There is other information included as well but the above presents as the primary information disclosures. Of these however the quarterly reports only cover item 3 and the supporting commentary (if any) goes part way towards covering item 6, in brief.
Whilst much can be made of the CF statements, it can be argued that they only show the cash (or $) line whereas the financials typically show the accrued line (both cash and proportional allocation of revenue or expenses for which the liabilities and /or obligations have been incurred now, but for which, payment /receipt /expenditure of the corresponding cash /$ is yet to come.
So, release of the Jun18 quarterly will necessarily complete part of the puzzle (the cash component of it) but not all of it. For example, at the H18 mark, operating cash in the first 6 months was down $845,000. Without anything else, this was always going to point to a weak first half financial loss (once the 1/2 year report came out) at least of the same order of magnitude, if not then worse than this.
Indeed, when the H18 report came out, a month later, it reported a first 1/2 loss of $865,000 which was slightly more than the OP$ outcome.
Conversely, with the H17 report, operating cash at DecQ16 stood at +$233K yet the H17 report (for the same period in time) reported a net financial loss of $1.035M (effectively, a $1.268M deterioration over the stated cash position on an operating basis). At the time, this was primarily due to KMP expensing of $871K and increased livestock losses (expense wise).
The point therefore is that the CF reports foreshadow what is likely to occur (in some ways, preempt it) or act as an early warning signal. If, then, there is deteriorating cash across the report, the subsequent financials are unlikely to point to anything new, positive or reinforcing beyond this.
So, with the MarQ CF pointing to a further out-bleeding of $557K, bringing the total operating outflow to $1.402M for the first 9m, the question is really to where the JunQ CF results are likely to go. At best, they will be breakeven, absent a significant effort having been engaged in to rundown Receivables (which at H18, stood at $1.68M, itself down by $650K YoY.
Running down Receivables is not necessarily a bad thing but absent there being sufficient throughput happening along the way, then it will only ever represent a temporary fillip to the equation. Hence, in looking at the wider picture, in the 9m to MarQ18, AHF burnt through $2.47M in opertaing and investing cash (ie: $1.402M operating; $1.066M investing). This is also why, whereas at 1Jul17, net cash stood at $1.577M and financing cash added $5.247M to the equation, making for a total cash availability of $6.824M, final cash stood at $4.05M at end Mar18.
In so many different ways, this represents a serious cash erosion /funding source situation which, if not quickly arrested risks the Company running low on cash by /before year's end (ie: in MarQ18 alone, it took nearly $1.0M in cash out of the system). And that's all with the CBA facility coming up in its entirety by early Apr19. So, yes, the JunQ CF report will certainly provide a few clues to the current state of play, but only as to giving a solid baseline, not the entire picture (or indeed, the end picture).
AHF Price at posting:
15.5¢ Sentiment: Hold Disclosure: Not Held
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