SEC Form 17-A: Annual Report - the solid group inc website

17
Item 6. Management’s Discussion and Analysis or Plan of Operation
A. Management’s Discussion and Analysis or Plan of Operation
(1) Plan of Operation
Not applicable. The Company have revenues from operations in each of the last two fiscal years.
(2) Management’s Discussion and Analysis
Full Fiscal Years
Key Performance Indicators
The following key performance indicators were identified by the Company: asset turnover,
revenue growth, operating expense ratio, earnings before interest, taxes, depreciation and
amortization (EBITDA), earnings per share, current ratio and debt to equity ratio.
Revenue growth was determined as follows: revenues for the current year less revenues for last
year or change in revenues divided by the revenues of the previous year.
Asset turnover was computed based on the revenues earned during the year divided by the
average total assets.
Operating expense ratio was calculated as follows: operating expenses for the period divided by
revenues for period.
EBITDA was determined by adding back interest expense, depreciation and amortization charges
to income before tax on continuing operations for the year.
Earnings per share was computed based on the net income or loss for the period divided by the
weighted average shares outstanding during the year.
Current ratio was computed as follows: total current assets as of end of the year divided by total
current liabilities as of end of the year.
Debt to equity ratio was computed by dividing the total liabilities (excluding amounts due to
related parties) as of end of the year by the total equity as of end of the year.
Key performance indicators for 2012, 2011 and 2010 are as follows:
December 31, 2012 Dec. 31, 2011 Dec. 31, 2010
Revenue growth 18% 53% 17%
Asset turnover 40% 37% 26%
Operating expense
14 % 16% 19%
ratio
EBITDA P1,574 million P660 million P452 million
Earnings (loss) per
P0.68 P0.24 P0.13
share
Current ratio 3.14:1 2.47:1 2.81:1
Debt to equity ratio 0.33:1 0.36 : 1 0.29 :1