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

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Cost of sales amounted to P 3,092 million in 2012, higher by 22%, from P2,524 million in 2011
in relation to the increase in sales.
Cost of services amounted to P 488 million in 2012 from P499 million in 2011 in relation to
service revenue.
Cost of rentals amounted to P35 million in 2012 or a decrease of 11% from P39 million in
2011 principally due to lower rental and other overhead.
Cost of real estate sold amounted to P 45 million in 2012, lower by 52% from P95 million in
2011. The decline was mainly in relation to lower sale of real estate.
Gross profit amounted to P1,228 million in 2012 from P989 million in 2011. The increase was
principally due to higher revenues.
Other operating expenses (income) amounted to P116 million other operating income in 2012
against P412 million other operating expenses in 2011 as explained below.
General and administrative expenses amounted to P 343 million in 2012 from P366 million in
2011. The decline was principally due to lower operating expenses of the broadband segment
after it disposed of its assets.
Selling and distribution costs amounted to P 361 million in 2012, higher by 30% from P278
million in 2011 mainly from higher commissions.
Gain on sale of assets of 267 million in 2012 represents the one-time gain from the sale of
broadband assets (none in 2011).
Other operating income- net amounted to P553 million in 2012 from P232 million in 2011
principally due to one-time gains on reversal of asset impairment of P437 million from the sale of
the broadband assets.
Operating profit amounted to P 1,345 million in 2012 from P577 million in 2011, improving by
133% from higher gross profit and other operating income and gain of sale of asset as discussed
above.
Other income (charges) amounted to P 172 million gain in 2012 against P3.5 million loss in 2011
mainly from the following:
Finance income amounted to P163 million in 2012 compared with P64 million in 2011. The
increase was principally contributed by reversals of impairment loss on trade and other
receivables of the broadband segment.
Finance costs amounted to P49 million in 2012 compared with P89 million in 2011 primarily due
to lower impairment losses on trade and other receivables and foreign currency losses.
Other gains amounted to P57 million in 2012 versus P21 million in 2011 primarily due to gain
on derecognition of liabilities.
Income before tax reached P1,517 million in 2012, or higher by 165% from P573 million in
2011 mainly due to higher operating profit as explained above. The sale of assets of the