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

29
Cost of rentals amounted to P38 million in 2010 from P33 million in 2009, or an increase of
15%. The increase was principally due to higher outside services
Gross profit amounted to P834 million in 2010 from P699 million in 2009, up by 19%
principally due to higher revenues and higher gross margin of the broadband segment.
Other operating expenses (income) amounted to P421 million in 2010 against P325 million in
2009 as explained below.
General and administrative expenses amounted to P281 million in 2010, or up by 12% from
P250 million in 2009 principally due to higher provision for warranty and others.
Selling and distribution costs amounted to P227 million in 2010, up by 134% from P97 million
in 2009 mainly from higher commissions, personnel and advertising costs .
Other operating income amounted to P87 million in 2010, increasing by 283% compared with
P22 million gains in 2009. This was primarily due to higher fair value gains on investment
property and return on retirement plan assets in 2010
Operating profit amounted to P412 million in 2010 from P374 million in 2009, or a increase of
10%, mainly from higher gross profit.
Other income (charges) amounted to P46 million loss in 2010 against P82 million loss in 2009
mainly from the following:
Finance costs amounted to P88 million in 2010, decreasing by 26% against P118 million in
2009 mainly due to the losses on the sale of foreign currency denominated financial assets in
2009, none in 2010. Impairment losses on financial assets was however incurred in 2010.
Finance income amounted to P38 million in 2010, up by 12% compared with P34 million in
2009 mainly due to the reversal of impairment losses on trade and other receivables.
Other gains amounted to P2.7 million in 2010 versus P1.6 million in 2009 principally due to
income from common usage area.
Income before tax reached P366 million in 2010, or higher by 25% from P292 million in 2009
mainly due to higher operating profit as explained above.
Tax expense amounted to P122 million in 2010 from P63 million in 2009 principally due to
higher pre-tax income of certain subsidiaries.
Profit from continuing operations amounted to P243 million in 2010 from P228 million in 2009
as a result of the higher profit in 2010.
Loss from discontinued operations amounted to P17 million in 2010 vs. P2 million in 2009. In
2009, the Company started phasing out its plastic injection manufacturing business which had
been incurring operating losses.
Net income amounted to P226 million in 2010 and 2009 despite higher revenues in 2010 mainly
due to higher tax expense in 2010.