2016 Q1 Form 10-Q Financial Statement

#000114420416102522 Filed on May 16, 2016

View on sec.gov

Income Statement

Concept 2016 Q1 2015 Q3 2015 Q1
Revenue $18.91M $14.05M $14.33M
YoY Change 31.94% 2.63% 24.09%
Cost Of Revenue $13.08M $10.25M $10.09M
YoY Change 29.63% 11.9% 34.42%
Gross Profit $5.833M $3.800M $4.245M
YoY Change 37.42% -16.11% 4.93%
Gross Profit Margin 30.85% 27.05% 29.62%
Selling, General & Admin $4.940M $3.180M $3.450M
YoY Change 43.19% -12.64% 7.48%
% of Gross Profit 84.69% 83.68% 81.28%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $460.0K $310.0K $230.0K
YoY Change 100.0% 3.33% 76.92%
% of Gross Profit 7.89% 8.16% 5.42%
Operating Expenses $4.938M $3.180M $3.447M
YoY Change 43.25% -12.64% 7.28%
Operating Profit $895.1K $620.0K $797.6K
YoY Change 12.23% -30.34% -4.15%
Interest Expense -$180.0K -$30.00K $189.5K
YoY Change -195.01% -80.0% 113.26%
% of Operating Profit -20.11% -4.84% 23.75%
Other Income/Expense, Net $110.0K -$60.00K $262.6K
YoY Change -58.11% -220.0% -619.75%
Pretax Income $820.0K $530.0K $1.060M
YoY Change -22.65% -32.91% 35.64%
Income Tax -$10.00K $120.0K -$21.40K
% Of Pretax Income -1.22% 22.64% -2.02%
Net Earnings $830.0K $420.0K $1.082M
YoY Change -23.26% -45.45% 40.53%
Net Earnings / Revenue 4.39% 2.99% 7.55%
Basic Earnings Per Share $0.10 $0.16
Diluted Earnings Per Share $0.10 $451.6K $0.03
COMMON SHARES
Basic Shares Outstanding 8.137M shares 6.964M shares 6.767M shares
Diluted Shares Outstanding 8.202M shares 6.767M shares

Balance Sheet

Concept 2016 Q1 2015 Q3 2015 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.280M $1.490M $500.0K
YoY Change 556.0% 109.86% -63.5%
Cash & Equivalents $3.280M $1.487M $503.8K
Short-Term Investments $0.00 $0.00
Other Short-Term Assets $1.500K $773.5K $470.2K
YoY Change -99.68% 45.94% 393.65%
Inventory $6.446M $6.370M $6.229M
Prepaid Expenses
Receivables $10.99M $4.771M $3.915M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $22.57M $13.52M $12.31M
YoY Change 83.37% 17.11% -11.69%
LONG-TERM ASSETS
Property, Plant & Equipment $14.27M $8.143M $7.180M
YoY Change 98.71% 10.05% 10.8%
Goodwill $854.2K $845.0K $845.0K
YoY Change 1.09% 0.0%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $334.7K $35.63K $34.61K
YoY Change 867.06% -32.04% 246.05%
Total Long-Term Assets $15.46M $9.023M $8.060M
YoY Change 91.77% 8.76% 6.05%
TOTAL ASSETS
Total Short-Term Assets $22.57M $13.52M $12.31M
Total Long-Term Assets $15.46M $9.023M $8.060M
Total Assets $38.03M $22.54M $20.37M
YoY Change 86.69% 13.62% -5.43%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $5.790M $4.209M $3.529M
YoY Change 64.07% 54.64% 21.27%
Accrued Expenses $1.944M $309.1K $606.6K
YoY Change 220.51% -29.81% 63.95%
Deferred Revenue
YoY Change
Short-Term Debt $4.120M $1.930M $1.430M
YoY Change 188.11% 179.71% 472.0%
Long-Term Debt Due $2.167M $654.0K $570.8K
YoY Change 279.67% -5.18%
Total Short-Term Liabilities $15.39M $8.827M $5.621M
YoY Change 173.7% 125.53% 57.9%
LONG-TERM LIABILITIES
Long-Term Debt $12.16M $6.590M $9.830M
YoY Change 23.7% -33.64% -36.7%
Other Long-Term Liabilities $0.00
YoY Change
Total Long-Term Liabilities $12.16M $6.590M $9.830M
YoY Change 23.7% -33.64% -36.7%
TOTAL LIABILITIES
Total Short-Term Liabilities $15.39M $8.827M $5.621M
Total Long-Term Liabilities $12.16M $6.590M $9.830M
Total Liabilities $27.54M $15.42M $15.45M
YoY Change 78.24% -4.82% -19.05%
SHAREHOLDERS EQUITY
Retained Earnings $7.953M $6.431M $5.071M
YoY Change 56.83% 79.0%
Common Stock $8.456K $7.158K $40.75K
YoY Change -79.25% 5.78%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $10.49M $7.126M $4.917M
YoY Change
Total Liabilities & Shareholders Equity $38.03M $22.54M $20.37M
YoY Change 86.69% 13.62% -5.43%

Cashflow Statement

Concept 2016 Q1 2015 Q3 2015 Q1
OPERATING ACTIVITIES
Net Income $830.0K $420.0K $1.082M
YoY Change -23.26% -45.45% 40.53%
Depreciation, Depletion And Amortization $460.0K $310.0K $230.0K
YoY Change 100.0% 3.33% 76.92%
Cash From Operating Activities $320.0K $930.0K $440.0K
YoY Change -27.27% -193.0% -92.7%
INVESTING ACTIVITIES
Capital Expenditures $50.00K -$570.0K $0.00
YoY Change -20.83% -100.0%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00 $310.0K
YoY Change -100.0% -100.0% -110.69%
Cash From Investing Activities $60.00K -$570.0K $310.0K
YoY Change -80.65% -113.77% -103.5%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 530.0K 250.0K -1.360M
YoY Change -138.97% -105.81% -150.37%
NET CHANGE
Cash From Operating Activities 320.0K 930.0K 440.0K
Cash From Investing Activities 60.00K -570.0K 310.0K
Cash From Financing Activities 530.0K 250.0K -1.360M
Net Change In Cash 910.0K 610.0K -610.0K
YoY Change -249.18% -152.59% 408.33%
FREE CASH FLOW
Cash From Operating Activities $320.0K $930.0K $440.0K
Capital Expenditures $50.00K -$570.0K $0.00
Free Cash Flow $270.0K $1.500M $440.0K
YoY Change -38.64% -635.71% -96.33%

Facts In Submission

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us-gaap Increase Decrease In Restricted Cash For Operating Activities
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cetx Increase Decresae In Revolving Line Of Credit
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cetx Increase Decresae In Revolving Line Of Credit
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cetx Shares Issued For Acquisition
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us-gaap Income Taxes Paid
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us-gaap Business Acquisition Effective Date Of Acquisition1
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2015-12-15
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CY2015Q3 us-gaap Inventory Raw Materials
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CY2015Q3 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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CY2016Q1 us-gaap Supplies
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CY2016Q1 us-gaap Prepaid Taxes
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CY2016Q1 us-gaap Other Assets Current
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CY2016Q1 cetx Shares Reserved For Debt Conversion
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us-gaap Business Acquisition Name Of Acquired Entity
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Advanced Industrial Services Inc.
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0.001
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10000000 shares
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1000000 shares
CY2016Q1 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
1000000 shares
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1000000 shares
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CY2016Q1 us-gaap Property Plant And Equipment Gross
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16568816 USD
CY2015Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
9660428 USD
us-gaap Nature Of Operations
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<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="center"></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> NOTE 1 &#150; ORGANIZATION AND PLAN OF OPERATIONS</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">The Company was incorporated on <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">April 27, 1998</font>, in the state of Delaware under the name "Diversified American Holdings, Inc."&#160;The Company subsequently changed its name to "Cemtrex Inc." on December 16, 2004. Unless the context requires otherwise, all references to &#8220;we&#8221;, &#8220;our&#8221;, &#8220;us&#8221;, &#8220;Company&#8221;, &#8220;registrant&#8221;, &#8220;Cemtrex&#8221; or &#8220;management&#8221; refer to Cemtrex, Inc. and its subsidiaries. Cemtrex is a leading diversified technology company that operates in a wide array of business segments and provides solutions to meet today's industrial and manufacturing challenges. The Company provides manufacturing services of advanced electronic system assemblies, provides broad-based industrial services, instruments &amp; emission monitors for industrial processes, and provides industrial air filtration &amp; environmental control systems.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Through our Electronics Manufacturing Services (&#8220;EMS&#8221;) group, we provide end to end electronic manufacturing services, which include product design and sustaining engineering services, printed circuit board assembly and production, cabling and wire harnessing, systems integration, comprehensive testing services and completely assembled electronic products. Our EMS group offers fully integrated contract manufacturing services to global original equipment manufacturers (OEMs) and technology companies that operate primarily in the medical, industrial, automation, automotive, and renewable markets.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Through our Industrial Products and Services (&#8220;IPS&#8221;) group, we provide a complete line of air filtration and environmental control products to a wide variety of industrial and manufacturing industries worldwide. The group also manufactures, sells, and services monitoring instruments, software and systems for measurement of emissions of Greenhouse gases, hazardous gases, particulate and other regulated pollutants used in emissions trading globally as well as for industrial processes. We also market monitoring and analysis equipment for gas and liquid measurement for various downstream oil &amp; gas applications as well as various industrial process applications. In addition we, through our newly acquired business, <font style="BACKGROUND-COLOR: transparent">offer one-source expertise and capabilities in plant and equipment erection, relocation, and disassembly in a wide variety of industrial markets like automotive, printing &amp; graphics, industrial automation, packaging, and chemicals among others.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">On <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">December 15, 2015</font> we acquired <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">Advanced Industrial Services Inc.</font> (&#8220;AIS&#8221;) and its affiliate subsidiary company based in York, Pennsylvania for a purchase price of approximately $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">7,500,000</font>, and acquisition related expenses of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">476,340</font>. The purchase price was paid with $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">5,000,000</font> in cash, $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">1,500,000</font> in a seller's note, and $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">1,000,000</font> in the form of <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 315,458</font> shares of Cemtrex restricted Common Stock. AIS averaged approximately $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">23</font> million in annual revenue and $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">2.4</font> million in annual normalized EBITDA over the two calendar years 2013 and 2014. We worked with a local bank to finance the $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">5.25</font> million self-amortizing, seven (7) year term loan and $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">3.5</font> million working capital credit line for the transaction. <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">The loans carry annual interest rates of 30 day LIBOR plus 2.25 and 2.0 respectively.</font> The seller&#8217;s note is for <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">3</font> years at <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">6</font>% (see NOTE 11).</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2016Q1 us-gaap Convertible Debt
ConvertibleDebt
1981500 USD
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><i>Reclassifications</i></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><i>&#160;</i></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Certain reclassifications have been made to prior period amounts to conform to the current period presentation.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2015Q1 us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
1105246 USD
us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
922893 USD
us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
1250439 USD
CY2015Q2 us-gaap Stockholders Equity Reverse Stock Split
StockholdersEquityReverseStockSplit
On April 3, 2015, our Board of Directors approved a reverse split of our common stock, par value $0.001, at a ratio of one-for-six. This reverse stock split became effective on April 15, 2015
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
1298061 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
24596 shares
us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
-74000 USD
us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
0 USD
us-gaap Repayments Of Notes Payable
RepaymentsOfNotesPayable
76914 USD
us-gaap Repayments Of Notes Payable
RepaymentsOfNotesPayable
0 USD
us-gaap Repayments Of Bank Debt
RepaymentsOfBankDebt
976203 USD
us-gaap Repayments Of Bank Debt
RepaymentsOfBankDebt
2181569 USD
us-gaap Preferred Stock Voting Rights
PreferredStockVotingRights
Each issued and outstanding Series A Preferred Share shall be entitled to the number of votes equal to the result of: (i) the number of shares of common stock of the Company issued and outstanding at the time of such vote multiplied by 1.01; divided by (ii) the total number of Series A Preferred Shares issued and outstanding at the time of such vote, at each meeting of shareholders of the Company with respect to any and all matters presented to the shareholders of the Company for their action or consideration, including the election of directors. Holders of Series A Preferred Shares shall vote together with the holders of Common Shares as a single class.
CY2016Q1 us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
18908100 USD
CY2015Q1 us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
19805679 USD
us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
34208605 USD
us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
38414928 USD
CY2016Q1 us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
829896 USD
CY2016Q1 cetx Business Acquisition Pro Forma Earnings Per Share Basic And Diluted
BusinessAcquisitionProFormaEarningsPerShareBasicAndDiluted
0.10
CY2015Q1 cetx Business Acquisition Pro Forma Earnings Per Share Basic And Diluted
BusinessAcquisitionProFormaEarningsPerShareBasicAndDiluted
0.16
cetx Business Acquisition Pro Forma Earnings Per Share Basic And Diluted
BusinessAcquisitionProFormaEarningsPerShareBasicAndDiluted
0.11
cetx Business Acquisition Pro Forma Earnings Per Share Basic And Diluted
BusinessAcquisitionProFormaEarningsPerShareBasicAndDiluted
0.18
CY2016Q1 us-gaap Business Acquisition Pro Forma Earnings Per Share Diluted
BusinessAcquisitionProFormaEarningsPerShareDiluted
0.10
CY2015Q1 us-gaap Business Acquisition Pro Forma Earnings Per Share Diluted
BusinessAcquisitionProFormaEarningsPerShareDiluted
0.16
us-gaap Business Acquisition Pro Forma Earnings Per Share Diluted
BusinessAcquisitionProFormaEarningsPerShareDiluted
0.11
us-gaap Business Acquisition Pro Forma Earnings Per Share Diluted
BusinessAcquisitionProFormaEarningsPerShareDiluted
0.18
CY2015Q4 us-gaap Business Combination Consideration Transferred1
BusinessCombinationConsiderationTransferred1
7500000 USD
CY2015Q4 us-gaap Business Combination Acquisition Related Costs
BusinessCombinationAcquisitionRelatedCosts
476340 USD
CY2015Q4 us-gaap Payments To Acquire Businesses Gross
PaymentsToAcquireBusinessesGross
5000000 USD
CY2015Q4 us-gaap Business Combination Consideration Transferred Other1
BusinessCombinationConsiderationTransferredOther1
1500000 USD
CY2015Q4 us-gaap Business Combination Consideration Transferred Equity Interests Issued And Issuable
BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable
1000000 USD
CY2015Q4 us-gaap Business Acquisition Equity Interests Issued Or Issuable Number Of Shares Issued
BusinessAcquisitionEquityInterestsIssuedOrIssuableNumberOfSharesIssued
315458 shares
CY2015Q4 cetx Business Acquisition Average Annual Revenue Of Acquiree
BusinessAcquisitionAverageAnnualRevenueOfAcquiree
23000000 USD
CY2015Q4 cetx Business Acquisition Annual Normalized Earnings Before Interest Taxation Depreciation And Amortization Of Acquiree
BusinessAcquisitionAnnualNormalizedEarningsBeforeInterestTaxationDepreciationAndAmortizationOfAcquiree
2400000 USD
CY2015Q4 us-gaap Debt Instrument Interest Rate Terms
DebtInstrumentInterestRateTerms
The loans carry annual interest rates of 30 day LIBOR plus 2.25 and 2.0 respectively.

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