ShopSmith Financials

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14 years 10 months ago #1311 by Randy Walker
Randy Walker created the topic: ShopSmith Financials
Hello Everyone,

I was all set to buy a shopsmith 520, as a matter of fact I was going to travel to Dothan Al from GA to purchase one at a Lowes demo this weekend. However, I read an article today titled "Shopsmith seeks waiver from lender."

dayton.bizjournals.com/dayton/stories/2005/01/17/daily4.html

In this article it states that in the most recently reported quarter, Shopsmith recorded a net loss of $15,000 on sales of $ 3 million. After reading this, I am not so sure I want to buy a shopsmith. Companies loosing money don't tend to stay in business long.

I was wondering if any of you had any info regarding shopsmith's financial stability.

Thanks,

Randy

still undecided

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14 years 10 months ago #1314 by Martin Thomas
Martin Thomas replied the topic: Re: ShopSmith Financials
Well,
Look at it this way. They had $3,000,000.00 in sales and reported a loss of $15,000.00. Now it may be a loss, but it so slight a margin is it really worth getting into a tizzy about? 15 grand off of 3 million? Go over to the SSUsers group at yahoo. A lot of comments about it there.

Martin


Hello Everyone,

I was all set to buy a shopsmith 520, as a matter of fact I was going to travel to Dothan Al from GA to purchase one at a Lowes demo this weekend. However, I read an article today titled "Shopsmith seeks waiver from lender."

dayton.bizjournals.com/dayton/stories/2005/01/17/daily4.html

In this article it states that in the most recently reported quarter, Shopsmith recorded a net loss of $15,000 on sales of $ 3 million. After reading this, I am not so sure I want to buy a shopsmith. Companies loosing money don't tend to stay in business long.

I was wondering if any of you had any info regarding shopsmith's financial stability.

Thanks,

Randy

still undecided

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14 years 10 months ago #1326 by Ron Roberts
Ron Roberts replied the topic: Re: ShopSmith Financials
This seems to crop up every now and then. The original company that introduced the Mark V stopped production. At Shopsmith's web site you can read some of the history about how John Folkerth resurrected the Mark V and assoc. product line in 1971.

I bought mine in 1983 and I've never regretted it. Shopsmith has survived a long time and I believe they will continue to because they offer high quality tools and back them up with outstanding service and support. I've been very satisfied and I continue to enjoy using my SS equipment.

I wouldn't let this bit of new stop me from buying. For reasons I don't know the same people that post about negative news regarding the company never seem to post the positive news. I think SS will continue to survive for reasons I stated above. Besides, there is a considerable "installed base" out there and one way or another parts and support will continue to be available I think.

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14 years 8 months ago #1685 by Woodburner
Woodburner replied the topic: Shopsmith Financials
Hi All,

I just read something the other day that may cause some relief of Shopsmith failing. In the stock market part of it, The actually made $150, 000 in the third quarter over the amount of last years third quarter. The stock is quoted as being with $1.05 more now than it was a year ago. That doesn't sound like much, but with all the shares of the company added togeter, it comes to be a windfall. Also, this part of the financial report does not include all the extras that shopsmith sells, which is there bread and butter. The report only refers to new sales of the main equipment. Don't worry, the Shopsmith company is doing well and will not be going away anytime soon. Also, there have been attempts at takeovers at the company, and they thankfully able to fend them off. If they were hurting financially, no one would be trying to buy them out unless they saw future growth in the Shopsmith company.

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14 years 8 months ago #1749 by Bill0756
Bill0756 replied the topic: Financials
Hi All:

As an accountant/auditor, financial statements and related notes are to be taken as a whole. Business profit and loss often contain accounting profits/losses in the overall one item being depreciation/capitalization costs. $15,000 is minor in comparison to overall revenue. One item to look at is the statement of cash flows if included. This tells you the actual cash moving in and out of the company, and not the accrued items such as receivables and payables.

I have owned my 500 since 1982 and haven't worried to much about the company not being around. I was with them during the expansion years, and when the contraction/reduction came about. We all have our ups and downs, and management seems to have made the correct moves to continue on.

Bill

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14 years 8 months ago #1752 by Ron Roberts
Ron Roberts replied the topic: Re: ShopSmith Financials
Thanks Bill. That makes sense. I work in the business admin end of a large university and specifically, our unit is one that is about as close to being like a private enterprise and still say we're part of the state as we are almost totally a self-support group. We frequently teeter on the brink of being in the red or the black (we can't use the "P" word in our fund accounting environment) and some people tend to panic rather than look at the length and breadth of what we do over the course of a fiscal year.

I'm more concerned about the take over attempts that Woodburner mentioned. To quote John Ruskin:

"There is scarcely anything in the world that some man cannot make a little worse, and sell a little more cheaply. The person who buys on price alone is this man's lawful prey. "
John Ruskin
English critic, essayist, & reformer (1819 - 1900)

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