Carpino Company Statement of Cash Flows
January 31, 2007
MEMO TO SHAREHOLDERS
TO: Carpino Company Shareholders
FROM: Dan Carpino, CEO
SUBJECT: Annual Report
The purpose of this memorandum is to outline some of our key 2007 business performance metrics and generally asses our first year of operations. It pleases me to report these elements of your Company’s activities for the year ended January 31, 2007.
Despite generating healthy revenues, our first year of operations ended with a net loss. Although our current year’s negative free cash flow renders us unable to declare dividends at this time, our Board of Directors has agreed to my recommendation to conditionally approve a dividend for the following fiscal year to reflect a special payment of .10 per share in appreciation for your support. As president and CEO, it honors me to share our overall achievements and at the same time thank you for your confidence in Carpino Company.
Carpino Company is proud to announce annual sales of $380,000 for its first fiscal year which surpassed our expected sales. Our company reported a net loss of $30,000 due mainly to operating expenses and product costs that exceeded our projections. We are currently working on several initiatives that we believe will significantly reduce our costs relative to our sales. Despite negative net income which reflected a negative free cash flow, our company was able to generate $420,000 through investing activities from supporters such as you. This allowed us to make necessary purchases of essential equipment and fixtures that will be used to create a production line that will allow us the needed production capacity to support our anticipated increased sales.
We have successfully completed the initial set-up of...