Project Vulcan Phase IV - November Audit Complete

I completed the asset audit on November 30, last day according to my own rules, and was too busy to decide on a dividend payout and write up a report since then.

Real life can be a time suck, you know?

Anyways, here is the report.

The value of the corp at the May audit was approximately 64.6 billion ISK, and as of Nov 30 audit the value increased to ~79.4 billion ISK, a modest 14.8 billion ISK increase. I admit I was disappointed in this result. I figure the decrease in Azbel/Astraus/Raitaru demand as the consumer base has its needs filled coupled with the durability of these products and the saturation of the supply contributed to poor sales volumes. Capital production has been as consistent as last period but contributes not a lot to the bottom line.

I was hoping to make up a lot of ground with Athanor sales but outside of the first few the profit margins were modest. Still, I suspect that a large portion of the 14.8 billion increase came from Athanors.

End result: I've decided on a dividend payout of 10 billion ISK to shareholders which means that shares increase in value a small 7.41% (compared to 28.45%) last audit. The divident payout will be made within 24 hours.

Next week, I'll ruminate on next steps.

Project Vulcan - Audit Time Approacheth

The 6 month audit cycle for Project Vulcan Phase IV is upon us once more!

I've been putting it off while the heat of Lifeblood and mass producing Athanors was in full swing but we've settled down a lot now so I can start gathering all the inventory and pricing it all out.

I have no idea how much the corporation value has increased since May as sales and margins were depressed over the summer, but the uptick of selling 20 Athanors at profit margins ranging from 100 to 2 billion ISK each should boost that number considerably.

Expect the audit to be complete next week.

Audit Final Results

With the audit complete I was able to determine how much I wanted to payout for the dividend and then calculate the new value of shares.

This morning I paid a 20 billion ISK dividend payout to the 4000 shares, and subtracted that from the final numbers for the value of the corp. That still left the corp at a 28.45% increase in value over the 6 month period. I then increased the buyback value of the class 2 shares from 15 million ISK each to 19.2 million ISK each. The handful of outstanding class 1 shares increased in value from 5 million ISK to 6.4 million ISK, and the class 3 shares representing my personal investment increased to an even 9 million ISK.

I do not expect as good results over the next 6 month period simply because the early Azbel sales represented a significant portion of this past period's results. That being said, I'll strive to continue to increase the value of their investment for my shareholders.

Now, off to market to get the factories humming again!

Audit Progress

The first thing to do for the audit is make a list of everything the corporation owns. Thankfully, this is pretty straight forward.

Visiting the Corporation window I can quickly scan the deliveries and offices and copy the relevant items from the lists and paste them in the spreadsheet. In order to make it clear I've covered everything, I group items in the audit list by system they are found in, so for example, I've got Tritanium listed three times for three different locations.

Once deliveries and offices have been checked (as well as quick check in Impounded and Safety tabs to make sure I didn't forget something) I can check the In Space tab, showing my Engineering Complex. I took control of the structure and copied its fitting and ammo supplies to the spreadsheet.

Lastly I check the builds in flight and add them to the list. Fortunately, in anticipation of the audit I only have a few end products rather than a host of components to account for.

Now that I have the list of items, I need to apply a monetary value to them.

For most items, this is as simple as looking up on EVE-Central their highest buy order price at a market hub (because I'm not going to bum-fuck no where to get the best price on Coolant) and use that value, the thinking being if I needed to liquidate the assets as quickly as possible then that would be the price I would get. For some items, like the Moros in build, I have a buyer lined up with an agreed upon price that I used in the spreadsheet. And for the expendables, like the rigs on the Raitaru, I assign a value of zero as they are sunk costs and can't be recovered.

Finally I added the current wallet balance to the sheet and summed it up. Final total: 84,603,490,012.78 ISK, up from 50,295,522,390.26 ISK last November. That's a 68.21% increase in value if my math is right, so two thumbs up from this guy.

The next step is to determine the dividend payout which will decrease that 84 billion value and thus the percent increase in value of the corporation, and then I can calculate the new value of shares.

End of (6 Month) Year

Back when I solicited for Project Vulcan Phase IV, I talked about the dividend payout plan:

Investment Details
My manufacturing Corporation, Ninveah Enterprises, will create and issue 4000 shares, 2000 which will be for sale to the public, 2000 owned by me.
The 2000 shares for sale to the public will be sold at a price of 15,000,000 ISK/unit which when all sold will represent 30,000,000,000 (30 billion) ISK investment.
The 2000 shares owned by me represent the current corporate holdings of blueprint originals, blueprint copies, current stocks of materials, and liquid ISK estimated at over 50 billion ISK.
Shares will receive a dividend payout approximately every 6 months (in early May not later than May 30 and early Nov not later than Nov 30) after an inventory audit is performed to calculate the current net worth of the corporation and the value is compared to the previous net worth. If the net worth has gone down, no dividend will be paid out. The first dividend payout is scheduled for May 2017.

Here we are in the beginning of May and its time to discuss the details.

Back in November, the holdings of the corporation were about 8 billion ISK, and I had raised 42.195 billion ISK for the Industrial Complex project. This week I'm going to do an audit the same way; calculate the value of assets and capital the corporation currently owns. This will be complicated by the builds in flight (1 cap, 3 structures) and assigning a value to them (probably the highest buy order on common markets) but shouldn't be too much of a problem.

Once the audit is complete, I'll designate an amount of the liquid reserves for a dividend payout. Dividends are like a reward for shareholders owning shares and are not intended to replace the value of owning shares. After the dividend payout is accounted for, I'll calculate the percentage increase in value of the corporation and increase the value of the shares. What this means is that if you choose to sell any of your shares back to the corporation, they will be bought back at a higher value than you purchased them for. 

For example, Shareholder Jim owns 10 shares purchased in November for 15 million each. The dividend payout is 1 million ISK per share so he receives 10 million ISK in his wallet. The shares increase 10% in value so if he chooses to sell the shares back to the corporation, he receives 16.5 million ISK per share, or 165 million ISK.

"Can you give me a guesstimate on how much I can expect?"

Well, the corp wallet has ~37 billion ISK in it, so at the low end I expect that the value of the corporation has increased 50%. Starting point I'm aiming for a 10 billion ISK payout on 4000 shares, or 2.5 million ISK per share, and at least a 25% increase in share value. But we'll see how the numbers shake out, and I will be open with the calculations and decisions and reasons behind them.

Ultimately I want to make sure we are poised well for the fall/winter and the upcoming refinery structures being released. I don't imagine we'll have enough ISK for the large refinery BPO which will be more than the Azbel and less than the Fortizar (so guessing around the 50 bil mark) but definitely want to hit the ground running on the medium refinery BPO and builds.

SO, on to the audit!