AdultShop Investor Relations


A - F	G - L	M - R	S - Z

A-F terms

Abnormal Items		Items derived from events or transactions which, though attributable to the ordinary operations of the business, are significant by reason of their size and effect on the results of the period. They are taken into account in arriving at the operating profit.

After-Balance-Date-Events		Significant circumstances that occur or information that becomes available between the end of the accounting period ('reporting date') and the time of approval of the financial statements. Also referred to as 'Post Balance Sheet Events' or 'Events Occurring after Reporting Date'.

Amortisation		The process of allocating the acquisition cost or other value of assets either to periods as expenses or period costs, or to inventory accounts as product costs. Normally used in conjunction with non-physical assets.

Annual Accounts		Also called annual report, this is a financial summary of the state of affairs of a company over the course of a year. It includes a profit and loss account, a balance sheet and a statement of cash flows.

Annual General Meeting		Often shortened to AGM, this is the yearly meeting between directors and shareholders of a company. At the meeting management details company performance and outlook, and shareholders vote on key issues relating to the company (e.g., election of Board members, changes to Constitution etc).

ASIC		Short for the Australian Securities and Investments Commission. This is the Federal Government authority responsible for the administration and enforcement of corporations and consumer protection law for investments, life and general insurance, superannuation and banking (except lending) in Australia.

Assets		Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events affecting the entity.

ASX		Abbreviation for the Australian Stock Exchange. It is through this exchange that secondary market trading of Australian equities, bonds and certain other securities take place.

Audit		A systematic examination of financial statements usually by an independent chartered accountant, with the objective of expressing an opinion on the truth and fairness with which the statements present the financial position, the results of operations and on whether the statements are drawn up in accordance with the relevant law and accounting standards. The auditor's opinion is normally conveyed in the form of an audit report to those recipients of the financial statements for whose benefit he is appointed, usually the shareholders of a company.

Balance Sheet		A financial statement that reveals the composition (both type and volumes) of a company's assets, liabilities and shareholders' equity at a point in time.

Board of Directors		An elected body or persons formed to control the planning and implementation of corporate objectives.

Cash Flow		The total cash receipts (inflow) or cash payments (outflow) arising from a given asset, or group of assets, for a given period. Net cash flow is the inflows less the outflows.

Company Secretary		A person required to be appointed under the Corporations Law and usually having the responsibility for all the record-keeping within the company.

Consolidated Financial Statements		Statements issued by legally separate but related companies that show financial position and income as they would appear if the companies were one legal entity. Such statements reflect an economic rather than a legal entity. The Corporations Law requires a company with subsidiaries to present to its shareholders group accounts, normally in the form of consolidated financial statements, when its own balance sheet is presented.

Directors		Persons elected by shareholders who are responsible for the implementation of corporate objectives. Can include Chairman, Deputy Chairman, Managing Director, Joint Managing Director and Chief Executive Officer.

Dividend		The amount of a company's after-tax earnings paid out as dividends.

Due Diligence		The process of checking the accuracy of information contained in a company public statement, such as a prospectus, before recommending that company to others. Is also the act of one company investigating another company before buying its shares.

Earnings Before Interest and Tax (EBIT)		A key measure of the financial performance of a company. It is similar to net profit, except that the effects of tax benefits, deductions and loans are factored out, providing a better measure of companies underlying performance.

Earnings per Share (EPS)		Measures the earnings that are attributed to each equivalent ordinary share over a twelve month period. It is calculated by dividing the company's earnings by the number of shares on issue.

EBITDA		Earnings before Interest, Taxes, Depreciation and Amortisation

Exercise Price		The price set for buying (calling) or selling (putting) the asset underlying an option. This is the same as the strike price.

Expiration Date		The date when an options contract lapses.

G-L terms (back to top)

Goodwill		The future benefits from unidentifiable assets which are carried as intangible assets of an entity. Goodwill reflect the entity's ability to earn more than a normal rate of return on its physical assets. Goodwill can arise from a number of causes. It is usually recognised in the accounts only when it is acquired through specific purchase. In this situation, it is calculated as the excess of cost of the acquired entity over the current or fair market value of the net tangible assets acquired.

Hits		The number of individual file downloads (e.g. text or graphics) from a site. Each element of a web page (including graphics, text etc.) is recorded as a hit.

Intangible Assets		The value of securities allotted in a company to its shareholders and debtholders. Where debt has been issued the issued share capital is shown separately.

Issued Capital		The value of securities allotted in a company to its shareholders and debtholders. Where debt has been issued the issued share capital is shown separately.

Issued Shares		The shares of a company that have been allotted to shareholders.

Liabilities		Liabilities are future sacrifices of economic benefits stemming from present legal, equitable, or constructive obligations of an entity to transfer assets or provide services to other entities in the future as a result of past transactions or events affecting the entity.

Listed Company		A company which has agreed to abide by ASX Listing Rules so that its shares can be bought and sold on ASX.

Listing Rules		The ASX Listing Rules govern the procedures and behaviour of all ASX listed companies and listed trusts. Only public companies and public trusts are permitted to be listed on ASX. A public company (or trust) is one in which any member of the general public can acquire shares (or units) and there are no restrictions on the maximum number of shareholders (or unitholders). In addition to prescribing pre-requisites for listing, the Listing Rules require that listed companies and trusts report announcements to ASX to keep the market informed of their activities and report profit results and other financial information within specific deadlines.

M-R terms (back to top)

Market Capitalisation		The total number of shares on issue multiplied by their market price. This can be applied to work out the market value of one company or of the value of all companies listed on the exchange.

Market Value		The current value of a security.

Net Asset Backing		Total shareholders' funds in a company divided by the number of shares on issue.

Net Assets		Total assets less total liabilities for a company at a point in time.

Net Profit		The excess of all revenues and gains for a period over all expenses and losses of the period.

Net Tangible Asset Backing		Refers to the net physical assets owned by shareholders of a company at balance date. It expresses the asset value per share, i.e. shareholders' funds less intangibles, less preference capital, divided by the number of ordinary shares.

Net Tangible Assets (NTA)		An indication of what each share in a company is worth if all the assets were liquidated, all the debts were paid and the residual was distributed to the ordinary shareholders on a per share basis.

Operating Activities		Used in the Statement of Cash Flows for those cash flows from activities which relate to the provision of goods and services which are neither investing nor financing activities. Such activities include payment to suppliers and employees; and all receipts in respect of the provision of goods and services.

Operating Profit (Loss)		Defined as the profit (loss) for the relevant period resulting from the operations of the entity or group during the period of a kind carried on regularly to achieve the objectives of the entity or group. It is usually shown before tax and is also called 'Profit (Loss) from continuing ordinary activities'.

Option		A contract between two parties, which gives the holder the right, but not the obligation, to buy or sell the asset underlying the option at a pre-determined price (the exercise price) on or prior to a particular time in the future (the expiration date).

Ordinary Shares		Securities that represent a stake or share in the ownership of a company. If a company is wound up, the ordinary shareholder generally rank behind secured creditors in the wind-up process.

Page Impressions		Also called page views. The delivery of a page of information (which may or may not include an advertisement) to a viewer over the World Wide Web.

Price-Earnings Ratio (P/E Ratio)		Shows the number of times the price covers the earnings per share over a twelve month period. Investors commonly use this ratio to measure the attractiveness of particular shares and to compare shares in one company with those in another.

Profit and Loss Statement		The statement of revenues, expenses, gains and losses showing the results of an entity's operations in a period.

Prospectus		A statement that provides details of an upcoming securities issue to the public. In Australia, prospectuses must be approved by the Australian Securities and Investments Commission (ASIC) prior to their issue.

Proxy		In the context of the Australian sharemarket, a written authorisation given by one person to another so that the second person can act in place of the first person, e.g. attending and voting at shareholders' meetings. The person authorised to act is also known as the proxy.

Renounceable Rights		An issue of rights where the offeree can choose to take up the rights offered, let them lapse, or trade them on the market. See also rights issue.

Restricted Securities		"Defined in the ASX Listing Rules as securities issued by an entity in consideration of, or in connection with, its (or a related party's) acquisition of any of the following: An interest in a mining exploration area or similar tenement or interest. An interest in intangible property that is substantially speculative or unproven, or has not been profitably exploited for at least 2 years, and which entitles the entity to develop, manufacture, market or distribute the property. An interest in an asset which, in ASX's opinion, cannot readily be valued. An interest in an entity the substantial proportion of whose assets (held directly, or through a controlled entity) is property of the type mentioned in this paragraph. securities issued by an entity in consideration of, or in connection with, a service provided to the entity (or to a related party) in relation to either of the following. The entity's formation, promotion, or listing; or The entity's offering of securities to the public. securities issued for cash (or equivalent) if the person received the cash (or equivalent) for the assets or services mentioned in (a) or (b). securities issued to a holder of restricted securities in substitution for them as part of a reorganisation of capital. securities issued under a bonus issue in relation to restricted securities. securities issued on the conversion of restricted securities. securities that partly paid restricted securities become when the holder pays any of the outstanding amount. securities that, in ASX's opinion, should be treated as restricted securities."

Return on Assets (ROA)		An earnings measure that, in its simplest form, is earnings after tax divided by total assets.

Return on Equity (ROE)		An earnings measure that, in its simplest form, is earnings after tax divided by shareholders' equity.

Revenue		Revenue is defined as inflows or other enhancements, or savings in outflows, of future economic benefits in the form of increases in assets or reductions in liabilities of the entity, other than those relating to contributions by owners, that result in an increase in equity during the reporting period. It represents actual or expected cash inflows that have occurred or will eventuate from delivering or producing goods, rendering services, or carrying out other activities that represent the entity's on-going operations.

Rights Issue		An offer made to existing shareholders in a company to buy new shares to be issued by that company at a discount to the prevailing market price.

S-Z terms (back to top)

S&P/All Ordinaries Share Price Index		A share price index that measures the market prices of the major stocks listed on the Australian Stock Exchange (ASX).

Share Registry		An organisation which, on behalf of a company, records changes in share ownership, issues share holding statements, and makes adjustments for dividend payments, bonus and rights issues.

Statement of Cash Flows		A financial statement that shows a company's cash receipts and cash payments over a specified period, such as a year.

Underwriter		An underwriter guarantees to the company that the funds sought will be raised and any shortfall will be taken up by the underwriter and the funds will be available at a specific time, receiving a fee for this service.

Website Traffic		The number and type of people who come to a website. Traffic can be measured in many different ways.

Wertpapier-Kenn Nummer / WKN		Identification number for securities used on German stock exchanges.

Working Capital		Comprises current assets less current liabilities. A measure of the long-term investment required to finance the day-to-day operations at a given level of activity.

Xetra		Short for Exchange Electronic Trading. Name of the German stock exchange's electronic trading system. Share prices are automatically derived from entered buy and sell orders.