ADLP: interesting elements in the 2010 annual report

Hi,

first of all many thanks Yannick for your comment and your support. I will be studying the 2011 Annual report now that it is available.I like digging into an annual report and discovering interesting information. In other words, doing my "Sherlock Holmes"!
Here are interesting points on ADLP in the 2010 annual report (I will repeat the exercise with 2011 annual report):
- the company has 229 753 treasury shares in 2010 which represents 5,27% of the share capital. On the balance sheet, they are booked at a value of 623  001 euros. Yet as indicated by the company these shares have a value of 1,9 million euros by taking the 31/12/2010 stock price. If I take the stock price of ADLP on the 31st of december 2011 this gives me a 2,7 million euros valuation. In other words, there is a nice unrealised gain!
- there is a total of 359 365 stock options which were attributed and which have not yet been exercised. It doesn't mean that they will all be exercised but by using a conservative approach we can take the stance that they will all be exercised (and if it is not the case, it will be a good surprise for the shareholders: a fewer number of outstanding stocks). This number can be compared to the 229 753 treasury shares. Thus, if all the stock options were exercised and the treasury shares used to set off this number, they would be an increase of outstanding shares of 129 612. This number compared to the existing number of outstanding shares (4 130 000 in 2010) gives us an increase of 3,13% of outstanding shares. The increase is reasonable but I wouldn't mind if the company bought back shares and reduced the number of stock option plan.
- The chairman of the executive board and the managing director have stock option plans which cannot be all exercised immediately of respectively 188 492 and 44 852 shares. This amount of shares more or less set's off against the number of treasury shares.
- The attendance fees in 2011 have been reduced to 125 000 euros in 2011 due to a lower number of members on the supervisory board.
- it is clearly indicated that outsourcing is used by the company and that it is very important: good point: it is a variable cost, if the activiy goes down, costs can be reduced and ADLP can focus on its expertise; bad side: it is more expensive to use outsourcing.
- No inventory for the subscription businees: this is very good as it doesn't consume any cash and moreover the subscription activity is the main business of the company. The main inventory is for the books,  gifts and "primes": in other words inventory are kept at a low level which is a very good point.
- the supervisory board has 4 family members and 5 independant members. It is a good point to see independant members who will have an objective point of view on the way business is done.
I hope you enjoyed the post! Don't hesitate to tell me what you thought about it in french or in english!
Disclosure: I have 550 ADLP stocks.
Cheers

Jeremy