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However, even though sales have been increasing, the operating income has decreased from 2004 to 2005. This is due to the increase of total operating expenses. Specifically, the Selling/ G&A Expenses increased in 2005 and may indicate increased advertising expenses, increased sales commissions, new sales personnel, increased travel costs for sales people/ executives and/or increased payroll expenses.
The income before tax is still positive, however, the high income tax expense (due to higher earnings) and the high interest expense (due to high debt levels) bring the total net income down to $-9M...
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