Could assessment phase of Coca-Cola mean $10 million in gross profit to Tava?
Here is how I arrive at my numbers -
First of all, we know from Coca-Cola's 10-K which was released on 3/9/98 that, "In 1997, net sales of concentrates and syrups by the Company to Coca-Cola Enterprises were approximately $2.5 billion, or
approximately 13% of the Company's net operating revenues."
From Coca-Cola Enterprises website, we also know CCE owns 310 facilities. cokecce.com
If it takes 310 facilities to generate 13% of Coca-Cola's revenue, one can extrapolate it takes 2400 facilities worldwide to generate 100% of Coca-Cola's revenue. Just to be on the conservative side, let's say 1,000 facilities end up purchasing Tava's CD.
Therefore - 1,000 facilities x 20,000 CD cost per facility x 85 percent Gross Margins = $10,000,000 in Gross Profit for Tava.
Remember, this $10 million figure doesn't even include
possible remediation work done by Tava. At this point in
Tava's history, estimates of $0.81 look rather low to me.
Fair conclusions?
Chris |
