Subject: Multi-Day Momos
To: Lawrence Burg
From: Rob Tap
May 20 1999 8:05PM EST
Reply #144 of 148
Lawrence: I tried to send you a message RE: USPL but aparantly it didn't get posted. There was a great conference call on Monday, and there is a replay until May 24th. The call-in is 800-812-6440 and the reservation number is 12357650.
USPL has about 30 million shares out, about 48% held by management.
Revenue for the just finished quarter were $19.8 Million up from $7.7 in Q-1 1998. Operating income was
$1.9 million VS $15,600: EBITDA was $2.8 Million VS $371,000. Net income, after some non recurring plant start-up charges, were $508,000 (or $.02) VS $15,600. Balance sheet is decent.
They discuss listing on NASDAQ main market this year and they exceed all requirements. Also splitting into two public companies.
Louis Paolino just joined the company as board chairman. He made a large investment, both in money and an operating division. He founded and sold Eastern Environmental for $1.3 Billion to Waste Management last year.
Their Plastic lumber product is used everywhere from the wood slats on the side of Webber Barbecue Grills to Railroad ties. They have a contract with Norfolk-Southern and Conrail to develop ties for them; and The Chicago transit authority has committed to replace all of their ties with USPL's Duratie. USPL's decking product is just being offered at Home Depot stores and the demand is so great that the entire year's production is sold out: and Home Depot is sold on an allocation basis.
The product outlasts and outperforms wood; are environmentally friendly and non toxic; are maintenance free; splinter proof; never rots; are termite proof; holds nails and screws 40% better than wood, most graffiti easily washes off, etc. This is truly the building product of the future available today.
Trex is a competitor: but I believe USPL's product and management to be superior: in any event the market is so hugh and competition only serves to validate the product.
The other division is CLEAN EARTH which is in industry leader in removing and recycling heavily contaminated soils. sewer sludge; materials dreged from harbors, etc. The market is very big and Clean Harbors is validated by having contracts with the Commonwealth of Pa. and New York Harbor authority.
It this isn's a winner, I may never buy another stock ever again.
Good Luck
Rob.
|
