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Non-Tech : RECY Looking Good... A -- Ignore unavailable to you. Want to Upgrade?

To: Braddock Bull who wrote (3682)	1/3/1998 11:53:00 PM
From: James Strauss	Read Replies (1) \| Respond to of 7006

The 10k... >>>are we talking about Jacobson and Grossman Bros here? I'm having a hard time understanding how those two aquistitions resulted in a $700K charge. There has to be more thrown-in to account for this. What about the Warrenton GA plant? I didn't see any start-up charges there yet. Depreciation maybe? Any hints from Alex? Also, I just want to make sure I have this right... the filing must be made on or before January 15th now, correct?<<< ************************************************* Brad: I'm not clear on this myself... The 10k mentioned two Acquisitions... So, I would assume that the most recent four Acquisitions are not included... Here are all six Acquisitions: ENGLEWOOD, Colo., Dec. 9 /PRNewswire/ -- Recycling Industries, Inc., (Nasdaq: RECY - news), a company engaged in the acquisition and consolidation of metals recycling companies and a major national raw materials supplier to the mini-mill sector of the steel industry, announced today that it has completed the acquisitions of Jacobson Metal Company, letter of intent (LOI) announced September 3, 1997; Grossman Brothers Company and Milwaukee Briquetting Company, LOI announced September 12, 1997; United Metal Recyclers, LOI announced October 9, 1997; Brenner Companies, LOI announced October 13, 1997; William Lans Sons Company, LOI announced November 3, 1997; and Central Metals Company, LOI announced November 4, 1997. I think we'll have to wait for the 10q... It should be filed no later than Jan 12th... I'll also try to see if RECY will discuss this before the 10q filing... Jim

To: Braddock Bull who wrote (3682)	1/4/1998 12:22:00 AM
From: Tim Oliver	Read Replies (1) \| Respond to of 7006

RECY filed a similar extension for their Sept. quarter at the end of December 1996 and reported their Sept. quarter earnings about two weeks later. I don't think it has anything to do with being too busy. In the previous quarter, they announced that they'd have positive earnings two weeks after the quarter closed along with a stock buyback. Long term investors probably already know this game...hopefully there's lots of them in RECY now so there aren't too many surprised people when they have negative earnings. No acquisitions were made in the Sept. quarter, but two letters of intent were made (the first of the six recent acquisitions). There's all sorts of things that could have thrown them out of whack. A large competitor in Texas recently changed their inventory accounting method which threw their operating income numbers way off. The revenues are right on though for RECY....about $62 million for F1997. The real story is the six recent acquisitions that have revenues that are three times what RECY will report for F1997 in a couple of weeks. Since August, they've brought on two experts in acquisitions, one being the COO of a $1.7 billion competitor, and they've reduced their cost of capital since then and opened up the floodgates after playing around in the little leagues. As a comparison of how good these new guys are....MTLM had revenues of about $100 million for the QUARTER ended Sept. 30 and EBITDA of $5 million. The six new acquisitions that RECY just paid for had almost $200 million revenues for the YEAR ended Sept. 30, and EBITDA of $25 million. RECY paid $151 million for the six acquisitions last month, but MTLM has had a market cap of over $250 million since last summer. Tim