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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Cary C who wrote (635)	2/16/1998 1:35:00 PM
From: gpw	Respond to of 29382

I don't follow RECY but I thought you guys might be interested in this.... Recycling Industries looks for more... NEW YORK -- The 1998 business plan of Recycling Industries Inc. calls for continued acquisitions, and talks already are being held with between 20 and 25 potential targets, according to Thomas J. Wiens, chairman and chief executive officer. Discussing the just-announced results for the fiscal first quarter in a telephone conference with stock analysts, Wiens said the targets have around $1.5 billion in combined revenue. Asked what a realistic number would be to come to fruition, Wiens said perhaps 80 percent of the potential takeover candidates. Cash on hand totals $1.5 million while an existing credit facility would provide another $15 million to $25 million, said Brian L. Klemsz, chief financial officer. Luke F. Botica, vice chairman, added that additional financing could be obtained so that acquisitions kicking in $50 million to $75 million a year also could be made. The Englewood, Colo.,-based company, having just closed the latest six acquisitions before its fiscal first quarter ended Dec. 31, is realizing $380,000 per employee in annual revenue, while a year earlier the figure had been $160,000 per employee, Klemsz said. Company executives said the ferrous scrap processing volume had grown to 1.2 million tons a year and accounted for 65 percent of revenue in the recent quarter. The rest of the revenue came from nonferrous processing and toll processing, and to a lesser degree brokerage deals. Skip Rouster, chief operating officer, said ferrous scrap had an average selling price of $142 per ton in the quarter while nonferrous prices averaged 55 cents a pound. Wiens worked out a five-year employment agreement, according to the company's 10K filing with the Securities and Exchange Commission Jan. 13. As published on the Internet, the agreement is for Wiens to receive a base salary of $288,000 a year and bonuses to be determined by the compensation committee. Additionally, he can get loans of as much as $1.9 million, payable to him in increments of $100,000 each time the company closes an acquisition deal. Wiens and other Recycling Industries executives could not be reached for comment.