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


To: OldHack who wrote (4228)3/3/1998 10:31:00 PM
From: voyager.ed  Read Replies (1) | Respond to of 7006
 
O H,

Good question that I wonder about also.

regards,

Ed



To: OldHack who wrote (4228)3/4/1998 10:31:00 AM
From: James Strauss  Read Replies (1) | Respond to of 7006
 
What Have you Done for Me Lately? : >

>>>Jim. In reviewing what RECY has done for us in the past, but hasn't done recently, I was attempting to objectively reevaluate it. An area I frequently wonder about is whether or not operational costs will ever reduce in proportion to revenues. I must confess I frequently wonder what RECY does with its acquisitions other than run
outside and repaint the sign if that. I know it is asking a lot, but I was hoping you might humor an old fool by outlining some potential fairly specific synergies, cost savings, etc. RECY has demonstrated thus far; RECY mgt. has said it should realize; or you can see
in their future.
<<<
**********************************************************************
OH:

I think the second QTR 10q should answer many of those questions regarding economies of scale Synergies...

Certainly, their buying power is much greater... They probably can take advantage of Bulk buying discounts... They are doing more self brokering... This adds to their margins... They probably can take advantage of lower freight costs per ton due to the greater quantities they are shipping...

During the conference call they mentioned that Revenues per employee jumped from about 150,000 to about 380,000 (from memory)... Also, they are introducing enhanced computer systems and recycling processes throughout their facilities... The Revenues per employee numbers shows that what they are doing is working...

Jim