I agree with you TJ, this Co. is growing at an excessive speed, according to the news shared today they seem to be running pretty smoothly & on top of all operations. I have seen an advertisement of Trufuel on T.V., but didn`t know it was a Calumet product. I hope it`s not to costly, we get what we pay for & will definitly try it. Will be adding more units after today`s report. It is also good to see Liza on board.
Today I saw Stihl`s fuel blend(same as Trufuel) Cost is 8.00 Dollars per quart,pretty expensive & that want go far in a weedeater or chainsaw. Head mechanic said it will end all carburator(sp)problems. Cost of carb. & labor is 65.00 Dollars for weedeater, pay now or pay later unless you have gas without ethanol.
Today's conference call mentioned that some of Royal Purple's products sell for $10/quart, and sell very well.
Royal Purple has 25 years of solid growth behind it, and with their increasing their retail distribution from just 2500 locations, to over 20,000 in the last 2 years, I foresee a lot more.
Royal Purple had sales of $110 million last year, $24 million in EBITDA, so this represents a 6% increase in last year's sales, 56% increase in EBITDA for the combined CLMT.
In addition, management mentioned that they expect annual distribution to increase by about $.2/unit, which is a 9% increase.
Given that CLMT seems to be increasing the distribution by at least .5 cents/unit/quarter lately, and given that the Royal Purple Acquisition adds about $.05/unit/quarter, then I wouldn't be surprised to see the last distribution of this year being $.63/unit, ($.05 increase from acquisition and $.01/unit increase each quarter.
Keep in mind that Royal Purple is growing quickly themselves, so each year's additional distribution will increase as well.
Overall, I am so overjoyed by this news that I placed a limit order for an additional 300 units at $22.5, (I already own 500 units at $22.99).
Hopefully the recent market rally fails so I can get another 350 units at $20, because I am LOVING what CLMT is doing right now!
If only they would announce another secondary of 10 million units at $20 to make another great aquisition, within the next month or so, so the price could collapse down to $17-$18;) If only;)