THIS is why we're down 30% ?
ok,RC going slower than expected,but 8th plant now up/running(and addt'l monetization of self-operated facility by year end).$200mm guidance if/when all 26 are operational remains and they are sitting on awarded orders awaiting contract execution of ACI/DSI systems totaling $30mm which are expected to begin revenue generation this month. RC segment revenues of $190mm this year exceed our current market cap and we have $23mm cash.
Don't mean to downplay slower RC facility operational build out,but come on.
Coming from the consummate 'glass half empty' guy, I came away from the update thinking, "down 10 bucks off the high? Seriously?" - I think the press release confirmed what many of us were thinking regarding delays in getting the facilities up and running. However, we're still on track to hit the numbers (albeit a little later) and the wins and bids for DSI and ACI were very encouraging.
Still don't understand the "...after monetizing our payment credits to our minority partners "-jargon, but I would think we'd rally a bit on this update.
I anticipate another net loss in next week's earnings, but would expect to turn positive in 2013.
bart - heading back up to cheeseland the week after next. please hold the really cold weather away just a little bit longer.
$190MM RC segment revenues -- but really $150MM are "fake" revenues as the revenues and costs are equal (meaning they have zero contribution margin -- in fact, probably negative when you add in the overhead to manage it)
The other $40MM was supposed to be approaching a $100MM run rate by December 31st...it appears that we are nowhere near this level.
ACI/DSI: $30MM is a start, but remember that the original plan was for ACI to be a razor/razor blade model. Well, after the lawsuit settlement, we don't have the razor blades anymore (well, at least until it comes time to build new AC lines in Nagadoches or wherever the hell).
At least the dry sorbent side has some razor blade opportunity.
What happens after 2015? The equipment side of the business will dry up.
There is still value here, but once again management has found themselves way in over their heads and have stepped in it again.