RE: RE: RE: Show Me The Money$600 million is certainly significant. However, the companynow has over 93 franchises spread across most of North America. A nation-wide infrastructure has significantintrinsic value.
If memory serves, the annual revenues reported for the acquiredfranchises were in the $1million/year range (I think some as low a $700k andone as high a $2million).
In 2009, revenues were ~$50 M in a very poor economy. In myestimates, swisher has added ~$12 million/year revenue from these acquisitions.In today’s economy and with these acquisitions it’s not inconceivable thatrevenues may approach $70-80 million/year
I’d estimate an additional value of $4 million/year on theChaney Bros. deal.
As I mentioned in my previous post, I don’t believe thatpreviously reported numbers reflected Swisher entry into the chemical salesmarket.
If you account for some significant organic growth over thissame time period, it may not be absurd to anticipate revenues of $100 milliondollars.
The big question is how well will management be able minimizethe cost of entry into the chemical market?Hopefully some of those expenses showed up on 2009 – 2010 balancesheets.
If you assume these numbers are anywhere near reasonable, thenprofit could be ~$40-50million for 2011 which will be the first time SWIreports their earning publically.
I think it is also relevant to consider that companies rununder a similar business model have done quite well. For example Waste Management has a market capof ~$18 billion.
So, I guess depending on your outlook, $600 million might bea bargain too?
Would anyone else care to comment on this topic?