OTCPK:AVEFF - Post by User
Post by
TallerCraigon Nov 04, 2017 3:16am
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Post# 26905220
How ESI Energy Services Told you AVE Q3 will be HUGE!!!
How ESI Energy Services Told you AVE Q3 will be HUGE!!!After watching all these energy service names report revenue growth in the 50-100% Revenue growth and 100%+ EBITDA growth and still don’t think it will match to what Aveda will be putting up in a week or two. Its all thanks to Asset Utilization Gains and the direct correlation this has on gross margins.
I am going to use ESI Energy Services (OPI.c) who has already reported Q3 as a case fact why I am so bullish on this next Q for Aveda. So ESI Energy is in a similar business to Aveda as ESI is a supplier of padding equipment and pipe layers for the Energy market. Like Aveda, ESI business south of the boarder has been booming with it now making up essentially all its revenue base.
If you look at their Asset Utilization ex Amort/Dep level YTD is where it gets real bullish. ESI Energy Services Asset Utilization (Q1: 35%, Q2: 45% and Q3: 60%) associated with gross margin ex Amort/Dep expansion of (Q1: 52%, Q2: 67%, Q3: 75%). Now compare that to Aveda Asset Utilization (Q1: 30%, Q2: 40% and Q3: ???) and Gross Margins ex Amort/Dep (Q1: 17%, Q2: 20%, Q3: ???). You must be able to see how Aveda is going to put up Asset Utilization Growth and Gross Margin expansion!!!
See Prior Post for numbers for associated numbers to my larger thesis on Aveda.