Latest rant I don’t like the way the financials are being reported. It seems like a distortion from reality.
The supply chain segment includes revenues from logistics services and loan matching fees from logistics customers. This is offset by logistics costs. To date, the gross margin in this segment is near zero because the logistics services are being outsourced and Peak has forgone the loan matching fees for now. Peak says the gross margins will increase to 30% when some of the logistics services are no longer outsourced but trucking and warehousing can not be done in-house. So will the improvement in gross margin really be just the inclusion of loan matching fees? If so, then be transparent and state that logistics services are a zero margin business offered to customers to entice them to use the loan matching service. Get rid of the supply chain segment reporting and simply report logistics revenues/costs (gross margin near zero) and include any loan matching fees from logistics customers in the loan matching fees segment.