Thoughts on cash flow positive possibilities with
Post# of 3844
Posted On: 01/03/2014 10:40:41 AM
Thoughts on cash flow positive possibilities with EWSI's current growth and operational costs.
Fundamental metrics used to determine cash flow positive are in flux during hyper growth. IMO it all depends on how quickly they can ramp organic revs (China, SURF, 2TRG, eWasteCC) that already have the original capital invested and are now simply increasing revs over stable operating costs.
If Martie can keep operating expenses around 1M per Qtr through the first two Qtrs in 2014, and they continue a rapid organic rev growth model, then I think we go cash flow positive by Q2 2014. 2014 may be back loaded with revs just like 2013 was. If they can maintain 50 percent growth Qtr over Qtr, and anticipating a 7 - 8M final 2013 Qtr, then we get:
10 - 12M Q1 2014
15 - 20M Q2
20 - 30M Q3
30 - 40M Q4
The large increase in gross revs will be driven by both organic and acquisitive growth, which in and of itself will involve dilution and capital outlays. Once acquired, EWSI needs to ramp to cash flow positive very quickly. They accomplished this with SURF, and now they're attacking 2TRG and its two facilities. I think these go cash flow positive within nine months. China is expected to explode. eWasteCC is a real sleeper here. All R&D costs are done. It should carry a high margin. If this gains traction, then we get a high margin repeatable revenue stream in the mix that can drive gross margins from 25 percent to closer to 30 percent.
Anyway, just some thoughts.
Bulls need to push through small retail flipper circling around BKRT and move BKRT out of the way on strong volume today. That in and of itself will confirm a continued move up. JMO
Fundamental metrics used to determine cash flow positive are in flux during hyper growth. IMO it all depends on how quickly they can ramp organic revs (China, SURF, 2TRG, eWasteCC) that already have the original capital invested and are now simply increasing revs over stable operating costs.
If Martie can keep operating expenses around 1M per Qtr through the first two Qtrs in 2014, and they continue a rapid organic rev growth model, then I think we go cash flow positive by Q2 2014. 2014 may be back loaded with revs just like 2013 was. If they can maintain 50 percent growth Qtr over Qtr, and anticipating a 7 - 8M final 2013 Qtr, then we get:
10 - 12M Q1 2014
15 - 20M Q2
20 - 30M Q3
30 - 40M Q4
The large increase in gross revs will be driven by both organic and acquisitive growth, which in and of itself will involve dilution and capital outlays. Once acquired, EWSI needs to ramp to cash flow positive very quickly. They accomplished this with SURF, and now they're attacking 2TRG and its two facilities. I think these go cash flow positive within nine months. China is expected to explode. eWasteCC is a real sleeper here. All R&D costs are done. It should carry a high margin. If this gains traction, then we get a high margin repeatable revenue stream in the mix that can drive gross margins from 25 percent to closer to 30 percent.
Anyway, just some thoughts.
Bulls need to push through small retail flipper circling around BKRT and move BKRT out of the way on strong volume today. That in and of itself will confirm a continued move up. JMO
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