Budget Waste Inc. (PINKSHEETS: BDGW) today released financial information comparing third quarter revenue to past performance.
For the nine months ended December 31, 2007, the Company reported revenues of $12,129M (“M” representing thousands), an increase of $4,882M, or 67.4%, from $7,247M in the nine months ended December 31, 2006. While the company instituted price increases during the nine months which included fuel surcharges, the greatest growth was from the effect of the acquisition of five of the thirteen companies acquired during the last two years.
Results also show revenue of $4,160M for the quarter ended December 31, 2007, an increase of $1,929M, or 86.4%, from $2,230M in the quarter ended December 31, 2006.
The gross margin for the nine months ended December 31, 2007 of $3,153M represented 26% of revenue as compared to $1,625M for the nine months ended December 31, 2006 or 22%. Efficiencies resulted from moving all vehicle repairs and maintenance from outside vendors to an in house mechanical shop. Consolidation of operations also contributed to a more positive result. The company has also made changes in driver compensation in order to decrease driver overtime.
Selling, general and administrative expenses increased from $3,417M for the nine months ended December 31, 2006 to $4,164M for the nine months ended December 31, 2007. This increase of $747M was only 22% considering revenue increased 67.4%. This is as a result of the ten acquisitions. However, the percentage of revenue for December 2007 was only 34% as compared with 47% for December 2006. The positive trend was gained from efficiencies of the consolidation of the companies. The company has also significantly decreased wages and benefits from $500M to $398M as it streamlines its administration and management.
The quarter ended December 31, 2007 also showed positive improvement of the quarter ended December 31, 2006. Overall selling, general and administrative expenses were $1,491M or 35.8% of revenue as compared to $1,105M or 50% of revenue for the periods December 31, 2007 and December 31, 2006 respectively.
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