I have a great trading idea on a company with big potential, solid business model, recession-proof industry and the potential for tremendous growth. Their latest press releases have proven their on the road to success. I don’t know if I’d sit this one out?
Waste management is actually quite the business. It involves collecting materials that others simply throw away as trash and sorting it into either stuff that has no further use or stuff that can be recycled. They then have to be transported to locations that can dispose of them safely and appropriately.
There is a growing need for waste management services, some specializing in certain aspects. Others try to do it all. Those who specialize tend to deliver a better service as they can fine tune their operation. Waste management businesses are recession-resistant in both residential and commercial trash collection and disposal. Lets take a whiff !
Budget Waste Inc. is a waste solutions company in Western Canada providing complete waste and recycling services to commercial, industrial, construction, home building, oilfield and residential clients.
BWIH also provide non-hazardous waste collection, transfer, recycling and disposal services. Additionally, the company provides support to the construction industry such as fence rentals, sanitary facility rentals, bin rentals, hydrovac and water hauling. BWI Holdings operates primarily, but not exclusively, in Alberta, Canada.
BWIH operates in four business segments: solid waste, liquid services, water hauling and septic services. The company’s wholly owned subsidiary, Budget Waste Inc., is a regional solid and liquid waste services company that provides collection, disposal, fencing and recycling services to residential and commercial customers in Alberta.
BWIH revenue consists primarily of fees charged to customers for solid and liquid waste collection, landfill disposal and recycling services. Budget Waste conducts various waste management operations in Edson, Calgary, Edmonton, Red Deer and surrounding areas in the Province of Alberta, Canada and uses approximately 2,500 containers of various sizes and purposes and approximately 120 trucks.
BWIH also has operations in water reclamation, portable lavatories and industrial fencing. BWI Holdings derives its collection revenue from services provided to commercial and residential customers. Services to commercial customers are generally performed under service agreements or pursuant to contracts with municipalities.Fees charged by the company are based on a variety of factors, including collection frequency, level of service, route density, the type, volume and weight of the waste collected, type of equipment and containers furnished, the distance to the disposal, the cost of disposal and prices charged by competitors for similar services.
BWIH contracts with commercial customers typically allow BWI Holdings to pass on increased costs resulting from variable items such as disposal and fuel costs and surcharges. The company’s ability to pass on cost increases is sometimes limited by the terms of its contracts. The company also has a 100% interest in certain mineral claims, which it has decided to abandon.
BWHI’s MOST RECENT NEWS RELEASES also viewable in video format please see below
BWI Holdings, Inc. Reports $705,000 Net Profit for 9 Month Operating Results Ending December 31, 2009
Jan 13, 2010 4:05:00 PM
BWI Holdings, Inc (“BWI”) (PINKSHEETS: BWIH) operating as Budget Waste, Inc. (the “Company”) a waste solutions company headquartered in Western Canada that provides complete waste and recycling services to commercial, residential and industrial clients, announces today its financial results for the third quarter ended December 31, 2009. Bottom of
Mr. Jim Can, CEO, states, “Given the extremely tough economic climate that we have to deal with, we are very pleased that we can remain profitable and at the same time continue to give excellent customer service. I am extremely proud of our team who recognizes the tough economic times and is willing to persevere, work hard and maintain our strong momentum. Although it is still early in the final quarter of fiscal 2010, we expect to continue growing our sales and improve profitability in the current fiscal year.”
For the three and nine months ended December 31, 2009, the Company reported revenues of $1,948,000 and $6,223,000 respectively, compared to $2,730,000 and $8,339,000 for the comparative periods ended December 31, 2008. A substantial decrease but expected considering the downturn of the residential and industrial construction markets.
The gross margins for the quarter and nine months ended December 31, 2009 were $425,000 and $1,565,000, respectively, representing 21.8% and 25.1% of revenue. The comparative amounts were $973,000 or 35.6% of revenue for the quarter and $1,565,000 or 25.1% of revenue for the three quarters ended December 31, 2008. The lower gross margin percentages were due to the economic recession.
Selling, general and administrative (“S,G&A”) expenses decreased to $486,000 for the three months ended December 31, 2009 from $1,264,000 in the comparative quarter. For the nine months ended December 31, 2009, S,G&A was down to $1,534,000 from $3,629,000 in the three quarters ended December 31, 2008.
The Company realized a net income of $578,000 for the third quarter and $705,000 for the nine months ended December 31, 2009. It was due to gains from restructuring.
View this release in video format: http://www. vodnewswire.com/vodnewswire/ news/budgetwaste-20100113/
BWI Holdings, Inc. Announces International Franchise Opportunity Available for Qualified Candidates
Thursday January 21, 4:05 pm ET
CALGARY, AB–(Marketwire – 01/21/10) – BWI Holdings, Inc has received numerous calls from potential investors and candidates inquiring about owning and/or operating a franchise of Budget Waste in other regions of Canada and the U.S. Based on these discussions, Management of BWIH is considering a franchise model for its Budget Waste brand of waste management services. Management is looking into territories, locations and costs of this type of expansion model. Management believes the upside to potential investors and the Company is a pathway to developing a substantial long-term business that can generate consistent income from franchise fees, royalties, and management fees. Other benefits are:
Direct access to a successful business model
Diversified products in the waste disposal industry
Opportunity to own, develop and operate in a protected territory
Receive training from experienced operations staff to organize and run the
franchise
Provide ongoing assistance, support, training and new products and services
With a potential option to sell back to Parent Company
Supply of Inventory (Bins, Porta Pottys, Trucks, Fencing)
The Management and Board of Directors are considering the franchise model. Any decisions with respect to any franchise opportunity will be subject to all regulatory approvals
To view this release in video format: http://www. vodnewswire.com/vodnewswire/ news/budgetwaste-20100121/
Waste management is an issue that every city large or small must deal with each day so that they can successfully handle the waste that accumulates in astronomical numbers. Without a waste management in place cities would be soon over run with the overwhelming amount of refuse and waste that they need to dispose of.
Like most investments waste management isn’t for everyone. Investors might want to consider their own views on the economy as part of their homework on this company. But with strong cash flows, solid business model and shareholder-friendly growth, for some investors waste management might have a nice smell about it.
For more information on BWI Holdings, Inc., please visit the web site at www.budgetwaste.com
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