If you look at Page 35 of the FY2016 10K, you will see the following:
Transportation Revenue: $16,898,287
Cost of Sale: $11,594,136
Gross Margin: $5,304,151
Selling, General and Administrative Expenses: $3,479,075
Remember the above is only for the 8 months that BTGI started to have 30% ownership in BT TWISS in FY2016
The above applies to BTGI, based on its 30% ownership in BT TWISS. Here the Case for BT TWISS over 8 months:
Transportation Revenue: $39,429,336.33
Cost of Sale: $27,052,984.00
Gross Margin: $12,376,352.33
The selling and administrative expenses for BT TWISS is pretty much zero, since BTGI is responsible for that.
Based on the above information, If BT TWISS business remains the same, Here is what to expect for FY2017:
BTGI Revenue: $25,347,431, Gross Margin: $17,391,204.00
BT TWISS Revenue: $59,144,005, Gross Margin: $40,579,476.00
If we assume a 5% growth in FY2017, the BTGI revenue will increase to $26,614,802. Also remember that BTGI added the Cold Storage business starting in FY2017, which is expected to generate on the order of $3 millions. If we add that to the projected revenue, that will make it $29,614,802.
Based on the above, Q1/2017 should produce a revenue north of 7 million dollars. Also, it shows the potential benefit of gaining more ownership in BT TWISS since they are managing its entire operation anyway. Notice that the company projected 30 to 40 million dollar in revenue, the 40 million could result from more ownership in BT TWISS, more acquisition or more growth in the business than the 5% I projected it.
BTGI is a very lucrative company with a huge huge potential that may surprise many many investors when they have a full knowledge about it.
