Roth Conference - General Bucha Crushed It
The goal of $400M revenues / $80M EBITDA / 20% Net Margins for 2019 was mentioned again.
11 months ahead of schedule. Roadmap (made in June of 2016) detailed revenues of $75M+ for 2017. Pretty sure I heard their "commitment" for 2017 is for $92.5M and $10.5M EBITDA based on being ahead of schedule. Pretty sure is the key. Will re-listen to later.
We have a new Health Sciences Division, which is responsible for Aspen Pure Probiotics water, Enhanced Recovery drink, and Pedia Ade drink. BTW, Aspen Pure Probiotics has been only offered to one retailer. The retailer ordered a big order and happens to be the largest pharmacy in the US. Quick Google: CVS Caremark = 9,600 stores. Cha-ching.
One of the two pragmatic problems facing the company is scale. We're getting bigger though. Examples: Bucha cost used to be $0.34 per bottle, now $0.19 per bottle = 46% improvement.
25,000 outlets now.
In 10 countries. 8% of revenue from Canada. Bucha is now in 7-11 in Canada (per slide).
Mentioned the acquisitions briefly. We are buying at an average Price-to-Sales ratio of 0.5:1.00. Our stock trades over 2:1. We aren't buying for financial arbitrage reasons though. We're buying to fill out our beverage portfolio under guiding mission statement. We're buying to achieve scale.
One company per day, on average, is calling to connect into our framework, which for a small company is remarkable. We've got the business platform (distribution network, nationally and locally), the financial platform (no debt and ready capital), and the expertise of a team that has "Been there, done that".
Marley acquisition is coming imminently.
Coverage is coming.
10K is coming next week.
AI
