Margins should go higher- Something I have not seen posted in bringing up with margins is that IMO they should improve simply because overhead will be less from fewer people per rev dollar.
The 2nd mill is paid for. The labor work force doesn't have to double in size (and cost) to double production bringing online 2nd mill.
Much of the laborers are polishing plate, packaging it for shipping, etc. So while they likely would need to add some workers I doubt it would be close to double and of course they don't double the SG & Admin costs IMO.
That would improve margins plus Super should carry bigger margins for being the more superior product.
So as revs climb so should margins IMO.
Therefore I think it is oversimplifying as some have done to just double their best EPS Q #s to come up with an upper end range of what they can do with both mills. It should be higher than that IMO. Not sure what it might be but the annual will show us how many people they had to add and give us some hints.
I don't mind stealing bread from the mouths of decadence... But I can't feed on the powerless when my cup's already overfilled.
-Temple of the Dog
