KBFP interview from theaxcess.net:
KBF Pollution Management's Interview
Axcess Business News noted that KBF pollution Management (KBFP) has shown impressive growth several years in a row. That growth had exceeded even the company's estimates, which to date have been more than accurate in its own forecast disclosed in their prior earnings announcements.
According to Market Guide, the 5-yr earnings per share growth estimates for this hazardous wastewater recycling company's industry group is 25.93% per year.
The Company had announced a 25% increase in revenue for the year 2001 and immediately following that announcement on May 23, KBFP released news showing another 35% increase in revenue for that quarter. That growth exceeded their industry group's average by 30% for that period and matched the Groups estimates for the prior year.
Axcess Business News asked Mr. Kevin Kreisler about those impressive results and what he attributed that success to. "Our performance can only be attributed to better than expected demand for our services. While many of our customers have decreased the levels of hazardous waste due to general economic conditions, we increased our customer base substantially due to ongoing sales efforts," said KBFP President, Kevin Kreisler.
Mr. Kreisler then stated that, "fundamentally, these increases were made possible by our investment in our hazardous waste facilities. Our core competency is the large scale recycling and mining of a broad array of hazardous wastes with our technologies. We have carefully managed our infrastructure development to match our growth in sales. Many of the customers we've added are Fortune 500 companies that expect to increase their volume over time as the economy improves."
Axcess Business News saw that shortly before those earnings announcements, KBFP had announced the completion of a $500,000 financing for equipment and plant expansion. We asked Mr. Kreisler how those improvements added to KBFP's increase in revenue.
"The new equipment increased cost-efficiency and enhanced our waste processing capabilities, enabling us to do more at a lower cost structure," said Mr. Kreisler.
KBFP's most recent announcement on Nov 14th seems to support the Company's estimates given in those prior earnings announcements. Axcess Business News noticed too, that KBFP is finally in the black. Hitting your targeted growth two years in a row says a lot for your Company's management team. But now that you are profitable, is it still in the Company's plans to buy back shares in the foreseeable future as you had indicated in your Aug 8th news release?
"Absolutely! As revenues continue to improve with our realization of targeted revenue and profitability benchmarks the Company plans to invest in our shareholder wealth in increasing degrees," said Kreisler.
One last question, you had announced a letter of intent to acquire R. M. Jones & Co on Dec 19, 2001 and its now been a year since you entered into that agreement. Since then, you've met or exceeded your revenue estimates, expanded your customer base and financed the upgrade of you plant. It appears that you're going ahead with your plans. Were all these improvements part of your plans to acquire R M Jones in meeting that agreement's terms and conditions?
"Our overall improvements have been tactical, yes. These components are part of our overall strategic plan to bring our technologies to market in a very meaningful way. We have discovered an economically attractive and scalable means to drive environmental impact," said Kreisler.
"You had commented on our management team earlier, everyone at KBF is part of our team and they have all worked collectively to improve our results and yes, the plant's improvements certainly do support our ongoing growth, but the strides are just the beginning of what we are in the process of achieving," said Kreisler.
"As for the R M Jones acquisition, we had released definitive terms and conditions of that agreement in our press release on Dec 19, 2001. Do these improvements help toward completing that transaction? You be the judge of that. KBF Pollution Management will disclose any information about Jones' acquisition when appropriate," said Kevin Kreisler, President, KBF Pollution Management, Inc (OTCBB: KBFP) in his closing statement.
Axcess Business News believes KBFP has more going for it than Mr. Kreisler disclosed. We noticed that the Company had given estimates of future revenue and earnings in its September 26, 2002 Letter to the Shareholders, where Mr. Kreisler had stated that, "After the consolidation, our company will grow organically within the Northeastern and New England regions, generating a projected $3 million in EBITDA on over $19 million in sales in the first year after the acquisition. Assuming our existing facility achieves 30% of its capacity three years after the acquisition, revenue and earnings growth are expected at rates of more than 20% and 40%, respectively, per year for at least the three years subsequent to the acquisition (in the absence of additional acquisitions)."
IF KBFP is still saying they're going through with the R M Jones acquisition on Sept 26, chances are the acquisition is in the slate of near-term events for this hazardous waste recycling company and if history repeats itself as it often does, Mr. Kreisler's estimates of $19 million in cumulative sales he described in that shareholders letter are much lower than can be expected.
Axcess Business News does not believe their estimates to be accurate. We believe its more like $25 million and EBIDA nearer $5 million than $3 million. It's no wonder KBFP intends on buying back shares off the market.
The Company's got an impressive record for doing what they set out to do and we wouldn't be surprised if Mr. Kreisler has his eye on other acquisition targets besides R M Jones. "In the absence of additional acquisitions," it says in that Sept 26 letter to the shareholders. Kreisler's Crew seems to be very strategic planners and when they move its very well thought out and methodically executed.
Axcess Business News continues to believe, as Mr. Kreisler, that KBF Pollution Management's shares are undervalued as we had indicated in our article on "green or mean returns".
More on KBFP:
If you are interested in learning more about KBFP, you will find a free Investor Kit link on the top of every page throughout their profile. Investor Kit links are provided as a courtesy to our readers, your information will only be given to that Company. We will forward your request, or you can contact them directly through their web site by clicking on the KBF logo at the top of this page. You can also access the announcements mentioned in this interview, a business description and disclosure information obtained from the otcbb.com web site. Each of these pages have quote boxes to look up the stock and the Investor Kit links.
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