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Re: None

Thursday, 12/19/2013 4:18:04 PM

Thursday, December 19, 2013 4:18:04 PM

Post# of 28870
Total DID have the revenue numbers. That is not where the problem came in, that resulted in them being removed from the RENU company.

Revenue is not the same as profit. Revenue is the gross amount of cash generated from the sale of goods or services delivered. Associated costs (materials, salaries, etc) and overhead are deducted from the revenue, and in a positive situation, you have a profit; in a negative one you have a loss.

A company can have $100M in revenue, but if they have $100M +$1 in costs, they have experienced a loss.

With Total, to my understanding, the revenue numbers that were forecasted were accurate, and were realized. However, when those revenues were being applied to costing, not all of the "costs" were acceptable and "approveable" by RENU management, (outside the scope of RENU's umbrella). Therefore, Total's deal was rescinded.

Now, having ES completely under RENU, with no other tentacles attached, all revenues generated by ES are solely paired with costs incurred by ES. Profits should be experienced and will be evidenced in the summation of realized earnings (paid in full) and accounts receivables (billed, but not yet paid- pending).

Since sales force is paid on a "performance basis", and management is not currently taking a salary, the formula to arrive at profit margins should be fairly easy to ascertain. Job A costs $X and includes X% of commission and X% of profit. Sell price includes all of the above. Financing is already taken care of via Green Sky and Federal/State rebates.

Nemes has actually taken the model from Total, tweaked it and injected it, and now just needs to grow the brand and the customer base for it. From what I'm hearing, he's being very successful at doing both.

Just my 2 cents. Have more venison to grind.

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