ALY---The presentation at the oil service conference was much better yesterday than the one last week. CEO spent two minutes or so gushing about their recent acquisition of rental equipment. Seems the business is a serious cash cow. Yet it's based in 1 location with a large portion of their business going to just 4 customers. ALY has already spread the equipment to their 25 locations and is targeting their 300+ customers with it. That's why the CEO was so excited at the possibilities of growth.
He did discuss 2006 projections in an off-hand way. He said that if you took current internal growth projections and the rental acquisition at 2005 numbers (with no growth) ALY would be at the $50M range EBITDA with then deductions of $14-15M for depreciation & $14-15M for interest and also they're figuring 7-8% tax rate.
If you like ALY it is worth listening to the presentation. His enthusiasm for where the rental business is going to go is exciting.
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