You are a newly hired business analyst with an engineering background. You’ve be
ID: 1110573 • Letter: Y
Question
You are a newly hired business analyst with an engineering background. You’ve been told to look at a company called Heritage Crystal Clean. To do so, please look at their 2012Annual Report at the site:
https://www.last10k.com/sec-filings/hcci/0001403431-13-000007.htm
Answer the following questions, based on your review of these materials (All answers are worth 5 points):
(1) What industries can Crystal Clean be described as being in (See the 10-K Annual report tab)?
(A) Environmental services (parts cleaning, waste management and vacuum truck management
(B) Zinc metals recovery
(C) Oil Business (used oil collection, used oil re-refining)
(D) Electric arc furnace dust recycling
(2) Which activities do you think are important for Crystal Clean to do well in to succeed (circle all that you think apply)?
(A) Finding sources of low cost electric arc furnace dust
(B) Understanding the laws governing disposal of used solvents
(C) Collecting used motor oil
(D) Re-refining used motor oil
(3) From a Porter’s Five Forces perspective, identify each of the following with the appropriate “Force” (Competition/Rivalry, Bargaining Power of Suppliers, Bargaining Power of Customers, Threat of New Entrants, Threat of Substitutes):
(A) A competitor has announced a new synthetic lubricating oil based on an improved process that makes it from natural gas rather than re-refined lube oil or crude oil
(B) Two competitors announced they are expanding the capacity of their plants
(C) Buyers of re-refined lube oil are want to negotiate the price they purchase lube oil from you downward because they have many alternative sellers to buy from
(D) Used motor oil providers to the re-refinery want to negotiate a higher price
(E) Chevron has announced a new lube oil facility that is starting up this year in Mississippi
(4) What was Crystal Clean’s reported revenue for the full year of 2012 (see the Earnings Release tab)?
(A) $152.9 million
(B) $252.5 million
(C) $550,000
(D) $80 million
(5) Was there a significant addition to revenues from full year 2011 to full year 2012?
(A) This information is not available in the report
(B) Yes, a jump to $252.5 million from $152.9 million
(C) No, revenue growth was close to flat at 13 %
(D) The report only shows net income information
(6) Did cash provided by operating activitiesincreasefrom 2011 to 2012 (look at pg 52 in the 10-K Annual Report tab)?
(A) Yes
(B) No
(C) This cannot be determined
(7) Did total share holder equity increase from 2011 to 2012(look at pg49 in the 10-K Annual Report tab)?
(A) Yes
(B) No
(C) This cannot be determined
(8) Did Crystal Clean get cash in 2012 from issuing stock(look at pg 52 in the 10-K Annual Report tab)?
(A) Yes, but it is not shown in the table
(B) Yes
(C) It can’t be determined
(9) What did Crystal Clean do to promote growth (See the Earnings Release tab)?
(A) Expanded their Indianapolis re-refinery to 75 million gallons
(B) Shutdown the Indianapolis re-refinery
(C) Bought Mirachem
(D) Sold Mirachem since it was losing money
Explanation / Answer
Ans 1 correct option is A & B .) Explanation : The full name of the company is the heritage Crystal clean inc symbol NASDAQ (HCCI) .As the name itself contains clean hence it is into environmental services which includes parts cleaning and waste management and vaccum truck management.It is also into the business of used oil refining and the waste management services are for hazardous and non-hazardous substance.
Ans 2) The activities that are important for crystal Clean are :Option C & Option D. Explanations : For the fiscal year 2012 revenue incresed 65.2 percent to $ 252.5 million as accoreding to 152.9 million in the yaer 2011.Out of which oil contributed to about $ 80 million.Secondly profits are affected negatively by commodity pricing
.Ans.4 Option B .$ 252.5 million.
Ans 3 .For option A .the answer is Threat of substitutes- as it is cleared that with the entry of lubricating based on improved process act as a substitutes to the products of crystal clean as also substitutes are those which have a negative impact on the demand for the other product.Option B . the ans . is compititors and rivalry. For option bargaing power of customer . Option D. bargaing powers of suppliers option e} threat of new entrant. hope answer to it
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