Case 14-5 Quality Waste Removal Company Information Eastmond Waste (EW or the "Company") is a nonpublic regional waste removal company that operates primarily in the Midwest. The Company earns revenues from residential and commercial garbage and recycling collections. A summary as follows: of EW's financial results as of and for the year ended December 3, 20, is 12/31/2011 in millions) 12/3 1 /2011 (in millions) Assets Cash Receivables Other current Income summary 255 158 49 12 12 Revenues 3 Operating expenses SG&A expenses Current assets Property, net Identifiable intangible assets, net 54 Interest expense Taxe 131 112 Net income 17 Other assets Total assets Liabilities and equity Accounts payable& accrued expenses Line of credit Current portion of long-term debt Other S 23 15 Current liabilities Long-term debt 211 49 Total liabilities and equity Growth Strategy The Company actively seeks out local waste Acquisitions of businesses inside EW's territory are referred to as "tuck-in acquisitions." Tuck-in acquisitions allow the Company to expand its revenue base and at the same time reduce its cost per customer. (Cost reductions are primarily the result of improved route efficiencies.). Expanding into new markets provides another means of revenue growth and provides another market in which the Company may be able to add tuck-in acquisitions in the future. companies in its crrent or adjacent markets