A Brief History of PRG -, page-25

I disagree that immediate past results from PGR and SKE are irrelevant. Perhaps if youre a new holder it may be irrelevant, but for those who were SKE holders or pre acquisition PRG this management mob is the same one who made the decision to acquire SKE on the basis of blue sky results. The results of today are supposed to be at an advantage based on the acquisition of SKE... and the results are not great, no where near great. There is about 300 mil of market cap missing!

It remains difficult to determine what 'restructuring' costs are related to the acquisition and which are actions in response to bad decisions. It seems from last years report Sutherland set up about 4 or 5 divisions with a reporting line of CEO's in each of these divisions. This was the acquisition restructre. That would mean that each division had its own corporate structure (i.e. a HR Safety team, bid management, BDS, finance team payroll etc) replicated and add the cororate overhead with its own executives. Thats crazy. PRG/SKE was supposed to use its size to gain effeciancies. Return on capital is significantly under utilised.

As I read the report, the structre set up post acquisition to form one trading business was changed again. That doesn't make it acquisition costs, it is just bad management/decision making.

The cash flow numbers need to be looked at very carefully. The aggregates need to be broken up. What you can't see is what bothers me. The dividend based on todays SP might look ok, but lets not forget PRG alone was trading at higher levels (over $2 close to $3) and SKE was a much larger organisation with a historical higher profitability/return. Heaps of value is missing... squandered. I'm waiting until Oct before jumping in.