Jonathan Chaplin:
"Dexter, I guess my follow-up question would be, what do you lose in terms of the sort of the consolidated purchasing benefits that you were looking for when you set ATS up in the first place?"
Dexter Goei:
"Well, it’s interesting. It’s a very good question. Our view on ATS is that, even though it will become a wholly-owned subsidiary of AT U.S., we definitely want to continue to run it as if it was a third party supplier. The attention and the benefits that we’ve received in terms of efficiencies and performance have been material, and so the way we’re organizing ourselves to host them back within is to effectively leave them as an existing separate business. You’ll see it consolidated in our accounts but in terms of how we operate that business, it’ll be run as if it was a separate business today. We use the analogy of the difference between a spring cleaning and a move out of house. The creation of ATS was a move and it created tremendous amount of synergies and we started seeing that in Q3 and Q4 of this year and we expect to see material numbers coming out of it in 2018. But the reality of it is the complexity of the organization lends itself to bringing it back in-house from a consolidation standpoint but from an operation standpoint we’re going to keep it completely separate given that the move has been made and we’ve been reaping the benefits of that."
`https://www.sec.gov/Archives/edgar/data/1702780/000110465918001528/a17-28980_9fwp.htm' [page 9]
5 replies (most recent on top)
Hot new!! ATS is up of sale!!!!
Dexter was a bad choice for a ceo. He has no experience in this industry.
Investors can't possibly be this foolish to trust Dexter and any of his bogus projections.
It's so obvious that he's full of crap. That response is further proof of that.
I bet the investors are scratching their heads like we are because we know this split is not working and cable plants are falling apart everywhere. The Investors know that its just a move to show a better financial statement and Altice is just buying time they don't have
Investors should push a full financial audit because Altice has not been paying many operational bills and their accounts payable are not correct on the balance sheet.
So altice could rid of ats at any moment?