Jeff Geygan's questions to MIL leadership • Q3 2015
Question
Jeff Geygan from Milwaukee Private Wealth Management sought to reconfirm the 15% return on equity target given the reduced equity base and asked for specifics on how management plans to achieve this, confirming that gross margin expansion is the key metric.
Answer
CFO Sam Morrow reaffirmed the target of at least 15% ROE. He and CEO Gerardo Cortina detailed the plan to leverage their supply chain platform with new banking and financial services, which they believe will increase gross margins to at least 10% and drive profitability. Cortina confirmed that improving gross margins is the primary measure of success for the new strategy.