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Category: Business and Industry
Date Submitted: 10/26/2015 01:00 AM
Kwantlen University
ENTR 3120 – Managerial Accounting
Take Home Case #1 - Luminous Lighting Inc.
Luminous Lighting Inc. sells a wide range of residential, commercial and industrial
lighting products including lamps, ceiling lights, metal floor lamps, discharge lamps,
ballasts and lighting fixtures. Located in Vancouver, British Columbia, its products are
sold around the world, but primarily in Canada and the United States.
Company Background
Partners Craig Regensburg and Paul Smith were life-ling friends who grew up in Surrey,
British Columbia. After graduating high school in the 1990’s Craig went on to get his
electrical certificate from BCIT and worked at a reputable commercial electrical
contractor firm for a number of years. Paul, having worked in the office furniture supply
business, encouraged Craig to invest in a small office furniture and supply re-sale
consignment business. The store was moderately successful and after two years the
partners sold the business, generating a modest profit for themselves.
In 2011, Craig and Paul purchased Luminous Lighting from a retiring baby boomer. At
the time of purchase, the company offered a wide range of products in both the
residential and commercial/industrial lighting markets. Since the acquisition, the partners
have opted to expand the business in the area of commercial and industrial lighting
because it offers attractive, sizable contracts, healthy profit margins, and a growing
market place. In 2013 total sales for Luminous Lighting equaled $18,250,000 with
commercial sales representing 75% of the total business. Sales to the United States
represent 68% of total commercial and industrial sales.
Industrial lighting is the company’s most profitable division and has seen significant
growth in the last year. Since 2013, the company has developed a niche in vintage style
industrial lighting. Many of the products have been salvaged from industrial sites and
reworked to meet safety standards....