Blue Rhino Slows Down to Get Ahead
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Blue Rhino Slows Down to Get Ahead
Blue Rhino is a publicly traded corporation based in Winston-Salem, North Carolina, that considers itself the national leader in propane cylinder exchange services. Owners of propane-fueled backyard grills can visit nearly 30,000 retail locations, including Home Depot, Wal-Mart, and Kmart, in 48 states and Puerto Rico to exchange their empty propane cylinders for full cylinders provided by Blue Rhino. The company employs 355 workers, 63 percent of whom fulfill distributor operations duties. The remaining employees serve in the departments of administration and finance, sales and marketing, information systems, and warehouse operations. In addition to its cylinder exchange services, Blue Rhino markets a number of propane-related products including grills, outdoor heaters, and pest control devices.
In operation for only a decade, Blue Rhino’s business is growing rapidly. Its revenue for the fiscal year 2003 reached $258.2 million, which was an increase of 86 percent over two years. The company’s operating income soared by over 500 percent during the same period. Much of this growth is a result of a relatively recent change in approach to propane cylinder transactions. Traditionally, propane grill