FedEx Home Delivery Routes (Scottsdale)

Transcription

1 TROJAN TRANSPORT INC / GROUND FORCE INC N Scottsdale Rd, Ste 601 * Scottsdale, AZ * 480/ * gene@boiseau.com FedEx Home Delivery Routes (Scottsdale) Sales Price: $825,000 Gross Income: $656,000 Net Income: $224,000 (net profit after paying drivers & expenses) Financing: No seller financing available PSA s w/sup, , , w/sup & w/sup We are selling five Home Delivery Primary Service Areas (PSA s) in the desirable Scottsdale area. You will have the exclusive rights to all Home Delivery operations in zip codes 85018, 85250, 85251, & Please see attached map for specific boundaries. These routes have a high stop density and depart the station full each day. Currently five trucks depart the FedEx station in North Phoenix at N 7 th Ave, Phoenix, 85027, but their domicile location will change in October, 2015 to the Tempe station. The route boundaries will not be affected by the station move. The other three trucks currently dispatch from the FedEx station in Tempe at 1666 N McClintock Rd, Tempe 85281, and will not change. Effective October, 2015, all eight trucks and drivers will dispatch from the Tempe station. This is a simple, straight forward business that is profitable even in today's economy. It is not required that the new owner be a driver and experienced drivers are willing to stay with the routes permanently. If you prefer, drive one of the routes yourself and pay yourself a great salary, or have the drivers operate the routes for you and just manage the business. Current owner/contractor has other routes in the station so he will provide as much training as necessary to ensure a smooth transition. Reason for Sale: Contractor still keeping ten routes in Tempe, but will also expand his operation to another state. Absentee Owners and Investors Welcome! We have had lots of requests for information from potential buyers and investors that want to remain 100% absentee. Until now, we have discouraged this because FedEx likes to have a manager at the station daily. Our manager who currently runs the routes would like to stay on board and manage the routes for you. He can handle all aspects of running the routes with absolutely no involvement from you. If you have plans to someday manage the routes, he can mentor you in this process. We pay our managers $44K/year. Of course, if you decide to run the routes yourself, we will provide all the necessary training and guidance. Other Options Effective September, 2014, it is now required that a new contractor wishing to do business with FedEx must initially purchase three or more PSA s. There are a couple exceptions. First, if the selling contractor owns just one PSA, the purchasing contractor can purchase just the single route without having to buy two more. Second, if the selling contractor only owns two routes, the purchasing contractor can buy just the two without having to buy a third. In our case, we hold ownership of just two PSA s ( & ) under a separate entity. Therefore, we can sell them as a pair. If you would like to start route ownership with less than three routes, this will be one of only a few opportunities available! In turn, we will also sell just the remaining three routes as a set. Sale details below:

2 PSA s , & Zip Codes: 85018, 85250, & Included in sale: Three Routes, Five Trucks, Five Drivers Sales Price: $545,000 Gross Income: $428,000 Net Income: $151,000 (net profit after paying drivers & expenses) Financing: No seller financing available PSA s & Zip Codes: & Included in sale: Two Routes, Three Trucks, Three Drivers Sales Price: $295,000 Gross Income: $220,000 Net Income: $62,000 (net profit after paying drivers & expenses) Financing: No seller financing available

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4 GROUND FORCE INC N Scottsdale Rd, Ste 601 * Scottsdale, AZ * 480/ * gene@boiseau.com Condition: Very Good FedEx Truck ID #: , , , , , , , Description: Well maintained by private fleet mechanic. Fully shelved. Truck # Make/Model VIN Miles Workhorse P-500 5B5KP42Y K Workhorse P-500 5B5KP42Y *1K GMC P3500, P-500 1GDKP32YXV K Chevrolet Express 1GCHG39U K Chevrolet Express 1GCHG39U K Dodge Sprinter WD0PD K Dodge Sprinter WD2YD K Dodge Sprinter WD2PD K *New engine installed 4/15/15 P-500 Step Van (3) Chevy Cargo Van (2) P 1000 Step Van Sprinter Vans (3) Confidential & Proprietary Information * Ground Force Inc

5 Primary Service Areas w/sup, , , w/ Sup & w/sup Sales Price: $825,000 Zip Codes 85018, 85250, 85251, & Five Home Delivery Routes (PSAs) with three Supplemental Routes, Eight Trucks, Eight Drivers Income Statement April 2014 March 2015 Jan 14 Feb 14 Mar 14 Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 YTD Revenue 5 Weeks 4 Weeks 4 Weeks 4 Weeks 5 Weeks 4 Weeks 4 Weeks 5 Weeks 4 Weeks 5 Weeks 4 Weeks 4 Weeks Shipping Income PSA $ 12,701 $ 8,971 $ 9,007 $ 7,610 $ 6,582 $ 5,232 $ 4,684 $ 6,256 $ 4,956 $ 9,228 $ 8,863 $ 15,320 $ 99,410 Shipping Income PSA $ 9,101 $ 5,492 $ 5,667 $ 6,859 $ 11,111 $ 7,359 $ 7,143 $ 9,333 $ 7,876 $ 7,483 $ 5,623 $ 10,808 $ 93,855 Shipping Income PSA $ 12,483 $ 6,801 $ 6,486 $ 6,368 $ 7,701 $ 5,773 $ 5,613 $ 7,536 $ 6,148 $ 7,735 $ 6,404 $ 10,916 $ 89,964 Shipping Income PSA $ 10,822 $ 5,690 $ 5,586 $ 8,407 $ 8,368 $ 5,203 $ 5,155 $ 7,033 $ 5,851 $ 7,790 $ 7,042 $ 19,692 $ 96,639 PSA Add Back PSA $ 4,800 $ 4,800 $ 4,800 $ 1,200 $ 6,000 $ 4,800 $ 4,800 $ 6,000 $ 4,800 $ 6,000 $ 3,600 $ $ 51,600 Shipping Income PSA $ 16,594 $ 13,622 $ 11,289 $ 9,346 $ 6,775 $ 5,338 $ 4,739 $ 11,524 $ 10,269 $ 13,080 $ 7,935 $ 5,262 $ 115,773 PSA Add Back PSA $ $ $ $ 1,200 $ 6,000 $ 4,800 $ 4,800 $ 1,200 $ $ $ 4,800 $ 4,800 $ 27,600 Fuel Reimbursement PSA $ 161 $ 114 $ 194 $ 149 $ 114 $ 137 $ 150 $ 139 $ 102 $ 231 $ 245 $ 222 $ 1,958 Fuel Reimbursement PSA $ 178 $ 106 $ 117 $ 344 $ 440 $ 324 $ 316 $ 417 $ 340 $ 298 $ 219 $ 388 $ 3,487 Fuel Reimbursement PSA $ 300 $ 134 $ 144 $ 167 $ 310 $ 237 $ 233 $ 307 $ 269 $ 298 $ 269 $ 389 $ 3,057 Fuel Reimbursement PSA $ 234 $ 98 $ 106 $ 173 $ 291 $ 196 $ 199 $ 256 $ 199 $ 249 $ 263 $ 786 $ 3,050 Fuel Reimbursement PSA $ 392 $ 376 $ 272 $ 207 $ 178 $ 170 $ 143 $ 475 $ 476 $ 555 $ 303 $ 164 $ 3,711 ECCS Bonus for five HD PSA's $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 36,000 SCS Bonus for five PSA's $ $ $ 7,550 $ $ $ 7,550 $ $ $ 7,550 $ $ $ 7,550 $ 30,200 Total Income $ 70,766 $ 49,204 $ 54,218 $ 45,030 $ 56,870 $ 50,119 $ 40,975 $ 53,476 $ 51,836 $ 55,947 $ 48,566 $ 79,297 $ 656,304 Expenses Bank Charges $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 144 Employee Expense $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 240 Fuel Expense $ 2,842 $ 2,273 $ 2,273 $ 2,273 $ 2,842 $ 2,273 $ 2,273 $ 2,842 $ 2,273 $ 2,842 $ 2,273 $ 3,073 $ 30,353 HD NTL & Physical Damage $ 534 $ 427 $ 427 $ 427 $ 534 $ 427 $ 427 $ 534 $ 427 $ 534 $ 427 $ 427 $ 5,553 Legal & Professional Fees $ 35 $ 500 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 885 Office Expenses $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 300 Driver Payroll Expense $ 27,625 $ 22,100 $ 22,100 $ 22,100 $ 27,625 $ 22,100 $ 22,100 $ 27,625 $ 22,100 $ 27,625 $ 22,100 $ 32,100 $ 297,300 Payroll Taxes (9.9% of payroll) $ 2,735 $ 2,188 $ 2,188 $ 2,188 $ 2,735 $ 2,188 $ 2,188 $ 2,735 $ 2,188 $ 2,735 $ 2,188 $ 3,178 $ 29,433 Workers Comp (11.5% of payroll) $ 3,177 $ 2,542 $ 2,542 $ 2,542 $ 3,177 $ 2,542 $ 2,542 $ 3,177 $ 2,542 $ 3,177 $ 2,542 $ 3,692 $ 34,190 Scanner Rental $ 594 $ 476 $ 476 $ 476 $ 594 $ 476 $ 476 $ 594 $ 476 $ 594 $ 476 $ 714 $ 6,420 Uniform Expense $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 360 Vehicle Maintenance $ 2,308 $ 1,846 $ 1,846 $ 1,846 $ 2,308 $ 1,846 $ 1,846 $ 2,308 $ 1,846 $ 2,308 $ 1,846 $ 1,846 $ 24,000 Temporary Truck Rental $ $ $ $ $ $ $ $ $ $ $ $ 3,600 $ 3,600 Total Operating Expenses $ 39,936 $ 32,439 $ 31,974 $ 31,974 $ 39,936 $ 31,974 $ 31,974 $ 39,936 $ 31,974 $ 39,936 $ 31,974 $ 48,752 $ 432,777 Net Income $ 30,830 $ 16,765 $ 22,244 $ 13,056 $ 16,934 $ 18,145 $ 9,001 $ 13,540 $ 19,862 $ 16,011 $ 16,592 $ 30,545 $ 223,527 *1. Shipping Income Actual settlement numbers used for the last rolling twelve months. *2. We just moved a supplemental route from adjacent route not included in this sale and added it to PSA effective WE 4/17/15. We have conservatively estimated incremental revenue at $1100/week. *3. We recently purchased PSA Previous contractor ran route without its supplemental route for 23 weeks. We have permanently added back supplemental route and adjusted revenue by $1100/week. *4. Fuel reimbursement Actual settlement numbers used for the last rolling twelve months. *5. ECCS is based on new settlement agreement for each Home Delivery route $600/month per PSA. *6. SCS based on settlment contract for five $7550 per quarter. *7. Fuel expense based on 8 trucks at 12 miles a gallon times 2480 miles a $2.75/gallon $568.33/week. $200/week added for temporary vehicles for four weeks in December. *8. HD NTL Insurance is $5.83 per vehicle per week. Physical Damage Insurance is 3.91% annual rate of vehcile stated value ($10,000 x 8 trucks = $80,000 x 3.91%). Combined = $106.79/week *9. Legal & Professional fees = $35/month for accounting software and annual tax return for +/ $500 *10. Payroll expense = eight drivers: $625/week, $700/week, $725/week, $750/week (Total = $5525/week). Four seasonal driver's salaries of $625/week added for four weeks in December *11. Full time manager $44K/year. Not included in income statement as not a required expense. *12. Employer contribution of payroll taxes = +/ 9.9% (Soc Sec Tax = 12.4% + Medicare Tax = 2.9%/2 = 7.65% employer contribution % for Fed & State Unemployment Tax) *13. Current workers comp rate is 11.92% with an annual discount that drops it to 11.5% *14. Scanner rental = $14.86 per week per driver. Four extra scanner rentals for four weeks added in December *15. Vehicle maintenance for Home Delivery vehicles +/ $3000/year per vehicle.

6 Primary Service Areas , w/ Sup & w/sup Sales Price: $545,000 Zip Codes 85018, & Three Home Delivery Routes (PSAs) with two Supplemental Routes, Five Trucks, Five Drivers Income Statement April 2014 March 2015 Jan 14 Feb 14 Mar 14 Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 YTD Revenue 5 Weeks 4 Weeks 4 Weeks 4 Weeks 5 Weeks 4 Weeks 4 Weeks 5 Weeks 4 Weeks 5 Weeks 4 Weeks 4 Weeks Shipping Income PSA $ 12,483 $ 6,801 $ 6,486 $ 6,368 $ 7,701 $ 5,773 $ 5,613 $ 7,536 $ 6,148 $ 7,735 $ 6,404 $ 10,916 $ 89,964 Shipping Income PSA $ 10,822 $ 5,690 $ 5,586 $ 8,407 $ 8,368 $ 5,203 $ 5,155 $ 7,033 $ 5,851 $ 7,790 $ 7,042 $ 19,692 $ 96,639 PSA Add Back PSA $ 4,800 $ 4,800 $ 4,800 $ 1,200 $ 6,000 $ 4,800 $ 4,800 $ 6,000 $ 4,800 $ 6,000 $ 3,600 $ $ 51,600 Shipping Income PSA $ 16,594 $ 13,622 $ 11,289 $ 9,346 $ 6,775 $ 5,338 $ 4,739 $ 11,524 $ 10,269 $ 13,080 $ 7,935 $ 5,262 $ 115,773 PSA Add Back PSA $ $ $ $ 1,200 $ 6,000 $ 4,800 $ 4,800 $ 1,200 $ $ $ 4,800 $ 4,800 $ 27,600 Fuel Reimbursement PSA $ 300 $ 134 $ 144 $ 167 $ 310 $ 237 $ 233 $ 307 $ 269 $ 298 $ 269 $ 389 $ 3,057 Fuel Reimbursement PSA $ 234 $ 98 $ 106 $ 173 $ 291 $ 196 $ 199 $ 256 $ 199 $ 249 $ 263 $ 786 $ 3,050 Fuel Reimbursement PSA $ 392 $ 376 $ 272 $ 207 $ 178 $ 170 $ 143 $ 475 $ 476 $ 555 $ 303 $ 164 $ 3,711 ECCS Bonus for three HD PSA's $ 1,800 $ 1,800 $ 1,800 $ 1,800 $ 1,800 $ 1,800 $ 1,800 $ 1,800 $ 1,800 $ 1,800 $ 1,800 $ 1,800 $ 21,600 SCS Bonus for five PSA's $ $ $ 3,650 $ $ $ 3,650 $ $ $ 3,650 $ $ $ 3,650 $ 14,600 Total Income $ 47,425 $ 33,321 $ 34,133 $ 28,868 $ 37,423 $ 31,967 $ 27,482 $ 36,131 $ 33,462 $ 37,507 $ 32,416 $ 47,459 $ 427,594 Expenses Bank Charges $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 144 Employee Expense $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 240 Fuel Expense $ 2,103 $ 1,682 $ 1,682 $ 1,682 $ 2,103 $ 1,682 $ 1,682 $ 2,103 $ 1,682 $ 2,103 $ 1,682 $ 2,282 $ 22,467 HD NTL & Physical Damage $ 334 $ 267 $ 267 $ 267 $ 334 $ 267 $ 267 $ 334 $ 267 $ 334 $ 267 $ 267 $ 3,471 Legal & Professional Fees $ 35 $ 500 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 885 Office Expenses $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 300 Driver Payroll Expense $ 17,250 $ 13,800 $ 13,800 $ 13,800 $ 17,250 $ 13,800 $ 13,800 $ 17,250 $ 13,800 $ 17,250 $ 13,800 $ 21,300 $ 186,900 Payroll Taxes (9.9% of payroll) $ 1,708 $ 1,366 $ 1,366 $ 1,366 $ 1,708 $ 1,366 $ 1,366 $ 1,708 $ 1,366 $ 1,708 $ 1,366 $ 2,109 $ 18,503 Workers Comp (11.5% of payroll) $ 1,984 $ 1,587 $ 1,587 $ 1,587 $ 1,984 $ 1,587 $ 1,587 $ 1,984 $ 1,587 $ 1,984 $ 1,587 $ 2,450 $ 21,494 Scanner Rental $ 372 $ 297 $ 297 $ 297 $ 372 $ 297 $ 297 $ 372 $ 297 $ 372 $ 297 $ 476 $ 4,042 Uniform Expense $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 360 Vehicle Maintenance $ 1,442 $ 1,154 $ 1,154 $ 1,154 $ 1,442 $ 1,154 $ 1,154 $ 1,442 $ 1,154 $ 1,442 $ 1,154 $ 1,154 $ 15,000 Temporary Truck Rental $ $ $ $ $ $ $ $ $ $ $ $ 2,400 $ 2,400 Total Operating Expenses $ 25,314 $ 20,740 $ 20,275 $ 20,275 $ 25,314 $ 20,275 $ 20,275 $ 25,314 $ 20,275 $ 25,314 $ 20,275 $ 32,559 $ 276,206 Net Income $ 22,111 $ 12,581 $ 13,858 $ 8,593 $ 12,109 $ 11,692 $ 7,207 $ 10,817 $ 13,187 $ 12,193 $ 12,141 $ 14,900 $ 151,388 *1. Shipping Income Actual settlement numbers used for the last rolling twelve months. *2. We just moved a supplemental route from adjacent route not included in this sale and added it to PSA effective WE 4/17/15. We have conservatively estimated incremental revenue at $1100/week. *3. We recently purchased PSA Previous contractor ran route without its supplemental route for 23 weeks. We have permanently added back supplemental route and adjusted revenue by $1100/week. *4. Fuel reimbursement Actual settlement numbers used for the last rolling twelve months. *5. ECCS is based on new settlement agreement for each Home Delivery route $600/month per PSA. *6. SCS based on settlment contract for three $3650 per quarter. *7. Fuel expense based on 5 trucks at 12 miles a gallon times 1835 miles a $2.75/gallon $420.52/week. $150/week added for temporary vehicles for four weeks in December. *8. HD NTL Insurance is $5.83 per vehicle per week. Physical Damage Insurance is 3.91% annual rate of vehcile stated value ($10,000 x 5 trucks = $50,000 x 3.91%). Combined = $66.75/week *9. Legal & Professional fees = $35/month for accounting software and annual tax return for +/ $500 *10. Payroll expense = five drivers: $625/week, $725/week, $750/week ($3450/week). Three seasonal driver's salaries of $625/week added for four weeks in December *11. Full time manager $44K/year. Not included in income statement as not a required expense. *12. Employer contribution of payroll taxes = +/ 9.9% (Soc Sec Tax = 12.4% + Medicare Tax = 2.9%/2 = 7.65% employer contribution % for Fed & State Unemployment Tax) *13. Current workers comp rate is 11.92% with an annual discount that drops it to 11.5% *14. Scanner rental = $14.86 per week per driver. Three extra scanner rentals for four weeks added in December *15. Vehicle maintenance for Home Delivery vehicles +/ $3000/year per vehicle. *16. Two temporary rental vehicles added for four weeks in December to handle seasonal volume.

7 Primary Service Areas w/sup & Sales Price: $295,000 Zip Codes & Two Home Delivery Routes (PSAs) with one Supplemental Route, Three Trucks, Three Drivers Income Statement April 2014 March 2015 Jan 14 Feb 14 Mar 14 Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 YTD Revenue 5 Weeks 4 Weeks 4 Weeks 4 Weeks 5 Weeks 4 Weeks 4 Weeks 5 Weeks 4 Weeks 5 Weeks 4 Weeks 4 Weeks Shipping Income PSA $ 12,701 $ 8,971 $ 9,007 $ 7,610 $ 6,582 $ 5,232 $ 4,684 $ 6,256 $ 4,956 $ 9,228 $ 8,863 $ 15,320 $ 99,410 Shipping Income PSA $ 9,101 $ 5,492 $ 5,667 $ 6,859 $ 11,111 $ 7,359 $ 7,143 $ 9,333 $ 7,876 $ 7,483 $ 5,623 $ 10,808 $ 93,855 Fuel Reimbursement PSA $ 161 $ 114 $ 194 $ 149 $ 114 $ 137 $ 150 $ 139 $ 102 $ 231 $ 245 $ 222 $ 1,958 Fuel Reimbursement PSA $ 178 $ 106 $ 117 $ 344 $ 440 $ 324 $ 316 $ 417 $ 340 $ 298 $ 219 $ 388 $ 3,487 ECCS Bonus for two HD PSA's $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 14,400 SCS Bonus for two PSA's $ $ $ 1,700 $ $ $ 1,700 $ $ $ 1,700 $ $ $ 1,700 $ 6,800 Total Income $ 23,341 $ 15,883 $ 17,885 $ 16,162 $ 19,447 $ 15,952 $ 13,493 $ 17,345 $ 16,174 $ 18,440 $ 16,150 $ 29,638 $ 219,910 Expenses Bank Charges $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 $ 144 Employee Expense $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 240 Fuel Expense $ 739 $ 591 $ 591 $ 591 $ 739 $ 591 $ 591 $ 739 $ 591 $ 739 $ 591 $ 791 $ 7,886 HD NTL & Physical Damage $ 200 $ 160 $ 160 $ 160 $ 200 $ 160 $ 160 $ 200 $ 160 $ 200 $ 160 $ 160 $ 2,083 Legal & Professional Fees $ 35 $ 500 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 885 Office Expenses $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 300 Driver Payroll Expense $ 10,375 $ 8,300 $ 8,300 $ 8,300 $ 10,375 $ 8,300 $ 8,300 $ 10,375 $ 8,300 $ 10,375 $ 8,300 $ 10,800 $ 110,400 Payroll Taxes (9.9% of payroll) $ 1,027 $ 822 $ 822 $ 822 $ 1,027 $ 822 $ 822 $ 1,027 $ 822 $ 1,027 $ 822 $ 1,069 $ 10,930 Workers Comp (11.5% of payroll) $ 1,193 $ 955 $ 955 $ 955 $ 1,193 $ 955 $ 955 $ 1,193 $ 955 $ 1,193 $ 955 $ 1,242 $ 12,696 Scanner Rental $ 223 $ 178 $ 178 $ 178 $ 223 $ 178 $ 178 $ 223 $ 178 $ 223 $ 178 $ 238 $ 2,378 Uniform Expense $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 240 Vehicle Maintenance $ 865 $ 692 $ 692 $ 692 $ 865 $ 692 $ 692 $ 865 $ 692 $ 865 $ 692 $ 692 $ 9,000 Temporary Truck Rental $ $ $ $ $ $ $ $ $ $ $ $ 1,200 $ 1,200 Total Operating Expenses $ 14,735 $ 12,275 $ 11,810 $ 11,810 $ 14,735 $ 11,810 $ 11,810 $ 14,735 $ 11,810 $ 14,735 $ 11,810 $ 16,304 $ 158,381 Net Income $ 8,606 $ 3,608 $ 6,075 $ 4,352 $ 4,712 $ 4,142 $ 1,683 $ 2,610 $ 4,364 $ 3,705 $ 4,340 $ 13,334 $ 61,529 *1. Shipping Income Actual settlement numbers used for the last rolling twelve months. *2. We just moved a supplemental route from adjacent route not included in this sale and added it to PSA effective WE 4/17/15. We have conservatively estimated incremental revenue at $1100/week. *3. We recently purchased PSA Previous contractor ran route without its supplemental route for 23 weeks. We have permanently added back supplemental route and adjusted revenue by $1100/week. *4. Fuel reimbursement Actual settlement numbers used for the last rolling twelve months. *5. ECCS is based on new settlement agreement for each Home Delivery route $600/month per PSA. *6. SCS based on settlment contract for two $1700 per quarter. *7. Fuel expense based on 3 trucks at 12 miles a gallon times 645 miles a $2.75/gallon $147.81/week. $50/week added for temporary vehicle for four weeks in December. *8. HD NTL Insurance is $5.83 per vehicle per week. Physical Damage Insurance is 3.91% annual rate of vehcile stated value ($10,000 x 3 trucks = $30,000 x 3.91%). Combined = $40.05/week *9. Legal & Professional fees = $35/month for accounting software and annual tax return for +/ $500 *10. Payroll expense = three drivers: $625/week, $700/week, $750/week (Total = $2075/week). One seasonal driver salary of $625/week added for four weeks in December *11. Full time manager $44K/year. Not included in income statement as not a required expense. *12. Employer contribution of payroll taxes = +/ 9.9% (Soc Sec Tax = 12.4% + Medicare Tax = 2.9%/2 = 7.65% employer contribution % for Fed & State Unemployment Tax) *13. Current workers comp rate is 11.92% with an annual discount that drops it to 11.5% *14. Scanner rental = $14.86 per week per driver. One extra scanner rental for four weeks added in December *15. Vehicle maintenance for Home Delivery vehicles +/ $3000/year per vehicle. *16. One temporary rental vehicle added for four weeks in December to handle seasonal volume.