Transcript Slide 1
A Minority Owned & Green Business Offering Same-day Express Delivery & Warehousing Services FTX Overview Established in 1998 as a California Limited Liability Company (LLC) 24/7/365 express same-day courier and warehousing service in Southern California market. Operating successfully for 12 years Average annual sales at $1 Million Blue-chip clients (FedEx, DHL, Dynamex, etc…) Awards, certificates and praises Objectives: Hire full-time staff and dedicated sales force National minority-owned business status Green business recognition with hybrid vehicle fleet Grow the business to $5+M in sales in 5 years FTX 5 years Financial History 5 Years Financial History $1,400,000 $1,200,000 $1,000,000 $800,000 Sales $600,000 Expenses $400,000 Net Profit $200,000 $$(200,000) 2005 2006 2007 2008 2009 With no full-time staff and dedicated sale force Managing principals performing multiple responsibilities including deliveries FTX FTX Services Express Same-Day Delivery & Courier Services: Urgent day or night deliveries and related services. Local pickup and delivery services. Hot shot services when needed fast. Scheduled LTL & FTL, Container, Air, Truck, Multi-modal services NextFlight Warehousing & Related Services: Temperature controlled warehousing facilities. State-of-the-art inventory management. Immediate consolidation of all shipments and deliveries. Warehousing arranged nationally and internationally Staffed 24/7/365 FTX FTX Business Plan Objectives Change the business model from primarily using contractors to hiring full-time staff to take advantage of Government incentives Hire and grow a dedicated sales/marketing force Achieve national Minority-Owned Business status to be able to capitalize on special quota based contracts in organizations Promote a Green business model by acquiring a fleet of hybrid vehicles to target environmentally conscious customers Invest in effective sales & marketing initiatives Expand presence in strategic national markets. Reach revenue target of $5+M in 5 years FTX Market Analysis US Express Delivery Services Industry 12,000 companies with annual revenue of $75 Billion. Highly concentrated with 90% revenue generated by the largest companies. 7,000 companies in the less than 24 hours same-day-delivery service category (FTX market segment) Highly fragmented local messenger segment: 35% revenue generated by 50 largest companies US Warehousing & Storage Industry 7,000 companies with annual revenue of $21 Billion 50 largest companies generate 40% of the revenue 65% of industry revenue is in General Warehousing category (FTX market segment) FTX Sales & Marketing Provide highly reliable client focused customized services catering to specialized needs (24/7/365) Target large express delivery companies (FedEx, UPS, DHL, etc...) for long-term outsourcing contracts. Seek Green contracts with environmentally conscious companies Target corporations with quota for minority-owned businesses. Build a network of agents to grow the service offerings to other strategic local markets nationally. Grow the warehousing services as a strategic profit center FTX Competitive Analysis Two Categories of Competitions 1. Direct: Similar same-day-delivery & warehousing companies operating in southern California market. 2. Indirect: Large express delivery companies (e.g. FedEx, UPS, etc). However these companies are FTX customers for its outsourcing services. FTX will compete by: Offering highly reliable and customer focused services to specialized needs of its clients. Promoting a environmentally conscious Green Business using lowemission hybrid vehicles. Achieving a national Minority-Owned business status to win special contracts Using latest computer technologies to improve efficiencies and effective usage of Internet as a marketing and order management channel. FTX Revenue & Profitability Revenue projections assumes: Hiring and growing a dedicated sales/marketing force with target revenue objectives. Break even in 2nd year. $5+M in Sales and $1.5+M Net Profit in the 5th year. $7,000,000 $6,000,000 $5,000,000 $4,000,000 Sales $3,000,000 Gross $2,000,000 Net $1,000,000 $$(1,000,000) Year-1 Year-2 Year-3 Year-4 Year-5 FTX Financing & Milestones Logistic and Next Flight Out Services Green Business Status Financing Month-1 Agents Network in other Local Markets National Minority-Owned Business Month 12 $500K • Acquire/lease Hybrid vehicles • Hire full-time employees • Dedicated sales force • Internet Order/Pymt Mgmt Franchise Sales National Market Presence Year 2 Year 3 Plus $500K • Purchase Logistic Business • 4 local market presence • 4 warehousing facilities Year 4 Year 5 • Franchise • $5+M in Sales • 50 full-time employees • 1st Round: Raising $500K in Equity Investment • $500K in a 2nd Round Financing FTX Summary FTX Objectives: Align business as a national Minority-owned business Green business model with Hybrid vehicles Hire full-time employees for current Government incentives Successful Existing Operation: Average $1 Million sales without dedicated sales force and full-time employees Financing Requirement: $500K in equity Investment Additional $500K in a 2nd Round Investment opportunity: To participate in existing and a future national FTX franchise opportunity FTX Appendix FTX Financial Details YEAR-1 YEAR-2 YEAR-3 YEAR-4 YEAR-5 Sales $ 1,170,000 $ 1,788,750 $ 2,683,125 $ 4,100,625 $ 6,150,938 Direct Cost of Sales $ 175,500 $ 268,313 $ 402,469 $ 615,094 $ 717,609 Total Cost Of Sales $ 175,500 $ 268,313 $ 402,469 $ 615,094 $ 717,609 Gross Profit $ 994,500 $ 1,520,438 $ 2,280,656 $ 3,485,531 $ 5,433,328 Other Gross Margin% 85% 85% 85% 85% 88% Total Operating Expenses $ 1,083,240 $ 1,446,300 $ 1,927,530 $ 2,735,775 $ 3,746,543 Profit Before Interest &Tax $ $ $ 353,126 $ 749,756 $ 1,686,786 Net Profit Net Profit Margin % $ (88,740) (88,740) -7.6% $ 74,138 74,138 4.1% $ 353,126 13.2% $ 749,756 18.3% $ 1,686,786 27.4% FTX Current Customers List FedEx DHL Sameday Dynamex Logistics Network Global Logistics Yourway Transportation Kuehne-Nagel Logistics Lasership GCD Dr. Vanessa Parker Excella Payroll Renaissance Image Center Foundation Mechanics Quick International Courier KLM Onsite Solutions FTX Data Source: Research & Links Express Delivery Service Market data: http://www.firstresearch.com/industry-research/Express-DeliveryServices.html http://www.mcaa.com/IndustryResources/IndustryProfile/tabid/18 6/Default.aspx Warehousing Industry Data: http://www.firstresearch.com/Industry-Research/Warehousingand-Storage.html FTX Pictures of Current Operation FTX