Transcript Slide 1
Post Office Box 1778
Goodlettsville, TN 37070-1778
(615) 859-9980
Considerations of Deployment of
Direct-to-Satellite Tank and
SmartHome™ Monitoring
Systems
A Product Developed Over Time:
16 Years in the making
At an investment of $6.8 million
Protected by 22 patent claims (domestic), Foreign
claims through WIPO under PCT (Canada, Japan,
China, Israel, Australia, Mexico, All countries of
Western Europe, Brazil) (Additional patents pending)
US & Foreign Copyrights
A Product Developed Over Time:
Consulting with senior officials of:
DirectTV
EchoStar
DishNetwork
ISAT
Axonn
Loral
AeroAstro
GlobalStar
Iridium
SES Global
SES Americom
24 propane distribution companies
SkyTracker™ History
October 1988: First Transmissions – based on
technology used at Hatfield Marine Institute
(Smithsonian Magazine).
1999: Century Propane Company affiliated
with America’s Family Entertainment (AFE).
Began work on SkyTracker™.
2002: NASCorp founded (acquired America’s
Family Entertainment).
SkyTracker™ History
In 2004 the first beta SkyTrackers™ were
deployed. Today they have the equivalent of
13 years of transmissions (Sagamore Gas &
Appliance, National Gas Distributors, Lindens
Propane).
October 2005, First production model
SkyTrackers™ released to Auxier Gas,
National Gas Distributors, Sagamore Gas &
Appliances, Farmer’s Co-op, Salley’s Propane,
Propane Direct, Chapp & Bushy Oil Co. and
Erie Shore Propane.
Shared With Industry Veterans
Pat Walsh (FerrellGas) October 1988
Wallace Willard (President-MPGA)1989-1996
The late Milford Therrell (Squibb-Taylor)\
May 1994
4,200 NPGA Members - 2000
24 independent propane dealers became
stockholders of NASCorp - 2000
Industry Recognition
NASCorp’s SkyTracker™ is listed on both
National PERC’s Remote Tank Monitoring
Matrix and NPGA’s Marketer’s Management
Forum Telemetry Questionnaire. Both
describe the Company, our commitment to the
industry and many of the Remote Tank
Monitoring Industries’ firsts that
SkyTracker™ offers.
SkyTracker™
Today, SkyTracker™ is used by 400 gas
distribution companies, public utilities, refined
fuel dealers, and gas processing companies in
…
48
states
10 Canadian provinces
Australia, Jamaica, Suriname, Puerto Rico,
Honduras and Israel.
Transmits Data For
Government: NASA (White Sands Missile Test
Center), NORAD, San Francisco International
Airport, hundreds of federal and state DOT
locations, dozens of schools in the U.S.,
Canada and Australia.
Care facilities: Walter Reed Hospital, nursing
homes, three dozen hospitals in Australia
doctor’s offices and urgent care facilities.
Transmits Data For
Commerce & Agriculture: Ruby Tuesday, Dunkin’
Donuts, Hampton Inns, AmericInns, Wal-Mart,
Home Depots, Flying J., Big Sur Lodge, Sandals
Resorts, Telus, Cylinder and Motor Fuel
Dispensers, Temp-Heat, Poultry, Grain Drying,
Dairy Farming, Nurseries and Orchards and
Irrigation engines.
Residences: Tiger Woods, Olin Browne, Nelly
Furtado, Greg Norman, Chris Everett Lloyd
Credible Experience, Leadership
First remote tank monitoring
system to be made by propane
dealers for propane dealers
R. L. (Rick) Humphrey – Inventor
Missouri University – Cape Girardeau, MO (BS –
Marketing Management and Accounting; MBA –
Architectural Engineering
Advanced: Accounting, Law, Steven R. Covey (7
Habits Trainer)
Sears Roebuck Extension Institute
Manager Trainee – Sears Roebuck & Company.
Dunn & Bradstreet Credit and Financial
Management
Rode bobtail & tank setter at what is now AmeriGas’
Crystal City, MO facility with uncle, Lee White,
(Albright-White)
Williams Energy Company (1973-1979)
Retail Sales Manager
National Director of Advertising & Promotion
Contracted with Minnie Pearl, Grandpa Jones &
George “Goober” Lindsay as national spokespersons
Director of National Accounts (Wendy’s, Pizza Hut,
GTE, Ford, GM, Union Electric, Ponderosa, GE,
KOA, City of San Carlos, NASA)
Buckeye Gas Products Company (19791986)
Grand Rivers Division Manager (leader in
acquisitions of 200+ independent propane dealers)
Gas Check Trainer (300 service techs)
FerrellGas (1986-1990)
Grand Rivers Region Manager
32 locations, 35 MM gallons, $6.9M EBITDA
Century Propane Company, Inc.
Start-ups:
Cape Girardeau, MO
Potosi, MO
Saint Genevieve, MO
Paris, MO
Ironton, MO
12,000 End Users
10 MM Gallons
32 Vehicle Fleet
Truck Fabrication Shop
Acquisitions:
Discovery Propane, AZ
E-Z Stop Propane, AZ
Kilarney Gas, MO
Bass Gas (IN)
Burna Propane, KY
Jim Thomas Propane, KY
S & S Propane, TN
Claire Gas, MO
Dawson’s, MO
Associations
IPGA – Presidential Appointee (1983-1986)
MPGA – Director (1986-1998)
NPGA (1983-present):
Market Development Committee
Consumer Focus Committee
Governmental Affairs Committee
Author of PERC legislation (1989-1992).
Sponsored first PERC Congressional Bills (MOPERC) 1993.
1st PERC Chairman (MO PERC) 1993-1997.
Through Experience, Humphrey
Concluded:
Degree
Day/Julian Day scheduling only
accurate for 75% of end users
– Resulting in Wasted Stops/Wasted Trips
– While other customers ran out of fuel
– 85% of accidents occur when the customer has run
out of gas
That
meter gas systems were inefficient and
incurred gas losses
“Milk-Man” or “Drive-By” propane delivery
was equally inefficient
A Better Way……….
Efficient tank routing through…
Accurate remote-tank monitoring over…
100% geographic coverage with…
Nothing to install inside the customers’ home or
business, allowing…
Consumption billing, eliminating gas losses,
wasted trips, out-of-gas incidents and accidents
Resulting in dependable fuel deliveries
The Team That Built:
NASCorp Board Of Directors
• Dwayne McKinney, Vice-President Chair – Marketing
(Pegasus/DirecTV)
• Mayor Danny Leverette, Secretary
• Joe Crocitto, Treasurer (United States Army)
• Dennis Moreno, Director & Chair – Administration (TN Titans)
• Dan Smith, Director & Chair – Technical Standards (ADI)
• Robert (Bob) Shannon, Director (The Shannon Group)
• Charley Hutchins, Director (Sagamore Gas & Past President of
IPGA)
• R. L. (Rick) Humphrey, Chairman
Advisors:
Ephriam Hoover III (Hoover, Inc.)
Gaylord Cole (Cracker Barrel & Logan’s Road House)
Key Employees
• Marty Brasher – Director; Operations and Technical
Services (formerly Production Manager for Nissan)
• Cathy Story – Director; Accounting
• Tabitha Martin – Account Executive Western US and
International
• Tony Ginnetti – Account Executive Eastern US,
Canada, and Australia
• Nancy A. Burnett – General Counsel (licensed in NY
and TN)
Why Consider Remote-tank
Monitoring…
Defray
delivery costs ($200.00 barrels predicted)
Improved safety because higher prices = customer
working off tank bottom = out-of-gas incidents =
85% of industry accidents
Improved Customer Service = “Dependable tank
monitoring & refilling” which is the second most
important requirement of end-users, per State of
the Industry Survey (LP Gas Magazine)
What Retailers Say Their Customers
Value Most :
1
“Quick response to problems”
“Dependable tank monitoring and refilling”
“Flexible payment options” (Consumption
Billing)
“Predictable prices”
“Lower prices”
1 State
of the industry Survey (of propane dealers) as compiled by LP-Gas
Magazine
A Compilation from the Survey
Assumes:
Annual cost of propane delivery service
(per end-user)
1M – 2M Gallon Distribution Plants
$5.00 per gallon Diesel
Derived from: State of the Industry Survey LP-Gas
Magazine
Average bobtail miles driven annually per customer
45
44.2
40
35
34.8
34.0
33.0
Assumed
30
31.9
28.5
25
20
15
10
5
0
500
500999
1,000- 2,000- 4,0001,999 3,999 5,999
6,000
Vehicle Costs
Assuming 33 miles:
33 ÷ 4.5 MPG = 7.33 gal x $5.00 =……………... $36.65
$100,000. Vehicle cost - $10,000. Salvage ÷
$90,000.÷ 5 yr. = $18,000. ÷ 2,000 customers=……. 9.00
Insurance ($1,500.),Taxes & License ($400.)
Maintenance/Tires/Oil ($3,100.00)+$5,000
÷ 2000 customers = ……………………………
Average Annual Vehicle cost per customer…….
2.50
$48.15
====
Cost of Drivers:
Wage $14.03 p/hr. x 2,080 hrs =………………………
FICA $29.182 X 7.65% =………………………………
FUTA & State ($11,000 X 4.5%) =…………………….
Workers Comp ($8.00 p/c) =…………………………
Uniform Allowance =………………………………….
Medical Insurance (Co Pay 82.4%) =…………………
Periodic Training/Certification/DOT =…..…………
Retirement Comp 4% =……………………………….
Total Driver Cost =
Customers
Total Driver Cost Per Customer
$ 29,182.40
2,232.45
495.00
2,378.00
400.00
3,955.20
500.00
1,167.30
$ 40,260.35
÷ 891___
$
45.19
Other Costs
Of course, back office support, your executive’s salary, and a return
on-investment from your customer tank assets, bulk-plant and
service vehicles must still be included:
Customer Service Representative @10.00 per hour plus taxes
and some benefits $24,847.20 per year or $12.43 per
hour divided by 891 customers
$
29.01
Executive Salary, taxes and benefits (double the driver)
$
90.38
ROI on bulk plant investment, inventory, 891 customer
storage tanks, A/R, furnishings, tools, technology
Deployment, etc.
$ 237.34
Annual Per Customer Cost:
Vehicle Expense
Driver Cost
Back-Office Support
Executive Management
ROI on Customer Total Assets
$ 48.15
45.19
29.01
90.38
$237.34
Total Cost Per Customer Per Year
$450.07
=====
Change How You Do Business
No matter how you cut this figure, for a residential
customer, your cost per stop is well over $75.00. In
fact, it is over $100.00 per stop. The task today is to
reduce the number of stops per year. It means:
No more wasted trips.
It means knowing what the propane level is in your
customer’s tank before the truck leaves the plant yard.
It means efficient deployment despite imperfect tools,
seasonality of business, vastly different resources, etc.
And it requires the most important element:
leadership by you.
Is The Business Tool
of Leaders……..
Six Relevant Areas That Must be Done Well.
SkyTracker™
Controls Costs Through:
Effective scheduling and routing
Performance Management System
Effective Customer Order Management System
Customer Relations & Proper Tank Sizing
Efficient Resource Deployment
Efficient Operating Models
(Ask your NASCorp Account Executive for Details)
Proven Solutions That Work
Effective Leadership
Use of Information Technology
Increase gallons per Bobtail
Perfect the Predicted Demand System
Manage the Will Call Customer
Attract and Retain Quality Drivers
Effective Product Pricing
Implement Performance Management
Choose Vendors that are Seamless
Train and Change
(Ask your NASCorp Account Executive for Details)
Why Consider SkyTracker™?
Installs in under 3 minutes on ASME tanks
Does not require appointment with customer or
conversion of customer’s digital phone back to
outdated analog
100% coverage – North America
95% coverage – Worldwide
Nothing inside customer’s home or business
Why Consider SkyTracker™?
It does not interfere with 911 emergency calls.
Data received through multi-lingual website, cell
phone, downloadable files and API
Security of transmissions, data storage and website
SkyTracker™ Subscriber’s Trust Agreement (SSTA)
SkyTracker™ will not require change out when
analog competitor’s equipment becomes obsolete due
to government mandate requiring digital signal
(cellular control channel)
A Closer Look…….
SkyTracker™ Engineering
Firmware Engineering
Software Engineering
Equipment Engineering
Server Engineering
Service Engineering
Revenue Engineering
Third-Party Compliance & Audit Reviews
SkyTracker™ Firmware Engineering
Standard Reporting – When tank is filled, at 10% drop,
critical lows, out-of-ordinary events (stuck float, end-user
away from home, excessive use), and every third day
Optional Reporting – Daily or Twice per day, Vertical
(linear) tank, Bulk/Transport storage (10,000 W.C. – 90,000
W.C.), Capacitance (non-pressurized fluids)
Ground Station 10x Amplification of SkyTracker™
transmission will enhance coastal areas (Fall 2008) – will
apply to all units currently in the field
SkyTracker™ Software Engineering
Supports Copyrighted Multi-Lingual (English, Spanish,
French, Russian, Portuguese) Website
1.6 Million Copyrighted Lines of Code (26,000 pages)
Patented Color-Coded Data Displays for “at-a-glance”
information
Escrowed into SkyTracker™ Subscribers Trust Agreement
(SSTA)
Long Term Agreements with software vendors
Reviewed by Audit and Compliance Group
Backed-up every 30 seconds (active and passive servers) with
daily tape back-up and 30 day disc back-up for escrow
NASCorp “Firsts”
NASCorp is the first in the industry to offer an
API so dealers can merge SkyTracker™ data
with their own accounting or routing software
through their providers of that service.
Another NASCorp first is the ability of
NASCorp dealers to recover their tank level
information over their cell phone (any
Windows®-based smart phone design).
SkyTracker™ Demo Log-In Info.
To see current ‘live’ color-coded satellite tank data at existing
end-user locations:
Go to www.nascorp-skytracker.com.
Click “Welcome” in the language of your choice and the log-in
page will appear
Enter “skytracker@demo” (without the quotations) for the
Username and enter “demo” (without the quotations) for the
Passcode. The color-coded tank levels page will appear on
your screen
Be sure to further click on “Details” and “Graph” (Elmer
Gantry being the most active) and also check out the routing
and sorting features
SkyTracker™ Equipment Engineering
Patented Degree-Day & Julian Day
Recorders on Board
Transmits Data in the Noise Spectrum (nondetectable, non-decodable)
6 Fleets of 8 LEO satellite pass overhead
every 300 seconds
Polls for change every hour 24/7/365
(Transmits changes and every third day
(Standard Reporting Plan)).
SkyTracker™ Equipment Engineering
(continued)
Enclosure is made of ballistic plastic, UV
rated, fire-retardant materials.
Antenna designed by Mark Ingals, engineer
for XM-Radio and GM OnStar’s satellite
antennas
Two Greenwich clocks – Tracks time zone
and satellite time (20 year service life on
clock batteries)
Two super-caps for power-up assurance
SkyTracker™ Equipment Engineering
(continued)
Self-contained – nothing to install in the
customer’s home or business
Battery installs in field with Phillips
screwdriver (optional power supplies
available)
ETL, UL & ANSI rated for use with hazardous
materials specifically in environments
were propane is present.
SkyTracker™ Server Engineering
NASCorp has designed and developed the fastest and most
unique Web applications in the industry and backed them up
with NASCorp’s own IBM X-Series servers for the most
secure redundant data storage, not only in the industry, but in
almost any industry. In short, we offer the safest and most
secure data transmissions, storage and recovery systems in the
industry.
Level(3) Co-Location Center - Under Armed Guard
Duplicate Power Grids
Multiple Internet Pipes
Escrowed into SSTA
Reviewed by Audit & Compliance Group
SkyTracker™ Servers
IBM X-Series Machines
Six in Cluster
Active-Passive Servers with three back-ups
Sixth server for API
IBM Guarantee (99.999% up-time, 2 hours maximum
down-time)
Other servers come on-line if one or more fail, so
virtually no down-time for propane distributors or
their end users
Escrowed into SSTA
Reviewed by Audit & Compliance Group
SkyTracker™ Service
Same Day Responses
100% Testing
SSTA
Reviewed by Audit & Compliance Group
NASCorp offers “live” tech support, both
for equipment and Web application.
NASCorp’s competitors primarily utilize
LP gas equipment distributors, so direct
customer support is non-existant.
Revenue Engineering
For dealers, SkyTracker™ pays for itself
through operating expense reductions and
true dealer revenue-generating services,
i.e.; Web page access by end-users and
SkyHelp Services™, API, consumption
billing, etc.
Revenue Generation
End-user Website Access........................................
“Never Out” Programs……………………………
SkyHelp™ Services (Indoor)
Indoor Low Temperature…………...................
LowTemp and C3H8 Leak..……………………
LowTemp, C3H8 Leak & CO Detection………
SkyHelp™ Services (Outdoor)
Outdoor Low Temperature…………................
LowTemp with 1 Murphy switch……………..
LowTemp w/ 2 Murphy switches……………..
Consumption Billing (meter charge)………………
$9.99-24.99
Varies
$9.99
$14.99
$19.99-24.99
$9.99
$24.99
$29.99-39.99
$10.99-19.99
Consumption Billing
Another First for NASCorp is our development of an
effective method of consumption billing which:
Eliminates wasted stops saving time, energy, fuel
and wear and tear on trucks
Dealer retains ownership of the fuel at end-user
locations
End-users pay only for the fuel they use each
month
Offered in conjunction with API or Excel
Downloadable Files
NASCorp Third-Party Audit &
Compliance Checks
Another industry first is that NASCorp backs
all of this up with The Compliance and Audit
Group, a third-party company which provides
computer privacy and security auditing,
education and consulting, as part of our
ongoing effort to maintain and continually
improve the safety and security of our
customer’s data.
New Developments
NASCorp’s ongoing commitment to the
refinement of SkyTracker™ hardware,
software and Web applications is
unprecedented. SkyTracker™ has been
adapted for extended life battery power, 12v.
sources, power displays, variant tank gauges,
vertical tank level gauges, refined fuel gauges,
capacitance gauges, cryogenic solutions and
solar adaptation
Final Considerations
A technology base today positions you to take
on additional benefits tomorrow
Eases the “shock” for your employees, your
customers, and on your P&L and Balance
Sheet
It adds to more than your bottom line though
market advantage, image and customer and
employee perception
Final Considerations continued
The costs of lost opportunities in not making a
decision are simply too high. To wait for the
cost to come down will mean you will pay the
same as if you had the technology (due to
inefficient operations) and still not have the
technology. Costs will not come down enough
to offset the current value of operating savings
you can realize today.
SkyTracker™ tank monitoring. Its
reliable and cost effective.
Ask About NASCorp’s Blanket Purchase Order
Quantity Discounts (100 units+)
Equipment
Activation
Monitoring
Ancillary Items
Payment Terms
Limited Three (3) Year Warranty
Business Rules
Payment Terms
Net 20 days from NASCorp date of
shipment
Warranty items will be handled outside
and separate of payment terms
Quantity Discounts Example
Quantity (12
Months)
Equipment (ii)
(Reg. $314.99)(iv)
Activation
(Reg. $39.99)
Monitoring
(Reg. $4.00)
Total Quantity
Discounts
Earned
1,000
$15.00/$15,000.00
$20.00/$20,000.00
Waived 1st 3 mos./$12,000.00
$47,000.00
2,500
$15.00/$37,500.00
$25.00/$62,500.00
Waived 1st 3 mos./$30,000.00
$130,000.00
5,000
$15.00/$75,000.00
$25.00/$125,000.00
Waived 1st 3 mos./$60,000.00
$260,000.00
10,000
$15.00/$150,000.00
$30.00/$300,000.00
Waived 1st 3 mos./$120,000.00
$570,000.00
20,000
$25.00/$500,000.00
$30.00/$600,000.00
Waived 1st 4 mos./$320,000.00
$1,420,000.00
Note:
• Quotes Good for 30 days
• All sales subject to Business Rules.
• Includes SkyTrackerTM, base plate, tape, hall sensor-cable,
standard Battery Pack, 12 volt capability, Rochester Jr. or Sr.
Remote-Ready dials.
• All terms are net 20 (days). First and last months monitoring fee will
be collected at the time of order. Last month monitoring fees placed
in the SSTA.
• Bulk/Transport Storage (Plant) SkyTrackerTM is $399.99
(equipment). Monthly monitoring is $14.99. Qualifies for quantity
discounts based on the above schedule.
Member of:
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National Propane Gas Association
Western States Petroleum Marketer’s Association
Association of The United States Army
Missouri Propane Gas Association
Illinois Propane Gas Association
Texas Propane Gas Association
Michigan Propane Gas Association
Tennessee Propane Gas Association
Kentucky Propane Gas Association
Minnesota Propane Gas Association
Propane Gas Association of Canada