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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
$(200,000)
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
2005 2006 2007 2008 2009
Sales
Expenses
Net Profit
5 years Financial History
5 Years Financial History
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 low-emission 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.
$(1,000,000)
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
Year-1 Year-2 Year-3 Year-4 Year-5
Sales
Gross
Net
FTX
Financing & Milestones
Month-1 Month 12 Year 2 Year 3 Year 4 Year 5
FinancingFinancing National Minority-Owned Business
$500K • Acquire/lease Hybrid vehicles• Hire full-time employees• Dedicated sales force• Internet Order/Pymt Mgmt
Plus $500K• Purchase Logistic Business• 4 local market presence• 4 warehousing facilities
• 1st Round: Raising $500K in Equity Investment• $500K in a 2nd Round Financing
Green Business Status Agents Network in other Local Markets
Logistic and Next Flight Out Services
• Franchise• $5+M in Sales• 50 full-time employees
National Market Presence
Franchise Sales
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
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
Other
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
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 $ (88,740) $ 74,138 $ 353,126 $ 749,756 $ 1,686,786
Net Profit $ (88,740) $ 74,138 $ 353,126 $ 749,756 $ 1,686,786
Net Profit Margin % -7.6% 4.1% 13.2% 18.3% 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-
Delivery-Services.html
http://www.mcaa.com/IndustryResources/IndustryProfile/tabid/186/Default.aspx
Warehousing Industry Data: http://www.firstresearch.com/Industry-Research/Warehousing-
and-Storage.html