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Business For Sale
PREMIER FREIGHT TRANSPORTER & DIESEL MECHANIC
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Asking Price: |
Not Available |
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Business for Sale Industry: |
Services: Travel, Transportation
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Yearly Revenues:
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$3,700,000 |
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Yearly EBITDA:
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$688,000 |
Business for Sale Overview:
The Company transports freight to and from locations throughout the US and operates a full service diesel repair shop in Georgia. The Company’s revenue is generated through trucking services (98% of 2006 sales) and garage sales (2%). Garage sales include diesel repair jobs from outside customers. Products transported by the company include light fixtures, fireplace surrounds, cardboard containers, and other miscellaneous products. In 2006, the Company’s top three customers were Cooper Lighting (54% of 2006 sales), Classic Surround (6%), and Greenfield (4%).
Founded in 1968, the Company was incorporated as an S-Corporation in the state of Georgia in 1986. The Company’s ownership was restructured in 2001 after the death of the founder. Demand for trucking services is closely tied to the overall health of the economy, especially to levels of manufacturing, retail sales, and international trade. Because of the high cost of trucks, the profitability of individual companies depends on efficient operations. Large companies can best serve large customers and may have more effective marketing operations and economies of scale in buying fuel. Small companies can compete effectively by offering faster service and may also have lower costs.
Sales grew 12.8% from $3,244,000 in 2004 to $3,658,000 in 2005. In 2006, sales rose an additional 18.9%. This considerable growth in revenue indicates the Company’s potential success and ability to handle additional business going forward.
EBITDA from 2004 through 2006 ranged between 7.0% and 17.5% of sales. Although these earnings varied, they indicate the Company’s efficiency and potential for growth under new management.
The Company transports a variety of products, protecting themselves from a recession in a particular industry. Primary products transported in 2006 include lighting fixtures, fireplace surrounds, cardboard containers, and metal shelving.
The Company’s costs have consistently been below average for the trucking industry proving their efficiency. Historically, their operating costs averaged 88.6% while the industry average was 95.6%.
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