The Veld Group Listings: Palm Springs Manufacturing Company

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Palm Springs Manufacturing Company

Industry Description	Outdoor Equip. Mnfr.	SIC 3432-03 (Sprinkler Mfr).	3524 04 (Lawn Eq. Mfr)
Days Open	Mon ≠ Fri	Year Established	1989
Hours of Operation	8 ≠ 5pm	Years Owned	1989
Full-time Employees	11	Part-time Employees	0
Other Notes
Hours/wk by Owner	40	Owners Duties	Mngt. Oversight
Skills / Licenses Reqπd	Varies; Contractorπs a +	Training Offered / Cost	4 weeks
Non-Compete Terms	As Necessary

Exec. Summary	Extensive company history with positive net income every year since inception

Lease / Bldg. Info.	Sellers Own	Monthly Rent	$2,700
Lease Commenced	n/a	Deposit	TBD
Lease Expires	April 2005	Term & Option	TBD
Bldg./Area Description	Semi-Industrial	Square Footage	4,131
Seats, Pkg, Zoning, etc.	Large parking lot / bay door attached to building

Reason for Sale	Personal reasons
Financial Summary	Current Yr. Annual	2003 / Owner to Prove	2002 / Owner to Prove
Gross Revenue	Up 5-10% over 2003	$971,188	$650,640
COGS		$422,834	$228,984
Rent / CAM		$32,400	$32,400
Payroll		$237,016	$177,811
Net Profit (before tax)		$179,000	$142,000
Discretionary Cash		$265,000	$234,412 (π01 $265k)

Included in Sale	Assets		Liabilities
FF&E Included	$250,000	Lease Obligations	$0
Inventory Included	$50,000	Debt Included	$0
Other Assets Included		Other Liabilities	$0
Working Capital (not incl)		Return on Sale Price

Asking Price	$750,000	Owner Financing/Terms	Owner Will Consider
Earnest Money Dep.	$10,000	Down Payment	$300,000

Opportunity Summary

Headline

Palm Springs Manufacturing Company

Summary

This unique company specializing in custom design and, if merited, the installation of a commercial or high end residential indoor or outdoor, landscaping and / or special effects related product. The company prides itself on over 15 years of profitability, as well as an extensive client base of high-profile global corporations, and nationwide distributors. Current year revenues are expected to exceed $1 ml. Specific end-users for this environmental control technology may include hotels, restaurants, malls or high end residential homeowners. While the vast majority of product is sold via distributors, the firm does engage in some custom installation (accounting for a small percentage of total revenues) Such installation projects may for this firm's product for amusement park rides, motion picture special effects, green houses, etc. (the use of a licensed contractor is required for installation).

Facilities / Assets

The business operates out of an 8,518 square foot owner, occupied building (potentially available for sale). The building consists of office and warehouse space with adjacent parking. The building is currently set up for 2 separate tenants, so if purchased, it is a source of additional income. Fixed assets include production equipment and vehicles with fair market value in excess of $250,000.

Competition

Approximately 2 other firms manufacture a similar product and generate similar gross revenues, however, this firm is considered a market leader. One competitor is local while the other is based on the east coast. Various other small manufacturers produce non-industrial grade products.

Growth Potential

Many opportunities for expansion exist.

Other

This company could successfully be relocated.

8721 West Sunset Blvd. • Suite 103 • Los Angeles, CA 90069 ph 310•652•VELD {8353} fx 310•652•8363 toll free 866•600• 8353 {VELD}
contact@theveldgroup.com

Opportunity Summary
Headline	Palm Springs Manufacturing Company
Summary	This unique company specializing in custom design and, if merited, the installation of a commercial or high end residential indoor or outdoor, landscaping and / or special effects related product. The company prides itself on over 15 years of profitability, as well as an extensive client base of high-profile global corporations, and nationwide distributors. Current year revenues are expected to exceed $1 ml. Specific end-users for this environmental control technology may include hotels, restaurants, malls or high end residential homeowners. While the vast majority of product is sold via distributors, the firm does engage in some custom installation (accounting for a small percentage of total revenues) Such installation projects may for this firm's product for amusement park rides, motion picture special effects, green houses, etc. (the use of a licensed contractor is required for installation).
Facilities / Assets	The business operates out of an 8,518 square foot owner, occupied building (potentially available for sale). The building consists of office and warehouse space with adjacent parking. The building is currently set up for 2 separate tenants, so if purchased, it is a source of additional income. Fixed assets include production equipment and vehicles with fair market value in excess of $250,000.
Competition	Approximately 2 other firms manufacture a similar product and generate similar gross revenues, however, this firm is considered a market leader. One competitor is local while the other is based on the east coast. Various other small manufacturers produce non-industrial grade products.
Growth Potential	Many opportunities for expansion exist.
Other	This company could successfully be relocated.