Opportunities
Passive Railroad Terminal Company
$2.9M in assets and plentiful growth opportunities!
Specifications
This railroad terminal operation is entirely passive, with a 36 employee team of highly competent and cross-trained individuals maintaining daily operations. Included in the deal is $2.9M in assets! This company also boats an impressive set of growth opportunities. Expanding their service area further south, adding another fully functional terminal, increasing commodities, and looking further into increasing residual waste removal services all offer clear routes to further growth for an already strong operation.
Serving the Mid-Atlantic to Northeast region of the U.S. for over 20 years, this family of companies offers railroad terminal operation for inbound & outbound freight clients, clerical & inspection work for inbound & outbound rail freight, equipment maintenance & repair, and transloading of commodities such as frac sand, swamp mats, propane, residual waste, hazmat materials, and agricultural products. The diverse customer base consists of transportation providers, oil & gas companies, agriculture industry clients, PennDOT, the energy sector, and plastics & lumber clients. The owner is retired and has an adult daughter who will stay on for 5+ years and continue as General Manager.
Corporate headquarters are in Scranton; this entity supports the accounting/bookkeeping, insurance needs, and HR. There is an intermodal terminal operations company also located in Pennsylvania, and a bulk rail facility in New York that is a short line railroad and is project-oriented, handling everything from mats for pipelines, re-bar for road construction, and utility poles for the power industry. The fourth entity is a rail facility in Pennsylvania with a certified truck scale and multiple conveyers.
The team is comprised of 1 Operations Manager/Communications Director, 1 VP of Business Development, 1 Controller, 1 Accounting/HR, 1 Safety Officer/Project Oversight, plus a number of day managers, night managers, mechanics, transload operators, crane operators, truck drivers, and clerical staff. Assets include 6 sand trans loaders/conveyers, 4 hostler trucks, 2 overhead gantry cranes, a vacuum lift, and a variety of heavy lifting equipment & heavy construction pieces.
Business Highlights
Year
Established: 20+ years
Location: Pennsylvania
& New York: 4 Locations
Service
Area: Mid-Atlantic to Northeast U.S.
Services: Railroad terminal operation for inbound/outbound
freight clients, clerical & inspection work for inbound & outbound rail
freight, equipment maintenance & repair, transloading of frac sand, swamp
mats, propane, residual waste, hazmat materials, agricultural products, etc.
Clients: Transportation providers, oil & gas
companies, agriculture industry,
PennDOT, energy sector, plastics & lumber clients
Reason for
Selling: Retirement / Age
Personnel: 36: Owner + 1 Operations Manager/Communications
Director, 1 VP Business Development, 1 Controller, 1 Accounting/HR, 1 Safety
Officer/Project Oversight, plus a number of day managers, night managers,
mechanics, transload operators, crane operators, truck drivers, and clerical;
All cross-trained to work at each location
Seller
Training Period: Seller is currently passive, with an adult daughter and son-in-law
running the day-to-day operations; both want to remain in active positions
under new ownership. Owner would remain available for 1 year if desired.
Growth Opportunities: Expand service area, add another terminal, increase commodities, look further into increasing residual waste removal services
Financial Highlights
- List Price: $6,450,000
- Gross Sales:
- 2021: $4,192,564
- 2020: $3,683,862
- 2019: $4,414,018
- Cash Flow:
- 2021: $1,276,530
- 2020: $1,405,191
- 2019: $1,715,404
Cash Flow Analysis
| Description of Financial Statement | P&L Statement Combined | P&L Statement Combined | P&L Statement Combined | Notes |
| 2021 | 2020 | 2019 | ||
| GROSS SALES | $4,192,564 | $3,683,862 | $4,414,018 | |
| Net Income Shown on Financial Statement | $398,232 | $153,951 | $130,410 | 2020 & 2021 are adjusted for PPP loan |
| ADDBACKS | ||||
| Compensation to Owner | $234,000 | $350,000 | $234,900 | |
| 11% Tax on total W2 Salaries | $25,740 | $38,500 | $25,839 | |
| Depreciation | $171,476 | $172,056 | $181,660 | |
| Interest | $74,927 | $68,282 | $125,005 | |
| Outside Prepaid Expenses | $205,000 | $0 | $0 | |
| Life & Health Insurance | $34,800 | $76,522 | $24,000 | |
| Management Fee | $0 | $500,625 | $546,000 | |
| Travel | $71,009 | $59,125 | $5,351 | |
| Meals & Entertainment | $5,848 | $6,469 | $5,518 | |
| Amortization | $1,650 | $2,642 | $333 | |
| Equipment Rental | $8,496 | $0 | $148,886 | 95% Internal - Non-Onward Going |
| Contributions/Donations | $3,352 | $560 | $2,525 | |
| Auto Allowance | $12,000 | $0 | $0 | |
| Fuel | $6,000 | $0 | $0 | |
| Rental Property | $24,000 | $0 | $0 | |
| TOTAL ADDBACKS | $878,298 | $1,274,781 | $1,300,017 | |
| Seller's Cash Flow = Total Addbacks + Net Income | $1,276,530 | $1,428,732 | $1,430,427 | |
| Profit Margin | 30.45 % | 38.78 % | 32.41 % |
- Combined Profit Margin: 30%
Clients
- Transportation Providers
- Oil & gas companies
- Agriculture Industry
- PennDOT
- Energy sector
- Plastics & lumber clients
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
Services
- Lift operations
- In/Out gate equipment processes and inspections
- Operations & maintenance of various intermodal overhead and side lift equipment
- Ownership & operations of hostler equipment & services
- Various additional customized services such as reefer refueling, equipment inspections, maintenance & repairs, etc.
- Complete turnkey facility operations
Personnel
- 1 Owner: general oversight, building professional relationships
- 1 Operations Manager/Communications Director
- 1 VP of Business Development
- 1 Controller
- 1 Accounting/HR
- 1 Safety Officer/Project Oversight
- Several day managers, night managers, mechanics, transload operators, crane operators, truck drivers, and clerical staff
All employees are cross trained to work at each location.
Growth Opportunities
- Expand service area
- Look further into increasing residual waste removal services
- Participate in additional commodities
- Win new terminal contracts
- Acquire other operators
- Expand operations on the bulk side to start additional terminals in areas not well served, particularly on short lines
Funding Example
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