Railroad Terminal Logistics--20+ Years in Operation
4 locations and 32% profit margin!
This rail freight and bulk transfer logistics business has a 32% profit margin, over $2M in assets, and been deemed an essential business during COVID! 4 locations in Pennsylvania & New York support a very diversified customer & industry base! 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. Everyone on the team of 36 highly experienced staff is cross-trained and can work at each separate entity within this company. 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.
- 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: 1 year if desired; has adult daughter who will stay on 5+ years and continue as GM
- Growth Opportunities: Expand service area, add another terminal, increase commodities, look further into increasing residual waste removal services
- Current Owner’s Responsibilities: Retired, Management in place
- List Price: $7,650,000
- Gross Sales:
- 2020: $4,490,022
- Cash Flow:
- 2020: $1,428,816
- Equipment/Vehicles: $2,220,404: 6 sand trans loaders/conveyers, 4 hostler trucks, 2 overhead gantry cranes, vacuum lift, variety of heavy lifting equipment & heavy construction pieces
- Inventory: $59,873
- A/R: $205,038
*amounts may vary, assets may be depreciated, replacement cost, or fair market value
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
|Net Income Shown on Financial Statement||$130,410||$560,822||$316,293|
|Compensation to Owner||$350,000||$234,900||$227,900|
|11% Tax on total W2 Salaries||$38,500||$25,839||$25,069|
|Pension||$7,861||$7,861||$7,816||1/2 Owner in Headquarters|
|Life & Health Insurance||$24,000||$24,000||$24,000||$2,000/month in Headquarters|
|Management Fee||$500,625||$546,000||$637,845||Paid Internally - Phantom Expense 75%|
|Travel||$29,771||$5,351||$31,152||50% Personal from all entities|
|Meals & Entertainment||$6,467||$5,518||$9,182|
|Equipment Rental||$97,124||$148,886||$117,714||95% Internal - Non-Onward Going|
|Seller's Cash Flow = Total Addbacks + Net Income||$1,428,816||$1,715,404||$1,979,705|
|Profit Margin||31.82 %||31.99 %||28.85 %|
- Combined Profit Margin: 32%
- Transportation Providers
- Oil & gas companies
- Agriculture Industry
- Energy sector
- Plastics & lumber clients
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
- 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
- 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.
- 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
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
|Monthly Payment to Bank:||$|
|Yearly Payment to Bank:||$|
|Monthly Payment to Seller:||$|
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|Total Monthly Debt Service:||$|
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Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
2 Yr. Avg. (19-20)
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Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2 Yr. Avg. (19-20)
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Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
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