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Passive Railroad Terminal Company

$2.9M in assets and plentiful growth opportunities!

CASH FLOW
$1,465,708

Specifications

  • Price
    $6,450,000

  • Revenue
    $4,192,564

  • Cash Flow
    $1,465,708

  • Location
    Pennsylvania & New York: 4 Locations

  • Service Area
    Mid-Atlantic to Northeast U.S.

  • Profit Margin
    30%

  • Employees
    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

  • Reason for Sale
    Retirement / Age

  • Equipment
    $2,905,742

 

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 StatementP&L Statement
Combined
P&L Statement
Combined
P&L Statement
Combined
Notes
202120202019
GROSS SALES$4,192,564$3,683,862$4,414,018
Net Income Shown on Financial Statement$398,232$153,951$130,4102020 & 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$148,88695% 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 Margin30.45 %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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210 N 78th St. 2nd Floor
Omaha, NE 68114

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The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.