4 Location Railroad Terminal Operation
Over $2M in assets included with purchase price!
There is over $2M in assets included with the sale of this 4-location railroad terminal operation! They have a full management team in place, allowing for fully absentee ownership. 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.
Substantial growth is inevitable for this family of companies. Expanding their service area further south, adding another fully functional terminal, increasing commodities, and looking further into increasing residual waste removal services would be tremendous and diversified.
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
- List Price: $7,475,000
- Gross Sales:
- 2021: $3,663,903
- 2020: $4,490,022
- 2019: $5,361,843
- Cash Flow:
- 2021: $879,199
- 2020: $1,405,191
- 2019: $1,715,404
*amounts may vary
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: 36%
- 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:||$|
|Yearly Payment to Seller:||$|
|Total Monthly Debt Service:||$|
|Total Yearly Debt Service:||$|
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
3 Yr. Avg. (19-21)
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
3 Yr. Avg. (19-21)
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
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