|
Memo To The EDA Finance Committee Page 3
<br /> July 18, 1995
<br /> 110 Company Income/Expenses/Cash-Flow, Etc.
<br /> Custom Cutter Grinding reported sales of$482,511 in 1994. This was up
<br /> 15% from 1993, when sales reached $418,898. Through June of 1995, sales
<br /> were reported at $259,511. Projected sales for 1995 are expected to increase
<br /> 5% over 1994 sales. This is estimated at $506,600 for 1995. Custom Cutter's
<br /> customer list contains 106 names of businesses that are within 15 miles of
<br /> Elk River. The company has 13 suppliers and has identified 12 competitors.
<br /> Its top ten customers comprise 65% of its sales.
<br /> From 1992 through 1994, inclusive, assets are shown at $100,391.28,
<br /> $165,003.10, and $140,067.96, respectively. For the same period, total
<br /> liabilities are represented at $67,805.30, $106,997.96, and $76,637.92,
<br /> respectively. In 1992, net profit and total equity are presented at $25,721.19
<br /> and $32,585.98, respectively; in 1993, net profit and total equity are reported
<br /> at $68,736.44 and $58,005.14, respectively; and in 1994, net profit and total
<br /> equity are reported at $93,161.34 and $63,430.04, respectively.
<br /> In 1996, Custom Cutter projects sales at $562,608 and total cash receipts of
<br /> $602,608. Projected expenses for 1996 are estimated at $547,947. Revenue
<br /> over expenses is estimated at $54,661. When combined with the company's
<br /> estimated 1995 cash balance of 64,813, it is projected that Custom Cutter will
<br /> have a cash balance of$119,474 at the end of 1996.
<br /> In 1997,projected sales are estimated at $618, 864 and total cash receipts are
<br /> estimated at $658,864. Revenue over expenses is estimated at $31,100.
<br /> When combined with the company's estimated 1996 cash balance of
<br /> $119,474, it is projected that Custom Cutter will have a cash balance of
<br /> $150,574 at the end of 1997.
<br /> The company currently pays $700.00 per month at its Ramsey facility. In
<br /> addition, no revenue from the multi-tenant lease space is included in
<br /> Custom Cutter's revenue projections.
<br /> Custom Cutter & Grinding currently has 6 (six) full-time employees and a
<br /> total payroll of$223,425. Following its expansion, another employee will be
<br /> added in 1996, and another in 1997. This will bring the payroll to $271,188.
<br /> Action Requested
<br /> Following its review of the Custom Cutter Grinding loan request, the EDA
<br /> Finance Committee is asked to present a recommendation to the EDA
<br /> • Commissioners regarding this matter. The EDA will likely meet in special
<br /> session to consider this matter.
<br /> S:EDA/CCGrind
<br />
|