Strong Historical Sales Growth
Historically, the Company has grown at a 13.8% compound annual growth rate, primarily driven by increasing volume of work to new and existing customers.
Strong Networking Capital
The Company maintains a net working capital balance of $891,000. Strong NWC provides a pool of resources from which the Company can draw for continued growth and a strong buffer to maintain operations in the event of various systematic and unsystematic risks.
Decreasing Operating Expenses
The Company’s operating expenses have decreased as a percentage of sales over the historical period, from 20.0% in 2013 to 18.0% in 2015.
Founded in 1945, the Company is a supplier of lumber and other building materials for commercial buildings and residential homes. The Company supplies lumber (76.2% of 2015 revenue), plywood (13.9%), siding (9.6%), and gypsum (0.3%) for constructing commercial buildings and residential homes.
The Company’s primary customers are professional contractors (91% of 2015 revenue) with the remainder of revenue generated from individuals (5%) and cash sales (4%).
The Company operates from a 3.5 acre company-owned facility. Included on the property is an office (1,800 sq. ft.) and five sheds (combined 32,940 sq. ft.). ). The entire property is completely paved in concrete so as to handle the daily heavy truck and forklift traffic. The property is also available for acquisition.