FTXA Minority Owned & Green Business Offering Same-day Express Delivery & Warehousing Services

FTX

Overview

Established in 1998 as a California Limited Liability Company (LLC) 24/7/365 express same-day courier and warehousing service in

Southern California market. Operating successfully for 12 years

Average annual sales at $1 Million Blue-chip clients (FedEx, DHL, Dynamex, etc…) Awards, certificates and praises

Objectives: Hire full-time staff and dedicated sales force National minority-owned business status Green business recognition with hybrid vehicle fleet Grow the business to $5+M in sales in 5 years

FTX

$(200,000)

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

2005 2006 2007 2008 2009

Sales

Expenses

Net Profit

5 years Financial History

5 Years Financial History

With no full-time staff and dedicated sale force Managing principals performing multiple responsibilities

including deliveries

FTX

FTX Services

Express Same-Day Delivery & Courier Services: Urgent day or night deliveries and related services. Local pickup and delivery services. Hot shot services when needed fast. Scheduled LTL & FTL, Container, Air, Truck, Multi-modal services NextFlight

Warehousing & Related Services: Temperature controlled warehousing facilities. State-of-the-art inventory management. Immediate consolidation of all shipments and deliveries. Warehousing arranged nationally and internationally Staffed 24/7/365

FTX

FTX Business Plan Objectives

Change the business model from primarily using contractors to hiring full-time staff to take advantage of Government incentives

Hire and grow a dedicated sales/marketing force Achieve national Minority-Owned Business status to be able to

capitalize on special quota based contracts in organizations Promote a Green business model by acquiring a fleet of hybrid

vehicles to target environmentally conscious customers Invest in effective sales & marketing initiatives Expand presence in strategic national markets. Reach revenue target of $5+M in 5 years

FTX

Market Analysis

US Express Delivery Services Industry 12,000 companies with annual revenue of $75 Billion. Highly concentrated with 90% revenue generated by the largest

companies. 7,000 companies in the less than 24 hours same-day-delivery service

category (FTX market segment) Highly fragmented local messenger segment: 35% revenue generated by

50 largest companies

US Warehousing & Storage Industry 7,000 companies with annual revenue of $21 Billion 50 largest companies generate 40% of the revenue 65% of industry revenue is in General Warehousing category (FTX

market segment)

FTX

Sales & Marketing

Provide highly reliable client focused customized services catering to specialized needs (24/7/365)

Target large express delivery companies (FedEx, UPS, DHL, etc...) for long-term outsourcing contracts.

Seek Green contracts with environmentally conscious companies

Target corporations with quota for minority-owned businesses.

Build a network of agents to grow the service offerings to other strategic local markets nationally.

Grow the warehousing services as a strategic profit center

FTX

Competitive Analysis

Two Categories of Competitions1. Direct: Similar same-day-delivery & warehousing companies operating

in southern California market.

2. Indirect: Large express delivery companies (e.g. FedEx, UPS, etc). However these companies are FTX customers for its outsourcing services.

FTX will compete by: Offering highly reliable and customer focused services to specialized

needs of its clients. Promoting a environmentally conscious Green Business using low-

emission hybrid vehicles. Achieving a national Minority-Owned business status to win special

contracts Using latest computer technologies to improve efficiencies and effective

usage of Internet as a marketing and order management channel.

FTX

Revenue & Profitability Revenue projections assumes:

Hiring and growing a dedicated sales/marketing force with target revenue objectives.

Break even in 2nd year. $5+M in Sales and $1.5+M Net Profit in the 5th year.

$(1,000,000)

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

Year-1 Year-2 Year-3 Year-4 Year-5

Sales

Gross

Net

FTX

Financing & Milestones

Month-1 Month 12 Year 2 Year 3 Year 4 Year 5

Financing National Minority-Owned Business

$500K • Acquire/lease Hybrid vehicles• Hire full-time employees• Dedicated sales force• Internet Order/Pymt Mgmt

Plus $500K• Purchase Logistic Business• 4 local market presence• 4 warehousing facilities

• 1st Round: Raising $500K in Equity Investment• $500K in a 2nd Round Financing

Green Business Status Agents Network in other Local Markets

Logistic and Next Flight Out Services

• Franchise• $5+M in Sales• 50 full-time employees

National Market Presence

Franchise Sales

FTX

Summary

FTX Objectives: Align business as a national Minority-owned business Green business model with Hybrid vehicles Hire full-time employees for current Government incentives

Successful Existing Operation: Average $1 Million sales without dedicated sales force and full-time

employees

Financing Requirement: $500K in equity Investment Additional $500K in a 2nd Round

Investment opportunity: To participate in existing and a future national FTX franchise opportunity

FTX

Appendix

FTX

Financial Details

 YEAR-1 YEAR-2 YEAR-3 YEAR-4 YEAR-5

Sales $ 1,170,000 $ 1,788,750 $ 2,683,125 $ 4,100,625 $ 6,150,938

Direct Cost of Sales $ 175,500 $ 268,313 $ 402,469 $ 615,094 $ 717,609

Other          

Total Cost Of Sales $ 175,500 $ 268,313 $ 402,469 $ 615,094 $ 717,609

           

Gross Profit $ 994,500 $ 1,520,438 $ 2,280,656 $ 3,485,531 $ 5,433,328

Gross Margin% 85% 85% 85% 85% 88%

           

Total Operating Expenses $ 1,083,240 $ 1,446,300 $ 1,927,530 $ 2,735,775 $ 3,746,543

Profit Before Interest &Tax $ (88,740) $ 74,138 $ 353,126 $ 749,756 $ 1,686,786

Net Profit $ (88,740) $ 74,138 $ 353,126 $ 749,756 $ 1,686,786

Net Profit Margin % -7.6% 4.1% 13.2% 18.3% 27.4%

FTX

Current Customers List

FedEx DHL Sameday Dynamex Logistics Network Global Logistics Yourway Transportation Kuehne-Nagel Logistics Lasership GCD Dr. Vanessa Parker Excella Payroll Renaissance Image Center Foundation Mechanics Quick International Courier KLM Onsite Solutions

FTX

Data Source: Research & Links

Express Delivery Service Market data: http://www.firstresearch.com/industry-research/Express-

Delivery-Services.html http://www.mcaa.com/IndustryResources/IndustryProfile/tabid/

186/Default.aspx

Warehousing Industry Data: http://www.firstresearch.com/Industry-Research/Warehousing-

and-Storage.html

FTX

Pictures of Current Operation