PROJECT DELTA Casla Partners LLC...custom dog tags and uniform name plates. Healthy Margins –...
Transcript of PROJECT DELTA Casla Partners LLC...custom dog tags and uniform name plates. Healthy Margins –...
PROJECTDELTAConfidential
CaslaPartnersLLC53CallePalmeras,Suite401SanJuan,PuertoRico00901
(646)[email protected]
CaslaPartnersLLC
DeltaCompanyisaHouston,Texasbasedretailerofmilitarysurplusproducts.Witha34yearhistory,Deltahasstrongbrandrecognition,aloyalcustomerbaseandproprietarysupplierrelationships.LTMrevenuesexceed$3MMwithapproximately$430Kofadjustedpre-taxnetincome.75%ofCompanyrevenueisgeneratedfrominternetsales.COMPANYOVERVIEWFoundedin1984,DeltaCompanyisarecognizedforceinthemilitarysurplusindustry.TheCompanyhaseightemployees,ahighlyvisibleretailstorelocationandwarehouseinHouston,eachwithanintactlong-termlease.UniqueProducts–morethan21,000activeSKU’sandacompletelineofmilitarysurplusgoodsincludingfootwear&apparel,military-themedmerchandise,camping&survivalgear,tacticalgearandgenuineUSGIsurplus.Deltapurchasessomemilitarysurplusdirectfromthebase(noauction/nobidding)andalsopurchasesdirectfromDODcontractors.StrongOnlinePresence–Deltahasbeenonlinesince2003.51%ofwebsitetrafficcomesfromorganiclistingswithover24,000positionsonGoogle.Ofthose,over1,400aretopthreepositions.Additionally,over4,700productsareonPageOneand3,700onPageTwo.LoyalCustomerBase–Over135,000customersincludingindividualconsumers,smallbusinesses,Federalagencies,DoDcontractorsandDoDbranches.Manyinstitutionsareon-going,repeatcustomers.InHouseFulfillment–Deltamanagesitsownfulfillment.AlmostallordersareshippedfromHouston,resultingincompletecontrolofthecustomerexperienceaswellasacostadvantageover“dropship”retailers.UniqueServices–Deltahastwelveembroidery,sewingandcustomizationmachinesandmakesin-houseuniformnametapes,customembroidery,customsewing&alterations,customdogtagsanduniformnameplates.HealthyMargins–Deltahasconsistentlyproducedgrossmarginsinthe40%+rangebyofferingquality,hardtofindproducts,atfairprices.Well-DiversifiedandDefensibleBusiness–DeltaCompanyiswell-diversifiedbyproducts,customers,andsalesgeography.DuetotheCompany’sbrandrecognition,proprietaryproductsourcingandwebtraffic,aswellascompletecontrolofthecustomer
PROJECTDELTAConfidential
CaslaPartnersLLC53CallePalmeras,Suite401SanJuan,PuertoRico00901
(646)[email protected]
CaslaPartnersLLC
experience,Deltaisentrenchedasadynamicplayerinthemilitarysurplusmarketandwellpoisedforgrowth.Thecurrentownerofthebusinesswishestoretireandiswillingtotransitionandprovidesupporttoanewowneronaparttimebasis,foraslongasisreasonablyrequired.GROWTHOPPORTUNITIESAdvertising–Deltahistoricallyhasspentabout5%ofitsrevenueonSEOanddigitaladvertising.Thereisagreatopportunitytoincreasespendinordertodriveadditionalwebtrafficandsales.Also,theCompanyhasanopportunitytomarkettoitsexistingcustomerdatabasebyofferingpromotionsandotherprogramstofurtherdriveadditionalrevenue.eCommerceShippingPolicy–Deltacurrentlychargesforshippingandoffersnofreeshippingincentives.Theopportunityexistsforthenextownertoimplementa“threshold”freeshippingpolicy,orsimilar,toincreaseaveragebasketsizeandvolume.MobileFriendlyShopping–Delta’scurrentmobilewebsiteisinadequate.Thisrepresentsaneasyupgradeforimmediategrowthasonlinepurchasescontinuetogomobile.InternationalSales&Shipping–Deltareceivesinquiriesalmostdailyforinternationalsalesopportunities.However,ordersfromoutsidetheU.S.arenotcurrentlyaccepted.Amazon–DeltadoesnotlistanyproductsonAmazon.ThisisanenormousopportunitytoexpandtheCompany’sreachandincreasesales.FINANCIALOVERVIEWDeltaproduced$3.1MMinrevenueonanLTMbasis,with75%generatedbyeCommercesales.DeltaCompanyproducesapproximately$430,000peryearinpre-taxincome,priortoownercompensation.