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International Designer and Manufacturer of Metal Recycling Systems & Equipment Located in Southern US #64427 Sign NDA ► 2021 Revenue Est. $3,000,000 2021 EBITDA Est. $603,000 DISCLAIMER: All information contained in this document has been provided by the subject company to Generational Equity and while believed to be correct has not been verified. Accordingly, Generational Equity makes no representations or warranties as to the accuracy and truthfulness of such information. The recipient hereof acknowledges that Generational Equity shall not be liable for any loss or injury suffered by said recipient in any way connected to the delivery by Generational Equity of this document. At all times Generational Equity and its affiliate network members is an agent for the seller and not for the buyer. Generational Equity's fees are paid by the seller. Fred Phillips M&A Advisor Email: fphilips@generational.com 405-826-8166 Generational Group 3400 N. Central Expressway, Ste. 100 Richardson, TX 75080 Fax: 972-392-8564 BUSINESS HIGHLIGHTS The company is a privately owned designer and manufacturer of a wide range of high performance metal shredding systems and downstream components that lead the recycling industry with well designed, innovative features. The Company's machinery is able to shred and produce heavier mixed grades of material efficiently (high quality, low cost) with an extremely high recovery of ferrous and non-ferrous metals at high production rates, meeting all requirements relating to emission codes, and minimizing operating and maintenance costs. The Company operates from a 5,000 square foot office / shop strategically located near two interstate arteries. INVESTMENT BANK OF THE YEAR 2016 - 2017 - 2018 COMPANY STATS Over 55 years of operations Increasing Profitability Debt-Free Revenue Mix: 67% Systems / Components 33% Part Sales INVESTMENT APPEAL • Rising Gross Profit Trend - Throughout the historical period the Company has demonstrated its ability to maximize profitability potential. Gross profit increased from 22.6% of sales in 2018 to 33.4% of sales by the end of 2020. • Strong Net Working Capital - In 2020, unadjusted current assets were approximately $720,000 and current liabilities were $204,000, resulting in a net working capital of $516,000. • COVID-Resistance - Sales increased 22.6% in 2020 over 2019, with very high profitability, and revenues are expected to increase about 27% in 2021. • Patented Products - The Company currently owns two (2) patents that greatly enhance their system designs: One patent totally eliminates air emissions from normal air classifying exhaust necessary for product separation. Another patent allows for shredded material sizes to be easily adjusted to match equipment production rates. Sales of equipment are greatly enhanced due to the use of these patents in the system offerings. GROWTH OPPORTUNITY Hire Additional Employees Develop Sales/Marketing Geographic Expansion
