Crews

1

5

Added only when existing crews are booked four weeks ahead for three months

Replacements completed

33

290

58 per crew at maturity

Average replacement ticket

$14,600

$17,411

Rising with mix, architectural upgrades and consumer financing

Residential gross margin

—

34.6%

Earned by job costing, not by quoting high

Repairs gross margin

—

40.0%

Minimum charges; the best percentage margin in the business

Commercial gross margin

—

37.2%

From Year 3; less price-sensitive, longer sales cycle

Blended gross margin

31.8%

35.4%

At the upper end of the 25 to 40 per cent industry band

Cost per sold job

$1,576

$1,303

Falls as referrals and neighbourhood density replace paid media

Share of jobs consumer-financed

28.0%

55.0%

Raises ticket and collapses the collection cycle

Materials

39.8% falling to 37.8% of revenue

Replacement-weighted mix; taken off from aerial measurement

Crew labor

28.2% falling to 26.8% of revenue

Bare wage; 31.1% fully loaded with workers’ compensation

Workers’ compensation

18.5% falling to 16.0% of crew payroll

NCCI class code 5551; improves on claims history

Marketing

9.7% falling to 5.9% of revenue

The largest single overhead line at $378k in Year 5

Sales commission

4.8% of revenue

Paid on signed contracts

Owner compensation

$62,000 rising to $154,000

A real salary from Year 1, deducted before EBITDA

Total overhead

52.5% falling to 27.1% of revenue

Below the 30 to 45 per cent industry band by design

Total capital expenditure

$736,000 across five years

Trucks, trailers, tool packages, commercial equipment and systems

Owner equity

$165,000

At inception

Loans and facilities

$965,000

Nine instruments; see Appendix C

Supplier trade credit

30 days rising to 52 days

$346,000 by Year 5, free and never drawn

Days sales outstanding

19.8 falling to 10.7 days

Falls as the consumer-financed share rises

Federal income tax

21% of taxable profit

Net operating losses under the 80% limitation; state tax additional