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Section 10
2017 GIC & CCC Consolidated Operations Budget

The annual operating plan will answer the following questions:

a. Where are we now?
b. Where are we going?
c. How do we get there?
d. How do we measure our progress?

SUMMARY

2017 Budgeted consolidated Revenue is $27.1M, representing 33.1% growth ($6.7M) over
forecasted 2016 consolidated revenue. Gross Margin will finish at 51.6% of sales, 0.2%
decrease compared to 2016 projection, but growing at 32.6%, or $3.4M. OPEX will be
increasing in the year by 32.1% ($2.1M increase), but finishing at 31.6% of sales vs 31.8%
of sales in 2016, a 20 basis point decrease. Consolidated EBITDA is expected to finish at
19.8% of sales, remaining flat as a percentage of sales compared to 2016 projected EBITDA,
but growing at 33.3% overall ($1.3M). Net Income is projected to grow by 91.8% ($1M) vs
2016 finishing at 7.9% of sales.

Revenue
- Precooling*: Expecting approx. 44% growth in this segment, occurring with:
o A 98% increase in precooling units in El Centro (from an estimated 6M units
in 2016 to a projected 12M in 2017, approx. $3.7M increase in dollars).
 Cost / unit expected to decrease approx. 6% due to the new revenue
mostly coming from cross dock, decreasing the average from $0.66 to

$0.625.
o CCC Salinas unit growth is estimated at 3.2%, or $387k increase in dollars.
 Ave. unit price expected to increase 1% ($0.62 to $0.625).
o GIC Precooling revenue from GSC expected to increase by approx. 5% due to
a 5% increase in units (12.2M to 12.8M) and 2.2% price increase ($0.225 to
$0.23).
*Intercompany activity: GIC bills CCC for precooling units at Salinas at a rate of
$0.22 per unit and bills for rent of cold boxes. GIC does not bill CCC for units
processed at El Centro but does charge rent for use of cold box.
- Ice Dock
o 2017 is forecasted to grow by 8% over 2016 projected sales.
- Equipment rent
o Projecting an 8.2% increase due to addition of new customers filling in gaps
during the year when equipment is available for renting.

Prepared for Growers Ice Company, Inc.
59
Jim White, PhD --- JL White International