Page 61 - Strategic_Plan_finanal_jlw_PDF_NeatFlip

o Admin headcount increasing by 3.75 positions (3/4 year for added Asst.
Controller, Sales Manager, Marketing Manager, and Operations Manager)
o Admin salary increases of approx. 10% at GIC and 22% at CCC.
o Full Bonus $ eligible increase of $500k
- Supplies: The company expects to increase expenditures on supplies and parts by
19.8%, though will decrease the supplies expense as a percentage of sales by 50
basis points.
- R&M: Increasing by approx. $250k, representing a 17.2% increase, but an 80 bps
decrease as a percentage of sales compared to 2016 projection.
- Sales / Marketing: The Company expects to increase sales and marketing costs with
a revamped web site, new marketing materials, and other expenditures related to
sales and promotional efforts ($140k increase).
- Insurance: Expected to increase by 1.9% in 2017.

- Office expenses: Estimated increase of 25.3% due in part by increase in travel for
additional sales initiatives and additional safety training. The large growth is
counted by a 20 basis point decrease in percentage of sales vs 2016.
Non-Operating Expense

Non-Operating expense will increase in dollars by 10.6% ($306k) but will decrease as a
percentage of sales by 2.4% compared with 2016 projection.
- Depreciation: Depreciation expense is expected to decrease in 2017 by 4.5%
($132k).
- Amortization: Expected to remain flat vs 2016.
- Gain/loss on investments:
Merrill Western: 2017 net income is projected at $80k, equating to $60k of
gain to Growers Ice, 50% growth vs 2016 ($20k in dollars).
Growers Street Cooling: 2017 net income is projected at a loss of approx.
$120k due mostly to settlement of litigation in 2016.
Growers Custom Equipment: 2017 net income is projected at $190k
(equating to $80k gain to GIC).

- Gain/Loss on Assets: A large 2016 gain due to insurance reimbursement for a lost
piece of equipment will not repeat in 2017 therefore there is a $443k decrease on
this item.
- GSA income/expense: GSA income is projected at $130k for 2016 growing 60 basis
points vs 2016.
- Other Income: Projected decrease in this account in 2017 due to 2016 charges to
clients for late payments will be lowered after settling AR accounts, non-recurring
2016 activity such as Imp Cnty refund of $25k not expected to repeat, and Post-
Harvest billing discontinuation due to ceasing operations.

Prepared for Growers Ice Company, Inc.
61
Jim White, PhD --- JL White International