Page 65 - Strategic_Plan_finanal_jlw_PDF_NeatFlip

Section 12
2018 Operations, Capital Improvement, Acquisition and

Equity Review

Summary:

We are forecasting an increase of 12% in revenue over the 2017 figures, with total revenue
of $30.7 million. The cost of goods is projected to be 51% of sales totaling $15.8 million,
resulting in a gross profit of $14.9 million and an EBITDA of $6.1 million.

Other Income:

• Assuming PHT to be a wholly owned subsidiary of the new SEC Public company we
are forecasting $250,000 in revenue paid from PHT earnings before tax.

• We are forecasting $60,000 in earnings from Merrill Western of which GIC is a 50%
owner.

• We are forecasting zero income from Growers Street Cooling.
o Sidebar #1 By December 31, 2018 Growers Street Cooling will be dissolved.

• We are forecasting $141,202 in revenue from Growers Custom Equipment of which
GIC is 50% owner.

New Equity: Our plan is based on raising $55,000,000 in new capital for GIC in 2017
from the general public, investment banking, and private equity.

Use of Funds:

• $6,000,000 will be used for demolition of 100,000 sq. ft. of Salinas’s facility.
• $35,000,000 will be used to pay for 100,000 sq. ft. of new construction
• $20,000,000 plus stock will be used to acquire no less than 100,000 sq. ft. of cooler
space at a to be determined location.
• $2,000,000 will be used to invest in our mobile fleet.

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