Bonnie Carr Josh Stowell Laura Ruhwedel Michelle Sorci
Bonnie Carr Josh Stowell Laura Ruhwedel Michelle Sorci Harold Griffey r 3 pc. beahm. org
Did you Know? Only 6% of computers are recycled annually Over 50% of heavy metals found in landfills can be traced to discarded r 3 pc. beahm. org computers.
Company Mission The mission of this company is to provide the Northwest area an outlet for recycling used computer monitors. r 3 pc. beahm. org
Company Objectives • To service the Greater Puget Sound area during the first year of operation after start up. • Process 50 monitors per hour during the first year of operation after start up. • Expand service area to all of Western Washington by the second year of operation. • Increase process capacity to service 60 monitors per hour by the end of second year, with yearly increases of 10 monitors per hour. • Expand service area to the Portland, Oregon area after the third year of operations. r 3 pc. beahm. org
Where are computers going now? 6% 14% 80% r 3 pc. beahm. org
The Problem • In 1999, 14 million monitors were retired and every year this number increases • 80% of those monitors end up in a landfill according to the EPA • Lead is found in these discarded monitors, contaminating landfills with hazardous waste. r 3 pc. beahm. org
Our Solution Monitor Recycling for the Pacific Northwest r 3 pc. beahm. org
Demanufacturing • Plastics from outer casing sent to plastics recycler • Scrap metal sold to recycler • Leaded CRT glass sent to lead glass manufacturers
The Process • Outer Casing removed by robotic process • CRT removed and sent through Andela Processor • Monitor remains shredded and recyclable metals extracted r 3 pc. beahm. org
Andela Processor
Target Markets • The Pacific Northwest – Computer Recycling Companies – Large Businesses – Small Businesses and Home Users r 3 pc. beahm. org
Our Competition • Total Reclaim – The major monitor recycler in the state of Washington. – Strong hold on the home PC user. • Out of State Competition – Resources Concepts, INC (Texas) – Analon Incorporated (Arizona) r 3 pc. beahm. org
Competitive Edge · Servicing the Greater Puget Sound area in an easy to access location. · Catering to both large corporations and the general public. · Environmentally safe disposal of hazardous materials. · Resale of working monitors. · An internet website (r 3 pc. beahm. org, ) and email, (services@r 3 pc. beahm. org) r 3 pc. beahm. org
Operating Profit • • Collection Fee: $7. 00 Plastic scrap $20/ton Metal scrap $. 24/lb Resale of 5% of collected monitors r 3 pc. beahm. org
Operating Costs • Labor costs – 4 full-time workers – 1 manager • Utility Costs – Electricity and Water • Maintenance of machinery • Interest on bonds • Income taxes
Startup Costs • Purchase warehouse for operations • Purchase machinery – Grinders, Adela Processor, conveyor system, filtration system, etc. • Purchase office equipment • Miscellaneous expenses
Risk Analysis • An extended economic downturn could adversely affect our business. • Damage to the environment or failure to comply with certain environmental regulations could negatively affect our professional reputation. • Profitability will suffer if R 3 -PC is not able to maintain rates and control costs. • R 3 -PC may need additional capital in the future that may not be available to it.
Investment • Raise $1. 4 million in startup capital – Issue shares – Issue bonds
Share Offering • • 700, 000 shares Par value of $1. 00 Generate $700, 000 in capital Account for a 49% stake in the company
Bond Offering • Issue 70 bonds with a face value of $10, 000 • Interest rate of 7% • Coupon payments of $350 to be made semiannually • 10 year lifetime • Call provision • Generate $700, 000 in capital
ROE
ROI
Exit Strategy • IPO – 5 year time frame – Use funds to further expand business • Merger – Larger company acquisition
Expansion • Plan to extend service to Portland, Oregon area in three years • Plan to explore additional markets for expansion
- Slides: 27