COMPILATION OF HVAC DEALERSHIPS (SIC 1711). See Notes Below.
Prepared By: James R. Leichter
|CHART OF ACCOUNT NAMES||YEAR TO DATE||% OF SALES||YOUR ACTUAL||% OF SALES||NOTES|
|TOTAL DIRECT COSTS||482,070.07||51|
|Advertising & Marketing||19,471.96||2.10|
|Auto & Truck Gas/Oil||12,054.07||1.30|
|Auto & Truck Repairs||7,510.61||.81|
|Bank Charges & Credit Card Fees||1,947.20||.21|
|Dues, Subscriptions, License Fees||1,947.20||.21|
|Freight & Postage||2,967.16||.32|
|Insurance, Auto & Truck||8,530.58||.92|
|Insurance, Building & Equipment||3,059.88||.33|
|Insurance, General Liability||5,656.14||.61|
|Insurance – Health||4,636.19||.50||Includes firms with zero $|
|Insurance, Workman’ Comp.||7,881.51||.85|
|Legal & Professional||7,603.34||.82|
|Profit Sharing Plan||18,637.44||2.01|
|Rent & Garbage||5,377.97||.58|
|Repair & Maintenance||1,019.96||.11|
|Salaries – Management||37,089.45||4.00|
|Salaries – Office||27,817.09||3.00|
|Training & Education||11,961.34||1.29|
|Travel & Entertainment||1,761.74||.19|
|TOTAL G&A EXPENSES||352,350.07||38*|
|Gain On Sale Of Truck||500.00||.5|
|Miscellaneous Income <loss>||843.25||.9|
|NET PROFIT BEFORE TAXES||94,747.24||10.21*|
- Labor Overhead burden: $1.77 (break-even multiplier = 2.77)
- MESO Overhead Burden: $0.43 (break-even multiplier = 1.43)
- Average number of employees (not including owner (s)): 9
- Average number of office personnel (not including owner (s)): 2
- Average number of fulltime management and/or sales: 1.2
- Average number of service trucks: 2.58
- Average number of installation trucks: 2.4
IMPORTANT NOTES:This Profit Statement is a compilation (average) of approximately twenty HVAC dealerships, and other sources, with sales ranging from $700,000.00 to 1,400,000.00 in sales. Only the top 20% net profit earners were used to create this work. Note: The national net profit average is a paltry 2.6%.
Profit and Loss Statements were collected from 1995 through 1998 and only accepted from known sources. Profit and Loss Statements with questionable accuracy and completeness were not used. All Profit Statements are not structured the same (where income and expenses are placed in a chart of accounts) and few companies utilize the same chart of accounts. All of the companies represented were on an Accrual Basis of accounting but the degree of compliance with Generally Accepted Accounting Principals (known as GAAP) cannot be guaranteed or measured. For this reason, certain extrapolations were made with regard to what account to place certain entries in, among other things. However, these “educated guesses” should not have a material effect on the suitability of this report.
*Before Taxes & Depreciation. Due to wide variances in how depreciation is handled, this account was not included.
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