San Francisco Limo
Company Summary
San Francisco Limo Incorporated is a small privately-owned limousine service headquartered in Burlingame.
Currently there are three sedans running. The sedans have been under utilized due to a lack of marketing direction. One vehicle is primarily tied up fulfilling a steady but low-yielding Medicare subcontract (CATA).
The other two vehicles have been struggling to capture transfer business (mostly to and from SFO Airport). This business, although attractive and growing steadily, has many competitors and involves a high level of dead-heading to pick up a fare or returning empty after a drop off.
A steady diet of airport pickups and drop-offs is hectic and stressful for the drivers. The airport transfer business is also clustered at certain hours in the morning and again at certain hours in the late afternoon which tends to leave the vehicles idle during certain slow airport periods each day. As a result, it is difficult to reach the national average for revenue per car of $4,615 per month.
2.1 Company History
San Francisco Limo was established at the beginning of 1997, and experienced losses resulting from too many hired drivers and inadequate managerial control. $26,500 was borrowed from family of the stockholders. The mistakes of the past have been corrected and the company is now on level footing.
However, the monthly revenue per vehicle stands at approximately $2,500, whereas, it should exceed the national average for the Northern California Region of $4,615. These statistics are based on the 1997-98 version of Limousine & Chauffeured Transportation Fact Book,which will be hereafter referred to as The Fact Book.
| Past Performance | |||
| 1996 | 1997 | 1998 | |
| Sales | $0 | $0 | $92,007 |
| Gross Margin | $0 | $0 | $88,898 |
| Gross Margin % | 0.00% | 0.00% | 96.62% |
| Operating Expenses | $0 | $0 | $55,141 |
| Collection Period (days) | 0 | 0 | 18 |
| Balance Sheet | |||
| 1996 | 1997 | 1998 | |
| Current Assets | |||
| Cash | $0 | $0 | $1,200 |
| Accounts Receivable | $0 | $0 | $4,000 |
| Other Current Assets | $0 | $0 | $0 |
| Total Current Assets | $0 | $0 | $5,200 |
| Long-term Assets | |||
| Long-term Assets | $0 | $0 | $14,000 |
| Accumulated Depreciation | $0 | $0 | $0 |
| Total Long-term Assets | $0 | $0 | $14,000 |
| Total Assets | $0 | $0 | $19,200 |
| Current Liabilities | |||
| Accounts Payable | $0 | $0 | $0 |
| Current Borrowing | $0 | $0 | $12,000 |
| Other Current Liabilities (interest free) | $0 | $0 | $3,500 |
| Total Current Liabilities | $0 | $0 | $15,500 |
| Long-term Liabilities | $0 | $0 | $26,500 |
| Total Liabilities | $0 | $0 | $42,000 |
| Paid-in Capital | $0 | $0 | $100 |
| Retained Earnings | $0 | $0 | ($56,657) |
| Earnings | $0 | $0 | $33,757 |
| Total Capital | $0 | $0 | ($22,800) |
| Total Capital and Liabilities | $0 | $0 | $19,200 |
| Other Inputs | |||
| Payment Days | 0 | 0 | 80 |
| Sales on Credit | $0 | $0 | $40,000 |
| Receivables Turnover | 0.00 | 0.00 | 10.00 |
2.2 Company Ownership
The company is incorporated in the state of California by John Smith and David Jones, with equal shares held by their spouses.
2.3 Company Locations and Facilities
This is a home office, located in Burlingame, California. A two-car garage is also rented in nearby San Bruno, CA. There are no offices outside the homes of the owners. To maintain efficient head office fleet control management, a sophisticated network of cell phones and two-meter shortwave communication, in conjunction with land lines, are implemented by the company.
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