Financial Ratios Industry Averages Hershey

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					                                        Finance and Administration Committee
                                        Monday, July 31, 2006, 9:00 am, Douglass Room
                                        The Four Seasons Hotel, Washington, DC, USA




                                        Jeff Allende, Chairman
                                        Janice Scott, Vice Chairman/Recorder
                                        Ray Tarnowski, IARW Board Liaison
                                        Sara Martin, Staff Liaison
                                        Margot Van Dersal, Staff Liaison

2006 Committee Roster .............................................................................................................................. 2
Committee Statement of Purpose ............................................................................................................... 3
Review IARW and WFLO Strategic Plans
Minutes of the 2005 Insurance and Administration Committee Meeting..................................................... 4
Productivity and Benchmarking Survey Report........................................................................................... 7
          Joseph M. McCathran, CPA, Linton Shafer Warfield & Garrett, P.A.
          Ray Tarnowski, Philadelphia Warehousing and Cold Storage Company
Cost Segregation Studies ......................................................................................................................... 14
          Bruce Johnson, Bedford Capital Consulting
Corporate Retirement Plans ..................................................................................................................... 17
          Phil Evans, World Financial Group
Review of IARW Publications
          ROI Kit........................................................................................................................................... 18
          Records Retention......................................................................................................................... 26
Other Business ......................................................................................................................................... 27
          Personnel Turnover
Nomination of 2007 Chair and Vice Chair/Recorder
Page 2

                    2006 Finance and Administration Committee Roster


Jeff Allende, Richmond Cold Storage Company
Steve Beaucaire, Bedford Capital Consulting
Randy Benish, VersaCold
Stan Bigford, Trenton Cold Storage, Inc.
Sandi Bishop, Sodus Cold Storage Company, Inc.
Terry Brown, ICS Logistics, Inc.
Phil Evans, World Financial Group
Anthan Fuller, Loop Cold Storage Co.
Bonnie Geise, SCS Refrigerated Services, LLC
Drew Greenberg, Newport-St. Paul Cold Storage
Tim Groff, Atlas Cold Storage
Rolfe Haas, NAI James E. Hanson
John Horvath, Horvath & Lieber PC
Joe Howard, Lockton Companies
Bruce Johnson, Bedford Capital Consulting
Brian Kyle, Burris Logistics
Tony Lucarelli, Henningsen Cold Storage Co.
Ian MacNair, Spire Group Limited
Sara Martin, Association Staff
Joe McCathran, Linton, Shafer, Warfield & Garrett, P.A.
Lodi Meza, Inland Cold Storage
Patti Paris, Columbia Colstor, Inc.
Jim Reits, Hanson Logistics
Janice Scott, Commercial Cold Storage, Inc.
Ryan Silberman, Henderson Cold Storage
Ray Tarnowski, Philadelphia Warehousing & Cold Storage Co.
Margot Van Dersal, Association Staff
Joe Vickers, ICS Logistics
Micheal Walters, NAI James E. Hanson, Inc.




                      2006 Finance and Administration Committee Agenda
                                                                                                  Page 3

                Finance and Administration Committee Statement of Purpose



Provides a forum for identifying, gathering and communicating financial and administrative information
pertinent to IARW and its members. The committee addresses human resources issues and oversees
IARW’s financial surveys and other administration-related publications.


Note: Please pay special attention to the committee statements of purpose this year. Each one has
been edited to make concise statements that can be used on the website and in promotional materials
for the Assembly of Committees.




                        2006 Finance and Administration Committee Agenda
Page 4

                Minutes of the 2005 Finance and Administration Committee Meeting

Officers                  2005                                       2006
Chair                     Jeff Allende and Brian Davis               Kitty So
Vice Chair/Recorder       Kitty So                                   Janice Scott
IARW Board Liaison        Sam Bradshaw                               TBD
WFLO Board Liaison        NA                                         NA
Staff Liaison             Megan Kalaski and Margot Van Dersal        Lorien Onderdonk

                                            Minutes
                                     Monday, July 25, 2005
                   Dumbarton Room, The Four Seasons Hotel, Washington, DC, USA

Chairmen Jeff Allende and Brian Davis called the meeting to order at 1:45pm.

1. Committee Roster

         Jeff Allende, Chairman
         Brian Davis, Chairman
         Kitty So, Vice Chairman/Recorder
         Sam Bradshaw, IARW Board Liaison
         Megan Kalaski, Staff Liaison
         Margot Van Dersal, Staff Liaison

         Members present:
         Steve André                  Stan Bigford                   Sandi Bishop
         Mike Bolander                Clement Deliso, Jr.            Clem Deliso, Sr.
         Ernie Ferguson               Anthan Fuller                  Stephen Galati
         Bonnie Geise                 Brenda Goble                   Andrew Greenberg
         Jean Gueguen                 Steve Hall                     Harry Halpert
         Mike Henningsen              Bill Hendrickson               Sheryl Hershey
         Ken Hudson                   Eben James Jr.                 Ken Johnson
         Larry Laurin                 Merle Lemmen                   Tony Lucarelli
         Patti Paris                  Nick Peck                      Cheri Puvogel
         Larry Rauch                  Jim Reitz                      Janice Scott
         Peter Smith                  Theo van Sambeeck              Bill Wiley

         Resource Guests:
         Hall, Steve, Catlin Syndicate
         McCathran, Joe (Linton, Shafer, Warfleld & Garrett, P.A.)
         Horvath, John (Horvath & Lieber PC)
         Howard, Joe (Lockton Companies)
         Phipps, Connie (Lockton Companies)

2. Committee Statement of Purpose; IARW and WFLO Strategic Plan
   The committee Statement of Purpose was reviewed. No changes were recommended.

3. Minutes of the Last Meeting and Follow-ups
   The minutes of the last meeting of the committee were approved as read.


                         2006 Finance and Administration Committee Agenda
                                                                                               Page 5

4. 2006 IARW Productivity Benchmarking Survey
   Resource guest: Joe McCathran, CPA, Linton, Shafer, Warfleld & Garrett, P.A.
             - Reviewed surveys background
             - 1st combined productivity and operating ratio surveys
             - Reports are in electronic format to reduce completion time
             - Discussed sample benchmark metrics, including comparable units
             - Added new line items (claims) as members are inquiring
             - Other potential line items include deferred revenue treatment, depreciable lives, and
                capex (type and dollars)
             - Survey questionnaire to be completed by mid-December. Suggestions, questions
                should be submitted to Joe McCathran before mid-December
             - Wage and Benefits survey had good participation relative to other surveys


5. Budgeting for PRW Insurance Premiums
   Resource Guest: Joe Howard, Lockton Companies
             - Overall steady market
             - Underwriters are concerned with market share, rather than trend
             - Work early with insurer
             - Benefits:
                                 Small companies (2 to 250 employees) are at the mercy of carriers
                                 Can’t modify programs much more (moving to generic Rx, higher co-
                     pay, ..)
                                 HSA (“Healthcare IRA”): makes sense but not active participation
                                 Survey taken to gauge member interest to aggregate plan
             -   Trends:
       Property                            Flat [troubled businesses +10-20%]
       Casualty (General liability, auto) Flat to 5-10% decrease
        Large fleet auto                    “tough” 50-70-100% increase
       D&O                                 Flat to 15% decrease
       Benefits                            12-14% increase

6. Insurance Programs
   Resource Guest: Connie Phipps, Lockton Companies
             - Review of IARW insurance programs
             - 60% of members participate in the warehousemen legal liability through Lloyds of
                London
             - Possible new property partner.
             - Quoted one member and premium was 35% lower
             - Trucking/Logistics issues
                                Auto contingent liability
                                Cargo contingent liability
                                Premium depends on who is carrying the primary policy and size of
                     fleet
                                Exclusions: “…while acting as carrier for hire”
                                If governed by BOL – auto; if governed by warehouse receipt –
                     warehouse legal liability; crossdock – could be either policy
             - Discussed why IARW policy doesn’t cover workers comp: differing requirements state
                to state; captive audience with large working capital funding
             - Update from Catlin [Stephen Hall]

7. Trends in Claims, Losses, Warehouse Law and Standard Documents
   Resource Guest: John Horvath, Horvath Lieber PC

                       2006 Finance and Administration Committee Agenda
Page 6

              -   Between 7/1/04 to 6/30/05, total of 8 claims
                                 Temperature abuse (3)
                                 Contamination (3)
                                 Fire
                                 Misdelivery
              -   General legal liability only cover damage in the US; separate rider for foreign general
                  liability
              -   Since 2/1/96, total of 150 claims, averaging 16 per year; 74 of 150 are temperature
                  abuse
              -   Maintain good storage backup; temperature records

8. Review of Crisis Management Manual
   Resource Guest: Connie Phipps, on behalf of Steve Bassett
                - Manual is going through re-sequencing
                - Update/revised draft by December 2005

9. Other Business
               - Driver responsibility of their load
                            No minimum cargo insurance
                            Minimum for general liability
                            Our responsibility to see certificate of insurance to ensure adequacy of
                  coverage

10. Nomination of 2006 Committee Chairman and Vice Chairman/Recorder
                - Motion by Jeff Allende and seconded by Sheryl Hershey to nominate:
         Chairman: Kitty So, P&O Cold Logistics
         Vice Chairman/Recorder: Janice Scott, Commercial Cold Storage
         Motion passed unanimously by Committee

Meeting adjourned at 4:10pm.

Respectfully submitted,

Kitty M. So




                          2006 Finance and Administration Committee Agenda
                                                                                                  Page 7

                         Productivity and Benchmarking Survey Report
                  Joseph M. McCathran, CPA, Linton Shafer Warfield & Garrett, P.A.
                 Ray Tarnowski, Philadelphia Warehousing and Cold Storage Company

Background: This survey started in 1998 by Mr. Kochersperger of St. Joseph’s University. Subsequent
surveys have been done by Linton Shafer Warfield & Garrett, P.A. (LSWG)

The year 2001 survey report was released in February, 2002 based on data received from 111
warehouses from 40 companies.

The 2003 report was issued in December, 2003 based on data received from 95 warehouses from
approximately 30 companies.

The year 2006 survey questionnaires submitted to members in February for return back to LSWG by
May 31. This year’s survey was a combination of the Benchmark, Financial Operating Ratio, and Wage &
Benefits surveys.

Survey questionnaires are submitted voluntarily by participating warehouses directly to LSWG for
confidential processing of data and preparation of a final report. The questionnaire was designed to be
separated and distributed to the appropriate departments for completion in such areas as; finance,
building & facility, personnel, receiving, storage, order selection, shipping, quality control, and
maintenance. (18 pages) No fee is charged to participating companies. Most participants used website
questionnaire to complete the survey.

Summary of Participation:           2006           2003              2001
Number of warehouses                 108            95               111
Number of companies                   40            30                 40
Cubic Feet Represented           647,390,000     536,700,000         N/A
% of IARW member space              35%              27%              48%
% of IARW top 20 members            45%             40%              N/A

Consistency: Approximately 25% also participated in the 2003 Benchmark survey, 35% participated in
the 2001 Benchmark, and 39% participated in the 2002 Financial Operating Ratio survey. (Down from
the 69% of 2003 companies that had also participated in the 2001 survey).

Participation by Geographic Region: The distribution of survey participants by geographic region
(Chapters) is primarily from North Atlantic (29%), Southeast (27%), and North Pacific (14%).

Objectives: The survey is an attempt to obtain industry benchmarks for cold storage warehouse
operations to include key operating results such as:

   1. Revenue per case or unit – Total revenue divided by the total number of cases or units handled
      both inbound and outbound in a typical month.
   2. Revenue and Expenses – Statement of Income averages prepared from all participating
      warehouse’s data.
   3. Cost per case or unit – Costs of the entire plant (including administration) divided by the number
      of cases or units handled.
   4. Throughput cases or units per man-hour – The number of cases or units received and shipped
      divided by the number of direct hours worked.
   5. Throughput Pounds – The number of pounds received and shipped divided by the number of
      direct hours worked.



                        2006 Finance and Administration Committee Agenda
Page 8

   6. Inventory Turnover – Total pounds handled in and out during the year divided by two times the
       average pounds stored.
   7. Average cases, units and pounds shipped per month.
   8. Revenue per Cubic Foot of Space – Total revenue divided by gross cubic feet of warehouse
       space.
   9. Revenue per employee. – Annual revenue divided by number of employees.
   10. Average number of truckloads handled each day in a typical week.
   11. Average weight per case or unit.
   12. Earnings before interest, taxes, depreciation and amortization. (EBITDA).
   13. Financial Results – Presented by Quartile results ranked by EBITDA % from lowest performers to
       highest. (Low 25% performers, Middle 50%, and top 25% performers). Results also summarized
       by four different levels of EBITDA % (Loss to 15%, 16% to 25%, 26% to 35%, and over 35%).
   14. Wage and Fringe Benefit Results: Presented by Geographic region when possible based on
       participation.

REPORT PRESENTATION:

Glossary of Terms: Provided in an attempt to maintain comparability of the data collected from
participating warehouses. The glossary defines key terms used in the survey, and how certain results
should be calculated. Included definitions of “case” vs. “unit”.

Executive Summary: The section of the report includes a summary statement of income generated from
the averages of all participating warehouses with calculations of cents per cubic foot and percent of
operating revenue shown for each revenue and expense line-item. Other selected financial ratios and
performance results are also included. The report shows the results of overall averages of all of the
participant’s data, and a separate executive summary to report the results by:

         QUARTILES: Based on EBITDA percentage results. For example, quartile presentations include
         the lowest 25% quartile, the middle 50% and the top 25% performers. The lowest quartile
         performers averaged EBITDA of 14.1%, the middle 50% averaged 28.7%, and the top performers
         averaged 43.3%.

         EBITDA % RANGES: Participating warehouses were ranked by their EBITDA percentage from
         lowest to highest. They were then divided into four EBITDA percentage groupings with average
         results for each group. The groupings are: Loss to 15% EBITDA, 16% to 25%, 26% to 35%, and
         those over 35%.

         Measurements Summarized:
           • Revenue and expense line items as percent of total revenue
           • Revenue per cubic foot
           • Revenue per employee
           • Average warehouse size
           • Number of inventory turns
           • Revenue and cost per case handled
           • Throughput pounds per hour
           • Throughput cases per hour
           • Average pounds shipped per month
           • Average cases shipped and received per month

         See separate summary of preliminary results by Quartile and EBITDA ranges.




                         2006 Finance and Administration Committee Agenda
                                                                                               Page 9

Operating Results by Department: The responses to survey questions and average performance
results are summarized by functional or departmental classifications as follows:
   • Facility data
   • Operating statistics such as average cases shipped and received, pounds handled per month,
        number of customer orders, average trucks handled by day of week, and inventory statistics
   • Labor hours and headcount
   • Receiving practices
   • Storage and replenishment
   • Order selection
   • Shipping
   • Quality measurements and maintenance issues
   • Wage and fringe benefit results

Wage and Benefit Data: Key questions from wage and benefit surveys used in past separate surveys
were incorporated into this new combined Benchmark survey. Requested information included:
   • Number of employees by type
   • Average annual compensation for five salaried positions
   • Hourly pay rates for eleven hourly wage positions with union wages separate from non-union
       wages
   • Average overtime percentages
   • Information on incentive or performance pay programs
   • Paid vacation and holiday schedules
   • Employee education and training information

Proposed Committee Action:
   1. Establish a sub-committee to work with LSWG to evaluate the preliminary results for
      reasonableness, and assist in the preparation of the final report?
   2. What are members looking for from the report that might not be included?
   3. Should any new questions be considered for future survey questionnaires?
   4. Are there any suggested changes for the report format?
   5. Does the Committee approve continuing the wage survey as part of the Benchmark survey in the
      future or prepare as a separate survey?
   6. Apparent difficulties in providing fully loaded wage rates for each position. The most effective
      method might be to calculate an average overall rate for the Company rather than by position
      since benefits may vary by position.




                       2006 Finance and Administration Committee Agenda
Page 10

Preliminary Results as of June 30, 2006

Number of Participants:
 Number of Companies                                           40
 Number of Warehouses Represented                             187
 Number of Warehouses Submitted for Survey                    108
(Note: Only 94 warehouses submitted financial statement information.)

Space Represented in the Survey:
 Total space represented by participants                     647,380,530     Cubic Feet
 Sample space submitted by participants                      410,458,250     Cubic Feet
 Percent of IARW space                                        35%
 Percent of Top 20 IARW North American members                45%

Space Allocation: (Average of all participants)
 Commodity                                                          31%
 Production                                                          9%
 Distribution                                                       40%
 Import/Export                                                      17%
 Other                                                               3%
  Total Survey Space                                               100%

Primary Customer Base: (Average of all participants)
 Refrigeration                                                      10%
 Frozen                                                             59%
 Low Temperature                                                    11%
 Blast                                                              18%
 Retailers                                                           2%
  Total                                                            100%

Average Number of Employees per Warehouse:
 Administrative                                                          5
 Warehouse Supervision                                                   3
 Plant Handling Labor                                                   28
 Plant Maintenance                                                       2
 Plant Engine Room                                                       1
 Plant - Other                                                           2
 Total Number of Employees                                              40

Financial & Performance Results:
See the attached analysis of selected financial and operating performance results. This analysis was
prepared by ranking all participating warehouses by their EBITDA percentage from lowest to highest.
Averages have been provided for all participating warehouses, with additional classifications by quartiles
and by EBITDA percentage groupings. The quartiles have been segregated by the lowest 25%
performers (19 warehouses), the middle 50% (53 warehouses), and the top 25% of performers (23
warehouses). Approximately 11 companies are in the low and top quartiles, and 22 companies are in the
middle quartile.




                         2006 Finance and Administration Committee Agenda
                                                                                                                                  Page 11

  2006 IARW PRODUCTIVITY             Average         Results by Quartile (EBITDA %)                  Results by EDITDA Percentage
     BENCHMARK SURVEY                   All         Low          Middle         Top          Loss            16%         26%      Over
 (Preliminary Results - 6/30/06)    Warehouses      25%           50%           25%         to 15%         to 25%      to 35%     30%
STATEMENT OF INCOME                                    (Averages per Warehouse)                         (Average per Warehouse)
Revenue:
 Storage income                      $1,761,951   $1,627,828   $1,536,155   $2,393,062     $1,935,062    $1,834,751 $1,405,850    $2,393,062
 Handling income                      1,121,686    1,031,169    1,003,489    1,468,829      1,563,651     1,159,622    897,244     1,468,829
 Freezing income                        226,661      173,733      270,186      170,086        311,906       238,664    241,729       170,086
 Other service income                   670,205      556,661      727,698      631,520        570,026     1,259,683    434,279       631,520
 Interest and Misc.                      72,087       85,479       30,669      156,463          9,401        75,548     34,585       156,463
   Total Revenue                      3,852,590    3,474,870    3,568,198    4,819,960      4,390,045     4,568,268 3,013,685      4,819,960
Plant Expenses
 Plant labor                            983,656    1,040,605      911,162     1,103,662     1,490,973     1,143,718     810,236    1,103,662
 Payroll tax & fringes                  276,361      245,648      286,195       279,072       476,697       301,227     246,874      279,072
 Plant utilities                        327,060      367,023      296,528       364,401       533,135       354,670     278,911      364,401
 Other plant expenses                   300,324      394,508      247,269       344,778       537,260       353,307     234,732      344,778
 Other operations                       180,302       53,424      304,031             -             -       668,536      65,733            -
   Total Plant Expenses               2,067,702    2,101,207    2,045,184     2,091,912     3,038,065     2,821,458   1,636,486    2,091,912
Administrative Expenses
 Admin salaries                          92,275      101,671       66,530      143,836       155,985         95,410     60,219      143,836
 Administrative - fringe benefits        18,880       30,180       15,306       17,779        62,744         22,262     14,174       17,779
 Other administrative expenses          117,548      102,003       96,168      179,657       199,688        113,606     81,925      179,657
 Corporate allocation                   190,285      317,211      178,728      112,066       241,125        282,739    182,927      112,066
   Total Administrative                 418,988      551,065      356,732      453,338       659,541        514,016    339,245      453,338
Other Expenses:
 Property taxes & license                95,216      122,298       74,245      121,169        204,567       114,265      64,698      121,169
 Insurance - P&C                         59,244       87,999       48,514       60,215        146,210        71,653      45,822       60,215
  Total Other Expense                   154,460      210,297      122,758      181,384        350,776       185,918     110,520      181,384
Total Expense before Deprec.          2,641,149    2,862,569    2,524,675    2,726,635      4,048,383     3,521,391   2,086,252    2,726,635
Operating Profit (EBITDA)             1,211,441      612,300    1,043,523    2,093,325        341,662     1,046,876     927,433    2,093,325
 Depreciation                           358,911      297,799      338,875      455,565        485,045       354,573     302,816      455,565
 Lease expense-Bldg. & Equip            187,797       59,332      188,733      291,761         38,618        94,151     191,458      291,761
 Extraordinary (gain) loss                6,681            -       11,975            -              -        30,224           -            -
 Financial & interest expense           117,427       41,372      115,542      184,599         32,654        37,971     127,272      184,599
Net Income (Loss) before tax           $540,625     $213,797     $388,397   $1,161,401     $(214,655)      $529,957    $305,888   $1,161,401

Number of Warehouses                        95           19            53             23             4          21          47           23
Participants by Size:
Small companies - < 5 mil cu.ft.           27%          45%          14%          36%           25%            33%        18%          36%
Medium - 5 to 15 million cu. ft            32%          36%          36%          18%           75%            17%        41%          18%
Large companies - > 15 mil cu.ft.          41%          18%          50%          45%            0%            50%        41%          45%
 Total                                    100%         100%         100%         100%          100%           100%       100%         100%

                                           2006 Finance and Administration Committee Agenda
Page 12


                                  Average          Results by Quartile (EBITDA %)             Results by EDITDA Percentage                Trend w/
PERFORMANCE                         All             Low       Middle        Top         Loss        16%          26%       Over            Better
MEASURES:                         Whses             25%        50%          25%        to 15%      to 25%      to 35%      30%           EBITDA %
Percent of Revenue:
Revenue:
 Storage income                       45.7%          46.9%       43.8%        51.6%       49.8%       43.2%        44.9%        51.6%    Constant
 Handling income                      29.1%          29.5%       30.9%        27.6%       30.0%       27.5%        32.6%        27.6%    Constant
 Freezing income                       5.9%           9.2%       10.0%         4.6%        9.9%       10.1%         9.4%         4.6%    Decreasing
 Other income                         19.3%          14.4%       15.3%        16.2%       10.3%       19.2%        13.1%        16.2%    Decreasing
  Total Revenue                      100.0%         100.0%      100.0%       100.0%      100.0%      100.0%       100.0%       100.0%
Total Plant Expenses                  53.7%          67.3%       56.7%        43.9%       77.6%       62.0%        54.9%        43.9%    Decreasing
Total Administrative Expenses         10.9%          12.5%       10.9%         9.4%       11.7%       11.7%        11.1%         9.4%    Decreasing
Total Other Expenses                   4.0%           6.0%        3.7%         3.4%        8.5%        3.9%         4.0%         3.4%    Decreasing
  Total Expense before
Deprec.                               68.6%          85.9%       71.3%        56.7%       97.8%       77.6%        70.0%        56.7%

 EBITDA                               31.4%          14.1%       28.7%        43.3%        2.2%       22.4%        30.0%        43.3%    Increasing
 Depreciation, lease & interest       17.4%          12.6%       20.1%        25.0%       13.2%       14.1%        21.1%        25.0%    Increasing
 Net Income before tax                14.0%           1.5%        8.6%        18.3%      -11.0%        8.4%         8.8%        18.3%    Increasing


Revenue per Cu. Ft.
Warehouse Cu.Ft. (less
leased)                            3,175,570      2,625,283   2,673,063    4,788,107   3,433,780   2,986,138    2,449,121    4,788,107
  Total Revenue/Cu.Ft.                 $1.30          $1.32       $1.36        $1.15       $1.23       $1.45        $1.31        $1.15   No trend

Other Measures:
 Number of Inventory Turns               8.0            6.9         8.4          8.2         8.1         7.5          8.2          8.2   Constant
 Revenue per Case Handled
In & Out                              $0.50          $0.44       $0.52        $0.50       $0.31       $0.53        $0.52        $0.50
 Cost per Case Handled In &
    Out                               $0.34          $0.35       $0.37        $0.28       $0.27       $0.39        $0.37        $0.28
 Revenue per Total Employee        $132,338       $131,429    $121,357     $155,209    $118,386    $133,113     $120,276     $155,209    Increasing
 Revenue per Direct Employee       $220,470       $247,072    $185,728     $268,189    $216,398    $233,125     $183,108     $268,189    Increasing
 Pounds Shipped per Direct
    Hour                               3,322          3,317       2,956        4,057       3,878       2,696        3,096        4,057   Increasing
 Pounds Shipped per Month         10,783,084      7,313,550   9,577,939   16,628,026         N/A   7,779,108   13,339,768   16,628,026   Increasing
 Throughput Cases Per Hour               272            310         248          338         253         279          255          338   Increasing
 Cases Shipped per Month             504,135        424,839     516,826      544,005         N/A     455,743      469,809      544,005   Increasing
 Cases Received per Month            489,962        423,716     500,549      523,295         N/A     441,977      460,932      523,295   Increasing
 EBITDA % - Non Union                 29.8%          19.6%       28.1%        43.9%       10.8%       23.3%        29.5%        43.9%
 EBITDA % - Union                     26.8%          14.1%       29.8%        42.7%       -0.7%       20.7%        30.7%        42.7%

                                               2006 Finance and Administration Committee Agenda
                                                                                                        Page 13

                                        Average All
                                        Warehouses
Annual Salaries:
 General manager                        $    97,900
 Plant manager/superintendant           $    71,180
 Logistics manager                      $    63,260
 Engineers                              $    64,900
 Sales manager                          $    89,760

                                              Non-Union Employees                       Union Employees
Hourly Wage Rates:                          Low    Average      High                Low     Average     High
 (Excluding benefits)
 Supervisors            $      18.65   $     16.36    $   18.90    $   21.07    $   16.42   $   17.28   $   18.21
 Receivers              $      12.00   $     10.02    $   11.32    $   12.71    $   11.71   $   13.41   $   14.61
 Forklift operators     $      12.85   $     10.23    $   11.70    $   13.14    $   13.28   $   14.80   $   15.77
 Order selectors        $      12.95   $     10.39    $   12.04    $   13.46    $   12.49   $   14.28   $   15.12
 Shipping               $      12.30   $     10.30    $   11.56    $   12.63    $   11.86   $   13.88   $   15.21
 Sanitation             $      10.75   $     10.07    $   10.68    $   11.21    $   10.03   $   11.12   $   12.09
 Maintenance            $      16.10   $     14.00    $   15.79    $   17.78    $   15.69   $   16.79   $   18.26
 Office manager         $      18.30   $     16.94    $   18.30    $   19.62
 Accounting manager     $      25.17   $     23.33    $   25.17    $   26.53
 Clerical               $      12.85   $     11.09    $   12.92    $   14.67

                                                          Non-Union     Union
Average overtime % per year                 11.5%           11%         12%
Average Fringe Rate as % of Wages            29%
Paid days off per year:
 Vacation                                    12               12         12
 Sick leave                                   5               5          5
 Other personal days                          1               2          1

Monthly Health Insurance Premium:
 Family coverage                        $    706.70
 Single coverage                        $    340.25
 Percent paid by employer                   65%              66%        65%

Retirement as % of Wages                    5.6%            5.1%        7.4%




                            2006 Finance and Administration Committee Agenda
Page 14

                                    Cost Segregation Studies
                     A Resourceful Cash Flow Optimization Tool for your Business

                              Bruce Johnson, Bedford Capital Consulting


What is Cost Segregation?
  • A process that integrates two areas of expertise-accounting and engineering to accelerate
      depreciation of real estate holdings.
  • Provides a comprehensive breakdown between real property and tangible personal property.
  • An IRS recognized procedure which can be applied to newly constructed or acquired property as
      well as existing properties.

Evolution of Cost Segregation:
   • Cost Segregation goes back to the days of Investment Tax Credit (1962)
   • Cost Segregation gained wider acceptance in 1996 when the IRS allowed a taxpayer to correct
       depreciation in one year
   • Subsequent to the HCA case the IRS conceded that a CSS is valid for tax purposes

Cost Segregation:
   • Accelerated Depreciation moved 39 year property to: 15, 7 and 5 year class life

Client Savings:
    • $5.4M cost basis
    • $1.3M rescheduled
    • 1st year tax savings of $389,922

Tax Treatment:
   • Change in accounting method
   • File IRS Form 3115 by return due date including extensions
      (Automatic Change Only)
   • Positive catch-up depreciation taken in one year
   • No need to amend prior returns

Additional Benefit Opportunities:
  • Qualified Leasehold Improvements
          o Base property classified at 15 vs. 39 year
          o Applicable Date of Service is Oct 22, 2004 through Dec 31, 2005
  • Bonus Depreciation
          o Applicable for new assets with less than 20 year class life

When are Cost Segregation Studies Performed?
  • Preferably immediately following building construction or acquisition
  • Buildings acquired after 1987 with a cost in excess of $1 million
  • Following major capital improvements
  • Following change in ownership
  • Support of purchase price allocation
  • Client looking for defensible tax strategies




                       2006 Finance and Administration Committee Agenda
                                                                                            Page 15

Initial Cost Segregation Study Qualifiers:
    • Is the client a for-profit and in the position to use further write offs?
    • What is the value of the property/s in question?
    • When was the property/s placed into service?
    • Has the client used historical tax credits for the property/s?
    • Is a 1031 exchange in play?
    • How long does the client intend to own the property?

Types of Buildings Eligible for Cost Segregation Studies: (Partial List)
   • Distribution and Warehouse
   • Manufacturing Facilities
   • Hotels & Resorts
   • Retail (mall, shopping centers, power centers, big box)
   • Multi-family
   • For profit health facilities
   • Automotive Dealerships
   • Restaurants.

What is involved?
  • Engineering Analysis
          o Structural vs. Non-Structural
          o Excess Capacity
          o Analysis of excess capacity to support specialized use
          o Land Improvements
          o Tangible Personal Property – 5 & 7 year
  • Analysis of Allocated Costs
          o Architectural
          o Engineering
          o Construction Financing Interest
          o Legal
          o Permits
          o Survey

Typical Project Procedure:
   • Provide Estimate of Benefits
   • Define and agree to scope of services and engagement terms
   • Engineers analyze data
          o Contractor payment applications and depreciation schedules
   • Site Visit
          o Project Engineer conducts property inspection to identify, measure and photograph assets
   • Identification & Costing for each qualifying asset
   • Following the completion of the report by the Project Engineer, Senior Engineer(s) and Tax
      Compliance Manager conduct review of all data to ensure report accuracy
   • Cost Segregation Report is produced
   • CPA prepares and files IRS Form 3115 (if required) “Change in Accounting Method”




                         2006 Finance and Administration Committee Agenda
Page 16

Reclassifications: (Property Type & Average % Reclassified)
   • Refrigerated Warehouses: 22-55%
   • Office Buildings: 15-30%
   • Manufacturing: 25-75%
   • Auto Dealers: 35-60%
   • Apartments: 18-35%
   • Industrial Buildings: 22-60%
   • Shopping Centers: 25-40%
   • Restaurants: 25-60%
   • Health Care Facilities: 35-50%

Choosing a Cost Segregation Provider:
  • Determine the firm’s competency. Is Cost Segregation one of the many services or is it the
      primary focus?
  • Does the firm employ engineers? If so, what are their roles?
  • Does the firm employ and Professional Engineers (P.E’s)?
  • What kind of Professional Liability coverage does the firm offer?
  • Is the firm an objective third party consulting firm or a subsidiary of an accounting firm?
  • How or will the firm support you in the event of an audit? Do they retain the necessary records to
      defend your client on audit?
  • What methodology will be used for report development (ex. residual value, statistical
      extrapolation)?

Additional Uses of Cost Segregation Data:
  • Reduction of real estate transfer taxes (in some states)
  • Possible reduction of property insurance
  • Abandonment studies for assets to be retired
  • A supporting document for Purchase Price Allocation
  • Data may be transferred to property managers etc.
  • Supporting documentation for insurance replacement studies

Predictions for the Future
   • Cost Segregation is here to stay
   • IRS is getting aggressive about challenging reports prepared by unqualified firms especially by:
          o Accountants
          o Appraisers
          o Taxpayers
          o Unqualified Cost Segregation Providers
   • We expect that a national industry standard will be developed within the next 3 to 5 years.

Q&A




                       2006 Finance and Administration Committee Agenda
                                                                                                 Page 17

                                    Corporate Retirement Plans

                   Phil Evans, World Financial Group, formerly of P&O Cold Logistics

One of the real challenges facing the U.S. in the immediate future is the lack of a retirement savings
strategy for the country as a whole and the “baby boomer” generation in particular. There were 76
million babies born in the U.S. between 1946 and 1964 and an estimated additional 30 million who have
immigrated to the country. Half of America’s private sector workforce is not covered by a retirement
savings plan with their retirement anchored by Social Security and whatever they have managed to save
on their own. As you are aware, Americans are regrettably some of the world’s worst savers.

For employers that do have retirement plans, predominantly 401(k) plans, only 30% of those eligible
actually participate in those plans. From the latest Federal Reserve report the average 401(k) balance is
$29,000 and half the people with 401(k) plans cash them out when they change jobs. When asked
about retirement expectations, 80% of baby boomers say they expect to work in some fashion during
their retirement years.

The Employee Benefit Retirement Institute has estimated that employee and employer need to contribute
over 13% of income into a 401(k) plan for 30 years to provide adequate savings for retirement.

From an analysis of IARW members’ 5500 filings (public domain documents), approximately 30
members have $150 million invested in employee retirement plans. (Note I have excluded plans with
less than $500,000 under management.) On this basis I would assume that many members do not, for
various reasons, have any formal retirement plan for their employees.

As someone who has sat on the “other side of the fence” and was responsible for the P&O Cold Logistics
Pension Plan, I can offer sound advice and viable retirement plan options for the IARW membership.




                        2006 Finance and Administration Committee Agenda
Page 18

                                                  ROI Kit

                       Food Industry's Return on Investment Guidelines
                   For Companies Evaluating Private vs. Public Warehousing

Introduction
Because capital expenditure decisions involve significant resources that are committed long into the
future, considerable time and effort should go into the evaluation of plant asset proposals. The length of
time that financial resources are committed makes capital expenditures more risky than other
investments. Before beginning a capital expenditure program that involves a large outlay of funds that
will be tied up for many years, management should seek assurance that they will receive an acceptable
return on investment. In order to quantitatively select from several options, the predicted cash flows must
be compared to the required investments to determine if the return generated from each option meets or
exceeds what management considers acceptable. The purpose of this Return on Investment (ROI) Kit is
to assist your company in evaluating whether your refrigerated warehouse needs can best be met
through construction of your company’s own distribution center, (referred to in this Kit as “private
warehouse space”), or through use of one of the many public facilities available worldwide. In other
words, is it better to construct your own facilities or “outsource” for space in public refrigerated
warehouses?

Several techniques are available for evaluating capital expenditure proposals. This ROI Kit helps to
organize factors to be considered in the capital expenditure decision, and provides worksheets to
document your calculation of two commonly used methods. These two methods consist of:

Return on Investment: This calculation, also known as the book value rate of return, is commonly used
because it is based on the accrual method of financial statement preparation, and is easy to apply. Its
weakness is that is fails to consider the time value of money. The investment to be evaluated is the
investment you would make if your company met its refrigerated storage needs by constructing your own
refrigerated warehouse. The return on this investment will be defined as the difference between the
annualized cost of building and operating your private refrigerated warehouse vs. the annual cost of
using public refrigerated warehouse capacity.

Net Present Value: Present value is a way of re-stating a stream of future cash flows into today’s
dollars. When present value is applied to a capital investment, the future return is generally in the form of
cash generated by the asset acquired. This model, however, calculates the net present value (NPV) of
the cash outflows related to each option. All other factors being equal, the option with the lower present
value cost is generally the most profitable decision.

Completion of this Kit:

This Kit has been organized into two sections and worksheets to help you in collecting the appropriate
data for performing each of these two calculations. Use of this kit assumes that you have already
assembled the projected capital investment and operating costs of building and operating your own
warehouse. Should you need assistance in assembling that information, however, supplemental
schedules A and B have been included for your use in generating that information. To simplify these
calculations, the Kit has been generated in an Excel 95-diskette format to include Worksheet #1 for
calculation of ROI, and Worksheet #2 for calculation of NPV.

For simplicity, cash flow projections in Worksheet #2 assumes that all capital expenditures are incurred
in the first year, and operating expenses are incurred equally over the time period selected by you to
perform the net present value analysis.



                         2006 Finance and Administration Committee Agenda
                                                                                                     Page 19

Public refrigerated warehousemen would appreciate the opportunity to assist you in completing this Kit
by providing an estimate of the annual expense you would incur if you used the services of their
refrigerated warehouses. Their experience may also prove valuable in accumulating all appropriate costs
associated with building and operating refrigerated warehouses. They can also provide comparative
statistical data in other areas of the decision analysis.

Return on Investment (ROI) and Net Present Value (NPV)

The Return on Investment (ROI) calculations measures the rate of return on your proposed decision to
make an investment in constructing your company's private warehouse facility. The return on this
investment is defined as the difference between the annualized cost of building and operating a private
refrigerated warehouse versus the annual cost of using a public refrigerated warehouse. ROI is used by
many companies to refer to their own measure of project profitability. That rate of return is then
compared with other investment options to determine which option exhibits a potential for a greater
return. For instance, can you achieve a better use of capital by investing in other facilities, new products
and technology, marketing, or in research and development?

Accounting or book value ROI calculations assume straight-line depreciation of all depreciable assets,
and a constant annual difference in costs between the private and public refrigerated warehouse options.
When these assumptions are valid, the ROI calculation is a straightforward way to evaluate a decision
between private and public options. It fails, however, to consider the time value of money. In addition,
some assumptions used in applying the ROI method may not be true, such as cash flow differences from
year to year. For example, the ROI method is not appropriate under the following:

      •   When additional capital expenditures are made after the project has started. Not including these
          costs will tend to understate the cost of the private warehouse option.
      •   When the use of accelerated depreciation varies the income tax impact each year, and
          calculations are made on an after-tax basis.
      •   When the investment in building and equipment does not occur all at once. For example, if the
          purchase of some equipment may be deferred to coincide with the subsequent increase in
          revenues generated by the new project.

A discounted cash flow method may be more appropriate when cash flows differ from year to year
because it can accommodate cash flow fluctuations, and because it considers the time value of money.
A variation on the discounted cash flow method is called the "net present value" (NPV) method, which
assumes some minimum desired rate of return. This desired rate of return is the rate at which the cash
flows are discounted to present dollars. A capital investment proposal is considered acceptable if the
present value of its future expected net cash flows equals or exceeds the amount of the initial
investment. More specifically, this kit assists you in identifying net cash flows related to costs of both a
private or public warehouse option, and then calculates the net present value (NPV) of each. All other
factors being equal, you should choose the option with the lower present value cost.

Information Needed to Calculate Worksheet #1 (ROI)

1a.       Annual Cost to Use Public Refrigerated Warehouse Space:
          As discussed elsewhere in this Kit, this information may be obtained from a local public
          refrigerated warehouse.

1b.       Transportation Costs:
          Your cost estimate should include the costs to convey items to and from the warehouse.

2.        Total Annual Operating Expenses to Operate Your Private Warehouse:
          If you have not already generated this information, Supplemental Schedule B included within this
                           2006 Finance and Administration Committee Agenda
Page 20

       Kit may be used to accumulate operating expenses normally considered in refrigerated
       warehouse operations. In generating your operating cost estimates be sure to consider the
       following expenses unique to refrigerated warehouses:

       •   Operating and maintenance of refrigeration systems.
       •   Increased use of electric power with the possibility of peak power electric penalty rates.
       •   Additional clothing and protection equipment for employees working in a refrigerated
           environment.
       •   Increased safety and environmental expenses associated with ammonia refrigeration
           systems.

       Because of their situation-specific nature, the costs related to blast freezing are not specifically
       included in this worksheet. Each situation must be uniquely evaluated. Accurate determinations of
       these costs can be obtained by contacting a Public Refrigerated Warehouse.

4.     Total Costs to Construct Your Private Warehouse:
       Supplemental Schedule A has been enclosed in this Kit to assist you in accumulating the cost of
       your investment in your company’s own refrigerated warehouse. Otherwise use your own
       estimate of those capital costs. Your estimates should consider the following construction costs
       considered unique to refrigerated warehouses:

       •   Refrigeration equipment
       •   Additional insulation, including floor
       •   Refrigerated loading docks
       •   Freezer and escape doors
       •   Freezer clothes
       •   Inspection room equipment
       •   Underfloor heating system

Information Needed to Calculate Worksheet #2 (NPV)

1.      The Period over Which to Perform the Analysis.
This may cover the entire useful life of the private warehouse option, or some shorter period of time. A
shorter period will be relevant if your company has a shorter investment horizon, or if there is some
uncertainty about costs after a certain point in time.

2.      Required Rate of Return.
This rate should reflect the time value of money and the risk of the cash flows of the two options.
Management should use their judgment in arriving at the required rate of return. Since greater risk is
attached to capital investments than to a bank loan, the rate is usually above the interest rate at which
banks are lending money. After a company’s required rate of return is estimated, the present value
method can be applied to discount the cash flows to the present.

3.      The Relevant Annual Cash Flows.
Document the annual cash flows for both the public and private options separately so as to consider the
tax implications of each option. Cash flows for each project should be measured on an after tax basis. In
addition to statutory tax rates, three things affect the company’s taxes; revenues, expenses, and timing
of recognition of those revenues and expenses for tax purposes. The present value of taxes paid is less
on a revenue item the further into the future that the tax payment actually occurs. Similarly, the present
value of taxes saved is greater on an expense item the sooner the reduction in taxes paid actually
occurs. The most common discrepancy between cash flow timing and tax recognition concerns
depreciation. Because depreciation is included in expenses, it affects the timing of tax payments.
Remember that cash is expended upon acquisition of a capital asset. Consequently, depreciation is not a
                        2006 Finance and Administration Committee Agenda
                                                                                                   Page 21

cash expense. However, the tax deduction associated with depreciation reduces the annual cash
outflows.
a.     Private Warehouse:
       For simplicity purposes, Worksheet #2 assumes that all capital expenditures are incurred in the
       first year, and operating expenses are incurred equally over the time period selected by you to
       perform the analysis. In performing a more detailed analysis using your own worksheet, you
       should consider the additional costs unique to a refrigerated warehouse. Construction of your
       own warehouse involves initial cash flows from the capital investment, followed by cash flows
       from operating activities. Also consider capital costs for each year that such costs will be incurred
       should they not all be incurred in year one, the cash inflow (net of tax), of a gain on sale of the
       asset, salvage value or market value in the final year.

       Operating expenses of your private warehouse option should be converted to cash flows net of
       tax for each year of operation. Consider unique start up costs in the early years, and additional
       costs associated with closing down the facility at the end of its useful life. Also consider fixed
       costs of your private facility that may be only part time based on seasonal fluctuations.

b.     Public Warehouse:
       To identify the cash flows associated with the use of a public warehouse facility, contact your
       local public warehouseman as discussed elsewhere in this kit. Be sure to include the cost of
       transportation to and from the warehouse, and consider the related tax deduction that you will
       obtain by expensing the costs related to the use of the public facility.

       The following public warehouse operating factors should contribute to a reduction of expenses:

       •   Lessens the impact, and costs, of seasonal fluctuations in inventory as expenses are
           generally incurred in relationship to product storage.
       •   Provides flexibility to both grow and adapt to changing circumstances.
       •   Cost savings may be realized through consolidation of shipments with various other users.
       •   A full menu of public warehouse services provides you with the flexibility of selecting only
           those services needed for your products.

Worksheets and Supplemental Schedules
To complete each worksheet, simply enter your data into the appropriate shaded boxes. All other areas
of the worksheet are protected cells. You may move from box to box by using the tab key. Once your
data is entered, the worksheet automatically calculates the remaining portions of the worksheets.

Should you find it necessary to use supplemental schedules A or B, the total from those supplemental
worksheets do not automatically carry forward to the ROI or NPV worksheets. If necessary, you must
enter the totals from those supplemental worksheets onto the appropriate lines of the ROI or NPV
worksheets. When entering data on line 3b of worksheet #2 - NPV, don't forget that these operating
expenses should be net of the income tax benefit for both Private and Public Options. (See
Supplemental Schedule B, Line 9)




                         2006 Finance and Administration Committee Agenda
Page 22

                            Return on Investment Kit—Worksheet #1
                                     Computing Return on Investment

NOTE: See Intro Tab for detailed information on completing these worksheets

1. ANNUAL COST OF USING PUBLIC REFRIGERATED WAREHOUSE:
a. Annual fee to use public refrigerated warehous                    $
   (This estimate should be obtained from a local public warehouse.)
b. Transportation costs
 Total - Public Refrigerated Warehouse                                                                  -

2. TOTAL ANNUAL OPERATING EXPENSE OF COMPANY
(PRIVATE) WAREHOUSE


3. DIFFERENCE - Estimated net increase (decrease) in pre-tax cash outflows                              -

4. TOTAL INVESTMENT

5. RETURN ON INVESTMENT (BEFORE TAX)
           = Difference in Cost (Line 3) x 100 =
                    Total Investment (Line 4)                                 #DIV/0!     %


6. RETURN ON INVESTMENT (AFTER TAX)
May be roughly approximated by reducing the percentage calculated on line 5 above by the composite of
your federal and state income tax rates

Conclusion: If the results of line 3 is less than zero, the public warehouse option would appear to be more
attractive, even before consideration of ROI. Compare the ROI calculated above to the ROI your company
generally achieves, or to returns available




                        2006 Finance and Administration Committee Agenda
                                                                                                     Page 23

                        Return on Investment Kit—Worksheet #2
                             Calculation of Net Present Value of Cash Flows

1. Number of years to calculate analysis              =                         Years

2. Required rate of return                            =

3. Relevant annual cash flows                                     Private               Public
a. Year 1 - Capital expenditures                          $                               0
b. Annual operating expenses-net of tax                   $

4. Results:                                  Year #               Private               Public

                   Initial Capital Expenditure                              -             0
                                             1                -                    -
                                             2                -                    -
                                             3                -                    -
                                             4                -                    -
                                             5                -                    -
                                             6                -                    -
                                             7                -                    -
                                             8                -                    -
                                             9                -                    -
                                            10                -                    -
                                            11                -                    -
                                            12                -                    -
                                            13                -                    -
                                            14                -                    -
                                            15                -                    -
                                            16                -                    -
                                            17                -                    -
                                            18                -                    -
                                            19                -                    -
                                            20                -                    -

                                Total NPV Cost                              -                    -




                        2006 Finance and Administration Committee Agenda
Page 24

                            Return on Investment Kit—Schedule A
                                  Investment Costs - Private Warehouse

INVESTMENT
1. Land: Costs should include land clearing and building demolition costs. Land costs
should be considered in your analysis even if already owned.
Market value of land to be purchased:
  * Acres or square feet ______________
  * Firm bid, or $___________ per acre or square foot                 $
  * Acquisition and related costs (if purchased)
Total Land Cost                                                                         $   -

2. Building
  * Shell construction, including engine room and maintenance         $
      area, inspection rooms, battery charging area, offices, etc.
  * Refrigeration equipment (cs)
  * Insulation, including floor (cs)
  * Sprinkler systems
  * Electrical systems
  * Architectural/design fees
  * Land survey fees
  * Environmental compliance
  * Soil testing fees
  * Grading and fill
  * Site preparation (pilings, etc)
  * Installation of access roads, rail sidings, etc.
  * Parking lot paving
  * Water supply - connections, wells, storage tanks, etc.
  * Power supply to property
  * Loading docks, enclosed or open, (cs) refrigerated or
      unrefrigerated
  * Dock seals
  * Dock levelers
  * Underfloor heating system
  * Office finishing (excluding furniture)
  * Freezer and escape doors (cs)
  * Outdoor storage facilities (e.g. for stacking aids)
  * Interest during construction
  * Transaction costs (attorney fees, survey, environmental survey,
      title insurance, transfer taxes and recording fees)
Total Estimated Building Cost                                                     -
Add contingency
Total Building Cost                                                                     $   -

3. Warehouse Equipment:
                         2006 Finance and Administration Committee Agenda
  * Forklifts, forklift parts and batteries, (cs) modified to work in $
     freezer
  * Battery chargers, installed
                                                                             Page 25

                            Return on Investment Kit—Schedule B
                                Operating Expenses - Private Warehouse

OPERATING EXPENSES

1. Payroll-Plant
 * Administrative - Warehouse (manager and plant supervision)    $
 * Administrative - Warehouse (general office, clerical)
 * Handling labor
 * Engineering and maintenance
 * Compliance and safety
 * Extra labor provided - overtime,contract,seasonal
 * Engine room & refrigeration systems (cs)
Total payroll                                                            $       -

2. Payroll Taxes, Insurance, Fringes
 * Payroll taxes                                                 $
 * Insurance - hospitalization, life,etc.
 * Other employee benefits
 * Insurance - Workmen's Compensation
 * Pension and profit sharing
Total payroll taxes, insurance                                           $       -

3. Plant Utilities
 * Light, heat and electric power (cs)                            $
 * Water
 * Miscellaneous utilities
Total utilities                                                          $       -

4. Maintenance
 * Maintenance (including outside contractors and supplies)      $
 * Plant
 * Engine room & refrigeration system (cs)
 * Handling equipment
Total maintenance & supplies                                             $       -

5. Other Expenses - Plant
 * Safety and hazmat compliance (ammonia) (cs)               $
 * Equipment rentals
 * Loss and damage
 * Plant supplies
 * Security
 * Sanitation
 * Miscellaneous-(identify amounts greater than $5,000):
    a. Pallets
    b. Transportation 2006 Finance and Administration Committee Agenda
    c.
    d.
                                                   Page 27

                Other Business

              Personnel Turnover




2006 Finance and Administration Committee Agenda

				
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