PROJECTDELTAConfidential
CaslaPartnersLLC53CallePalmeras,Suite401SanJuan,PuertoRico00901
(646)[email protected]
CaslaPartnersLLC
DeltaCompanyisaHouston,Texasbasedretailerofmilitarysurplusproducts.Witha34yearhistory,Deltahasstrongbrandrecognition,aloyalcustomerbaseandproprietarysupplierrelationships.LTMrevenuesexceed$3MMwithapproximately$430Kofadjustedpre-taxnetincome.75%ofCompanyrevenueisgeneratedfrominternetsales.COMPANYOVERVIEWFoundedin1984,DeltaCompanyisarecognizedforceinthemilitarysurplusindustry.TheCompanyhaseightemployees,ahighlyvisibleretailstorelocationandwarehouseinHouston,eachwithanintactlong-termlease.UniqueProducts–morethan21,000activeSKU’sandacompletelineofmilitarysurplusgoodsincludingfootwear&apparel,military-themedmerchandise,camping&survivalgear,tacticalgearandgenuineUSGIsurplus.Deltapurchasessomemilitarysurplusdirectfromthebase(noauction/nobidding)andalsopurchasesdirectfromDODcontractors.StrongOnlinePresence–Deltahasbeenonlinesince2003.51%ofwebsitetrafficcomesfromorganiclistingswithover24,000positionsonGoogle.Ofthose,over1,400aretopthreepositions.Additionally,over4,700productsareonPageOneand3,700onPageTwo.LoyalCustomerBase–Over135,000customersincludingindividualconsumers,smallbusinesses,Federalagencies,DoDcontractorsandDoDbranches.Manyinstitutionsareon-going,repeatcustomers.InHouseFulfillment–Deltamanagesitsownfulfillment.AlmostallordersareshippedfromHouston,resultingincompletecontrolofthecustomerexperienceaswellasacostadvantageover“dropship”retailers.UniqueServices–Deltahastwelveembroidery,sewingandcustomizationmachinesandmakesin-houseuniformnametapes,customembroidery,customsewing&alterations,customdogtagsanduniformnameplates.HealthyMargins–Deltahasconsistentlyproducedgrossmarginsinthe40%+rangebyofferingquality,hardtofindproducts,atfairprices.Well-DiversifiedandDefensibleBusiness–DeltaCompanyiswell-diversifiedbyproducts,customers,andsalesgeography.DuetotheCompany’sbrandrecognition,proprietaryproductsourcingandwebtraffic,aswellascompletecontrolofthecustomer
PROJECTDELTAConfidential
CaslaPartnersLLC53CallePalmeras,Suite401SanJuan,PuertoRico00901
(646)[email protected]
CaslaPartnersLLC
experience,Deltaisentrenchedasadynamicplayerinthemilitarysurplusmarketandwellpoisedforgrowth.Thecurrentownerofthebusinesswishestoretireandiswillingtotransitionandprovidesupporttoanewowneronaparttimebasis,foraslongasisreasonablyrequired.GROWTHOPPORTUNITIESAdvertising–Deltahistoricallyhasspentabout5%ofitsrevenueonSEOanddigitaladvertising.Thereisagreatopportunitytoincreasespendinordertodriveadditionalwebtrafficandsales.Also,theCompanyhasanopportunitytomarkettoitsexistingcustomerdatabasebyofferingpromotionsandotherprogramstofurtherdriveadditionalrevenue.eCommerceShippingPolicy–Deltacurrentlychargesforshippingandoffersnofreeshippingincentives.Theopportunityexistsforthenextownertoimplementa“threshold”freeshippingpolicy,orsimilar,toincreaseaveragebasketsizeandvolume.MobileFriendlyShopping–Delta’scurrentmobilewebsiteisinadequate.Thisrepresentsaneasyupgradeforimmediategrowthasonlinepurchasescontinuetogomobile.InternationalSales&Shipping–Deltareceivesinquiriesalmostdailyforinternationalsalesopportunities.However,ordersfromoutsidetheU.S.arenotcurrentlyaccepted.Amazon–DeltadoesnotlistanyproductsonAmazon.ThisisanenormousopportunitytoexpandtheCompany’sreachandincreasesales.FINANCIALOVERVIEWDeltaproduced$3.1MMinrevenueonanLTMbasis,with75%generatedbyeCommercesales.DeltaCompanyproducesapproximately$430,000peryearinpre-taxincome,priortoownercompensation.
