Mobile crushing and screening

Mobile Crushing and Screening Inc is what it says.  My son has a portable rock crusher we move from pit to pit following the work. I also have a small trucking company to move machinery and deliver the materials we produce.  I also partnered up with some guys two years ago and opened a sand and gravel washing operation providing materials to ready-mix concrete plants. 

My name is John and I am the managing partner of Colorado River Aggregates, the sand and gravel wash plant. My son Blake is the owner of TBH trucking and Construction, the rock crushing operation and My wife and I own PJ Rockhounds, the trucking company. I myself, have grown up around the construction Industry.  Third generation equipment operator and company manager. Raised around all types of general construction but finally settled on aggregate production. My son works with me and has his own rock crusher (TBH trucking and construction). He is the fourth generation in the construction industry. I have a plant manager who has 10 plus years in washing materials, a mechanic that keeps the machinery running, an office secretary who keeps books and sends out the invoices, scale lady who weighs trucks and sells material, and 7 equipment operators. I am involved in all three companies but feel we are too scattered and with current partners, we can't make the decisions that need to be made. This company can grow better and faster without the current partners and with the combined strength of putting all machinery into one company.

What I am trying to accomplish with this funding has three main goals. First buy out my two partners because they are at a point where they don't want to invest any more money in the operation till we get an equipment note paid off, yet we need to grow. Second, I want to buy my son's rock crushing operation and add it into this operation because we could cross use his machinery at the gravel pit and he could use some of the gravel plants equipment at times. My current partners don't want us to cross use equipment. Third, we want to make the trucking company, PJ Rockhound part of this company so we can increase the fleet size to deliver materials and since we need the trucks to move machinery it will fit right in. 

The main problem is growth. We are in an area with an extremely strong market.  With six Readymix concrete companies in our market area, and we deliver to three of them, we need to add machinery to the sand and gravel plant to increase production. I have four rock quarries that I mine in and with some additional equipment we could expand those pits. The trucking company, I only have one dump truck and so I do what I can and hire contract haulers to haul the rest. With my own trucks we could have more sales and control the delivery rate. CRA currently has purchase orders for $800,000 plus in material purchase orders and TBH has over $1 million in sales over next 6 months.

The company focus on solving the growth problem is additional equipment and two more equipment operators to start.  Rock truck to speed up getting raw materials to the processing plants, Additional loaders to speed up processing material which means more product produced is more product to sell, and more income. We only sell out of some of the pits we control, additional loaders to open up a key limestone pits to full time material sales. Additional screening plant and start adding delivery trucks as needed.

The fundamental goal to making money is to take raw materials purchased on a royalty bases at 85 cents to 2 dollars per ton and make it into a quality sellable product which will sell for 5 dollars per ton to 25 dollars per ton.  We cover a large area in West Texas and service four municipal areas over 100,000 in population.  There are many contractors we compete against but there are three factors we are focusing on to give us an edge. Keep material pits in key areas to give us an edge on logistics. Produce materials that are of high quality.  Companies will travel farther to purchase your material if it is constant on quality and gradation. Third is working toward getting all pits on the state Quality Control materials list so when any state projects are bid our pits will be on a list recommended to contractors as an approved source. 

Keeping your cost under control to give the best price on material, Pit location for logistical reasons and providing the highest quality material is our goal. This is our vision on how we can own the market as we grow.

Besides having 45 years in the construction industry, I have a wealth of knowledge and continue building off of it. We have built a list of customers with our past 12 years of crushing rock in the Permian Basin which TBH is continuing, CRA has opened a sand and gravel processing operation (starting from the ground up) which has been operating for almost 2 years. We have a client base which uses our products. 

To facilitate our goal, we are asking for $3,000,000 in funding.  I am open for suggestions on the best way to acquire this. We can do a straight up Term loan for 7 years at 8% interest. Or we can have a silent partner and return 5% interest per month along with 2.5 percent of gross sales each month for life of company. Repay principle over seven years or at end of seven years.  Throughout the 7 years there will be times we may need more investment for additional equipment if we can show a return for the investor.  All these funding proposals are negotiable.

What we are looking at is a company we can grow 10 to 20 percent per year and grow strong business relationships. We want to be a premiere provider in aggregate in west Texas.  We want to grow to a point where we can get into the asphalt market and eventually get to a 50 million dollar per year company.