We hope you had a great Labor Day 2010!
Labor Day 2008 we re-opened the hardware that Mr. & Mrs. Beers and Lawrence Vasquez had operated for many years on Hoisington's Main Street. In the past 24 months we have followed the counsel of many to establish a sustainable business for Hoisington's Main Street. The time has come to see if you and others will join our effort as investors.
Please study the following information and contact us if you will consider an investment (or have any counsel). Karen can be reached at the store 620-653-4288, or Rod at 800-869-0332.
The committed Cheyenne Hardware staff and I thank you!
September 9th Cheyenne Hardware began the formal solicitation of 12 investors at $5,000 each (Epic/Rod will retain 8 shares). If received, the investment capital will be used to pay off an outstanding bank loan and accounts payable to the hardware wholesaler. Future management decisions will be made by simple majority vote of outstanding shares. If the solicitation is unsuccessful (October 1 deadline), liquidation of this +60 year institution will begin November 12, 2010. (we've agreed with our out-of-town lender that if local investors are unable to assist now that it shall be a sign that it is best to liquidate the store inventory by December 31st, repay the maturing loan, and not continue our efforts for another year).
The following is what we calculate for the operations of Cheyenne Hardware for the current year through August 31st:
23,087 Cost of Goods Purchased from Blish Mize (wholesaler)
26,119 Payments made to Blish Mize
9,325 Currently Owed Blish (owed as of 12/31/09 = 12,964.34)
60,824 Receipts (Bank Deposits)
24,388 Payroll (on-site staff only, nothing to Rod and Manhattan staff)
16,926 Operating Costs (utilities, advertising, sales tax, dues, items from other suppliers)
1,738 Interest Payments to Capital City Bank, Topeka ($50,250 outstanding)
4,000 theoretical rent payments to Civitas ($500 times 8 months)
4,366 Principal Payments to Hoisington Main Street ($30,707 outstanding, majority 0%)
No estimate of net operating income has been made (we would need updated physical inventory, capitalize inventory in excess of replacement, and examine accounts receivable).
Based on the physical inventory taken Jan. 2010, and margins supplied by Blish Mize, Rod estimates the current inventory to have a retail value of $180,000.
A spreadsheet detailing daily receipts and other management calculations is available via E-Mail (by request). Accounts receivable and other information can be viewed via making an appointment at the store.
The above are internally generated bookkeeping of current management. No audit or comment has been provided by professional accountants. Prospective investors should make their decision only after careful examination and independent study.
Rodney C. Harms, President
Epic Homes of Kansas, Inc. dba Cheyenne Hardware
Civitas Group Holding Company, Inc.
3773 Anderson Ave.
Manhattan, KS 66503
Rod Harms, owner/craftsman