Delivery Management
Technology & Services
for
Retail Petroleum
Propane, Fuel Oil Delivery
The Value Proposition
Driving your Bottom Line
This document describes how Vertrax’s current customers are realizing
the real value of SmartDrops and actually recognizing true return on
their investment
No
March 2006
Value Proposition: Driving your Bottom Line
Table of Content
1. Vertrax ................................................................................................................................. 3
1.1 Our Focused Industry: Retail Petroleum ........................................................................... 3
1.2 The Benefits We Offer .................................................................................................... 3
2. An Industry in Change ............................................................................................................ 5
3. Driving the Bottom Line .......................................................................................................... 6
4. Increased Profits through Improved Delivery Efficiencies ............................................................ 7
4.1 Reduction in Delivery Costs due to Reduced Miles and Reduced Driving Time ........................ 7
4.2 Increased Gross Margin from Increased Gallons Delivered to the Same Account Base ............ 7
5. Increased Profits through Improved Operations ......................................................................... 9
5.1 Increased Gross Margin due to Increased Gallons Delivered to an Expanded Account Base ..... 9
5.2 Reduced Delivery Costs due to Delivering to the Account Base with a Reduced Fleet ............ 10
6. Incremental Value Driven by Other Benefits ............................................................................ 11
7. Case Study ......................................................................................................................... 12
7.1 Summary ................................................................................................................... 12
7.2 Reduction in Delivery Costs due to Reduced Miles and Reduced Driving Time ...................... 13
7.3 Increased Gross Margin from Increased Gallons delivered to the same account base ............ 14
Mar 2006
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Value Proposition: Driving your Bottom Line
1.
Vertrax
Vertrax, headquartered in New Haven, CT, is the leading provider of unique Delivery
Management solutions to the Retail Petroleum industry (marketers of propane & home
heating oil). Vertrax’s customers report significant incremental bottom line profits ($5,000 to
$10,000+ per delivery vehicle per year) as a result of reducing the costs per delivery by more than
30%. This customer proven and compelling Value Proposition is derived by:
1
Operational savings largely from less miles driven (reduced gas/diesel, maintenance &
repair) and reduced driver hours (reducing regular and overtime hourly pay); and
2.
Increasing the number of deliveries and their volume (driving increased gross profit).
Delivery Management is the logistical planning, intelligent sequencing, optimal routing, scheduling
and monitoring of propane and heating oil residential deliveries. SmartDrops is our flagship
product for propane and heating oil residential delivery, and soon for service technicians. Orders
are automatically downloaded from the back office ERP system and visually displayed on digital
maps. These maps allow the end-user to manipulate the views by order characteristics (volume,
urgency, delivery date, type, etc) and geography (street level, certain locations, zoom, etc).
SmartDrops automatically creates optimized, editable routes for a set of drivers, providing printed
manifests and interfaces to cab-based computers. Integrated Live Tracking provides SmartDrops
users with location based services and up-to-minute analysis of actual location providing planned
versus actual route analysis. At a macro-level, Vertrax’s efforts are directed toward the short
haul or "last mile" of the logistics supply chain, where delivery and pick-up routes are dynamic,
urgency-driven and contain many stops.
1.1
Our Focused Industry: Retail Petroleum
Vertrax focuses exclusively on U.S-based Retail Petroleum marketers who deliver home heating
oil and propane to homes and businesses. This group has been behind in logistical and fleet
productivity applications due to the expense of installing and operating these systems and the
specialized requirements of the Retail Petroleum delivery fleets. Without Vertrax’s Delivery
Management products, current methods of resource planning, dispatching, sequencing of deliveries
and route development are manual and paper based, with decision making on deliveries left to the
branch dispatcher and drivers. The resulting delivery schedules and routes are rarely optimal and
accountability of delivery management is low. Bottom line profitability is left at the mercy of
branch delivery personnel!
Because our unique industry-specific Delivery Management solutions integrate into back office
general ledger system and low up front systems costs, Retail Petroleum marketers have begun to
embrace Vertrax’s technology. Industry dynamics such as volatile commodity prices (e.g. heating
oil and propane) causing variable margins, higher delivery costs (vehicle fuel, etc) and rising
insurance and health care costs are also driving strong interest in Vertrax’s products.
1.2
The Benefits We Offer
Vertrax’s customers find a variety of compelling benefits: 1) fewer miles driven resulting in
reduced maintenance and repair, decreased fuel costs and decreased driver overtime; 2) increased
gallons delivered and incremental gross profit with zero additional delivery costs; 3) improved
efficiency of operations through “paperless” process and internal communications and 4)
Mar 2006
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Value Proposition: Driving your Bottom Line
improved responsiveness and service to their own customers. Vertrax's Delivery Management
solutions allow our customers, who normally operate on relatively thin margins and suffer from
inefficiencies in managing their mobile delivery resources, to dramatically decrease their Costs
per Delivery, increase their Gallons Delivered per Mile driven and improve their bottom
line profits.
Vertrax has successfully launched a “Value Sharing” business model further illustrating our proven
commitment to the industry and to the success of our customers. Value Sharing comprises
Vertrax receiving up to 1/3rd of the proven uplift in profits directly resulting from the deployment
of Vertrax’s products. In addition to recurring product license fees, one-time implementation and
training fees are also charged at $1,200 per vehicle. We sell directly to major national and
regional Retail Petroleum fleets and directly or through reseller partners to smaller regional fleets.
Expansion into Commercial Petroleum is targeted for the end of 2006.
The illustration below describes the major drivers behind SmartDrops’ Value Proposition.
Mar 2006
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Value Proposition: Driving your Bottom Line
2.
An Industry in Change
The retail propane and oil industry is undergoing considerable change due to volatile commodity
pricing leading to unpredictable gross margin and increased complexities in running the business.
These new challenges are coupled with the historical issues that have plagued the industry for
many years, namely low productivity and efficiency and escalating delivery costs. The general lack
of technology to improve efficiency has caused an unfavorable environment in which:

Far too many assets are used to complete daily work resulting in very low ROAE
(Return on Assets Employed). Due to inefficiencies, most companies are forced to
over-forecast their vehicle capacity to deal with seasonal “worst case” scenarios,
thereby “over building” fixed expenses against variable revenues.

It is difficult to hold specific employees accountable for productivity.

Measuring performance benchmarks on assets or employees is nonexistent.

Vehicles drive far too many miles in the context of actual deliveries.

There is an overabundance of paper being pushed by clerical staffers and an
overabundance of back office work being done to migrate field data to the host ERP
system.

Communication between the vehicles and the dispatcher is unreliable.

There is no “real time” monitoring or control of delivery and service vehicles.

Theft of time is a major concern.
This remainder of this document describes how Vertrax’s current customers are realizing the real
value of SmartDrops and actually recognizing true return on their investment
Mar 2006
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Value Proposition: Driving your Bottom Line
3.
Driving the Bottom Line
The Value Proposition of Vertrax’s Delivery Management products is derived in two primary
ways, namely:
1.
Increased Profits through Improved Delivery Efficiencies, namely:
 Reduction in Delivery Costs due to reduced miles and driving time, driven by reduced
Truck Costs such as diesel, gas, maintenance & repair and reduced Driver Costs with
reduced overtime hours.

Increased Gross Margin from increased gallons delivered to the same account base;
realizing increased delivery capacity closer to the maximum capacity within the
existing account base.
AND
2.
Increased Profits through Improved Operations, through:
EITHER
 Increased Gross Margin due to increased gallons delivered to an expanded account
base.
AND/OR
 Reduced Delivery Costs due to delivering to the account base with a reduced fleet.
In industry generally accepted performance measurements, Vertrax’s Value Proposition translates
to:

Delivery Cost (Truck + Driver) per Drop will decrease by more than 20%.

Gallons Delivered per Mile Driven will increase by more than 7%.
These savings flow directly to the bottom line, boosting bottom line profits (EBITDA) significantly.
Mar 2006
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Value Proposition: Driving your Bottom Line
4.
Increased Profits through Improved Delivery Efficiencies
4.1
Reduction in Delivery Costs due to Reduced Miles and Reduced Driving
Time
Logically by driving tighter routes, drivers should drive less miles and, all being equal, will
spend less time behind the wheel. Drivers will also spend less time (approximately 30
minutes a day) by being provided pre-built SmartDrops routes rather than spending time
building their own route from a non-sequenced set of tickets simply pulled from the back
office / degree day system and divided into driver ticket piles by the dispatcher. In this
case, the cost of delivery would decrease since there is less fuel & diesel truck costs and
less maintenance & repair costs, and less driver hours cost, etc.
Clearly, the industry accepted productivity metric of Gallons per Mile will increase
and the industry accepted cost metrics of Cost per Drop, Cost per Gallon Delivered
or Cost per Mile Driven will decrease.
The actual reporting of the mileage and hours driven numbers may not show an overall
decrease if as a result of more time, drivers are being asked to do extra drops per day
meaning additional gallons are being delivered. In fact this is more likely a scenario and
the benefit of this is detailed below. Another way of saying it is that depending on what
management does with reduced driving time will actually dictate actual reported miles and
driver hours. If incremental drops are given to the drivers, miles and hours driven many
increase, but these costs would be more than offset by the margin on the additional
gallons delivered.
4.2
Increased Gross Margin from Increased Gallons Delivered to the Same
Account Base
SmartDrops can greatly improve Deliveries per Day by providing more efficient and
intelligent routing. As described above, this leads to less “windshield” time and less miles
driven. By logical extension, more deliveries can be made in the same time interval. The
more deliveries that are made per mile, the lower the relative cost per delivery.
By focusing on urgency, geography, truck inventory, and mapping/routing logistics, a
dispatcher can build significantly more efficient routes. SmartDrops uses street level
mapping which optimizes the driving time between delivery stops, eliminates vehicles
crossing paths during the delivery day, and breaks down the imaginary boundaries
imposed by “zone” routing. All of this leads to improved stops per hour, a recognized
productivity benchmark in the petroleum industry. Ultimately this leads to significantly
reduced delivery costs.
With SmartDrops being used correctly, drivers will be able to do several more deliveries
a day, with an increase in gallons delivered per mile and a decrease in cost per gallon
delivered or overall cost per drop. Drivers should be able to spend more time delivering
gallons, increasing the daily gallons delivered. This increased delivery capacity can be
Mar 2006
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Value Proposition: Driving your Bottom Line
absorbed by the existing account base by better meeting 100% of the demand throughout
the account base.
In any given period of time, with or without SmartDrops, the demand from the existing
account base is constant largely driven by weather conditions. In many cases SmartDrops,
by enabling extra deliveries per day, will help the fleet deliver closer to this 100% demand
than otherwise possible. This will be the case where the branch is unable to meet the
demand from the existing account base or can only get closer to full demand by increasing
miles and overtime hours. In those that feel as though they are already meeting 100% of
the demand without SmartDrops, then they must either reduce the hourly time of the
drivers and/or reduce the fleet to see real pay back (see below).
SmartDrops may increases the Average Drop Size since a company now has the ability to
perform true “on-time” fuel delivery. Historically, most companies attempted to alleviate
the impact of poor delivery productivity and efficiency by pulling orders “ahead of the
degree day clock”. Simply put, these companies force the system to order a customer’s
fuel prior to the day that an optimal drop could be made. This increases the number of
times that a company delivers to a particular customer in a given year and reduces the
size of the drop. Both of these negative impacts drive up delivery costs and reduce
profitability. The efficiency improvements brought about by utilizing SmartDrops
(including visual display of delivery information, k-factors, tank sizes, gallons to be
delivered, etc) free up assets and time therefore allowing a dispatcher to make more
confident delivery timing decisions and stick closer to “the clock”. The end result of a
larger drop size maximizes delivery capacity and drives down overall costs. One of our
clients told us that a 10 gallon per drop improvement yields $1MM in annual profit.
Vertrax has seen an average of 8 gallons per drop increase.
High percentage will call fleets may be able to satisfy more will calls if there is more time
to make deliveries, therefore possibly raising overall volume delivered.
Reducing run outs is also a factor, if there is more time to make deliveries, again possibly
raising overall volume delivered.
Mar 2006
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Value Proposition: Driving your Bottom Line
5.
Increased Profits through Improved Operations
5.1
Increased Gross Margin due to Increased Gallons Delivered to an
Expanded Account Base
The Value Proposition model shows that the average customer deploying Vertrax’s
Delivery Management products will increase delivery capacity (i.e. volume of product
delivered) by at least 3%. This expectation is based on the historical experience of our
customer base related to emergency calls, will-call management, targeted marketing, and
customer service.
Retail Propane and Heating Oil distributors seek to grow by 3% to 5% per year. This is
accomplished through marketing to new customers and servicing new customer prospects
that are converted to long-term customers. The primary barriers to this strategy are
usually through a retailer distributor’s inability to stretch their existing capacity to
accommodate incremental customers and their inability to provide a level of customer
service that mitigates account attrition. Aside from the problems resulting from
integrating new customers, retailers have historically suffered significant customer attrition
during the peak season due to inept handling of run-outs, early/late deliveries, and
emergency service calls. Approximately 70% of this attrition results from poor service
quality. At a customer acquisition cost of $400, retailers strive to find ways to keep their
customers.
Vertrax’s Delivery Management products enable our customers to grow their business
and retain customers as follows:
 Smart Marketing: Using SmartDrops, focused marketing plans based on geo-coded
routes enable retailers to target households and commercial establishments that can
be easily integrated into existing routes. This means that new customers can be
serviced efficiently without diluting overall service quality. The net result is that a
retailer can avoid the attrition that results when the expanded customer base, while
not stretching capacity, still causes inefficient routing and reduced service quality.
Additionally, increasing customer density within a routes drives down the delivery
cost of a company’s current business by increasing the overall stops per mile.
Mar 2006

Will-Call Management: During the peak season, retailers receive calls that require
immediate deliveries or emergency service. Because capacity is already stretched and
the retailer lacks the tools to handle will-call situations on a dynamic basis during the
day, any changes in routing can have a significant cascading effect on the existing
customer base. Since retailers are operating defensively during the peak season to
service and retain existing customers, they often turn down call-in customers that
could otherwise be converted into long-term customers. Deploying SmartDrops
allows retailers to respond more quickly to these situations without impacting overall
quality of service.

Improved Service Quality: During the peak season when delivery resources are
stretched, retailers typically experience run-outs and emergency service calls they
cannot handle, resulting in customer attrition. Through the deployment of
SmartDrops and SmartTrax more efficient routes and the ability to handle dynamic
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Value Proposition: Driving your Bottom Line
routing during the day for both product delivery and service calls, these “red alert”
situations can be handled pro-actively or substantially eliminated. Additionally,
SmartDrops and SmartTrax can be networked to all members of a client’s Customer
Service team thereby enabling them to more precisely predict arrival times for
customers waiting for delivery or service.
Based on industry experience, Vertrax management believes that each one of these
benefits alone can help our customers realize the 3% volume growth indicated in the ROI
analysis. On a conservative basis, it is expected that customers will realize the following
customer gains:
Smart Marketing
Will-Call Management
Improved Service Quality
Total
Incremental growth of 1% per year
Incremental growth of 1% per year
Reduction in customer attrition by 1% per year
3% per year volume increase
This additional volume translates to approximately $35 per truck per day gross profit
(assuming 100 gallons day (or 4 gallons per drop) extra at gross profit of $0.35 per gallon).
5.2
Reduced Delivery Costs due to Delivering to the Account Base with a
Reduced Fleet
Each truck that is removed from a given fleet represents an annual savings of
approximately $60K (debt service plus operational costs). These reductions of assets
employed are the result of improved efficiency and productivity.
The same logic that applies to the delivery side can be applied to the service side as well.
Better efficiencies allow for reduced assets employed.
This leads to a better leverage of assets by having less vehicles on the road or the reallocation of assets to other revenue producing efforts.
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Value Proposition: Driving your Bottom Line
6.
Incremental Value Driven by Other Benefits
From an overall operational perspective, additional ROI can be realized by:
Mar 2006

Reduced customer churn. As previously mentioned, SmartDrops can have a significant
impact on overall customer satisfaction and employee morale. Attrition is a major issue at
all retail petroleum companies and some can experience an amazing 30% customer
“churn” on an annual basis. Much of this churn can be attributed to missed/wrong
deliveries, run-outs, inability to grow based on stretched capacity, inability to respond in a
timely fashion, etc. Additionally, happy employees lead to happy customers and no one
has more customer contact than a fuel driver. If he is content with the organization of his
workload, then that will translate into improved customer relationships.

Reduced overtime expense.

Ability to grow business. SmartDrops can also be used as a critical mapping tool for more
effective management and analysis of Merger and Acquisition initiatives. Many companies
purchase competitors only to find out that the dispersion of customers and/or branches
does not fit into their existing infrastructure. This reduces or eliminates any economies of
scales that were anticipated.

Ensuring that marketing dollars are not wasted. Often, companies spend enormous
amounts of money to attract new business only to find that the operations side of the
business cannot handle it.

Branch consolidation through a centralized business model. The final piece of the current
operating model dictates that a multi-branch company must use a dispatcher in each
location. SmartDrops allows for centralized dispatch. This results in significant
economies of scale and reduced delivery expense.

Reduction in “theft of time” by employees.

Reduced shrinkage through more effective parts and fuel management.

Reduced aggregate insurance costs due to less vehicles, less miles driven, and more
effective fleet control and accountability.
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Value Proposition: Driving your Bottom Line
7.
Case Study
7.1
Summary
SMARTDROPS: VALUE PROPOSITION MODEL
1
CHANGES IN METRICS YEAR-OVER-YEAR
PROPANE (10 Trucks)
Comparing: OCT 04 -> JAN 05
To:
# of Accounts
Delivery
Management
Metrics
Degree Days
Miles Driven
Driver Hours
# of Drops
# of Gallons Delivered
Gallons Delivered / Mile
Gallons Delivered / Hour
Delivery
Management
Ratios
Miles per Drop
$
Delivery Cost / Mile $
Delivery Cost / Gallon $
Delivery Cost / Drop
383
(431)
(3,130)
(592)
(1,307)
(216,582)
7.77%
-11.59%
-9.17%
-12.99%
-9.90%
-10.22%
(0.72)
15
(0.56)
0.02
(0.50)
(0.23)
(0.003)
-1.15%
3.19%
-0.35%
0.82%
-4.47%
-5.24%
-4.14%
Per Truck / Annual $
16,676
45,195
4,519
Trucks in Period: Profit from Gallons Delivered $
23,358
Trucks in Period $
40,034
68,553
6,855
Profits from
Reduced Delivery
Costs
INCREMENTAL
BOTTOM LINE
PROFITS
Mar 2006
Drop Size
OCT 05 -> JAN 06
Trucks in Period $
All 10 Fuel Oil Trucks / Annual $
All 10 Propane Trucks / Annual $
Per Truck / Annual $
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Value Proposition: Driving your Bottom Line
7.2
Reduction in Delivery Costs due to Reduced Miles and Reduced Driving
Time
1 REDUCED DELIVERY COSTS
Company:
Branch:
Comparing:
To:
TAKING THE ACTUAL REPORTED NUMBERS AND FOCUSING ON:
1) ACTUAL MILES DRIVEN (should reduce)
2) ACTUAL HOURS DRIVEN (should reduce)
Key Metrics Reported
Total Miles Driven
# of Total Hours Driven by ALL Drivers
Total # of Gallons Delivered
# of Drops
Average Drop Size
# of Accounts
Gallons Delivered / Lost to Change in Accounts
Key Metrics Computed
Gallons Delivered per Mile Driven
Gallons Delivered per Hour Driven
Delivery Costs per Mile Driven
Delivery Costs per Hour Driven
Delivery Costs per Drop
Delivery Costs per Gallon Delivered
Reduced Delivery Costs
A PROPANE FLEET
A Single Branch
Oct 04 -> Jan 05
Oct 05 -> Jan 06
Actual As Reported
Oct 04 -> Jan 05
34,134
4,557
2,119,964
13,196
161
4,930
n/a
Oct 05 -> Jan 06
31,004
3,965
1,903,382
11,889
160
5,313
147,869
Oct 04 -> Jan 05
62.11
465
$
4.32
$
32.39
$
11.19
$
0.070
Oct 05 -> Jan 06
61.39
480
$
4.49
$
35.13
$
11.72
$
0.073
Delta
(3,130)
(592)
(216,582)
(1,307)
(1)
383
n/a
9.17% Less
12.99% Less
10.22% Less
9.90% Less
0.35% Less
7.77% More
7.77% More
Actual As Reported
Equalize for Fuel and Compensation
Delta
$
$
$
$
(0.72)
15
0.17
2.74
0.53
0.004
1.15% Less
3.19% More
3.89% More
8.45% More
4.74% More
5.10% More
$
$
$
$
Actual As Reported
Oct 04 -> Jan 05 Oct 05 -> Jan 06
Driver Costs $
98,194 $
86,802 $
Truck Costs $
49,410 $
52,480 $
Total Delivery Costs $
147,603 $
139,282 $
$
$
$
$
Delta Comparing to Oct 04 -> Jan 05
(0.72)
1.15% Less
15
3.19% More
(0.23)
5.24% Less
(0.35)
1.08% Less
(0.50)
4.47% Less
(0.003)
4.14% Less
Equalize for Fuel and Compensation
Delta
(11,392)
3,070
(8,322)
Oct 05 -> Jan 06
61.39
480
4.10
32.04
10.69
0.067
Oct 05 -> Jan 06
11.60% Less $
82,163 $
6.21% More $
44,879 $
5.64% Less $
127,042 $
Delta Comparing to Oct 04 -> Jan 05
(16,031)
16.33% Less
(4,530)
9.17% Less
(20,561)
13.93% Less
FURTHER EQUALIZATION to Oct 05 -> Jan 06 of Delivery Costs is needed to reflect normal Decrease or Increase in Business (i.e Volume)
EQUALIZATION #4 for Oct 05 -> Jan 06: Change in # Drops due to Volume Change
Change in Gallons Delivered
Variable Delivery Cost per Gallon Delivered $
Variable Delivery Costs associated with Change in Volume $
Change in Delivery Costs attributable to SmartDrops from [October 2004 - January 2005] To [October 2005 - January 2006] $
(68,713)
0.057
3,885
(16,676) i.e 11.30% Reduction in Delivery Cost
INCREMENTAL BOTTOM LINE PROFIT FROM REDUCED DELIVERY COSTS
Mar 2006
A Single Truck
Trucks used in Comparing [October 2004 - January 2005] To [October 2005 - January 2006] $
16,676
$
1,906
All 10 Trucks Annualized over a Calendar Year based on Truck Utilization $
45,195
$
4,519
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Value Proposition: Driving your Bottom Line
7.3
Increased Gross Margin from Increased Gallons delivered to the same
account base
2 DELIVERING MORE GALLONS
VOLUME MAY INCREASE YEAR-OVER-YEAR DUE TO NORMAL
CIRCUMSTANCES SUCH AS COLDER WEATHER & INCREASE IN #
OF ACCOUNTS.
Company:
Branch:
Comparing:
To:
A PROPANE FLEET
A Single Branch
November 2004
November 2005
HOWEVER, THERE ARE CASES WHERE DELIVERY EFFICIENCIES CREATED BY SMARTDROPS CREATES THE TIME & OPPORTUNITY TO
DELIVER INCREMENTAL GALLONS THAT WOULD NOT HAVE BEEN DELIVERED PRIOR TO SMARTDROPS (UNLESS ADDITIONAL TRUCKS ARE
DEPLOYED OR LONGER HOURS ARE SPENT DRIVING).
IN THIS CASE, SMARTDROPS ALLOWS THE FLEET TO MOVE TOWARDS 100% DELIVERY CAPACITY WITHIN THE ACCOUNT BASE, WHEREAS
PRIOR TO SMARTDROPS THE FLEET, PERHAPS, WAS NOT DELIVERING TO THE TOTAL CAPACITY (DEMAND) IN THE ACCOUNT BASE.
Actual As Reported
Key Metrics Reported
# of Degree Days
Total # of Gallons Delivered
Gross Profit
# of Drops
Average Drop Size (gallons)
# of Accounts
Gallons per Account
Drops per Account
Gallons Delivered / Lost to Change in Accounts
November 2004
689
360,846
121,028
2,199
164.10
4,930
73
0.45
n/a
November 2005
Delta
569
(120)
17.42% Less
396,722
35,876
9.94% More
136,472 $
15,445
12.76% More
2,538
339
15.42% More
156.31
(7.78)
4.74% Less
5,313
383
7.77% More
75
1
2.02% More
0.48
0.03
7.10% More
30,820 7.77% of Gallons Delivered in November 2005
IF % GALLONS DELIVERED ARE CHANGED MORE THAN % OF DEGREE DAYS CHANGE, AND AFTER ADJUSTING FOR NEW ACCOUNTS,
THE REMAINING INCREMENTAL GALLONS DELIVERED ARE DUE TO SMARTDROPS CREATING THE TIME FOR INCREMENTAL DROPS.
Is the Change in Gallons Delivered GREATER THAN the Change in Degree Days on a PERCENTAGE BASIS?
YES
Change in # Gallons Delivered
LESS # Gallons Delivered due to Change in Degree Days
LESS Gallons Delivered to New Accounts
EQUALS Incremental Gallons delivered due to SmartDrops in November 2005
Incremental Gross Profit due to SmartDrops in November 2005 $
35,876
(62,847)
30,820
67,903
23,358 19.30% More Product Margin
INCREMENTAL BOTTOM LINE PROFIT FROM SMARTDROPS CREATED VOLUME
Trucks used in Comparing [November 2004 - ] To [November 2005 - ] $
Mar 2006
A Single Truck
23,358
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$
2,595
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