Operations
Each service offered by OTMI is operated independently as a wholly-owned subsidiary and work together to provide a complete service to the customer. OTMI is currently concentrating on the acquisition of profitable companies that will allow them to meet 100% of their client?s needs. OTMI focuses on the client and how to best service them without disrupting their current systems and processes. A typical client will contract with OTMI to deliver a product while supporting the entire process, from shipping, customs services, warehousing, tracking and quality control.
Marketing
OTMI?s services are primarily marketed by their in-house sales staff and commissioned agents. OTMI currently works with 12 commissioned agents in North America. The target market is small to mid-sized manufacturers, retailers and distributors who are not currently being serviced by an end-to-end company. OTMI plans to grow the company via their in house marketing channel.
Growth Strategy
The company plans to grow through strategic acquisitions. It is currently looking to acquire several businesses. For 2010, OTMI plans to grow through the combined purchasing power of its subsidiaries and by brand expansion. To expand the brand, OTMI intends to add more agents to increase sales, and to cross market to its existing customers in order to grow the company from within. As OTMI?s services grow, evaluating current customers unmet needs, both in terms of services and geographical shipping requirements, will allow OTMI to garner additional revenue from their existing clients. The management team plans to leverage their extensive history in the business to gain new contacts who may be new clients or strategic partners.
Financials
OTMI?s revenue primarily comes from their freight services, and is the difference between what they are charging clients for their supply chain operations, and the amount they pay third party shippers for their transportation services. Over 50% of the company?s revenue is derived from their commissioned agents. The company had no revenue in 2006 and 2007. In 2008 the company brought in $3.68 million for the year, $500,000 of which was gross profit. In 2009 the reverse merger was completed, and the company nearly doubled its revenue to $6.81 million, with $960,000 in gross revenue. These revenues consist mostly of transportation revenue, with a small portion ($177,000 in 2009) derived from its logistics software division. The company spent $220,000 in 2009 on software development costs. Operation costs were up from $27,000 in 2008 to $125,000 in 2009, as a result of company growth. In 2009 the company saw a reduced cost of transportation due to lower gas prices and posted a profit of $34,299.
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