ROI Analysis

In reference to the example company and the projected revenue impact that will occur after they purchase and install the Omegasonics Restoration Pro Contents Restoration System, we are able to make projections based on the past performance of this and other companies that are utilizing our system.

The example company is estimating that their gross revenue for 2009, without including any major disaster claims will be greater than $3 million dollars. Their normal contents restoration portion of the gross revenues is 15% or $450 thousand dollars based on hand cleaning those items which can be restored using that method. Four to five employees are utilized in the hand cleaning process with their loaded labor rate being approximately $ 22.00 per hour. This amounts to a weekly labor expenditure of $ 880.00 per person or $4,400.00 for five employees. For a year of hand cleaning labor based on fifty weeks, the total for five employees amounts to $ 220,000.00 or approximately one half of the total amount utilized in restoring those items that can be hand cleaned. Cleaning soaps, cleaning cloths, sponges, packing and boxes are a portion of the fixed overhead which reduces the profit margin in the hand cleaning process.

By utilizing the Omegasonics Restoration Pro Contents Restoration System instead of hand cleaning, several things occur:

1. The number of items that can be cleaned and restored increases by 25-30%.
Since ultrasonic cleaning is being used, individual items are being cleaned more thoroughly and in places not able to be reached by hand cleaning. This eliminates costly “cash-outs” and saves the insurance company money.
2. Instead of each employee cleaning one item at a time, they are moving baskets of items through the system. Comparison to existing companies utilizing this system indicates a minimum increase of production in the range of four times the amount produced by hand cleaning.
3. Because the Omegasonics Restoration Pro System can be efficiently operated with three employees, those employees previously used in the hand cleaning process can be reassigned to other jobs in the company.

Using the minimum numbers in the model, we can project that the example company should have a growth over the next 1-2 years of the following:

1. The number of previously non-salvageable items would increase a minimum of 30% thus increasing their revenue from $ 450,000.00 to $ 562,500.00.
2. They will have at a minimum an increase of capacity equal to two times their previous hand cleaning capacity or a minimum increase to $ 1,125,000.00. This number will also increase because of the company’s ability to handle large catastrophic and industrial losses.
3. Reducing the number of employees in the contents restoration division down to 3 people will provide a savings of $ 88,000.00 thereby fully funding the Omegasonics Restoration Pro System® in the first year of operation.

In this industry the insurance adjusters prefer to work with those company’s that can provide them fast, thorough, and cost efficient service with the least amount of customer dissatisfaction possible. These same adjusters would also prefer to limit the number of vendors on a “loss” to one or as few as possible. Because the example company is a full service restoration company, the addition of the Omegasonics Restoration Pro System will enhance their service to the adjusters and their customers and insure future growth because of the quality of the work being produced.

The above information is based on industry standards being achieved by restoration professionals using the Omegasonics Restoration Pro System®. Our company has been the leader in this industry, helping our customers achieve success and restoring items that can not be cleaned by hand.