1220 Broad St, Central Falls, RI 02863

Income Report – Current Operations (2025)

Revenue & Income Summary

Sales Department (Part-Time Owner Operated)

• Retail vehicle sales: approx. 90 units

• Wholesale vehicle sales: approx. 40 units

• Net profit generated: $98,000

Service Department (Sublet Operations)

• Leased to two independent mechanics

• Lease income: $66,000

Auto Body Shop

• Fully licensed and operational

• Equipped to meet all state licensing requirements

• Gross income: $115,000

Total Reported Income (2025)

Income Source

Amount ($)

Vehicle Sales Profit

$98,000

Service Lease Income

$66,000

Body Shop Income

$115,000

Total Income

$279,000

Operational Notes & Upside Commentary

• The sales department is currently operated on a part-time basis by the owner, who also owns multiple other businesses.

• A full-time, dedicated owner/operator could reasonably double or triple vehicle sales volume, materially increasing sales-related profits.

• The service department currently provides stable, passive lease income but offers upside through in-house operation, expanded staffing, or revised lease structures.

• The body shop is fully equipped and licensed, providing immediate scalability with additional labor, insurance work, or extended operating hours.

Included Equipment (No Separate Allocation Assumed)

The following equipment is included in the sale and supports ongoing operations without immediate capital expenditure:

• 3 electric vehicle lifts

• Tire machine

• Spring/strut compressors

• Miller electric welder

• Acetylene torches

• Two 3-phase air compressors

• Integrated air lines

• Down-draft paint booth

• Multiple work benches, vices, and proprietary auto repair tools

• Full office buildout including desks, chairs, file storage, computer systems, and auto inventory software

Clarifications & Recommendations for Final Pro Forma

To strengthen investor underwriting and valuation, I recommend clarifying or supplementing the following:

1. Expense Structure

   • Utilities, insurance, payroll (if any), supplies, and property-related expenses

   • Confirmation whether service and body shop figures are gross or net

2. Real Estate Treatment

   • Whether income is presented before or after real estate expenses

   • Market rent assumption if separating business and real estate valuation

3. Normalized Owner Compensation

   • Add-back or adjustment for part-time owner involvement

4. Upside Case Modeling

   • Pro forma scenario assuming full-time ownership and expanded operations