ONESTOP REPORT

Fishbone Packaging Inc

11 NOVEMBER 2020
Table of Contents
COMPANY SUMMARY

CORPORATE OVERVIEW

NEWS

INDUSTRY OVERVIEW

EXECUTIVE INSIGHT

FINANCIAL INFORMATION

CHALLENGES, TRENDS & OPPORTUNITIES

Company Summary
Fishbone Packaging Inc
689 Feather Dr
San Marcos, California, 92069-7383
United States
Tel: +1-760-420-8155
Marketability: Has Not Opted Out of Direct Marketing
www.fishbonepackaging.co

Employees (This Site): 1  (Actual) Reporting Currency: USD

Employees (All Sites): 1  (Actual) Financials In: USD

Company Type: Private Independent Annual Sales: 92k  (Modelled)

D-U-N-S® Number: 02-997-9894

Business Description

Fishbone Packaging Inc is primarily engaged in the wholesale distribution of non-durable goods, not elsewhere classified, such as art goods,
industrial yarns, textile bags, and bagging and burlap.

Source: D&B

Industry

D&B Hoovers: Miscellaneous Wholesale

US 8-Digit SIC: 51999918 - Packaging materials

Company Identifiers

D-U-N-S® Number: 029979894

Corporate Highlights

Prescreen Score: LOW RISK Home-Based Business: True

Year Founded: 2015 Plant/Facility Size (sq. .): 2,186

Latitude: 33.159812

Longitude: -117.183038

Key Contacts

Keith Elliott
Co-Founder

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Corporate Overview
Key ID℠ Number: 187410396
Location Sales USD(mil): 0.1 Incorporation Date: 2015
689 Feather Dr Assets USD(mil): NA Company Type: Private Independent
San Marcos, CA, 92069-7383 Employees: 1 Quoted Status: Not Quoted
San Diego County KeyID SM: 187410396 Co-Founder: Keith Elliott
United States Industry: Personal and
Household Products
Tel: 760-420-8155
Has Not Opted Out
Marketability:
of Direct Marketing
www.fishbonepackaging.co

Industry Codes

ANZSIC 2006:
3739 - Other Goods Wholesaling Not Elsewhere Classified (Primary)

NAICS 2017:
424990 - Other Miscellaneous Nondurable Goods Merchant Wholesalers (Primary)

ISIC Rev 4:
4690 - Non-specialized wholesale trade (Primary)

NACE Rev 2:
4690 - Non-specialised wholesale trade (Primary)

UK SIC 2007:
4690 - Non-specialised wholesale trade (Primary)

UK SIC 2003:
5190 - Other wholesale (Primary)

US SIC 1987:
5199 - Nondurable Goods, Not Elsewhere Classified (Primary)

US 8-Digit SIC:
51999918 - Packaging materials (Primary)

Business Description

Fishbone Packaging Inc is primarily engaged in the wholesale distribution of non-durable goods, not elsewhere classified, such as art goods,
industrial yarns, textile bags, and bagging and burlap.

Source: D&B

Financial Data

Financials in: USD(mil) 1 Year Growth

Revenue: 0.1 NA
© 2020 Dun & Bradstreet, Inc. All rights reserved.

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News
Results are not available for this company

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Industry Overview Powered by
Wholesale Sector

Fast Facts

Companies in this sector distribute nondurable or durable goods, typically specializing by product category. Major US distributors include
Avnet (electronics), McKesson (drugs and medical supplies), and Sysco (foods); top companies based outside the US include Brenntag
(Germany, chemicals), Medipal (Japan, drug and household products), and WPG (Taiwan, electronic components).

The wholesale distribution industry in the US includes about 415,000 establishments (single-location companies and units of multi-location
companies) with combined annual sales of about $7.8 trillion.

Industry Growth Rating Industry Indicators

LOW MEDIUM HIGH
Reflects snapshot of industry performance vs. industry risk over
the next 12 to 24 months relative to other U.S. industries, along
with short descriptions of vital demand and risk factors influencing
the industry. Use to quickly determine the overall projected health
of an industry.
Demand: Tied to local economic activity
Need e icient inventory management
Risk: Large retailers buy directly from producers
The average US retail price for diesel and regular gas, a major
operating cost for distributor fleets in the wholesale sector, fell 18.5
percent and 14.4 percent respectively in the week ending
September 14, 2020, compared to the same week in 2019.
Total US manufacturers' shipments, an indicator of demand for
industries in the wholesale sector, fell 8.3 percent year-to-date in
July 2020 compared to the same period in 2019.
(Note: Due to budget restraints the US Bureau of Economic
Analysis discontinued production of quarterly travel and tourism
estimates in 2017.)
Total US wholesale sales, a measure of the wholesale sector,
decreased 4.0 percent in July 2020 compared to the same month in
2019.

Industry Forecast

Revenue (in current dollars) for the US wholesale industry is forecast to grow at an annual compounded rate of 5% between 2020 and 2024.
Data Published: July 2020

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College
Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate
economy.
Top Challenges & Talking Points Top Opportunities & Talking Points

Inventory Carrying Costs Internet Sales

Because many distributors finance their inventories, they're
sensitive to interest rates.
How do changes in interest rates a ect the company's profits?
Large Retailers Bypass Distributors
Big retailers like Walmart, Home Depot, and Costco buy much of
their merchandise directly from manufacturers, bypassing
distributors.
How much business has the company lost due to retailers buying directly from
manufacturers?
Because they already stock a large inventory of products,
distributors are in a strong position to sell products beyond their
traditional market.
What opportunities does the company see in using the internet to reach new
markets?
Logistics Services for Customers
Distributors can provide inventory management, just-in-time
delivery, and order fulfillment services to customers.
What additional services is the company providing customers?

Distribution Costs Sensitive to Energy Prices Product Processing Services for Customers
Distributors that operate delivery fleets are sensitive to energy In some industry segments, processing services have become
costs. common.

How do volatile energy prices a ect the company? What, if any, processing services does the company o er to customers?

Executive Talking Points

Chief Executive O icer - CEO

Planning for Demand Changes
How successfully has the company anticipated and reacted to changes in
demand?

Chief Financial O icer - CFO

Negotiating Supplier Contracts
How do the terms of supplier contracts a ect the company's profitability?

Chief Information O icer - CIO

Improving Operational Systems
What new technologies promise the biggest gains in company productivity?

Human Resources - HR
Training Employees on Products
How does the company ensure that employees are knowledgeable about
new products?
VP Sales/Marketing - Sales
Retaining Customers
What is the company doing to increase customer retention?

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Executive Insight Powered by
Wholesale Sector

Chief Executive O icer - CEO

Planning for Demand Changes

Demand for distributors depends highly on changes in manufacturing activity and consumer spending. Distributors must anticipate economic
downturns to avoid being caught with excess inventory. They also seek to broaden product o erings to reduce dependence on demand for
any particular product category. To counter the risk of imports replacing domestic manufacturing, distributors may also cultivate relationships
with foreign manufacturers.

Developing Services Strategy

To di erentiate from competitors and grow revenues, many distributors are expanding beyond traditional distribution services. Some are
adding logistics services, such as inventory management, just-in-time delivery, and order fulfillment for customers. Others are performing
product packaging or assembly services to customer specifications, such as packaging individual food portions or assembling kits of electronic
components. Companies must ensure that they have the necessary skills and systems to profitably deliver new services

How successfully has the company anticipated and reacted to changes in

Demand for distributors depends highly on changes in
demand?
manufacturing activity and consumer spending.

What new services is the company developing to better meet customer

To di erentiate themselves and grow revenues, many distributors
needs?
are expanding beyond traditional distribution services.

Chief Financial O icer - CFO

Negotiating Supplier Contracts

Distributors seek to negotiate favorable contract terms with suppliers to improve margins and minimize inventory carrying costs. Low growth
in many product segments and increased competition from manufacturers and large retailers can disadvantage distributors in negotiations.
Contracts may contain incentives tied to fill-rates or stock-outs to reward distributors for performing well.

Managing Foreign Exchange Risk

Large distributors typically operate internationally, and for many product segments, imports comprise a significant share of the US market.
Distributors with foreign operations or that buy products from foreign sources must manage the risk of changes in currency exchange rates.
Increased volatility of global financial markets has heightened the need for foreign exchange management. Using forward currency purchases
is a common strategy to mitigate currency risk.

How do the terms of supplier contracts a ect the company's profitability?

Contracts may contain incentive payments tied to fill-rates or
stock-outs to reward distributors for performing well.
How e ectively has the company managed foreign exchange risk?
Distributors with foreign operations or that buy products from
foreign sources must manage the risk of changes in currency
exchange rates.

Chief Information O icer - CIO

Improving Operational Systems
Distributors have used IT to automate business processes and improve productivity. Advances in technology promise further gains in
productivity and improved customer service. RFID improves inventory tracking from suppliers to customers, while GPS in delivery vehicles
improves fleet management. IT departments are also improving the integration of information among inventory, warehouse management,
order fulfillment, and financial systems.

Expanding Online Capabilities

The internet gives distributors the opportunity to expand beyond traditional markets. However, although many distributors use a website for
marketing, most present only a limited ability for customers to order online. Distributors that develop electronic product catalogs linked to
inventory management systems that can be easily accessed online expand their reach to new customers and enhance the services o ered to
existing customers.

What new technologies promise the biggest gains in company productivity?

Distributors have used IT to automate business processes and
improve productivity.
How is the company taking advantage of the internet to reach new
The internet gives distributors the opportunity to expand beyond
customers?
traditional markets.

Human Resources - HR

Training Employees on Products

Distributors selling more complex products or products that change frequently, such as medical devices or electronics, must invest in product
training to keep employees abreast of the latest innovations. As competition increases, the product knowledge of sales and support personnel
becomes critical for customer satisfaction and retention. Distributors typically leverage training provided by suppliers, but many are
establishing their own training certification levels and tying them to compensation.

Improving Safety Training

Distributors can improve the safety record of warehouse operations and trucking operations. Although overall injury rates for distributors are
just average, injuries in their warehouses are about 50% higher than for the average US worker. Improving safe practices by drivers is
particularly important for distributors of hazardous materials, such as chemicals or petroleum products. To improve safety, companies are
implementing additional safety training programs and making safety part of the performance evaluation process for workers and managers.

How does the company ensure that employees are knowledgeable about
Distributors selling more complex products or products that
new products?
change frequently, such as medical devices or electronics, must
invest in product training to keep employees abreast of the latest
innovations.

How is the company reducing employee injuries?

Companies are implementing additional safety training programs
and making safety part of the performance evaluation process for
workers and managers.

VP Sales/Marketing - Sales

Retaining Customers
As competition increases and more customers buy directly from manufacturers, distributors have to work harder to retain their existing
customer base. Distributors are tailoring services to the needs of large customers and becoming more solution-oriented. Many firms are
implementing formal measurements of delivery performance and customer satisfaction through surveys and customer councils.
Selling New Services
As distributors introduce logistics or product packaging services to address customer needs, the sales team needs training on how to position
and price these new capabilities. Training needs may include the features and benefits of the new services, as well as more solution-oriented
selling skills. Sales reps used to competing primarily on price may need training on how to sell the value of a more complex solution.

What is the company doing to increase customer retention?

As competition increases and more customers buy directly from
manufacturers, distributors have to work harder to retain their
existing customer base.
What challenges does the company face expanding the services it o ers
As distributors introduce logistics or product packaging services to
customers?
address customer needs, the sales team needs training on how to
position and price these new capabilities.
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Financial Information Powered by
Wholesale Sector

Company Benchmark Trends

Quick Ratio by Company Size

The quick ratio, also known as the acid test ratio, measures a company's ability to meet short-term obligations with liquid assets. The higher
the ratio, the better; a number below 1 signals financial distress. Use the quick ratio to determine if companies in an industry are typically able
to pay o their current liabilities.

Financial industry data provided by MicroBilt Corporation collected from 32 di erent data sources and represents financial performance of
over 4.5 million privately held businesses and detailed industry financial benchmarks of companies in over 900 industries (SIC and NAICS).
More data available at www.microbilt.com.

Working Capital Turnover by Company Size

The working capital turnover ratio, also known as working capital to sales, is a measure of how e iciently a company uses its capital to
generate sales. Companies should be compared to others in their industry.

 
 

Financial industry data provided by MicroBilt Corporation collected from 32 di erent data sources and represents financial performance of
over 4.5 million privately held businesses and detailed industry financial benchmarks of companies in over 900 industries (SIC and NAICS).
More data available at www.microbilt.com.

Current Liabilities to Net Worth by Company Size

The ratio of current liabilities to net worth, also called current liabilities to equity, indicates the amount due creditors within a year as a
percentage of stockholders' equity in a company. A high ratio (above 80 percent) can indicate trouble.

Financial industry data provided by MicroBilt Corporation collected from 32 di erent data sources and represents financial performance of
over 4.5 million privately held businesses and detailed industry financial benchmarks of companies in over 900 industries (SIC and NAICS).
More data available at www.microbilt.com.

Company Benchmark Information

NAICS: 42
Data Period: 2018 Last Update February 2020
Table Data Format Mean
Company Size All Large Medium Small
Size by Revenue   Over $50M $5M - $50M Under $5M
Company Count 372662 3654 37723 331285
Income Statement
Net Sales 100% 100% 100% 100%
Gross Margin 18.3% 17.2% 20.2% 21.8%
O icer Compensation 1.4% 1.2% 1.6% 2.7%
Advertising & Sales 0.5% 0.5% 0.6% 0.6%
Other Operating Expenses 15.2% 14.6% 16.5% 17.1%
Operating Expenses 17.2% 16.3% 18.7% 20.3%
Operating Income 1.1% 0.9% 1.5% 1.5%
Net Income 0.4% 0.3% 0.7% 0.7%
Balance Sheet
Cash 10.0% 9.8% 10.2% 10.3%
Accounts Receivable 29.1% 29.1% 29.3% 28.9%
Inventory 28.7% 27.6% 30.4% 31.6%
Total Current Assets 73.9% 72.7% 76.0% 76.9%
Property, Plant & 12.7% 13.0% 12.2% 11.9%
Equipment
Other Non-Current Assets 13.4% 14.3% 11.9% 11.2%
Total Assets 100.0% 100.0% 100.0% 100.0%
Accounts Payable 21.9% 21.5% 22.5% 23.0%
Total Current Liabilities 38.6% 37.6% 40.4% 41.1%
Total Long Term Liabilities 15.9% 14.5% 17.9% 19.7%
Net Worth 45.5% 47.9% 41.8% 39.2%
Financial Ratios
Quick Ratio 1.04 1.07 1.00 0.98
Current Ratio 1.91 1.93 1.88 1.87
Current Liabilities to Net 84.8% 78.4% 96.6% 104.9%
Worth
Current Liabilities to x1.34 x1.36 x1.33 x1.30
Inventory
Total Debt to Net Worth x1.20 x1.09 x1.39 x1.55
Fixed Assets to Net Worth x0.28 x0.27 x0.29 x0.30
Days Accounts Receivable 35 33 37 39
Inventory Turnover x8.77 x9.66 x7.52 x6.66
Total Assets to Sales 33.2% 31.6% 35.9% 38.3%
Working Capital to Sales 11.7% 11.1% 12.8% 13.7%
Accounts Payable to Sales 7.1% 6.7% 7.9% 8.5%
Pre-Tax Return on Sales 0.7% 0.5% 1.1% 1.1%
Pre-Tax Return on Assets 2.1% 1.6% 3.1% 2.9%
Pre-Tax Return on Net 4.7% 3.4% 7.5% 7.4%
Worth
Interest Coverage x2.08 x1.76 x2.80 x2.60
EBITDA to Sales 2.0% 1.7% 2.4% 2.5%
Capital Expenditures to 1.1% 1.1% 1.2% 1.3%
Sales
Financial industry data provided by MicroBilt Corporation collected from 32 di erent data sources and represents financial performance of
over 4.5 million privately held businesses and detailed industry financial benchmarks of companies in over 900 industries (SIC and NAICS).
More data available at www.microbilt.com.

Economic Statistics And Information

Change in Dollar Value of US Trade - US International Trade Commission

Imports to the US come primarily from China, Mexico, Canada, Japan, and Germany. Major markets for US exports include Canada, Mexico,
China, Japan, and UK.
Total Imports & Exports

Wholesale Annual Sales Growth - Census Bureau

Revenue by Product - US Census Bureau (2016)

Valuation Multiples

Wholesale Sector

Acquisition multiples below are calculated medians using at least 3 US private industry transactions completed between 1/2008 and
12/2019 and are based on middle-market transactions where the market value of invested capital (the selling price) was less than $1B. Data
updated annually. Last updated: December 2019.

Valuation Multiple MVIC/Net Sales MVIC/Gross Profit MVIC/EBIT MVIC/EBITDA

Median Value 0.4 1.1 3.7 2.7

MVIC (Market Value of Invested Capital) = Also known as the selling price, the MVIC is the total consideration paid to the seller and includes
any cash, notes and/or securities that were used as a form of payment plus any interest-bearing liabilities assumed by the buyer.
Net Sales = Annual Gross Sales, net of returns and discounts allowed, if any.
Gross Profit = Net Sales - Cost of Goods Sold
EBIT = Operating Profit
EBITDA = Operating Profit + Noncash Charges

SOURCE: DealStats (formerly Pratt's Stats), 2019 (Portland, OR: Business Valuation Resources, LLC). Used with permission. DealStats is
available at https://www.bvresources.com/learn/dealstats

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Challenges, Trends & Opportunities Powered by
Wholesale Sector

Business Challenges

Inventory Carrying Costs

Because many distributors finance their inventories, they're sensitive to interest rates. On average, distributors hold inventory equal to about
50 days' sales. Inventories typically are larger for industrial equipment distributors, smaller for distributors of food and petroleum products.
Because industry profit margins are low, financing costs have a large impact on profits. Inventory financing is o en tied to the prime lending
rate.

Large Retailers Bypass Distributors

Big retailers like Walmart, Home Depot, and Costco buy much of their merchandise directly from manufacturers, bypassing distributors.
Because they buy in large quantity and operate their own warehouse systems, these retailers don't need distributors. Superstores and
warehouse clubs now account for more than two-thirds of sales of general merchandise stores.

Distribution Costs Sensitive to Energy Prices

Distributors that operate delivery fleets are sensitive to energy costs. Most vulnerable are distributors that make multiple deliveries per day to
many customers, such as supermarkets or car repair shops. Fuel costs can fluctuate significantly.

Competition from Manufacturers

The increasing e iciency of logistics systems allows manufacturers to sell more goods directly to end-users, bypassing distributors.
Consolidation in many manufacturing industries has produced large manufacturers with national distribution systems. Manufacturers have a
large direct distribution presence in drugs, petroleum products, and chemicals, a small one in groceries and clothing.

Distributors Sensitive to Local Economic Conditions

Because most distributors serve a limited geographical market, they're sensitive to local economic conditions. Distributors of lumber and other
building supplies are vulnerable to local real estate markets, while distributors of consumer goods like electronics are a ected by local income
and employment. Even distributors of basic goods like groceries are vulnerable to local economic slowdowns.

Business Trends

Strong Growth of Industry Revenue

Compared to other industries, revenue growth for distributors has been above average. Between 2007 and 2017, sales by US merchant
wholesalers grew 28%, compared to 27% for retailers. Computers, electrical goods, and machinery have been among the leading revenue
categories for the wholesale sector.

Increases in Labor Productivity

Industry employment has been cyclical in response to economic slowdowns, but worker productivity has steadily increased in the past 10
years as e icient logistics methods and sophisticated computer systems have become widespread. During the late 2000s recession, industry
jobs fell about 10%, but productivity held steady. Between 2007 and 2017, industrywide labor productivity increased 12%.

Industry Consolidation
In response to the growth of customers who need regional or nationwide service, and because of the greater purchasing power and
transportation economies that large operations can produce, some segments of the industry have consolidated. In tires, medical supplies,
wine and spirits, and drugs, the largest 50 distributors hold 70% or more of the market. More than 6,000 distributors have annual revenue over
$100 million.
More International Suppliers
Low international freight costs and prices for some foreign goods have encouraged distributors to buy a greater volume of goods from foreign
manufacturers. US imports dropped to abnormally low levels in 2009 due to the global economic slowdown. US general imports from China
increased 43% between 2008 and 2015. As the economy improves, import levels have started to normalize. Large distributors may have buying
o ices in Hong Kong or other foreign cities; smaller distributors buy through sales o ices that foreign companies have set up in the US.

Industry Opportunities

Internet Sales
Because they already stock a large inventory of products, distributors are in a strong position to sell products beyond their traditional market.
Although many distributors use a website for marketing, most present only a limited ability for customers to order online. The greatest
di iculty is o en in providing an up-to-date catalog that customers can easily navigate. Internet sales are easiest for distributors of small items
that can be shipped through parcel delivery services.

Logistics Services for Customers

Distributors can provide inventory management, just-in-time delivery, and order fulfillment services to customers. Inventory management,
using dedicated space in their or their customer's warehouse, especially appeals to customers in retail or service businesses that require an
inventory of many items. Just-in-time delivery service is most useful to industrial customers, while order fulfillment services are used by
retailers with internet sites that don't want to maintain an inventory. Some distributors provide delivery services to other distributors that sell
to the same customers, such as grocery stores.

Product Processing Services for Customers

In some industry segments, processing services have become common. Many steel distributors, for example, process standard steel into semi-
finished goods for customers by cutting, welding, or coating. Distributors of electrical products may assemble kits of components that
customers use to make products. Food distributors may assemble meats, for example, into sales-ready portions that are packaged and priced
according to customer specifications.

Spin-o s of Fee-based Services

Some distributors are spinning o certain services into their own segments or separate companies. Health and safety training, once provided
as an in-house service, is one area distributors have found profitable as companies have needed more training to meet sti er government
regulations. Distributors have also found success with o ering sta ing and consulting services to clients. Distributors can diversify revenues by
branching out into other related services as well as better integrate themselves with customers.

Digital Signage
Seeking to provide US workers with pertinent real-time data on the warehouse floor, more companies are turning to digital signage.
Information provided on the signs include progress toward company or team goals, safety reminders, and company and community
announcements. The idea behind the signage is to improve employee motivation and production. A study of warehouses with digital signage
systems found a 20% increase in manufacturing productivity and a decrease in defects, according to Manufacturing Plant. The boards can help
create a game-type atmosphere for workers who are motivated to improve their progress toward goals.

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