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Title: Business analysis of foliage plant nurseries in south Florida
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Permanent Link: http://ufdc.ufl.edu/UF00026141/00007
 Material Information
Title: Business analysis of foliage plant nurseries in south Florida
Series Title: Economic information report
Alternate Title: Foliage plant nurseries in south Florida
Physical Description: v. : ; 28 cm.
Language: English
Creator: University of Florida -- Food and Resource Economics Dept
Publisher: Food and Resource Economics Dept., Cooperative Extension Service
Food and Resource Economics Dept., Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida
Place of Publication: Gainesville
Publication Date: 1989
Copyright Date: 1989
Frequency: annual
regular
 Subjects
Subject: Nurseries (Horticulture) -- Economic aspects -- Periodicals -- Florida   ( lcsh )
Foliage plant industry -- Economic aspects -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
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Additional Physical Form: Electronic reproduction of copy from George A. Smathers Libraries, University of Florida also available.
Dates or Sequential Designation: 1980-
General Note: Title from cover.
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Bibliographic ID: UF00026141
Volume ID: VID00007
Source Institution: University of Florida
Holding Location: University of Florida
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Resource Identifier: ltqf - AAB7744
notis - ABU5740
alephbibnum - 000318891
oclc - 09221698
 Related Items
Preceded by: Business analysis of south Florida foliage plant nurseries

Table of Contents
    Front Cover
        Front cover
    Abstract
        Page i
    Table of Contents
        Page ii
    Main
        Page 1
        Page 2
        Page 3
        Page 4
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        Page 27
    Back Cover
        Page 28
Full Text


as"Alan
DeAl


~~c~~i~isl


Hodges
rma~ind Hull


Economic Information
Report 284


131"'
i ;": "' 2"1~91 ":~
: c~ FI-:r~~,


Food & Resource Economics Department
Agricultural Experiment Stations and
Cooperative Extension Service
institute of Food and Agricultural Sciences
University of Florida, Gainesville 32611


December 1990


Business Analysis of Foliage Plant
Nurseries in Central and
South Florida, 1989











BUSINESS ANALYSIS OF FOLIAGE PLANT NURSERIES IN CENTRAL AND SOUTH FLORIDA, 1989

Alan Hodges and DeArmand Hull


Food &~ Resource Economics Department
Institute of Food & Agricultural Sciences
University of Florida
Gainesvllle, FL


December 1990


ABSTRACT
Average sales, production, costs, returns, and efficiency indicators are presented for 51 wholesale foliage
plant nurseries in Central and South Florida for the tax year of 1989: 20 firms in Central Florida and 31 firms
in South Florida. Plant sales averaged $486 thousand for Central Florida firms, and $1.228 million for South
Florida firms. Plant inventories decreased for Central Florida firms but increased for South Florida firms,
giving net values of production of $473 thousand and $1.278 million, respectively. Net nursery income averaged
$42 thousand for Central Fla. firms and $161 thousand for South Fla. firms. Current value of capital
investments including plant inventory, land, equipment, buildings, supplies, and accounts receivable amounted
to $465 thousand in Cen.Fla. and $1.587 million in So.Fla. Average rates of return on capital investment were
negative .95 percent for Central Fla. and 5.80 percent for South Fla. Comparable information is presented
for subsamples of large and small firms, and most profitable nurseries. The most profitable Sirms in both
regions had very high space producitivty, space costs, and labor productivity, but low space/labor intensity, and
low costs for labor, other production costs, and overhead. Most profitable firms in Central Florida emphasized
high inventory turnover, while those in South Fla. had high maintained high inventory values per acre and per
person.

KEY WORDS: Foliage nursery business analysis, income, costs, investment, efficiency measures, Central
Florida.


ACKNOWLEDGEMENTS
This report was made possible by the cooperating foliage nursery operators who made available their
production and accounting records on a confidential basis for analysis and averaging. Assistance was provided
by University of Florida Extension Ornamental Horticulture Agents Bruce Barmby, Gerri Cashion, Cathy Neal,
Loretta Hodyss, and Bill Schall. Special thanks are due to Dr. J. Robert Strain, Professor Emeritus, who
developed the Nursery Business Analysis in its present form, and who retired in June, 1990. Any errors in the
analyses or in the interpretation of the information presented herein, however, are the sole responsibility of
the authors.



The Institute of Food and Agricultural Sciences is an Equal Opportunity/Affirmative Action Employer authorized to provide research, educa-
tional information and other services only to individuals and institutions that function without regard to race, color, sex, or national origin.
Florida Cooperative Extension Service / Institute of Food and Agricultural Sciences / University of Florida / John T. Woeste, Dean






Central and South Florida Foliage Nurseries, 1989


TABLE OF CONTENTS


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.14


ABSTRACT .........
ACKNOWLEDGEMENTS .......
INTRODUCTION .......
PROCEDURES........
RESULTS..........
Value of Production ..........
Anual sales .............
Plant inventory change .. .. .
Monthly sales ............
Productive Resources ........
Land Resources ..........
Labor Resources . .... .. .
Capital Resources .. ... .. .
Resource Use Indicators ......
Land Use .. ... .. .. .. .
Space Productivity . .. .. .
Inventory Turnover .. .. .
Labor Use........
Labor Productivity ......
12bor Intensity .. .. .. .
Capital Use .. ... ... .. .
Capital turnover .. .. .. .
Capital managed per person
Capital managed per acre .
Costs of Production ..........
Salaries and wages .. .. .
Production supplies .. .
Other production costs .. .
Administrative and overhead
Total cash costs .. .. ..
Non cash costs .........
Cost Efficiency .......


CONCLUDING COMMENTS.....
The Florida Nursery Business Analysis
Program .. . . . .

APPENDIX ........ ...
Definitions . . . . .
Notes on Calculations ............
List of Appendix Tables .. ... .. .. .
Appendix Tables ...............


LIST OF FIGURES


Figure Page
1 Monthly Sales .. ... .. .. ... .. 3
2a Distribution of Managed Capital, Central Fla 4
2b Distribution of Managed Capital, South Fla. 5
3 Space Productivity .. . .. . .. .. 5
4 Labor Productivity ............... 6
5 Labor Intensity .. ... .. .. .. .. ... 6
6 Capital Turnover .. .. .. .. .. . .. ... 7
7 Capital Managed Per Person .. .. ... 7
8 Capital Managed Per Acre .. .. .. . 8
9a Distribution of Costs of Production,
Central Florida Nurseries .. ... .. 9
9b Distribution of Costs of Production,
South Florida Nurseries .. .. .. . 9
10 Costs Per Square Foot of Growing Space 10
11 Costs Per Dollar of Production .. .. .. 11
12 Net Profit Margin . ... .. .. .. .. .. 12
13 Rate of Return to Capital .. . . . 12
14 Assets and Liabilities . .... .. .. .. 13
15ILeverage Factor ................. 14


UST OF TABLES

Table Page
1 Value of Production and Productive Resources 3
2 Costs of Production by Expense Category 9
3 Income Summary ................ 12
4 Summary of Profitable Firms .. .. .. 15


owing Space
'ropagating


Cost Per Square Foot of Gre
Cost Per Square Foot of P
Finishing Space ......
Cost Per Dollar Value of Pr


.


Cost Per Dollar of Sales ..
Income Summary .........
Total Gain ......
Net Nursery Income .. .. .
Return to Capital . .. .. .
Net Profit Margin . .. .
Rate of return on capital
Financial Position.....
Assets .. . . .
Liabilities .. . .. .
Net Worth ......
Financial Leverage ........
Return on Net Worth . ... .
SUMMARY... .. ...
Key Factors Relating to Profitab:


.......10
duction 10
.. . 11
.. . 11
.......11
.. . 11
.. . 11
.. . 12
.. . 12
.......12
.......12
.......13
.......13
.. . 13
.. . 14
.......14
ility ... 14






























































1 Alan Hodges is an Economic Analyst, IFAS, Food & Resource Economics Dept., and DeArmand Hull is
a Commercial Ornamentals Extension Agent, Dade County, University of Florida.


BUSINESS ANALYSIS OF FOLIAGE NURSERIES IN CENTRAL AND SOUTH FLORIDA, 1989
Alan Hodges and DeArmand Hull1


example, in firms which did not report a salary for
its managerss, an estimate of their time value was
made (based on the their experience and other
opportunities for income) in order to provide an
economic valuation for management, which is a
critical input for any business. Similarly, an interest
charge for the total owned investment was included
as a non-cash cost, calculated at the rate of 12
percent per year, regardless of any interest expense
paid by individual firms. This provided a comparable
basis for interest costs across all firms.

Capital investments and leased capital assets were
an important part of the analysis. In the case of sole
proprieterships and closely held corporations (sub-
chapter S, or "family" businesses), investments in
land were valued at the original purchase price;
investments in buildings, improvements, machinery
and equipment reflected their depreciated book value
and debt held by family members was not included
among liabilities. In the case of regular
corporations, land, buildings, and equipment were
evaluated at current market value. The majority of
firms were of the former type, so investments in land
often did not represent their current value, especially
for older firms, because of greatly increased land
values.

Plant inventory is a critical element of the
wholesale nursery business. Changes in plant
inventory levels during a year must be accounted for
in conjunction with annual sales in order to assess
total production of a firm. In this analysis, emphasis
is placed upon "value of production", defined as sales
plus change in plant inventory value, as a measure of
productive capacity. Plant inventory was included
among owned capital investments. Inventory was
averaged between year beginning and year end
values, at wholesale price, but discounted in
proportion to the percentage of completion. In the
absence of detailed inventory records, plant inventory
was evaluated at 50 percent of the average finished
wholesale value for all plants in production at the
beginning and end of the year.

Records were separately compiled and analyzed
for two regions within the state: Central and South.


INTRODUCTION
This report presents information on sales, costs,
returns and production efficiency for 51 wholesale
foliage plant nurseries in Central and South Florida
for 1989. These results are part of the University of
Florida's ongoing Nursery Business Analysis
Program. This information is intended for:
~c 1) Nursery managers--to use physical and
economic measures for evaluating the efficiency of
individual nurseries and for making more informed
management decisions;
2) Allied trades professionals--to estimate input
requirements and revenue potential for wholesale
ornamental nurseries;
3) Industry investors--to have guidelines for
average business performance;
4) Extension educators--to use for conducting
educational programs with nursery operators;
5) Researchers--to support research activities for
the ornamental horticulture industry.


PROCEDURES
The information presented in this report is based
on confidential production and accounting records
provided by nursery operators who participated in
the program voluntarily. This is not a statistically
representative sample of firms, but is believed to be
biased toward better-managed foliage firms. Nursery
operators who provided data received an analysis for
their own operation, which contained similar
information as presented in this report.

Data were collected for the 1989 fiscal year. In
most cases this was for the calendar year January--
December, 1989, however, in a few cases data for
fiscal years ending after July 1, 1988, and before July
1, 1990, were included as 1989 data.

The Nursery Business Analysis is a economic-
oriented appraisal rather than a financial or tax
accounting appraisal. As such, it attempts to provide
an economic valuation for all resources and
production activities, whether or not they have an
actual monetary value for any particular firm. For





Central and South Florida Foliage Nurseries, 1989

indicated in Table 1 along with basic information on
business volume and scale of production operations.

Value of Production

Annual sales
Figures reported here represent only plants
produced by the participating nursery firms. Sales of
plants purchased for immediate resale, or "brokered,"
were deducted from total sales to give net value of
"own" plant sales, which averaged $486 thousand for
Central Fla. firms, and $1.221 million for South
Florida nurseries (Table 1). The largest 6 firms in
Central Florida had sales averaging $1.026 million,
and the largest 7 firms in South Florida had average
sales of $4.045 million. The smallest 5 firms in
Central Florida had sales averaging $100 thousand,
and the smallest 10 firms in South Florida had
average sales of $133 thousand.

Plant Inventory Change
Changes in plant inventory levels were accounted
for to evaluate total production, in addition to sales.
Table 1 shows average plant inventory changes, for
Central and South Florida foliage firms, and largest,
and smallest nursery subgroups. Average plant
inventory change was positive for South Florida firms
($57 thousand), meaning that total value of
production exceeded annual sales. Central Florida
firms had a decrease in average plant inventory (-
$14 thousand), thus giving a total value of production
less than annual sales. Largest and smallest firms in
the two respective regions showed opposing patterns
of inventory change, although not large in magnitude
compared to sales levels.


The Central Florida region included Hardee, Lake,
Marion, Manatee, Orange and Seminole counties,
and the South Florida region included Dade,
Broward, and Palm Beach counties. These two
regions are recognized for their distinct production
systems and product types: Central Florida foliage
firms tend to produce plants in small pot sizes (3 to
6 inches), using fully weatherized and heated
greenhouse structures, while South Florida firms
produce larger plants in open-air shadehouses. In
previous years, results for the two regions and for
the Dade County firms within South Florida were
reported in separate publications, however, results
are here consolidated so that regional comparisons
may be made. Average size of business differed
substantially between the two regional groups
sampled, but these differences probably reflect a
great deal of sampling error, and should not be
taken as any indication of average firm size.

In addition to the regional groupings, data were
analyzed for subgroups of large and small firms, and
highly profitable firms, so that an appreciation can
be gained for effects of scale, and for the ingredients
of successful businesses. Small firms were defined as
having annual sales less than $200 thousand. Large
firms had annual sales greater than $1 million in
South Florida, and greater than $500 thousand in
Central Florida. Highly profitable firms were
defined as having rates of return on capital
investments greater than 15%.

The results reported are weighted averages for
firms in each group. In other words, basic
information on sales, expenses, etc. was first
averaged, then analyzed as though for a single
"average" firm. This procedure provides results that
are weighted for the overall size of the firms
involved. Also, for some measures, results are given
for the "highest rates" and "lowest rates",
representing averages for the highest or lowest third
of firms for that particular measure.

Further information on definitions and
calculations are given in the Appendices. Detailed
results are also provided in Appendix Tables.

RESULTS

Complete and usable records were received from
51 foliage firms: 20 in the Central region, and 31 in
the South region, with 28 from Dade County.
Numbers of firms represented for each grouping of
large and small, and most profitable firms are




Central and South Florida Foliage Nurseries, 1989


Table 1--Value of Production and Productive Resources, Central and South Florida Nurseries, 1989.

Units ******-------Centr FLoride-***----*****- ------*****-South FLorida--------------
ALL Largest SmaLLest Most Prof it ALL Largest SmaLLest Most Prof it
20 Fi rms 6 Fi rms 5 Fi rms 4 Fi rms 31 fi rms 7 fi rms 10 fi rms 9 fi rms
Sales Volume Range .. SaLt >500,000 <200,000 NA anL >1,000,000 <200,000 NA
Value of Own PLants Sold 486,185 1,025,511 100,494 438,127 1,221,002 4,045,296 132,695 771,082
Change in Inventory Value S (13,574) 7,324 (9,020) (292) 56,900 (79,336) 8,173 293,767
Total Value of Production S 472,611 1,032,835 91,474 437,835 1,277,902 3,965,961 140,868 1,064,849
Total Growing Area .. sq.ft. 99,132 220,037 31,891 47,360 1,195,519 4,420,615 123,536 369, 630
FulL-Time Equiv. Workers nmanr 12.64 28.79 2.94 8.61 28.76 6.32 3.87 16.69
Total Owned Capital. .. S 464,648 823,328 193,258 273,020 1,586,989 4,742,383 242,826 1,205,480
Total Leased Capital . S 43,178 15,833 0 1,000 154,619 434,199 62,850 152,255
Total Managed Capital. S 507,826 839, 161 193,258 274,020 1,741,608 5,176,582 305,676 1,357,735



Monthly sales Do I ars ('thousands)
Figure 1 shows the 10
average monthly pattern of $4
sales for all nurseries in
Central and South Florida. $2
The general pattern for both
regions was highest sales in sloo
late spring to early summer
months, with local peaks sea
January and October, and a
gradual decline in sales sea
throughout the second half
of the year. For Central 840
Florida, peak sales occurred
during the March through s20 -
June period, whereas for
South Florida sales peked su
Jan Feb Mar Apr May Jun Ju I Aug Sep Oct N~ov Dec
during April through July.
Sales for these peak four Month
month periods accounted for central F Ior ida south F Iorida
37.5 and42.% ofthe Figure 1--Monthly sales for all firms sampled in Central and South Florida
year 's total sales regions, 1989. Monthly figures include brokered sales.
respectively. Sales for the
highest month (May) were
2.3 times greater than the lowest month (December) for Central Florida; in South Florida, sales for the
highest month (July) were 1.45 times greater than the lowest month. Thus, Central Florida firms had somewhat
greater monthly variation in sales activity. Monthly sales for large and small firms showed consistent patterns
for both regions, with largest firms having slightly more seasonal sales, and smallest firms somewhat less
seasonality.





Central and South Florida Foliage Nurseries, 1989

1). The largest firms had average owned capital of
$823 thousand in Central Fla., and $4.742 million in
South Fla. The smallest firms had average owned
capital of $193 thousand in Central Fla. and $243
thousand in South Fla. Additional capital managed
in the form of leased assets averaged $43 thousand
for Central Florida firms and $155 thousand for
South Florida nurseries, giving total capital managed
of $508 thousand, and $1.742 million, respectively

Distribution of Managed Capital--among land,
buildings, equipment and other assets, is indicated in
Figures 2a and 2b, for all Central and South Florida
firms, respectively.


Figure 2a--Distribution of managed capital, Central
Flonida foliage nurseries, 1989.

Growing plants represented the largest share of
capital managed in both regions, but was greater for
So.Fla. firms (44%) than for Cen.Fla. nurseries
(32%). Following in order of importance for
Cen.Fla. firms were buildings and installations (27%),
land (12%), accounts receivable (12%), supplies and
cash on hand (11%), and machinery and equipment
(7%) (see Appendix Tables 4a and 4b). For South
Florida firms, the order was different, with land
being the second highest category of managed capital
(21%), followed by accounts receivable (16%),
buildings (11%), equipment (4%), and supplies and
cash on hand (4%). Small firms in Central Florida
had a much greater proportion of managed capital in
buildings (48%), while small firms in South Florida
had a higher share (45%) in land.


Productive Resources: Land, Labor and Capital

Land Resources
Space available for growing plants was measured
as an average of square footage of net usable
growing area in use at the beginning and end of the
year. Net usable growing area included only space
within beds and benches, not aisles, driveways, or
other service areas. As shown in Table 1, growing
space averaged 99 thousand square feet (2.3 acres)
for Central Florida firms, and 1.196 million square
feet (27.5 acres) for South Florida firms. A portion
of growing space was dedicated to maintenance of
stock plants for production of starter plant material.
The proportion of space devoted to stock plants
versus growing plants for sales relates to
specialization in production and costs for starter
plant material (see section on "Costs of Production").
South Florida firms generally had a higher share of
growing space dedicated to stock plants than did
Central Florida firms (37% vs. 12%). Large firms in
both regions had slightly greater percentages of stock
plant space (14% and 40%), while small firms in
Central Florida used almost no space for stock plants
(0.8%/). Space used for growing plants for salable
products, termed "propagating and finishing space",
excludes stock plant space.

Labor Resources
Labor was measured in terms of full-time
equivalent persons, including office and management
personnel. In most cases, this was calculated by
dividing total labor hours by 2,080 hours per man-
year (52 weeks at 40 hours per week). Average
number of full-time equivalent (FTE) persons was
12.6 for Central Florida nurseries, and 28.8 for South
Florida firms (Table 1). The largest firms employed
28.8 FTE in Cen.Fla. and 96.3 FTE in So.Fla., while
the smallest firms employed 2.9 FTE in Cen. Fla.
and 3.9 FTE in So.Fla-


Capital Resources
All forms of owned and leased assets, including
land, buildings, equipment, plant inventory, accounts
receivable and cash on hand represent capital
resources for nursery production. Owned capital in
buildings, improvements and equipment were
assessed at current value: original cost less
accumulated depreciation. Total capital owned
averaged $465 thousand for Central Florida nurseries
and $1.587 million for the South Florida firms (Table


Accounts Rec .
11. B%

Supp Ii ies/ Cash
10.3%






Bu il d/ Insta II.
26 .9%


Pl ants









Land
12.4%
Mach/ Equ ip .
6 .5%





Central and South Florida Foliage Nurseries, 1989


Figure 2b--Distribution of managed capital, South
Florida foliage nurseries, 1989.

Resource Use Indicators

Space Use
Space productivity was measured as value of
production (annual sales plus inventory change) per
square foot of growing space. As shown in Figure
3, value of production per square foot for Central
Florida firms ($4.77) was more than 4 times greater
than for South Florida firms ($1.07) because of the
more intensive production systems. Large firms in
South Florida had even lower space productivity
($.90/sq.ft.), while smaller firms were slightly above
average ($1.14/sq.ft.). In contrast, small firms in
Central Fla. had lower production per square foot
($2.87) than the average, and large firms had nearly
the same as the average ($4.69/sq.ft.). The third of
sampled firms with the highest space productivity
averaged $9.61 per square foot in Central Florida
and $5.04 per sq.ft. in South Florida.
The most profitable firms had space productivities
of $9.24 per square foot in Central Florida and $2.88
per square foot in South Florida, or about twice as
great as the overall averages, indicating the
importance of space productivity for profitable
nursery operations. Inw space productivity may
result from several causes: overmature plants, high
vacant space, slow plant growth, and disease and
quality problems that reduce yields of salable plants.
In addition, nursery layout and fertilizing and
growing techniques can affect production time and
space requirements.
Space productivity on the basis of growing
acreage averaged $208 thousand per acre for Central


Figure 3--Space productivity. Value of production
(sales plus inventory change) per square foot of
finishing and propagating space (excludes stock plant
space).


Account
15 .











Land
21.4%


s Rec .
7%

tpp I i es/ Cash
3 .9%1

.!II d/ I nstalI .


M~acn/ Equ Ip .
4 2%


080ral FicrlQ


rsss *II ~1,
~J vm
I kll~1
aP .I~rr~LI
I urn nuc
mm,,,,,.


Plants
43. 9%


AMut Frlcr


DoI lars Per Squasre Foot


Florida firms, and $47 thousand per acre for South
Florida nurseries (Appendix Tables 2a and 2b).
Value of production per square foot on the basis of
propagating and finishing space (excludes stock plant
space) was, of course, greater than for total growing
space. For South Florida firms, this difference
($1.70 vs. $1.02 per sq.ft.) was proportionately
greater than for Central Fla. firms ($5.44 vs. $4.90
per sq.ft.) because of their higher percentage of
stock plant space. Detailed results for this measure
are given in Appendix Tables 2a and 2b.

Plant inventory turnover is another indicator of
space productivity. Inventory turnover expresses the
rate at which inventory is replaced on an ongoing
basis, and is calculated as annual sales divided by
average inventory value. Plant inventory turnover
averaged 2.98 or 298 percent for Central Florida
firms, and 1.60 or 160 percent for South Florida
firms (Appendix Tables 4a and 4b). In other words
the number of "crops" per year averaged almost 3 for
Central Florida firms and 1.6 for South Florida
firms. This is another indication of the greater
production intensity of Central Florida foliage
nurseries, however, the pattern of results for large
vs. small and most profitable firms differs from those
for production per square foot because the inventory
turnover measure is complicated by inventory values.







Large firms in both regions had higher average
inventory turnover rates (3.3 in Cen.Fla., 1.8 in
So.Fla.) and small firms had lower rates (2.0 and 1.4,
respectively). Highly profitable firms in Central
Florida had turnover rates (4.1) nearly as great as
the highest rates (4.4), but highly profitable firms in
South Florida had turnover rates (1.1) near the
lowest rates (.8). This paradox for highly profitable
South Florida firms may be explained by the
relatively high inventory levels required for some
profitable long-term crops such as bromeliads and
orchids, which reduce inventory turnover rates.

Labor Use
Labor productivity was measured in terms of
value of production per full-time equivalent worker
(2080 hrs/year). Figure 4 shows that labor
productivity was somewhat higher for South Florida
nurseries ($44 thousand/FTE) than for Central
Florida firms ($37 thousand/FTE). In both regions,
large and small firms had below-average labor
productivity. Highest rates of labor productivity were
substantially greater for South Florida firms ($81
thousand/FTE) than for Central Fla. firms ($54
thousand/FTE), but lowest rates were nearly the
same regionally ($29 thousand and $26 thousand per
FTE, respectively).
D dollars Per Worker (FTE) (Thousards)


Figure 4--Imbor productivity. Value of production
per fulltime equivalent person (2,080 man-hours per
year).

Highly profitable firms in both regions had labor
productivities approximately 50% above average ($51
thousand for Cen.Fla., $64 thousand for So.Fla.),
indicating the importance of labor productivity for
profitable operations. Variation in labor productivity


Central and South Florida Foliage Nurseries, 1989

can result from differences in investment in labor
saving capital items, labor management practices, or
other practices affecting crop turnover.

Labor intensity was evaluated in terms of
production area per person or FTE persons per acre
of growing area. Total growing space per full-time
equivalent averaged 7.8 thousand square feet (.18
acres) for Central Florida nurseries, 41.6 thousand
square feet (.95 acres) for South Fla. firms Appendix
Tables 3a and 3b). Expressed another way, figure 5
shows the number of FTE persons per acre of
growing space averaged 5.55 for Cen.Fla. and 1.05
for So.Fla. Large firms had slightly higher labor
intensity in Central Florida (5.7 FTE/A), but lower
intensity in So.Fla. (.95 FTE/A). Small firms showed
the opposite pattern, with below-average intensity
(4.0 FTE/A) in Cen.Fla. and above-average intensity
(1.4 FTE/A) in So.Fla. Highly profitable firms in
both regions had significantly greater labor intensity:
7.9 FTE per acre in Cen.Fla., and 2.0 FTE per acre
in So.Fla.


Eg mantg rate
s umn me


Figure 5--Labor intensity. Average full-time
equivalent persons (FTE) per acre of growing area.


Capital Use
Capital Turnover is an indicator analogous to
inventory turnover, except that it expresses the ratio
of annual sales to value of owned capital. Results
for this measure generally paralleled those for
inventory turnover. As shown in figure 6, capital
turnover averaged .96 for Central Florida nurseries,
and .70 for South Florida firms. Thus, both regions
had annual sales less than capital owned. Also in
both regions, large firms had above-average capital

































Figure 6--Capital turnover. Ratio of annual sales to
owned capital. Average for most profitable firms in
Cen.Fla. were higher than for the "highest" rates due
to a smaller number of firms.

In general, higher capital turnover is desirable,
indicating greater sales per dollar of investment.
Problems that lower turnover rate include many of
those already mentioned that lower production rate,
and therefore lower sales volume for a given nursery
investment. Low capital turnover is particularly
common in new firms and in rapidly expanding firms.
Excessive investments in land, labor-saving machinery
and equipment also tend to lower captial turnover,

Capital Managed Per Person is an indicator for
balancing of capital and labor resources, calculated
as total capital managed divided by employment
(FTE). As shown in Figure 7, capital managed per
FTE was generally lower for Cen.Fla. firms ($E40
thousand/FTE) than for South Florida nurseries ($61
thousand/FTE). Large firms in both regions had
below-average capital managed per person: $29
thousand in Central Fla. and $54 thousand in South
Fla. Smallest firms, on the other hand, had above-
average capital managed per person: $66 thousand in
Cen.Fla., $79 thousand in So.Fla. Highest rates
averaged $118 thousand per person in Cen.Fla., and
$112 thousand per person in So.Fla., while lowest
rates averaged $22 thousand and $41 thousand,


Central and South Florida Foliage Nurseries, 1989

turnover rates, and small firms had below-average
rates, especially in Cen.Fla. Highest rates were 1.59
and 1.08, while lowest rates were .61 and .43 for
Central and South Florida regions, respectively. Most
profitable firms in Cen.Fla. had inventory turnover
even greater than the highest rates (1.61), while
those in So.Fla. had below-average turnover (.64)


AnnualI SalIes/ Cap ital OwDned
2.00






i.s g
or a --k .ll -- r11) rs


Figure 7--capital manager per worxter (1- w).
Calculated as capital managed (owned plus leased)
divided by fulltime equivalent employees.


Central Florida


uoS th Florida


respectively. The most profitable firms in Cen.Fla.
had below-average capital managed per person ($32
thousand), but most profitable firms in So.Fla. were
above-average ($81 thousand), suggesting that this
measure does not bear any consistent relation to
profitability.

Capital Managed Per Acre is another indicator
for balancing productive resources between capital
and land. Capital managed per acre of growing area
averaged $223 thousand for Cen.Fla. nurseries, and
$63 thousand for So.Fla. firms (Figure 8). Results
for large and small firms on this measure parallel
those for capital managed per person: large firms
were below-average and small firms above-average,
with those in Cen.Fla. having levels even higher than
the highest rates. Highest rates of capital managed
per acre were $249 thousand in Cen.Fla. and $197
thousand in So.Fla. Imwest rates averaged $53
thousand per acre in Cen.Fla., and $31 thousand per
acre in So.Fla. Capital managed per acre for the
most profitable firms in Cen.Fla. ($252 thousand)
was even higher than for the "highest" group ($249
thousand), due to a greater number of firms in the
latter group. This measure was also relatively high
for most profitable firms in South Fla. ($160
thousand), indicating the importance of adequate
capital investment in growing space.





Central and South Florida Foliage Nurseries, 1989

(3.3%) in So.Fla. Average compensation for
management in small firms was $25 thousand in both
regions, but this represented a greater share of total
costs for Cen.Fla. firms (17%) than for So.Fla. firms
(14%).

Employees' wages and payroll costs is the single
largest cost category for the labor-intensive foliage
industry. In addition to wages and salaries, this
category included benefits, social security, workman's
compensation insurance, health insurance, bonuses,
and other payroll costs. Average labor expenses
were 32.8% of total costs ($176 thousand) for
Central Florida nurseries, and 28.7% ($400 thousand
for South Fla. firms (Table 2). Isrge firms in
Cen.Fla. spent a greater percentage of total costs on
employees (38.9%) than did large So.Fla. firms
(30.7%). Small firms in both regions spent a smaller
share of expenses on employees (18.0% and 21.8%,
respectively) because a lesser share of work was
performed by hired labor.

Production supplies--includes expenses for plants
and seeds, containers, production heating fuel, peat
and soil, fertilizer and lime, pesticides and chemicals,
packaginging and shipping materials, and other
production supplies. Expenses for supplies
represented a nearly equal share of total costs for
the two regions, 30.0% ($161 thousand) for Cen.Fla.
firms, and 30.9% ($431 thousand) for South Fla.
firms. Large nurseries in Cen.Fla. spent 29.5%
($331 thousand) of total costs on supplies, and those
in So.Fla. spent 30.5% ($1.409 million). Small
nurseries spent 29.1% ($43 thousand) in Cen.Fla.,
and 25.8% ($45 thousand) in So.Fla. The largest
single item within this category was plants and seeds,
representing 11.8% of total costs for Cen.Fla. and
11.3% for So.Fla.

Other production costs--were facility
repairs/maintenance and equipment operating costs.
These costs averaged 3.8% ($20 thousand) of total
costs for Cen.Fla. nurseries, and 3.9% ($54
thousand) for So.Fla. firms. Large and small firms
in both regions had virtually the same share of total
costs for this category (3.4% to 4.0%).


Costs of Production
The significance of managing production costs has
become heightened by increased competition in the
foliage industry, with falling prices for products
forcing producers to find new ways to cut costs.
Many managers do not clearly understand that costs
include not only cash outlays, but also non-cash costs
and allowances such as depreciation and interest,
which must be covered for the business to remain
viable over the long run.

Costs by Expense Category
Costs were grouped into the following categories:
management's compensation, wages and salaries,
production supplies, other production costs,
administrative and overhead, and non-cash costs.
Table 2 summarizes dollar amounts for each cost
category, and Figures 9a and 9b give percentage
shares of the total for each category, in order to
compare costs among groups differing in average
size. Further details on all itemized expenses are
given in Appendix Tables Sa and Sb.

Management's Compensation or Time Value--
averaged $E46 thousand for all Central Florida
nurseries, and $69 thousand for South Florida firms.
These amounts represented 8.6% and 4.9% of total
costs, respectively. Large and small firms differred
appreciably in the dollar amounts and percentages of
total costs for management's compensation. Large
firms compensated management an average of $80
thousand (7.1%) in Cen.Fla., and $153 thousand








Table 2--Costs of Production, foliage nurseries in Central and South Florida, 1989.

Units -------------Cent~LraFlorida--------------- ****-------Sou Florida---------------
ALL Largest Smallest Most Profit ALL Largest Smallest Most Profit
20 Firms 6 Firms 5 Firms 4 Firms 31 firms 7 firms 10 firms 9 firms

Manager's Compensation. $ 46,1713 80,178 24,988 39,762 68,77 153,255 25,041 63,771
% 8.6% 7.1% 17.0% 9.8% 4.9% 3.3% 14.4% 7.3%


Figure 9a--Distribution of costs of production,
Central Florida foliage nurseries, 1989.


Figure 9b--Distribution of costs of production, South
Florida foliage nurseries, 1989.


Central and South Florida Foliage Nurseries, 1989


Employee Labor.. .. .


) 175,558 437,781 26,398 123,074 399,776 1,415,238
% 32.8% 38.9% 18.0% 30.3% 28.7% 30.7%


38,071 186,142
21.8% 21.5%

45,038 274,471
25.8% 31.6%


Supplies. .. .. .. .


Other Production Costs. .


Admin. & Overhead Costs .


Total Cash Costs. ....


Non-Cash Costs. .....


Total ALL Costs .....


S160,573 331, 280 42,764 145,774
% 30.0% 29.5% 29.1% 35.9%

S20,284 37, 706 5,868 12,260
% 3.8% 3.4% 4.0% 3.0%


430,716 1,409,218
30.9% 30.5%


53,761 180,260 6,724 25,660
3.9% 3.9% 3.9% 3.0%


S 49,884 88,489
% 9.3% 7.9%

5 452,472 975,433
% 84.6% 86.7%

t 82,070 149,231
% 15.4% 13.3%

S534,541 1,124,665
% 100.0% 100.0%


13,287
9.0%

113,304
77.2%

33,549
22.8%

146,854
100.0%


30,839
7.6%

351,708
86.7%

54,161
13.3%

405,869
100.0%


181,219
13.0%

1,134,249
81.3%

260,623
18.7%

1,394,812
100.0%


646,490
14.0%

3,804,461
82.5%

809,788
17.5%

4,614,249
100.0%


20,845
12.0%

135,719
77.9%

38,607
22.1%

174,326
100.0%


107,939
12.4%

657,983
75.8%

209,755
24.2%

867,738
100.0%


Labocr
28 .7%1


Supplies
30 .9%

Equip/BIbgs .
3.9%6
Depree int ion
5.0%~
Ma nageme nt
4.9%1
Interest
13 7% Adm (n 1. over head


Supp miles
30.0%Equ ip/Bidgs.
3.9% (
Deprec I at lon
4.9%

Management
8.6%
I ntre4s Admi n. d& overhead





Central and South Florida Foliage Nurseries, 1989

below average ($4.61). In South Florida, large firms
also had below-average cost per square foot ($1.04),
but small firms had above-average costs ($1.41).
Highest costs per square foot averaged $9.89 in
Central Fla. and $4.82 in South Fla., while lowest
costs averaged $3.57 and $.77, respectively. The
most profitable firms had total costs per square foot
of $8.57 in Cen.Fla. and $2.35 in So.Fla., both far
above-average, but below the highest rates.


Administrative and overhead are those expenses
which usually cannot be assigned to any particular
production activity, yet must be covered in order to
remain in business. This category included travel,
property insurance, telephone, electric power,
advertising, property taxes, rent, and other cash
expenses. Administrative and overhead expenses
averaged 9.3% ($50 thousand) of total costs for
Cen.Fla. nurseries, and 13.0% ($181 thousand) for
So.Fla. Larger firms in South Florida had a slightly
higher share of overhead costs (14.0%), while large
firms in Cen.Fla. had a lower share (7.9%). Small
firms in both regions also had below-average
overhead cost shares: 9.0% in Cen.Fla., 12.0% in
So.Fla.

Total cash costs--included all categories discussed
above. Total cash costs averaged $452 thousand for
Cen.Fla. nurseries, and $1.134 million for So.Fla.
firms. These amounts represented 84.6% and 81.3%
of total costs, respectively. Large firms in both
regions had a slightly greater percentage of cash
costs to total costs: 86.7%/ for Cen.Fla., 82.5% for
So.Fla. On the other hand, small nurseries had lower
share of total cash costs: 77.2% for Cen.Fla., 77.9%
for So.Fla.

Non-cash costs--included depreciation on fixed
assets (buildings, equipment), decreases in supply
inventories, and an interest charge on capital owned
to reflect the opportunity cost of assets used. These
costs averaged $50 thousand for Central Florida
nurseries, and $261 thousand for South Florida firms.
The largest share of these costs was for interest:
10.4% of total costs for Cen.Fla., and 13.7% for
So.Fla. Depreciation represented 4.7% and 5.1% of
total costs, respectively.


Cost Efficiency
Cost efficiency can be assessed in terms of costs
per unit area of production space (per square foot),
or costs per unit of revenue (sales and production),

Cost Per Square Foot of Growing Space
Square foot costs are a useful measure for
estimating individual plant growing costs or
comparing cost efficiency of different types of
production systems. Total costs per square foot
averaged $5.39 for Central Fla. nurseries, and $1.17
for South Florida firms (Figure 10). Central
Florida's large firms had below-average costs per
square foot ($5.11) and small firms were substantially


a ..n. m

mn me pmltune


outral FIloran soUtn C)oria


Figure 10--Costs per
space.


square foot of total growing


Costs Per Sq.Ft. of Propagating & Finishing Space
Cost per square foot on the basis of propagating
and finishing space only (excluding stock plant space)
is a more narrow measure of costs for salable
products, and are associated with higher cost levels.
The general pattern of results for this measure
parallel those for costs per square foot of total
growing area. However, South Florida firms had
proportionately higher costs on this basis versus total
growing area ($1.85 vs. $1.17), than did Central Fla.
nurseries ($6.15 vs. $5.39) because of their greater
share of total growing area dedicated to stock plant
space.

Costs Per Dollar Value of Production
Cost per unit of revenue is a direct measure of
long-term profitability. As shown in Figure 11, total
costs averaged $1.13 per dollar value of production,
or 113% of revenue for the Central Fla. nurseries,
and 109% for South Fla. firms. Thus, average total
costs for both regions exceeded the breakeven cost
level of $1.00 per dollar value of production.




Central and South Florida Foliage Nurseries, 1989

However, this deficit did not really represent a "loss",
but merely a failure to meet the interest cost
allowance for a 12 percent return on capital
investment. Large and small firms in both regions
were also above the break-even cost level (Figure
11.The most profitable firms had total costs
averaging 93% of total value of production in
Central Florida, and 81% in South Florida. Further
details on these results are given in Appendix Tables
6a and 6b.


and inventory growth revenue discussed previously,
miscellaneous income averaging $1,765 for Cen.Fla.
firms and $12,437 for So.Fla. firms gave a total gain
of $474 thousand and $1.296 million, respectively
(Table 3).

Cost deductions are the same as total costs
discussed previously, except for commission of the
operator's salary and allowance for interest on
capital, so that these costs can be explicitly
recognized. Total deductions averaged $432
thousand for Central Fla. nurseries, and $1.136
million for South Fla. firms. Total deductions are
subtracted from total gain to give net nursery
income.

Net nursery income is the total annual return for
the firm, before income taxes, compensation to
management and interest on capital. Average net
nursery income was $42 thousand for Central Fla.
nurseries and $161 thousand for South Fla. firms
(Table 3). Large firms had average net incomes of
$89 thousand in Central Fla., and $142 thousand in
South Fla. Small firms in South Fla. had average net
incomes of $23 thousand, and those in Central
Florida had negative net incomes of $6 thousand!
The most profitable Girms in Central Florida had net
incomes of $107 thousand, and those in South
Florida had $424 thousand.

Return to Capital
Net nursery income may be apportioned between
returns to management and returns on capital
investment in order to evaluate the economic
efficiency of these resources. Return to capital is the
part of net nursery income attributable to the capital
investment, calculated by subtracting the
compensation to management from net nursery
income. Return to capital averaged minus $4
thousand for Central Fla. nurseries and $92 thousand
for South Fla. nurseries. The negative return to
capital for Central Florida firms simply means that
all net income was taken by management rather than
paid as dividends to stockholders or kept as retained
earnings.


Figure 11--Cost per doll
plus inventory change).


Cash Costs Per Dollar of Sales
This is a short-term measure of profitability and
financial solvency relating only current cash expenses
with current income (sales). Cash costs averaged
93% of sales for Central Fla. firms, and 93% for
South Fla. firms. Large firms had cash costs of 94%
and 95%, respectively. Small firms in both regions
had the serious problem of cash costs exceeding sales
by 12% in Central Fla. and 2% in South Fla. This
means that these firms were not able to meet
current operating expenses from cashflow generated
by sales. Most profitable firms had cash costs of
80% and 85% of sales, respectively.

Income Summary
In Table 3, income and costs are reorganized to
derive net income in a manner more like traditional
accounting practices.

Total gain is the total value of plant sales,
changes in plant and supply inventory values, and
miscellaneous income. In addition to the plant sales








Table 3**Income Surrnary, Central and South Florida Fotialge Nurseries, 1989.

units -- - --------Cent rl F Lor ide - ------- --- - - - South FLorid e- -- - - - ---
ALL Largest Smattest Most Profit ALL Largest Smallest Most Profit
20 Fi rms 6 Fi rms 5 Fi rms 4 Fi rms 31 fi rms 7 fi rms 10 fi rms 9 fi rms

Total Gain ... . S 474,376 1,034,326 92,418 440,738 1,296,482 4,033,553 143,175 1,082,984
Total Deductions .. .. S 432,610 945,688 98,675 333,345 1,135,656 3,891,908 120,147 659,310

Net Nursery Income .. S 41,766 88,638 (6,256) 107,393 160,827 141,645 23,029 423,674
Manager's Compensation S 46,173 80,178 24,988 39,762 68,77 153,255 25,041 63,771
Return to Capital. .. $(4,407) 8,461 (31,244) 67, 632 92,049 (11,610) (2,012) 359,903
% -0.95 1.03 -16.17 24.77 5.80 -0.24 -0.83 29.86


Return to Capital/Capital Owned (%)b
rn.o


,oas





-10.0 -"""
-20.0 .4, 5.7
Dantral~ ~~~ Flria SothFor

Figur 13------Rate11 of reun ocaialxreserao
of rturnto cpita and II owe caitl(crren







There d3-ata represent themdya fainancia Fxrsituation




of the nurseries, derived as an average of the year-
beginning and year-end balance sheet figures.

Assets

Total assets are the same as capital owned,
discussed previously.

Current Assets consisted of cash on hand,
accounts receivable, and plant and supply inventories.
Total current assets averaged $275 thousand for
Central Fla. and $1.105 million for South Fla. Cash
on hand averaged $29 thousand for Central Fla.
nurseries and $48 thousand for South Fla. firms.
Accounts receivable averaged $60 thousand for
Central Fla. nurseries and $274 thousand for South


Central and South Florida Foliage Nurseries, 1989


Net profit margin is the ratio between return to
capital and total gain. As shown in Figure 12, South
Florida's firms had a net profit margin of 7.1%.
Since Central Florida's firms had a negative return
to capital, net profit margin was negative .9%. The
most profitable firms had net profit margins of
15.3% in Cen.Fla. and 33.2% in South Florida.


Figure 12--Net profit margin.
capital and to total gain.


Rate of return on capital is a common indicator
for evaluating alternative investments, comparable to
annualized yields on stocks, bonds, or savings
deposits. It is calculated by dividing return to capital
by the total current value of capital owned. Rate of
return on capital averaged minus .95 percent for
Central Fla. nurseries and 5.80 percent for South
Fla. nurseries (Figure 13). Large firms in Central
Florida had an average rate of return on capital of
1.0%, while small firms and both large and small
firms in South Florida had negative rates of return.
The most profitable firms had rates of return on
capital averaging 24.8% in Central Florida, and
29.9% in South Florida.






Central Fla. nurseries and $339 thousand for South
Fla. firms. These current liabilities represented an
extremely secure position for Central Florida firms,
but a very insecure position for South Florida firms.
The ratio of cash and accounts receivable to current
liabilities, known as the "quick ratio", is a standard
indicator of the ability to pay current operating
expenses. This measure averaged 4.75 for Central
Fla. nurseries and .95 for South Fla. firms. This
represents a very serious situation for the South
Florida firms, indicating difficulty in meeting current
liabilities from operating cash flow.

Long Term I~abilities, including notes payable
and mortgages, averaged $129 thousand for Central
Fla. nurseries and $262 thousand for South Fla.
nurseries.

Net Worth is the difference between total assets
and total liabilities, or the value of the owner's share
of the assets, as opposed to lenders' claims. Net
worth averaged $317 thousand for Central Fla.
nurseries, and $986 thousand for South Fla. firms.

Financial Leverage
Leverage expresses the ratio between total assets
and net worth. Higher values indicate a greater
potential for "multiplying" returns per dollar of net
worth, but also a greater financial risk. The leverage
ratio averaged 1.46 for Central Florida firms and
1.61 for South Florida firms (Figure 14). In other
words, South Florida firms had a greater value of
total assets per dollar of net worth than did Central
Florida firms. Small firms in Central Florida had
significantly above-average leverage (2.33), and large
firms were below-average. Iarge and small firms in
South Florida showed the opposite pattern. Highest
rates for leverage averaged 2.97 in Central Fla. and
3.15 in South Fla., while lowest rates were 1.13 and
1.08 respectively. Generally, leverage factors below
2.0 are considered to represent a very safe financial
position. There was no indication of a consistent
relationship between financial risk and profitability,
as most profitable firms in Central Fla. were
leveraged substantially above-average (2.10), but
profitable firms in South Fla. were leveraged below-
average (1.42).

Return on Net Worth
The ultimate measure of profitability is expressed
in terms of returns per unit of net worth. This
measure takes into account the financial risk


Central and South Florida Foliage Nurseries, 1989


)ol lars (thousands)




gl Mam utn.
in errant I- l

so a warrn unm 1





Central Florida South Florida

Figure 14--Assets and Liabilities, nurseries in Central
and South Florida, 1989.



Fla. As a proportion of annual sales, these amounts
represented 12 percent and 22 percent, respectively.
Supply inventories represented $24 thousand for
Cen.Fla. and $20 thousand for South Fla. Total
current assets, including plants inventories, which
were already discussed, averaged $276 thousand for
Central Fla. nurseries and $1.105 million for South
Fla. firms.

Long term assets included investments in
buildings, machinery and land. Only owned assets
were included here, not leased assets. Current
values of fixed assets are the original cost less
accumulated depreciation. Original investments
averaged $e446 thousand for Central Fla. nurseries
and $895 thousand for South Fla. firms. Subtracting
accumulated depreciation left a current value of $189
thousand for Central Fla. nurseries and $482 for
South Fla. firms. South Fla. nurseries had less
depleted fixed assets: as a portion of the original
investment, these current values represented 42
percent and 54 percent, respectively.

Liabilities
Liabilities represented in the Nursery Business
Analysis did not include any debt to related parties
in closely held or "family" corporations, as these are
usually not true debts which must be repaid. Total
liabilities averaged $147 thousand for Central Florida
firms and $601 thousand for South Florida nurseries.
Current Liabilities averaged $19 thousand for

























Figure 15--Leverage factor. Expresses ratio between
total assets and net worth. Higher values indicate
greater potential returns on net worth, but also
greater financial risk.


Central and South Florida Foliage Nurseries, 1989

to 49% as "high" or "low", and 50% or greater as
"very high" or "very low". Most profitable firms in
both regions had very high space productivity
(production/sq.ft.) and space costs (total costs/sq.ft.),
and high labor productivity (production/person).
Inventory turnover and managed capital turnover
were high and very high, respectively for profitable
firms in Central Florida, but low and normal,
respectively for South Fla. firms. On the other
hand, capital managed per person and capital
managed per person acre were high and very high
for profitable South Fla. firms, but low and normal
for Central Fla. firms. Space/Labor intensity was
above-average for both regions, as indicated by low
or very low growing area per person. Costs per
dollar value of production for profitable firms in
both regions were low for labor, other production
costs, and overhead. Supply costs were also low for
South Fla. firms, and non-cash costs were low for
Central Fla. nurseries. Overall financial position of
profitable firms in Central Fla. was more leveraged
than average, as indicated by a low ratio of total
assets to total liabilities, but profitable firms in South
Fla. were high on this measure.

CONCLUDING COMMENTS
Nearly all indicators showed a decline in the
business performance of Central and South Florida
foliage nurseries in 1989 since the previous year. The
decline in profitability was probably due to generally
lower product price levels, higher costs, and
increased competition, rather than a change in
productivity or efficiency of resources in the industry.
However, lower returns to investments will probably
curtail growth in the industry, and perhaps bring
about some reduction in production capacity,
eventually reducing competition, balancing supply and
demand, and restoring profitability to normal levels.

The Florida Nursery Business Analysis Program
This program is a service of the University of
Florida, provided on a strictly confidential basis, and
is free of charge. Besides this program for foliage
nurseries, other programs exist for woody ornamental
container nurseries, field nurseries, and flowering
plant nurseries. Nursery managers interested in
participating may contact the authors or an IFAS
agent in a local county Extension office. Nursery
operators who authorize a commercial accounting
firm to supply the data required for the program
can participate with a minimum of effort on their
part.


embodied in the leverage factor. Leverage is
multiplied by rate of return to capital to yield the
rate of return on net worth. This is the same as
derived by simply dividing return to capital ($) by net
worth. Since leverage is always greater than or
equal to one, return on net worth is always greater
than or equal to the absolute value of rate of return
on capital. Return on net worth averaged minus 1.4
percent for Central Fla. firms and 9.3 percent for
South Fla. nurseries. Large firms had returns on net
worth averaging 1.4% in Central Fla. and minus
0.4% in South Fla., while small firms had minus
37.7% and minus 1.2%, respectively. The most
profitable firms had returns on net worth averaging
52.1% in Cen.Fla. and 42.3% in South Florida.

SUMMARY

Key Factors Relating to Profitability
Characteristics of the most profitable nurseries in
each region are summarized in Table 4, by
comparison to the overall averages. Differences
between groups are presented as percentages
reflecting the deviation of the most profitable firms
from the industry averages. Also, qualitative
descriptors of this relationship are given, with
deviations of 0% to 19%/ labeled as "normal", 20%


































SO.37

$0.33

50.03

50.07

SO.12

SO.93

50.80

2.97

1.91


50.23

50.26

50.02

50.10

50.20

50.81

)0.85

1.11

3.41


Low

Low

Low

Lou

Normal

Low

Nlormati

Normal

High


Table 4--Summary of Most Profitable Firms


Qualitative Descriptors: very Low, Low, normal, high, very high.
Low and high descriptors represent deviations from industry average between 20% and 50%.
Very Low and Very High descriptors represent deviations from industry average greater than 50%.


....


Central and South Florida Foliage Nurseries, 1989


......-----Centra FLorida-----------
ALL Most Prof it Deviation
20 firms 4 firms from average


---------South FLorida----------
ALL Mlost Prof it Deviation
31 firms 9 firms from average

$1.07 A2.88 170% Very High


Value of Production/Sq.Ft. Growing Space

Inventory Turnover .. .. .. .. ..

Value of Production per Person .. .

Growing Area per Person. .. .. .. .

lmanged Capital Turnover .. ... .

Managed Capital Per Person . .. ...

Managed Capital Per Acre .. .. .. i

Total Costs/Sq.Ft. Growing Space .. .

Costs/Dollar Value of Production
Labor . . . . . . . .

Supplies. .. .. ... .. .

Other Production Costs.. .. .. .

Administrative and Overhead .. .

Nion-Cash Costs .. .. .. . .

Total . . . . . . . .

Cash Costs/Dol lar Value of Sales .. .

Quick Ratio. .. .. .. ... .. .

Total Assets/Total Liabilities .. .


54.77

297.8%

137,405

7,846

95.7%

$40,192

5223,146

$5.39


SO.47

SO.34

SO.04

$0.11

SO.17

$1.13

50.93

4.75

3.15


59.24 94%

412.7% 39%

$50,827 36%

5,498 -30%

159.9% 67%

$31,810 -21%

$252,034 13%

88.57 59%


Very High

High

High

Low

Very High

Low

Normal

Very High


Lou

Nlormat

Low

Low

Low

Normal

Norm L

Low

Lou


159.8%

$44,428

41,64

70.1%

$60,550

$63,457

$1.17


SO.37

50.34

SO.04

50.14

$0.20

5'1.09

80.93

0.95

2.64


107.6% -33% Lou

563,795 44% High

22,144 -47%X Lou

56.8% -19% Normal

$81,341 34% High

5160,006 152% Very High

t2.35 101% Very High







Central and South Florida Foliage Nurseries, 1989


APPENDIX


NOTES ON CALCULATIONS

Analysis of your own operation for comparison
with the findings of this report can be done with the
information in the Appendix Tables. Blank spaces
are provided for entry of your data. Make
calculations for your nursery data in Appendix Tables
2, 3, 4, and 5, according to the formulas shown on
each line which refer to Appendix Table 1.

The University of Florida also supports a
microcomputer program for making these
calculations. This program can be ordered for $20
from:
IFAS Software Support Office
Building 120, Room 203
University of Florida
Gainesville, FL 32611
tel. # (904) 392-7853



LIST OF APPENDIX TABLES

Central Florida Foliage Nurseries


Appendix Table
la Size of business .................
2a Space use indicators ..............
3a Labor use indicators ..............
4a Capital use indicators .............
Sa Costs by expense category ..........
6a Costs per dollar value of production .. .

South Florida Foliage Nurseries
Appendix Table
lb Size of business .................
2b Space use indicators ..............
3b Labor use indicators ..............
4b Capital use indicators .............
Sb Costs by expense category ..........
6b Costs per dollar value of production .. .


Page
17
18
18
19
20
21


Page
22
23
23
24
25
26


DEFINITIONS
Value of Own Plants Sold: the value of total plant
sales minus cost of plants purchased for immediate
resale (brokered), giving net sales of nurser-produced
products.

Full-Time Equivalent Worker: the equivalent of
one person working 40 hours a week for 52 weeks
a year (2080 hours a year). The most common
method for obtaining the number of full-time
employees for this report was to divide the total
annual payroll hours for the nursery by 2080, then
add the number of family and management
personnel not paid on an hourly basis.

Capital Owned: the current value of land,
buildings, equipment (cost less accumulated
depreciation), and other current assets. Related debt
is not deducted in this determination.

Capital Managed: the value of capital owned
(above) plus the market value of additional leased
land, buildings, or equipment.

Total Gain: the sum of plant sales, changes in
plant and supply inventories, and miscellaneous cash
income. It represents the total result of the year's
operations.

Net Nursery Income: the return for the time and
skills of management, and for the use of the capital
invested in the operation. It is calculated as total
gain less all cash costs, except management's
compensation, and all non-cash costs, except the
non-cash interest allowance on capital.

Return to Capital: is what the owned capital
earned, calculated as the portion of net nursery
income that is left after subtracting management's
compensation or time value.

Rate of Return On Capital: is the rate earned on
the capital invested, equivalent to quoted yields on
stocks, bonds, savings deposits. It is calculated as
return to capital divided by the value of owned
capital.






Central and South Florida Foliage Nurseries, 1989 17


APPENDIX TABLES


Appendix TabLe la--Size of Business, CentraL FLorida Folialge Nurseries, 1989.

ALL Largest SmaLLest Most Profit Your
unit 20 Firms 6 Firms 5 Firms 4 Firms Nursery


Notes: Propagating/finishing space is for product for sale.
** Full-time equivalent person is 2080 brs/year.


686,185
(13,574)

472,611

816,895
12,237

99,132
2.28

4.18


1,025,511
7,324

1,032,835

189,526
30,511

220,037
5.05

7.65


100,494
(9,020)

91,474


438,127
(292)

437,835


A Value of own plants sold . .. .. ... $
B Change in inventory vaLue. .. ... .. S

C Total value of production. ... .. .. S


D Space f or propagating & f finishing. .
E Space for stock plants .......


31,651
240

31,891
0.73

1.00


42,793
4,567

47,360
1.09

2.74


. .. .sq.f t.
. ..q.ft.


F Total growing spac... ... . .. .sq.ft.
G acres

H Total nursery are . .. . . ... .acres


28.79


2.94


I Full-time equivalent persons ....


. ..number 12.64


.......---- -Capital Owned---------*--*
J Growing plants .. .. .. .. .. .. .. $
K BLdgs, improvements. . ... .. ... $
L Machinery & equipment. ... .. ... S
M Land.................... $ t
N Supply inventory .. .. .. .. ... S
0 Accounts receivable. ... .. .. .. S
P Cash on hand .. . .... ... .. $

P Total Owned Capital. .. .. .. .. .. S


310,152 50,794 106,153
157, 398 93,015 41,005
36, 162 16,690 8,462
45,706 17,894 32,672
67, 721 1,258 8,164
143,421 6,911 72,373
62,769 6,697 4,193

823,328 193,258 273, 020


163,234
118,809
24,799
45,533
23,669
59,975
28,628

464,648


............Capital Leased-------------
R BLdgs, improvements. ............
S Machinery & equipment. ...........
T Land . . . .

U Total Leased Capital ............

--*Capital Managed (ouned + leased)----
V Growing plants ..............
W B~dgs, improvements. ............
X Machinery & equipment. ...........
Y Land . . . . . . . . . .
2 Supply inventory .............
AA Accounts receivalble. ...........
AB Cash on hand ...............

AC Total Capital rManged ..........


S 17,750
$ 8,178
$17,250

$ 43,178


15,833

15,833


310,152
157,398
36,162
61,539
67,721
143,421
62,769

839, 161


0
0
0

0


50,794
93,015
16,690
17,894
1,258
6,911
6,697
cWWWWWr-E
193,258


1,000
0
0

1,000


163,234
136,559
32,977
62,783
23,669
59,975
28,628

507,826


106,153
42,005
8,462
32,672
8,164
72,373
4,193
rtrrErWERt
274, 020











Appendix Table 2a--Space Use Indicators, Central FLorida Folialge Nlurseries, 1989.


Appendix Table 3a--Labor Use Indicators, Central FLorida Foliage Nurseries, 1989.

ALL Largest Smetlest Most Prof it Your
unit 20 Firms 6 Firms 5 Firms 4 Firms Nlursery


Plant sales per person* . .. (Table 1A/11) S 38,479 35,620 34,187 50,861
Value of production per person* (Table 1C/11) S 37,405 35,874 31,119 50,827

Growing area per person*. .. (Table 1F/11) sq.f t. 7,846 7,643 10,849 5,498
Persons per acre growing area (Table 1F/1G) runber 5.55 5.70 4.02 7.92


*Full-time equivalent person (2080 brs/year)


Central and South Florida Foliage Nurseries, 1989


ALL Largest Smallest
unit 20 Firms 6 Firms 5 Firms


Most Profit Your
4 Firms Nursery


9.25
9.24

10.24
10.23


3.15
2.87

3.18
2.89


Sales/sq.ft. growing space .. (Table 1A/1F) $
Production/sq.ft. growing space. (Table TC/1F) S

SaLes/sq.ft. prop. A fin. space. (Table 1A/1D) S
Value of prod./sq.ft . .. .. (Table 1C/1D) S

Sales/acre growing area.. .. (Table 1A/1G) S
Production/acre.. ... . . able 10/1C) $

Plant inventory turnover . .. (Table 1A/1J) %

Average vacant growing space. . .. .. .. .sq.ft.
--percentage of growing space ... . ... %


4.66
4.69

5.41
5.45


213,636 203,017 137,264 402,974
207,672 204,467 124,944 402,705


412.7

3,023
6.4


297.8

8,853
8.9


330.6

20,144
9.2


197.8

2,010
6.4


Total nursery area. .. .. ... .. .. .sq.ft. 182,025
(incl. roads, parking, office, etc.)


333,067 43,435


119,141


47,360
39.8

42,793
90.4

4,567
9.6


Total growing space .. .. ... .. .. .sq.ft.
--percent of total nursery aree (Table 1F/1G) %

Propagating & finishing space .. .. .. .sq.f t.
--percent of total growing space (Table 1D/1F) %

Stock plant space . .. .. .. .. ... sq.f t.
**percent of total growing space (Table TE/1F) %


99,132
54.5

86,895
87.7

12,237
12.3


220,037
66.1

189,526
86.1

30,511
13.9


31,891
7r3.4

31,651
99.2

240
0.8





Central and South Florida Foliage Nurseries, 1989 19



Appendix Table 4a--Capital Use Indicators, Central FLorida Folialge Nurseries, 1989.


* Full-time equivalent person (2080 hrs/year)


ALL Largest
unit 20 Firms 6 Firms

Owned capital turnover. .. (Table 1A/10) % 104.6 124.6
nManged capital turnover. .(Table 1A/1AC) % 95.7 122.2


Smaltest Most Profit
5 Firms 4 Firms

52.0 160.5
52.0 159.9


Your
Nursery


Capital owned/person* . (Table 10/11) 5
Capital Imnaged/perrson .. .(Table 1AC/11) $

***nManged Capital Per Person In--
Growing plants. .. .. . (Table 1V/11) S
Blldgs, improvemnt . .. (Table 1V/11) S
Machinery & equipment . .. (Table 1X/11) $
Land. .. . .. . . (Table 11/11) S

Capital owned/acre. .. . (Table 10/10) S
Capital managed/acre. . .(Table 1AC/1G) S

***Managed Capital Per Acre In---
Growing plants. .. .. (Table 1V/1G) S
BLdgs, improvements .. .. (Table 1V/1C) S
Machinery & equipment . .. (Table 1X/1C) S
Land. .. .. . .. (Tarble 17/10) $

***Distribution of Managed Capital---
in growing plants . ... .(Table 1V/1AC) %
in buildings & wells. .. .(Table 1V/1AC) %
in machinery & equipment. .(Table 1x/1AC) %
in land.. .. ... .(Table 1Y/1AC) %
in supply inventory .. ..(Table 12/1AC) %
in accounts receivable. . .(Table 1AA/1AC) %
in cash/checkbook balance .(Table 1AB/1AC) %

TOTAL. .. ... . ... .. . ... %


36,774 28,597 65,745
40,192 29,147 65,745


31,694
31,810


12,323
4,876
982
3,793

251,115
252,034


97,636
38,634
7,783
30,051


12,919
10,6808
2,610
4,969


10,773
5,467
1,256
2,137


17,280
31,643
5,678
6,087


204,173 162,992 263,971
223, 146 166,126 263,971


71,727
60,006
14,691
27,588


32.1
26.9
6.5
12.4
4.7

5.6

100.0


61,400
31,160
7,159
12,183


37.0
18.8
4.3
7.3
8.1
17.1
7.5

100.0


69,380
'127,049
22,796
24,441


26.3
48.1
8.6
9.3
0.7
3.6
3.5

100.0


38.7
15.3
3.1

3.0
26.4
1.5

100.0






1 Central and South Florida Foliage Nurseries, 1989


Appendix Table 5al--Costs by Expense Category, CentraL FLorida Foliage Nlurseries, 1989.


* Note: Interest on capital is 12% charge on owned capital value.


ALL Largest Smettest
unit 20 Firms 6 Firms 5 Firms

Operator's salary .. ... .. .. .. S 46,173 80,178 24,988
Other wages ... .. .. .. .. .. $ 175,557 437, 781 26,397

LABOR TOTAL .. .. .. .. .. ... S 221,731 517,959 51,386


Most Profit Your
4 Firms Nursery

39,762
'123,074

162,836


Plants & seeds. . . .. .. ..
Containers. ................
Heating fuel. ...............
Peat 8soil.. .
Fertilizers & Lime. ............
Pesticides & chemicals. ..........
Packaging & shipping supplies ......
Other production supplies .........

SUPPLIES TOTAL. ..............

Facility repairs. .............
Equipment operation ...........

OTHER PRODUCTION COSTS TOTAL. .......

Travel... .
Insurance ................
Telephone ................
Electricity .. ..
Taxes & Licenses. .............
Advertising ................
Rent*(and/bui Ldings ............
Other cash costs. .............

ADMINISTRATIVE & OVERHEAD COSTS TOTAL ...

TOTAL CASH COSTS. .............

Depreciati on-machinery/equi pent. .....
Depreciation-bui Ldings/etc. ........
Supply inventory decrease ........
Interest on capitat*............

TOTAL NON*CASH COSTS. ...........

TOTAL ALL COSTS ..............


62,844
25,449
11,020
14,476
6,031
7,916
23,564
9,275

160,573


122,670
51,047
20,991
29,695
13,634
15,054
59,055
19,135

331,280

27,951
9,755

37,706

8,750
15,519
9,039
14,072
5,402
3,697
0
32,010

88,489

975,433

19,425
26,584
4,423
98,799

149,231

1,124,665


21,011
6,948
2,527
3,127
1,303
2,483
4,023
1,342

42,764

3,044
2,824

5,868

303
3,247
1,214
3,247
2,410
82
0
2,784

13,287

113,304

3,166
7,192
0
23,191

33,549

146,854


74,409
14,734
9,782
9,906
3,188
5,086
18,440
10,229

145,774


S13,727
S 6,557

S 20,284

S 4,109
$ 9,602
S 4,005
S 7,311
$ 3,952
t 1,920
S 4,752
$ 14,233

S 49,884

S 452,472

S 8,063
S 16,980
S 1,269
S 55,758

$ 82,070

S 534,541


8,802
3,458

12,260


1,218
7,110
2,893
3,163
3,575
880
1,109
10,891

30,839

351,708

4,560
14,971
1,867
32,762

54,161

405,869





Central and South Florida Foliage Nurseries, 1989 21



Appendix Table 6a--Costs Per Doller's Uorth of Production, Central Florida Foliage Nurseries, 1989. *


*Production is annual sales plus inventory change.


unit

Operator's salary .. .. .. .. ... cents
Other wages .. .. ... .. .. .. cents

LABOR TOTAL .. .. .. .. ... .. cents


At(
20 Firms

9.8
37.1

46.9


Largest SmaLLest
6 Firms 5 Firms

7.8 27.3
42.4 28.9

50.1 56.2


Most Profit Your
4 Firms Nursery

9.1
28.1

37.2


Plants & seeds.. .. .. .
Containers. .........
Meeting fuel. ........
Peat & soil .........
Fertilizers &i Lime. .....
Pesticides L chemnicals. ...
Packarging L shipping supplies
Other production supplies .


13.3
5.4
2.3
3.1
1.3

5.0
2.0

34.0

2.9
1.4

4.3

0.9
2.0
0.8
1.5
0.8
0.4
1.0
3.0

10.6

95.7

1.7
3.6
0.3
11.8

17.4

113.1


cents
cents
cents
cents
cents
cents
cents
cents


4.9
2.0
2.9

1.5
5.7
1.9

32.1

2.7
0.9

3.7

0.8
1.5
0.9
1.4
0.5
0.4
0.0
3.1

8.6

94.4

1.9
2.6
0.4
9.6

14.4

108.9


23.0
7.6
2.8
3.4

2.7
4.4


1.5


46.7

3.3



3.5
1.3
3.5
2.6
0.1
0.0
3.0

14.5
..........
123.9

3.5
7.9
0.0
25.4

36.7

160.5


17.0
3.4
2.2
2.3
0.7
1.2

2.3

33.3

2.0
0.8

2.8


SUPPLIES TOTAL. ... .. .. .. .. cents


Facility repairs. . ... .
Equipment operation .....


. cents
. cents


OT HER PRODUCTION COSTS TOTAL.. . .. . cents


Travel. .. .. .
Insurance ....
Telephone ....
ELectricity ...
Taxes & Licenses. .
Advertising ...
Rent-tarnd/bui ldings
Other cash costs. .


. cents
. cents
. cents
. cents
. cents
. cents
. cents
. cents


0.3

1.6
0.7

0.8
0.2
0.3
2.5

7.0
...........
80.3


ADMINIISTRATIVE & OVERHEAD COSTS TOTAL .. cents

TOTAL CASH COSTS. . .. . . .. cents


Depreciation-machinery/equipment. .
Depreciation-bui Ldings/etc. . .
Supply inventory decrease .. .
Interest on capital .. .. .. .


. cents
. cents
. cents
. cents


1.0
3.4
0.4
7.5


TOTAL NON-CASH COSTS.... .. .. . cents

TOTAL ALL COSTS ..............cns


12.4

92.7







i Central and South Florida Foliage Nurseries, 1989



Appendix Table 1b--Size of Business, South FLorida Foliage Nurseries, 1989.


Notes: Propagalting/finishing space is for product for sale.
** Full-time equivalent person is 2080 brs/year.


ALL Largest Smeltest
unit 31 firms 7 firms 10 fimrs


Most Prof it Your
9 firms N(ursery


132,695
8,173

140,868


771,082
293,767

1,064,849


A Value of own plants sold .. .. .. .. $ 1,221,002
B Change in inventory value. . ... ... S 56,900

C Total value of production. ... .. .. S 1,277,902

D Space f or propagating & f finishing. .. ..sq.f t. 751,338
E Space for stock plants .. ... .. .. .sq.ft. 444,182

F Total growing space. .. .. . .. .sq.ft.1,195,519
G acres 27.45

H Total nursery area .. .. .. . . acre 33.39


4,045,296
(79,336)

3,965,961

2,670,130
1,750,486

4,420,615
101.48


72,977
50,559

123,536
2.84


217,317
152,313

369,630
8.49


115.87

96.32


13.67

'16.69


.number 28.76


3.87


I Full-time equivalent persons . .. ..

---**------CapitL Owned---**-----*-
J Growing plants . ... .. .. . ..
K BLdgs, improvements. ... .. .. .
L Machinery & equipment. . ... .. .
M Land . . . . . . . . .
N Supply inventory .. .. .. ... .
0 Accounts receivable. ... .. .. .
P Cash on hand .. .. ... .. .. .

P Total Owned Capital. .. .. .. .. .

...........*Capital Leased-------------
R BLdgs, improvements. .. .. .. ..
5 Machinery & equipment. .. .. .. .
T Land .. .. .. .. ... .. .. .


92,333
34,435
15,828
75,710
4,206
16,337
3,975


716,822
218,484
48,090
61,753
20,976
111,148
28,207


764,030
175,948
68,516
237,158
20,168
273,357
47,812


2,196,798
506,598
202,207
597,039
68,835
1,020,205
150,701


. 1,586,989 4,742,383 242,826 1,205,480


1,330
400
150,525

152,255


716,822
219,814
48,490
212,278
20,976
111,148
28,207

1,357,735


14,636
5,081
134,903

154,619


62,022
20,000
352,177

1434,199


625
1,050
61,175

62,850


92,333
35,060
16,878
136,885
4,206
16,337
3,975

305, 676


U Total Leased Capital .. . .. .. ... 5

***CapitaL Managed (ouned + Leased)----
V Growing plants .. .. .. ... .. .. $
W BLdgs, improvements. .. .. .. .. .. $
X Machinery & equipment. .. .. ... .. $
Y Land .. .. .. .. .. . ... ... $
Z Supply inventory ... .. ... .. S
AA Accounts receivable. .. .. ... .. S
AB Cash on hand .. ... . .... .. 5

AC Total Capital ananged .. . . ... .


764,030 2,196,798
190,583 568,620
73,597 222,207
372,061 949,216
20,168 68,835
273,357 1,020,205
47,812 150,701

1,741,608 5,176,582









Appendix Table 2b-*Space Use indicators, South Flortda Foliage Nlurseries, 1989.

ALL Largest Smallest Most Prof it Your
unit 31 firms 7 firms 10 firms 9 firms Nursery


Sales/sq.f t. growing space .. (Table 1A/1F) S 1.02 0.92 1.07 2.09
Production/sq.f t. growing space. (Table lC/1F) S 1.07 0.90 1.42.88

Sales/sq.f t. prop. f in, space. (Table 1A/1D) S 1.63 1.52 1.82 3.55
Value of prod./sq.ft . ... (Table 1C/1D) S 1.70 1.49 1.93 4.90

Sates/acre growing area. . .. (Table 1A/1G) S 44,488 39,862 46,790 90,870
Production/acre. ... .. . able 1C/10) S 46,562 39,080 49,671 125,490

PLant inventory turnover .. (Table 1A/1J) % 159.8 184.1 143.7 107.6

Average vacant growing space. .. .. .. sq.ft. 80,620 127,580 5,338 127,100
**percentage of growing space ... .. .. % 6.7 2.9 4.3 34.4

Total nursery area. .. .. ... ... .sq.ft.1,454,474 5,047,273 226,816 595, 659
(incl. roads, parking, office, etc.)

Total growing space .. .. .. .. .q.ft.1,195,519 4,420,615 123,536 369,630
**percent of total nursery area (Table 1F/1G) % 82.2 87.6 54.5 62.1

Propagating & finishing space . ... .. .sq.f t. 751,338 2,670,130 72,977 217,317
-*percent of total growing space (Table 10/1F) % 62.8 60.4 59.1 58.8

Stock plant space .. .. . . .. sq.ft. 444,182 1,750,486 50,559 152,313
--percent of total growing space (Table 1E/1F) % 37.2 39.6 40.9 41.2

WERWWWWWr tEME lWR l~asaaagagamgamaamasmnagaaggagggggagaggagggggagagggaggaggaggaga


Appendix Table 3b--Labor Use Indicators, South Florida Foliage Nurseries, 1989.

ALL Largest Smattest Most Profit Your
unit 31 firms 7 firms 10 firms 9 firms Nursery


Plant sales per person* .. (Table 1A/11) $ 42,450 42,000 34 ,289 46,195
Value of production per person* (Table 1C/11) S 44,428 41,176 36,400 63,795

Growing area per person*. .. (Table 1F/11) sq.ft. 41,564 45,897 31,922 22,144
Persons per acre growing area (Table 1F/1G) number 1.05 0.95 1.36 1.97


Full-time equivalent person (2080 brs/year)


Central and South Florida Foliage Nurseries, 1989







Central and South Florida Foliage Nurseries, 1989



Appendix Table Ab--CapitaL Use Indicators, South Florida Foliage Nurseries.


* Full-time equivalent person (2080 brs/year)


ALL
unit 31 firms


Largest
7 firms

85.3
78.1


Smallest Most Profit Your
10 firms 9 firms Nursery

54.6 64.0
43.4 56.8


Owned capital turnover. .. (Table 1A/10)
Managed capital turnover. .(Table 1A/1AC)

Capital ownd/person* . .. (Table 10/11)
Capital managed/person* ..(Table 1AC/11)

---Mlanaged Capital Per Person In***
Growing plants.. .. . .. (Table 1V/11)
BLdgs, improvement . .. (Table 1Y/11)
Machinery & equipment . .. (Table 1X/11)
Land.... .. . .. (Table 11/11)

Capital owned/acr.. . .. (Table 10/10)
Capital managed/acre. .. .(Table 1AC/1G)


% 76.9
% 70.1


55,174 49,238 62,746
60,550 53,746 78,987


72,220
81,341


42,944
13,169
2,905
12,717


26,563
6,626
2,559
12,935


22,808
5,904
2,307
9,855


23,859
9,060
4,361
35,371


57, 824 46,731 85,622 142,063
63,457 51,009 107,784 160,006


---Managed Capital Per Acre In---
Growing plants. .. .. .. (Table 1V/1G) S
BLdgs, improvements .. .. (Talble 1V/1C) S
Machinery & equipment .. (Table 1X/10) $
Land.. . .. ... .. (Table 17/10) $

***Distribution of Mlanaged Capital---
in growing plants . ... .(Table 1V/1AC) %
in buildings & we(ls. .. .(Table 1W1IAC) %
in machinery & equipment. .(Table 1X/1AC) 2
in Land ..... ....(Table 1Y/1AC) %
in supply inventory .. .(Table 12/1AC) 2
in accounts receivable;. .(Table 1AA/1AC) 2
in cash/checkbook balance .(Table 1AB/1AC) 2

TOTAL. .. .. .. ... .. .. .. %


27,838
6,944
2,682
13,556


43.9
10.9
4.2
21.4
1.2
15.7
2.7

100.0


21,647
5,603
2,190
9,353


42.4
11.0
4.3
18.3
1.3
19.7
2.9

100.0


32,558
12,363
5,951
48,267


30.2
11.5
5.5
44.8
1.4
5.3
1.3

100.0


84,476
25,905
5,714
25,016


52.8
16.2
3.6
15.6
1.5
8.2
2.1

100.0




Central and South Florida Foliage Nurseries, 1989 25



Appendix Table 5b--Costs by Expense Category, South FLorida Foliage Nurseries, 1989.


* Note: Interest on capital is 12% charge on owned capital value.


ALL
unit 31 firms

Operator's rslary .. .. .. . .... S 68,777
Other wages .. .. .. .. .. .. .. $ 399,775

LABOR TOTAL .. .. .. .. .. .. .. $ 468, 553


Largest Smallest
7 firms 10 firms

153,255 25,041
1,415,238 38,072

1,568,493 63,112


Most Prof it Your
9 firms Nursery

63,771
186,143

249,913


PLants & seeds...............
Containers. ...............
Heating fuet. ...............
Peat & soft..... ......
Fertilizers & Lime. ............
Pesticides & chemicals. ..........
Packaging & shipping supplies .......
Other production supplies ........

SUPPLIES TOTAL. ..............

Facility repairs. .............
Equipment operation ...........

OTHER PRODUCTION COSTS TOTAL. .......

Travel. . . . . . . . . .
Insurance ................
Telephone ................
Electricity .. .. .. ..
Taxes & Licenses. .............
Advertising ................
Rent- tand/bui Ldings ...........
Other cash costs. .............

ADMIN)ISTRATIVE & OVERHEAD COSTS TOTAL ...

TOTAL CASH COSTS. .............

Deprec iat ion- mach inery/equi pent. .....
Depreciation-bui Ldings/etc. ........
Supply inventory decrease ........
interest on capita(.... ....

TOTAL NON-CASH COSTS. ...........

TOTAL ALL COSTS .............


157, 188
58,770
10,013
46,576
32,183
35,259
45,627
45,101

430,716


433,054
203,797
38,345
154,893
114,372
127,144
162,665
174,947

1,409,218

122,661
57,599

180,260

55,237
51,400
39,234
24,751
36,804
52,138
31,423
352,504

646,490

3,804,461

65,914
174,788
0
569,086

809,788

4,614,249


17,116
7,989
369
5,742
3,981
3,025
3,906
2,910

45,038

2,555
4,169

6,724

2,162
3,362
2,139
2,148
2,340
931
1,988
5,776

20,845

135,719

2,919
6,549
0
29,139

38,607

174,326


142,227
27,148
4,309
22,171
11,961
11,925
27,808
26,922

274,471


5 35,997
S 17,764

S 53,761

S 16,167
S 17,551
$ 13,351
S 8,232
S 11,062
S 13,667
S9,664
S 91,526

$ 181,219

5 1,134,249


14,600
11,059

25,660


13,178
16,235
7,891
5,027
5,845
9,340
4,515
45,908

107,939

657,983

10,776
54,321

144,658

209,755

867,738


18,944
51,240
O
190,439

260,623

1,394,872







i Central and South Florida Foliage Nurseries, 1989



Appendix Table 6b--Costs Per Dollar s Uorth of Production, South Florida Folialge Nlurseries, 1989. *


*Production is annual sales plus inventory change.


ALL Largest Smallest
unit 31 firms 7 firms 10 firms

Operator a salary .. .. ... .. .. cents 5.4 3.9 17.8
Other wages .. . ... .. .. cents 31.3 35.7 27.0

LABOR TOTAL . ... .. .. ... .. cents 36.7 39.5 44.8


Most Profit Your
9 firms Nlursery

6.0
17.5

23.5


PLants & seeds. .......
Containers. .........
Heating fuel. ........
Peat & soil .........
Ferti lizers & i ime. .....
Pesticides & chemicals. ...
Packaging & shipping supplies
Other production supplies ..


. cents
. cents
. cents
. cents
. cents
. cents
. cents
. cents


12.3
4.6
0.8
3.6
2.5
2.8
3.6
3.5

33.7

2.8
1.4

4.2

1.3
1.4
1.0
0.6
0.9
1.1
0.8
7.2

14.2

88.8

1.5
4.0
0.0
14.9

20.4

109.2


10.9
5.1
1.0
3.9
2.9
3.2
4.1
4.4

35.5

3.1
1.5

4.5

1.4
1.3
1.0
0.6
0.9
1.3
0.9
8.9

16.3

95.9

1.7
4.4
0.0
14.3

20.4

116.3


12.2
5.7
0.3

2.8
2.1
2.8
2.1

32.0

1.8
3.0

4.8

1.5
2.4
1.5
1.5
1.7
0.7
1.4
4.1

14.8

96.3

2.1
4.6
0.0
20.7

27.4

123.8


13.4
2.5
0.4
2.1
1.1
1.1
2.6
2.5

25.8


SUPPLIES TOTAL. ... . .. .. ... cents

Facility repairs. .. ... .. . ... cents
Equipment operation .. . .. cents

OTHER PRODUCTION COSTS TOTAL .. .. . cents


1.4
1.0

2.4

1.2
1.5
0.7
0.5
0.5
0.9
0.4
4.3

10.1



1.0
5.1
0.0
13.6

19.7

81.5


Travel. . .. .. .
Insurance .....
Telephone .....
Electricity ....
Taxes & l licenses. ..
Advertising .....
Rent iand/bu i ldi ngs
Other cash costs. ..


cents
cents
cents
cents
cents
cents
cents
cents


ADMNlISTRATIVE & OVERHEAD COSTS TOTAL .. cents

TOTAL CASH COST S. . . .. .. . . cents


Depreciation-machi nery/equipment.
Depreciation-bui ldings/etc. ...
Supply inventory decrease ....
Interest on capital .......


. cents
. cents
. cents
. cents


TOTAL NON-CASH COSTS. ... .. . cents

TOTAL ALL COSTS .. ... .. .. .. cents




















Date Due


Due Returned Due Returned
Ti 1Hr
FEB 13

Hli; ;i19951;~:
ii ~r HAY Pi ;9~2
~!!R 1~199(
3AN ii


mis~ dL
r -
~RpRZJi















--


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