Texas Operations · 3 MarketsBank Covenants · All Met · LOC AvailableTX Franchise Tax · $1,738/mo ReservedJan 2026 Sales Tax Filed January 31
Prepared by BlackpeakCFO Controller Services · Issued February 3, 2026 · Actuals through January 31, 2026. Prior year comparatives are unaudited. Budget per FY2026 Annual Operating Budget approved December 2025. For management use only.
IndexTable of ContentsYour Numbers, Explained · January 2026 · BlackpeakCFO
1
Cover Page
Company overview, reporting period, confidentiality notice and basis of preparation
2
Table of Contents
This page — complete section index with scope and accounting basis statement
3
Executive Summary & KPI Scorecard
8 headline KPIs, January verdict dashboard (Revenue / Profit / Cash / AR) and management commentary
4
Profit & Loss Statement
Full income statement — Actual vs Budget vs Prior Year — January 2026 and YTD FY2026
5
Revenue Analysis
Revenue by service line and by market with actual vs. budget variance chart
6
Gross Margin & Cost Analysis
Gross margin bridge, direct cost breakdown by category and overhead analysis
7
Balance Sheet
Statement of financial position as at January 31, 2026 with December 31, 2025 comparative
8
Cash Flow Statement
Operating, investing and financing cash flows — January 2026 (indirect method)
9
Accounts Receivable & AR Aging
AR aging by bucket and by client, DSO analysis and collection risk commentary
10
Budget vs. Actual Variance Analysis
Line-by-line variance analysis with explanatory management commentary for each P&L category
11
Divisional Performance — Dallas, Houston & Austin
Revenue, gross profit and EBIT by market with margin benchmarks and 6-month KPI trends
12
Actions, Risks & Recommendations
Immediate priorities, 30-day actions and strategic recommendations — February 2026
Basis of Preparation: Prepared on an accruals basis consistent with US GAAP as applicable to a Texas LLC. Revenue recognized on contract completion / proportional delivery per contract terms. Direct labor includes employer payroll taxes (FICA, FUTA, TX SUTA 2.7%). Texas Franchise Tax provisioned monthly at the EZ computation method rate of 0.331% on annualized Texas gross revenue (~$6.3M FY2026 target = $1,738/month). Florida has no equivalent state income or corporate tax obligation. Prior year figures unaudited. Budget per FY2026 Annual Operating Budget approved December 2025. DSO calculated on trailing 31-day revenue.
Your Numbers, Explained · Redrock Facilities Services LLC · BlackpeakCFO Controller ServicesPage 2 of 12
Total Revenue$526,000Budget $535K · ▼$9K vs budget (−1.7%)
Gross Profit$202,51038.5% GP margin · Budget 38.9%
EBITDA$80,61015.3% margin · PY 13.7% · +160bps
Net Profit$70,07213.3% margin · PY $59,950 (+16.9%)
Cash Balance$487,320+$34,520 in month · LOC $750K available
AR Outstanding$312,450DSO 18.4 days · 9.2% over 60 days
Headcount8985 field · 4 admin · 0 vacancies
Active Contracts4742 recurring · 5 project · +3 vs Jan 2025
JANUARY VERDICT —Revenue● AMBERGross Margin● AMBEREBITDA● GREENNet Profit● GREENCash● GREENAR & Collections● AMBERCovenants● GREENHeadcount● GREEN
Revenue (AMBER): January came in $9K (1.7%) below budget. Two new Dallas janitorial contracts started mid-January rather than January 1 as budgeted — a timing difference expected to fully reverse in February (confirmed in writing by both clients). YoY revenue growth of +5.6% confirms the business is on track against the FY2026 plan of $6.3M. Profitability (GREEN): Despite the revenue shortfall, cost discipline delivered EBITDA of $80,610 (15.3%) — up 160 basis points on prior year (13.7%). Direct labor came in $3,040 under budget as field supervisors covered 2 absentee days without agency costs. Miscellaneous overheads were $1,300 over budget (new PPE stock for Houston site) — one-off item. Cash & AR (GREEN/AMBER): Cash increased $34,520 in January. DSO of 18.4 days is healthy. Nexus Capital Partners ($87,200, 31–60 days) and DFW Airport ($24,800, 61–90 days) are being actively chased. TX sales tax filed on time January 31. TX Franchise Tax provision $1,738 accrued monthly — payment due May 15.
🚨 What This Report Caught That You’d Have Missed
(1) Nexus Capital Partners owes $87,200 at 45 days — their payment pattern shows they’ll slip to 75+ days without a call this week. At that point, you’re financing their business. (2) Two mid-month contract starts cost you $9K in January revenue, but also exposed that your onboarding process averages 12 days when it should take 5. Fix the process and you’ll capture $38K+ more revenue annually from faster ramp-ups. (3) Your PPE cost spike ($1,300) looks small, but Houston site supply costs are trending 8% above other locations — the start of a pattern worth $15K/year.
Your Numbers, Explained · Redrock Facilities Services LLC · BlackpeakCFO Controller ServicesPage 3 of 12
RevenueRevenue Analysis — By Service Line & MarketJanuary 2026 · Actual vs. Budget
Revenue by Service Line
Service Line
Actual
Budget
Var $
Mix
Janitorial & Cleaning
$285,400
$290,000
(4,600)
54.3%
Facilities Management
$142,600
$148,000
(5,400)
27.1%
Specialty & Deep Clean
$68,200
$68,000
200
13.0%
Equipment & Supplies
$29,800
$29,000
800
5.7%
Total Revenue
$526,000
$535,000
(9,000)
100%
Revenue by Market
Market
Revenue
Mix
GP%
● Dallas (HQ)
$264,800
50.3%
39.9%
● Houston
$168,200
32.0%
37.8%
● Austin
$93,000
17.7%
35.9%
Total
$526,000
100%
38.5%
Revenue shortfall context: The $9K miss vs budget is entirely attributable to two Dallas contracts starting mid-month (contract execution delayed by client procurement process — confirmed starts February 1). Houston is tracking to budget with HCA Healthcare recurring contract performing well. Austin margin (35.9%) is below group average — sub-contractor pricing pressure being addressed in February.
47 active contracts: 42 recurring monthly · 5 project-based. New pipeline: 3 proposals outstanding in DFW (est. $28K/mo combined).Page 5 of 12
Financial StatementsBalance Sheet — Statement of Financial PositionAs at January 31, 2026 · with December 31, 2025 comparative
Assets
Jan 31, 2026
Dec 31, 2025
Change
Current Assets
Cash & Cash Equivalents
487,320
452,800
+34,520
Accounts Receivable (net)
312,450
274,000
+38,450
Prepaid Insurance
28,600
28,600
—
Cleaning Supplies Inventory
18,200
20,400
(2,200)
Other Current Assets
8,400
8,400
—
Total Current Assets
854,970
784,200
+70,770
Fixed Assets (Net Book Value)
Vehicles & Fleet (28 units)
754,000
762,000
(8,000)
Equipment & Machinery
237,600
224,800
+12,800
Technology & IT
16,800
17,000
(200)
Total Fixed Assets (Net)
1,008,400
1,003,800
+4,600
TOTAL ASSETS
1,863,370
1,788,000
+75,370
Liabilities & Equity
Jan 31, 2026
Dec 31, 2025
Change
Current Liabilities
Accounts Payable
87,340
74,940
+12,400
Accrued Payroll & Benefits
94,200
85,900
+8,300
Deferred Revenue (prepaid contracts)
52,000
46,800
+5,200
Current Portion — Vehicle Notes
96,000
96,000
—
TX Franchise Tax Accrual
1,738
—
+1,738
Other Accrued Liabilities
4,200
4,200
—
Total Current Liabilities
335,478
307,840
+27,638
Long-Term Liabilities
Vehicle Financing Notes (LT)
486,000
494,000
(8,000)
Equipment Note Payable
124,000
124,000
—
Total Long-Term Liabilities
610,000
618,000
(8,000)
TOTAL LIABILITIES
945,478
925,840
+19,638
Members’ Equity
Member’s Capital
680,000
680,000
—
Retained Earnings
237,892
182,160
+55,732
Total Members’ Equity
917,892
862,160
+55,732
TOTAL LIABILITIES & EQUITY
1,863,370
1,788,000
+75,370
Retained earnings increase = Net Income $70,072 less owner distributions $14,340. Fixed asset additions: $18,400 equipment purchase less $8,200 van disposal proceeds less $5,600 depreciation = net +$4,600. Current ratio: 2.55× · Debt-to-equity: 1.03×
Balance sheet prepared on a going-concern basis. All figures unaudited management accounts. Total Assets $1,863,370 · Total Equity $917,892 · Current Ratio 2.55×Page 7 of 12
Cash conversion: Operating cash flow of $67K on net income of $70K represents 95.7% cash conversion — excellent for a services business. AR increase of $38K reflects growth but requires monitoring. The $14,340 owner distribution represents a conservative draw, retaining cash for Q1 growth.
TX Franchise Tax position: $1,738 accrued Jan → total accrual $1,738 · Due May 15 · 4 months remaining to accrue full $8,690 balance (5-month provision). EFT will be pre-scheduled via Texas Comptroller eSystems in April. Florida operations have no equivalent tax obligation.
Cash flow prepared using the indirect method. Opening and closing balances confirmed to January 2026 bank statements. No LOC drawn.Page 8 of 12
ReceivablesAccounts Receivable & Aging AnalysisAs at January 31, 2026 · Total AR: $312,450 · DSO: 18.4 days
AR Aging by Client · January 31, 2026
Client
Total
0–30
31–60
61–90
90+
Status
Nexus Capital Partners
87,200
—
72,400
14,800
—
Chasing — escalated to CFO
City of Dallas — Parks
64,200
64,200
—
—
—
Current — PO confirmed
HCA Healthcare (Houston)
52,800
52,800
—
—
—
Current — recurring contract
Westfield Shopping Centers
38,400
38,400
—
—
—
Current — remit due Feb 7
Greenbelt Office Park (Austin)
29,400
29,400
—
—
—
Current — net 30 terms
DFW Airport Concessions
24,800
—
—
13,800
11,000
Dispute — scope query raised
Methodist Healthcare (Dallas)
12,150
12,150
—
—
—
Current — new contract Jan
Other (12 clients)
3,500
1,250
—
—
2,250
2 clients >120 days (letter sent)
TOTAL
312,450
198,200
72,400
28,600
11,000
63.4% current
% of total — Current: 63.4% · 31–60: 23.2% · 61–90: 9.2% · 90+: 4.2% — Provision required: $2,750 (90+ days @ 25%)
DSO: 18.4 days (target ≤30). Action: resolve DFW Airport dispute ($24,800) by Feb 15 and chase Nexus Capital ($87,200) for full payment by Feb 14.Page 9 of 12
DivisionalDivisional Performance — Dallas / Houston / AustinJanuary 2026 · Direct cost allocation. Overhead allocated on headcount basis.
Dallas
Houston
Austin
Total
Revenue
264,800
168,200
93,000
526,000
Direct Labor
(122,400)
(80,200)
(39,360)
(241,960)
Cleaning Supplies
(20,800)
(12,900)
(10,020)
(43,720)
Equipment Repair
(16,000)
(11,600)
(10,210)
(37,810)
Gross Profit
105,600
63,500
33,410
202,510
GP Margin %
39.9%
37.8%
35.9%
38.5%
Overheads (allocated)
(64,300)
(40,600)
(22,600)
(127,500)
EBIT
41,300
22,900
10,810
75,010
EBIT Margin %
15.6%
13.6%
11.6%
14.3%
Dallas remains the highest-margin division (15.6% EBIT) and accounts for 50% of company revenue. Houston growing well; the Nexus Capital contract adds volume in Feb. Austin continues to ramp — target 14% EBIT by Q3 2026 once team is fully deployed on Greenbelt extension.
ActionsActions & RecommendationsImmediate priorities · 30–60 Day initiatives · Strategic direction
⚡ Immediate (0–2 Weeks)
Nexus Capital — $87,200
Escalate to Redrock CEO. Request payment of $72,400 (31–60 bucket) by Feb 14. Set hold on new work orders until current invoices paid. Formal demand letter prepared by BlackpeakCFO by Feb 5.
DFW Airport Dispute — $24,800
Provide scope-of-work documentation to DFW AP team by Feb 7. Resolution expected within 14 days. Provision $2,200 (9%) pending outcome. Avoid further work without PO in place.
February Payroll Headcount
Confirm 3 new field staff start dates (Houston) to ensure payroll system is updated before the Feb 14 pay run. Labor budget will increase by ~$8,400/month from February.
📅 30–60 Day Initiatives
Q1 Fuel Cost Review
Fleet costs $800 over budget in January. Review route optimization for Dallas & Houston vans. Evaluate bulk diesel purchasing agreement with Petro Texas (quote by Feb 20). Potential saving: $500–$1,200/month.
Billing Cadence Tightening
Two Dallas contracts started Jan 15 — billing delayed to month-end. Implement mid-month invoicing for new contracts (invoice by day 15 for work performed days 1–15). Reduce average DSO from 18 to target 14 days.
Austin Gross Margin
Austin GP% at 35.9% vs company average 38.5%. Review supply chain: BlackpeakCFO to run cost benchmark by Feb 28. Target: raise Austin GP% to 37%+ by Q2 2026 through supplier renegotiation.
📊 Strategic & Ongoing
Client Concentration Risk
Top 3 clients = 58% of revenue. Board to set target: no single client above 20% by Dec 2026. Pipeline currently tracking 6 prospects in DFW & San Antonio. BlackpeakCFO will add concentration KPI to monthly pack from Feb.
San Antonio Expansion
Q3 2026 target launch. CapEx budget: $45,000 (equipment + vehicle). BlackpeakCFO to prepare financial model & break-even analysis by March 31. Funding options: operating cash flow or existing LOC ($150K available).
FY2026 Budget Reforecast
Q1 actuals will inform a May reforecast. If Jan revenue timing reverses fully in Feb (expected), full-year budget of $6.3M remains achievable. BlackpeakCFO will present reforecast at April board meeting.
Prepared by BlackpeakCFO · Fractional Controller & CFO Services · Texas & Florida — This report is confidential and prepared solely for the management of Redrock Facilities Services LLC. — blackpeakcfo.com
Next report: February 2026 Management Accounts — due March 5, 2026. Questions? Contact your BlackpeakCFO controller.Page 12 of 12
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