Kansas City's Best Limousine Service

CAREY LIMO HOPES BUYING ITS COMPETITOR WILL DRIVE SALES.

KANSAS CITY BUSINESS JOURNAL AUGUST 18, 2006

Kansas City's largest limousine service recently acquired a local competitor and hired its owner as COO.

Kansas City Transportation Group's Carey Limousine Service completed the acquisition of Sinatra Limousine in late July, expanding the division by about 15 percent to a total of 54 vehicles, said Bill George, CEO of KCTG.

Sales for the Carey Limousine division should exceed $4 million in 2007, a 50 percent increase from projected 2006 sales, George said.

"This was one of those rare deals where all the pieces fell together," George said.

Much of the expected increase in revenue will occur because of new leadership from Mike Sinatra, the former owner of Sinatra Limousine of Kansas City. Sinatra started Sinatra Limousine in October 2004 after having worked for six years as a vice president at UMB Bank. He started with one limousine, one town car and a handful of corporate business contacts.

By August 2005, Sinatra's fleet had grown to seven vehicles and 11 drivers with more than $250,000 in sales. After Carey Limousine leased some of Sinatra's vehicles to accommodate demand generated by the Kentucky Derby, Sinatra and George realized the potential of combining the businesses.

"I wasn't really looking to sell, but when the opportunity came up at Carey, one thing led to another," Sinatra said.

Neither Sinatra nor George would disclose the amount of the acquisition.

As COO of Carey, Sinatra said he plans to modernize the vehicle fleet and hire six employees to expand dispatch and detailing services. Carey will continue to focus on its corporate clientele, he said. Large customers of Sinatra's, such as Sprint Nextel Corp. and Midwest Air Traffic Control, will be retained, he said.

With a larger company and expanded services, Sinatra said he will be able to capitalize on more of his large corporate contacts.

jshaad@bizjournals.com | 816-421-5900

BIG BUSINESS DRIVES INCREASING DEMAND FOR SMALL BUSES

KANSAS CITY BUSINESS JOURNAL JUNE 8, 2007

When Warren Buffett, one of the world's richest men, visited Kansas City several months ago, he and his companions declined to be carried in a limousine.

His office insisted they be transported in minicoaches, small buses that seat about 30, Kansas City Transportation Group COO Michael Sinatra said.

Buffett isn't the only business guru turning his preferences to minicoaches. The vehicles are increasing in popularity for many corporate travelers in Kansas City, and Kansas City Transportation Group has shifted into high gear to meet that demand.

The company, which owns Yellow Cab, Carey Worldwide Chauffeured Services and KCI Shuttle, in April traded in its fleet of nine minicoaches and spent another $500,000 on 13 new and larger ones, which cost about $90,000 each. About twice a week, it has to rent extras to keep pace with demand, Sinatra said.

Minicoach business currently makes up about 10 percent of Kansas City Transportation Group's revenue, which the private company would not disclose, and is driving toward 30 percent growth this year, Sinatra said.

While minicoaches bring in substantially higher revenue than other chauffeured services, they also come with higher expenses, making profit margins similar. The benefit of expanding into that niche is adding another mode for increasing revenue, Sinatra said.

Dale Vestal, ground transportation manager for transportation company Agenda: Kansas City, said he also has seen the increased demand. Since 2003, that company has doubled its minicoach fleet to six.

"This business was clearly not around five years ago," Sinatra said.

Several factors in the past couple of years have generated growth in that sector, the men said.

Corporate travel finally caught up with pre-9/11 levels, Sinatra said, with clients that include some of the metro's largest companies, such as Applebee's International Inc., H&R Block Inc. and Sprint Nextel Corp. hosting meetings that require transporting hundreds, even thousands, of people around the metro.