Concrete Pipe Manufacturer

Concrete Pipe Manufacturer

Roles
Financial Advisor, Interim CFO
  • Grew revenue and EBITDA
  • Stabilized operations and renewed stakeholders confidence
  • Positioned company for future growth
The client is a privately-owned concrete pipe and box manufacturer providing commercial, residential and municipal water drainage infrastructure. Numerous operational challenges led to a lack of financial transparency, triggering several loan covenant violations and the company became over-drawn on their credit facility. CR3 was engaged to perform a four-week operational assessment, and were subsequently hired as interim CFO. The team's work enabled the proper implementation of the ERP system, leading to greater accuracy and timeliness in financial reporting. By the end of CR3's engagement, annualized revenue grew by approximately 56% and annualized EBITDA grew by more than 400%. Operations stabilized, which increased external stakeholder confidence during the turnaround.

The Situation

  • Privately-owned concrete pipe and box manufacturer providing commercial, residential, and municipal water drainage infrastructure
  • Company purchased second production plant, was enduring a competitive pricing war, and producing well below capacity
  • Financial transparency suffered due to a challenging ERP system conversion, triggering several loan covenant violations as company became over-drawn on their credit facility

The Work

  • Performed four-week operational assessment - created and tracked daily/weekly/monthly operational and financial KPIs, actively managed company’s daily/weekly liquidity and borrowing needs, provided transparency in cash management process
  • Led efforts to generate cash by reducing past-due account receivables, established a weekly payable priority system, and pushed for accuracy in inventory-management practices
  • Enabled proper implementation of ERP system leading to greater accuracy and timeliness in financial reporting process
  • Guided company through a forbearance process, transitioning company out of their lender’s workout group

The Results

  • Annualized revenue grew by approximately 56% and annualized EBITDA grew by more than 400%
  • Stabilized operations and provided external stakeholders with confidence and ability to increase funding into an over-advanced position during the turnaround
  • Led client through two fiscal year-end audits, renewed and increased company’s line of credit facility, and positioned company for future growth

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