Concrete Pipe Manufacturer

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 the company became over-drawn on their credit facility

Role(s)

  • Interim CFO

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 the 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 the company through a forbearance process, transitioning the 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 the company’s line of credit facility, and positioned company for future growth

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Overview

  • Manufacturing
  • Interim Management

Engagement Team