“Can Elliott Davis help us: restore sales, improve profitability of operations, restructure the organization, improve the culture, and secure the line of credit?”
Context
Third generation steel manufacturer was facing financial difficulties
- Sales had been deteriorating over past years
- Margins were decreasing to negative
- Bank was threatening to pull line of credit
CEO/Owner had tried several times to turn things around and restore profitability, but had been unsuccessful.
Our Approach
Immediately focused efforts and aligned organization:
(1) Better understanding of financials
- Developed rolling 13-week cash flow to prioritize decisions
(2) Expense reduction
- Detailed look at P&L for quick wins to increase cash, particularly SG&A
(3) Operational improvements
- Setting and managing to proper KPIs
- Improving profitability of throughput
- Better scheduling of projects
(4) Revenue growth
- Setting targets for sales team
- Focusing on highest-margin opportunities
(5) Securing line of credit
- Providing turnaround story to banks
Customer Results
Drove improvements throughout the company across major categories:
- Increased sales by 23%
- Increased production throughput from 150 tons of steel to handling up to 500 tons
- Reduced SG&A expenses by $500k
Improvements drove an increase in EBITDA from average of -3.5% for the 2 years prior to Elliott Davis’s involvement to 4.7% for the most recent 6 month period at the conclusion of Elliott Davis’s effort.
We Can Help
For more information on this and other topics, contact a member of our team.
The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.
