customer engineered solutions for solids handling for wastewater, mines and industrial

$30M Revenue

Company Overview

The Company custom designs, builds and installs material handling equipment for municipal, mining and industrial applications.

Engagement Overview

The Company was operating under tight liquidity due to:

–Operating losses/negative EBITDA; and

–Over-investment in inventory.

The Company was over-levered with nearly $13 million in secured debt, comprised of:

–$3.55 million with its senior lender;

–$6.50 million in vendor notes payable;

–$1.25 million owed to the IRS; and

–$1.34 million owed to Canada for GST and HST taxes.

The Company had profitable projects in-process and backlog had increased to roughly $30 million (up from roughly $20 million).

FDP was retained to review the Company’s financial forecast, prepare a 13-week cash flow and assist management in preparing an operating plan.

FDP and management implemented a plan to address the concerns of multiple stakeholders and secured the financing to implement the plan.

Results

FDP worked closely with management to:

–Reduce operating expenses by approximately $1 million;

–Strategically increase parts prices and service technician rates to generate additional revenue of approximately $500,000;

–Generate additional $2 - $3 million of liquidity through inventory and accounts receivable reductions; and

–Restructure vendor notes payable, deferring roughly $1.25 million in debt service.

Company returned to sustained profitability and significantly de-levered its balance sheet.

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