The Company provides engineering services to the Utilities and Governmental Agencies.
The Company also offers integrated consulting services, primarily in the electrical engineering segment.
Services are performed on a time-and-material basis or fixed fee basis.
Due to ongoing project delays, the Company missed monthly revenue and EBITDA targets. The Company engaged FDP to prepare its 13-week cash flow forecast and review its monthly financial forecast.
The Company experienced a transition in ownership at a time when several significant transportation-related projects were deferred by a state agency. As a result, the Company incurred a significant net loss.
The Company forecast a return to profitability for the upcoming year, but the Company’s senior lender grew concerned as monthly targets continued to be missed.
FDP performed a detailed review of all significant projects, related contracts and backlog, including interviews with project management.
Additionally, FDP prepared a 13-week cash flow forecast which the Company integrated into its forecasting process.
Based on our detailed review, FDP determined the Company would generate sufficient cash flows to adequately operate the business and cover debt service.
Determined the Company would generated sufficient cash flows to properly operate the business.
Built a 13-week cash flow that the Company integrated into its normal forecasting processes.
Senior lender reset covenants based on the revised financial forecast which the Company exceeded.
Company returned to profitability.