The Company is a manufacturer of in-line printing equipment, including cutters, perforators, gluers, and related consumables, for the US and international printing industry.  Equipment may be customized to some degree, for a specific application, and is sold as individual products or as a complete integrated line.

Due to reported financial losses, margin erosion, growing SG&A costs, and limited credit availability, FDP was engaged to assist the Company regain profitability.

FDP immediately identified additional financial and operational issues: 

–Pricing was outdated and not based on cost;

–Engineering routinely re-invented "standard products“; and 

–Contractors installed equipment but were not held accountable for their time.

In addition, the borrowing base had been incorrectly calculated: while the bank believed the Company had recently run out of availability, the reality was that the bank had overadvanced in excess of $1 million.

FDP directed immediate efforts to improve working capital and profitability.  Annual savings of $1.7 million were achieved through a reduction in force, salary reductions, and elimination of overtime and certain employment perks.

The Company was reorganized, with managerial roles clearly defined for accountability.  A CFO was hired. 

Accounts receivable were aggressively pursued, with senior management personally collecting old large balances.

The Company was able to stabilize itself and began paying down debt to eventually reverse the overadvance and regain availability.