The Company is a premier commercial millwork firm providing engineering, design, production and installation services.
The Company operates from 3 facilities in the US. The Company has 2 facilities located in Des Moines, IA and Emmetsburg, IA. All-American Millwork and Fabrication operates one facility located in Hardin County, TN. The Company employs more than 400 employees.
FDP was engaged by the Company to prepare a 13-week cash flow forecast model and assess the short-term liquidity needs of the Company.
- In reviewing the customer base and outstanding trade receivables, FDP identified nearly $1.8 million of improper billings that materially misstated the financial statements and borrowing base certifications provided to the Company’s senior lender.
- These discoveries led to further detailed work which uncovered a significant amount of personal expenses being charged to the Company’s credit cards
- Once corrected, the Company was significant over-advanced on its line of credit with the senior lender. As a result, ownership injected additional capital into the Company to provide liquidity.
- Additionally, FDP implemented significant price increases providing as well as stretching the vendor base to provide additional liquidity.
- The senior lender ultimately exited the relationship without incurring a loan loss.
- FDP identified and corrected material misstatements in the Company’s financial reporting.
- FDP identified significant short-term liquidity improvements stabilizing the Company.
- The senior lender ultimately exited the credit without incurring a loan loss despite the significant over-advance.