Fred Tulley - Construction-Concrete Model

8/7/2019 Fred Tulley - Construction-Concrete Model

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Construction/Concrete

Executive Summary

$ in (1,000)s

Summary Year 1 2 3 4

2010 2011 2012 2013 2

Revenue $16,532 $17,162 $18,193 $19,514 $20Operating Expenses 15,497 16,640 17,735 18,980 19,

EBITDA 1,035 523 458 533 -Depreciation/Amortization 1,279 1,334 1,334 1,334 1,

EBIT (244) (812) (876) (801) (

- EBIT*t - - - -

EBIT (1-t) (244) (812) (876) (801) (

NOL 1,167 1,979 2,854 3,656 4,

+ Depreciation/Amortization 1,279 1,334 1,334 1,334 1,

- Capital Spending - (787) - -

-Working Capital (402) (288) 40 (169)

Free Cash Flow to the Firm 633 (553) 498 364

Discounted Free Cash Flow 569 (448) 363 238

NPV to Firm $4,090 Liquidation Value $6,269

(less debt) ($7,780)

NPV to Equity ($3,691)

2010 2011 2012 2013 2014

16,000

16,500

17,000

17,500

18,000

18,500

19,000

19,500

20,000

20,500

Revenue OperatingExpenses

2010 2011-$800

-$600

-$400

-$200

$0

$200

$400

$600

$800


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3/13

Construction/Concrete Income Statement

Consolidated

$ in (1,000)s

2009 1st Qtr. 2010 2nd Qtr. 2010 3rd Qtr. 2010 4

Revenue

Existing Contracts

Construction $6,271 $0 $0 $0

Manufacturing 150 - - -

Spancrete 1,537 - - -

Other 725 - - -

Revenue Existing Contracts 8,683 - - - New Contracts

Construction 6,328 3,071 2,994 2,919

Manufacturing 95 61 60 59

Spancrete 1,474 743 734 725

Other 920 401 391 381

Revenue New Contracts 8817 4,276 4,179 4,085

Total Revenue 17,500 4,276 4,179 4,085

Cost of Sales

Construction 9,178 1,448 1,854 2,216

Manufacturing 5,772 1,014 1,197 1,376

Total Cost of Sales 14,950 2,462 3,051 3,592

Gross Profit 2,550 1,814 1,128 493 Gross Margin 14.57% 42.43% 26.99% 12.07%

Expenses

Payroll - Executive 2,081 507 495 482

Insurance - Hazard/Umbrella 256 64 64 64

Other 38 10 10 10

Rent Newnan 106 26 26 26

Rent Virginia Ave 19 5 5 5

Utilities 73 18 18 18

Office Supplies 118 30 30 30

Dues (Licensing Costs) 63 16 16 16

Telephone 54 13 13

Travel 43 11 11

Property Taxes 83 21 21 21

Legal/Accounting 322 81 81 81

Depreciation/Amortization 1,224 320 320 320

Total Administrative Expenses 4,480 1,121 1,108 1,096

Operating Profit Before Interest & Taxes (1,930) 693 20 (603)

Operating Margin Before Interest & Taxes -11.03% 16.21% 0.48% -14.76%

Interest Expenses 498 111 102 97

Income Before Taxes (2,428) 582 (82) (700)

Taxes (923) 221 (31) (266)

Tax Loss Offset 221 - -

Net Income (1,506) 582 (51) (434)

Interest 498 111 102 97 Depreciation/Amortization 1,224 320 320 320

EBITDA ($706) $1,013 $340 ($283)


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Balance Sheet

$ in (1,000)s

2009 - Unadjusted Contribution from Owner 2009

AssetsCurrent Assets

Cash/(Overdraft) $88 $625

Bonding Cash - 250

Other Current Assets 350 -

Historical Trade A/R 540 -

Current Trade A/R 5,041 -

Retainage A/R 138 -

Earned Revenue in Excess of Billing 1,336 -

Inventory 774 -

Def. Tax Asset 923 -

Total Current Assets 9,190 875

Fixed Assets

Land 1,793

Land Improvements 3,526 Buildings 4,607

Furniture & Fixtures 193

Machinery & Equipment 7,597

Autos & Trucks 556

Total Fixed Assets 18,272

Accumulated Depreciation (2,934)

Net Book Value of Fixed Assets 15,338

Deposits 22

Other Long Term Assets 86

Total Assets $24,637 $875

Liabilities

Accounts Payable - Old $3,069 $(2,000)

Accounts Payable - New 3,819

Accrued liabilities 432

Billings in Excess of Earned Revenue 68

LOC - ACB 1,750 (625)

ACB Interim Loans 950

LOC - One Ga 1,747 (625)

Debt- Plant - ACB 4,130 (2,065)

Debt- Plant - One Ga 1,770 (885)

Debt- Plant - SBA 3,980 (3,980)

Other Debt 59

Preferred Debt Redemption 1,730 (1,730)

Debt - Eqpmt 1,101

RAS Enterprises 375 (375)

Debt- Land 532

Deferred Taxes -

Total Liabilities 25,514 (12,285)

Equity

Common Stock 1

Paid in Capital 259 9,660

R/E Prior Years (531)

Current Earnings (1,506)

Additional Contributed Capital 900

Capital Contribution - 3,500

Total Equity (877) 13,160

Total Liabilities and Equity $24,637 $875


5/13


Cash Flow Statement

$ in (1,000)s

2009 /Contribution 2009

Cash Flows from Operations `

Net Income After Taxes ($1,506) ($1,50

AdjustmentsDepreciation/Amortization 1,224 1,22

Tax Adjustment (923) (923

Changes in Working Capital

(Incr)/Decr in A/R (1,328) (1,32

(Incr)/Decr Cash for Performance Bonding - (250) (25

(Incr)/Decr in Revenue in Excess 496 49

(Incr)/Decr in Inventory (70) (7

(Incr)Decr in Other Assets (8)

Incr/(Decr) in A/P 183 (2,000) (1,81

Incr/(Decr) in Billings in Excess (29) (2

Incr/(Decr) in Accrued Liabilities (167) (16

Change in Working Capital (923) (2,250) (3,17

Net Cash (Used)/Provided by Operating Activities (2,127) (2,250) (4,37

Cash from Investing

Purchase of Fixed Assets (151) - (15

Investments in Other Assets (90) - (9

Net Cash (Used)/Provided by Investing Activities (240) - (24

Cash from Financing

Proc/(Pmts) of L/C - ACB 110 (625) (51

Proc/(Pmts) of L/C - One Ga 389 (625) (23

Proc/(Pmts) of Interim Loans - ACB 108 - 10

Proc/(Pmts) L/T Debt - Plant -

-ACB (1,702) (2,065) (3,76

-One Ga (1,487) (885) (2,37

-SBA 3,980 (3,980)

RAS Enterprises 375 (375) Proc/(Pmts) of Other Debt (20) - (2

Proc/(Pmts) of - Prfd. Debt Redemp. (50) (1,730) (1,78

Proc/(Pmts) of - L/T Debt Eqpmt (225) - (22

Proc/(Pmts) of - L/T Debt Land (17) - (1

Proc/(Pmts) of Taxes Payable - -

Incr/(Decr) in Capital Contributed 900 13,160 14,06

Net Cash (Used)/Provided by Financing Activities 2,361 2,875 5,23

Change in Cash before LC Payments/Draws (7) 625 6

Beg. Cash 95 88 9

Available Cash before LC Payments/Draws 88 713 7

(Pay down) LC ACB

(Pay down) LC One GA

Draw LC ACB

Draw LC One GA

Ending Cash $88 $71

Mininimum Cash Balance


6/13


Administration

$ in (1,000)s

2009 1st Qtr. 2010 2nd Qtr. 2010 3rd Qtr. 2010 4th Qtr. 2010 1

Expenses

Payroll and Benefits - Administrative $2,081 $507 $495 $482 $470

Insurance - Hazard/Umbrella 256 64 64 64 64

Other 38 10 10 10 10

Newman 106 26 26 26 26

Virginia Ave. 19 5 5 5 5

Utilities 73 18 18 18 18 Office Supplies 118 30 30 30 30

Dues & Subscriptions 63 16 16 16 16

Telephone 54 13 13 13 Travel & Entertainment 43 11 11 11

Property Taxes 83 21 21 21 21

Legal/Accounting 322 81 81 81 81 Interest Interim Loans - 15 15 15 15

Interest/SC 393 47 47 47 47

Interest ACB Mtg. Loan - 8 8 8 8

Interest One Georgia Loan - 14 14 14 14

Interest LOC 105 27 18 13 8

Depreciation/Amortization 1,224 320 320 320 320 Total Expenses $4,978 $1,232 $1,210 $1,193 $1,176


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8/13


Manufacturing Division

$ in (1,000)s

2009 1st Qtr. 2010 2nd Qtr. 2010 3rd Qt

Revenue

Existing Contracts

Barrier Mfg. 150

Spancrete 1,537

Other 5

Total Existing Contracts 1,692 - -

New Contracts

Barrier Mfg. 95 61 60

Spancrete 1,474 743 734

Other 1 1

Total New Contracts 1,569 805 795

Total Revenue 3,261 805 795

Cost of Sales % of Revenue

Payroll and Benefits 47% 1,529 368 363 Casual Labor 10% 311 77 76

Material 58% 1,906 187 314

Other Direct Materials 30% 970 95 160

Freight Out 9% 299 74 73

Inventory Adjustments -4% (122) - -

Small Tools 0% 6 2 2

Repairs & Maintenance- Eq 1% 32 8 8

Lodging 0% 13 3 3

Per Diems 0% 5 1 1

Travel & Entertainment 0% 1 0

Repairs & Maintenance- V 0% 1 0 0

Equipment Leasing 3% 86 21 21

Land Lease 0% 1 0 0

Quality Control 1% 35 9 9

Fuel/Mileage/Car Allowanc 2% 55 13 13

Bonding 1% 27 7 7

Other 19% 615 148 146

Safety Equipment & Suppli 0% 3 1 1

Total Cost of Sales 5,772 1,014 1,197

Gross Profit ($2,511) ($208) ($402)

Gross Margin -77.01% -25.90% -50.54%

1 2

Revenue % Inc. (Dec.) Year 1 Year 2

Barrier Mfg. -5% 10%Spancrete -5% 10%

Other -2% 10%

1 2

Exp Reduction Year 1 Year 2 Payro an Bene its -10% -8%

Other -10% -10%


9/13


Inventory Usage Calculation

$ in (1,000)s

1st Qtr. 2010 2nd Qtr. 2010 3rd Qtr. 2010 4th Qtr. 2010 1st Qtr. 2011 2nd Qtr.1 2 3 4 5

Beg. Inventory 774 1,713 2,027 1,729 1,690

Inventory Purchased 1,796 1,755 1,716 1,677 1,725

Inventory Used 857 1,442 2,014 1,716 1,706

Ending Inventory 1,713 2,027 1,729 1,690 1,709

1st Qtr. 2010 2nd Qtr. 2010 3rd Qtr. 2010 4th Qtr. 2010 1st Qtr. 2011 2nd Q

Inventory Usage 1 2 3 4 5

1 857

2 857 585

3 857 585 572

4 - 585 572 559

5 - - 572 559 575 6 - - - 559 575

7 - - - - 575

8 - - - - -

9 - - - - -

10 - - - - -

11 - - - - -

12 - - - - -

13 - - - - -

14 - - - - -

15 - - - - -

16 - - - - -

17 - - - - -

18 - - - - -

19 - - - - -

20 - - - - -

21 - - - - -

22 - - - - -

23 - - - - -

24 - - - - -

25 - - - - -

26 - - - - -

27 - - - - -

28 - - - - -

29 - - - - -

30 - - - - -

31 - - - - -

32 - - - - -

33 - - - - -

34 - - - - - 35 - - - - -

36 - - - - -

37 - - - - -

38 - - - - -

39 - - - - -

40 - - - - -

41 - - - - -


10/13


Orderly Liquidation Analysis Summary

$ in (1,000)s

AssetsWorking Capital and other assets

[1] Cash and Cash Equivalents -

[2] Accounts Receivable- Net of Estimated Joint Checks 5,718

[2] Retainage Receivable 1,336

[3] Inventory - Raw Materials & Finished Goods 774

[4] Real Estate and Improvements 9,926

[4] Manufacturing Equipment 6,849

[4] Construction Equipment 748[4] Office Equipment 193

[4] Vehicles 556

Prepaid Items & Other Assets 436

Ongoing Operations to Wind Down Contracted Jobs

[5] Manufacturing Gross Revenues 3,160

Cost of Sales 4,855

Gross Profit (1,695)

[6] Construction Gross Revenues 13,372

Cost of Sales 7,513

Gross Profit 5,859

[8] Administrative Costs 4,812

Total Value to be Distributed

[7] Less costs associated with liquidationReal Estate Sales Commission 5%

Equipment Sales Commission 8%

Management Fee $15

Total costs associated with liquidation

Net Total Value to be Distributed

AppraisedValue


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13/13

Quarter Value Received

2nd Qtr. 2010 3rd Qtr. 2010 4th Qtr. 2010

157 157

209 209

-

28034

195

1,758 1,172 586

2,406 - -

(282) 1,538 1,095

- - -

- - 41

45 45 45

45 45 86

(327) 1,493 1,009

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Fred Tulley - Construction-Concrete Model

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