Success Stories

MANUFACTURER

A manufacturing company with annual sales in excess of $150 million began experiencing losses in excess of $1 million per month. Management had lost confidence in the internal financial reporting. All company loans were in default and all credit lines were at their limit. Warren Averett helped to determine that product lines had become very complex and also helped establish acceptable benchmarks for revenues and expenses. Warren Averett quickly assisted the company’s management in taking the following steps:

  • Production of accurate internal financial statements that were used to identify excess costs and expenses and restore confidence in internal reporting
  • Development of a plan to maximize operating cash flows that included product line profitability analysis, reductions in head count and salary reductions
  • Preparation of a projection indicating expected future cash flows from operations considering these remedial actions
  • Assistance with negotiations with existing creditors to provide time for remedial actions to take effect
  • Weekly monitoring of cash flow and key metrics, as well as periodic budget versus actual reporting
  • Successfully moved all company borrowings to another lending institution

The company returned to profitability the following year and has experienced healthy growth in sales and profits in subsequent years.

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