Plant Consolidation and Right Sizing Stabilize Company

Challenge

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Multi-plant printing ad specialty and proprietary artwork layout software solutions developer. $200 million in revenues. $50 million debt.

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• Revenues were dropping for several years.
• Ad specialty market shift from print media to the internet coupled with the Great Recession led to significant volume losses at each facility.
• Company was slow to react to volume losses, which resulted in million-dollar operating losses annually and loan covenant violations.
• There was a high probability the Company would lose its financing.

Solution

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• MorrisAnderson was engaged by the Company to perform a viability assessment and restructuring plan.
• MorrisAnderson engineered a comprehensive crisis management, turnaround, and cash management strategy to re-engineer and right-size the Company.
• Plant consolidations and corporate right-sizing reduced operating expenses by over a million dollars annually.
• Accelerated development and marketing of the Company’s proprietary layout software to augment revenues and open new market revenue-generating opportunities.

Results

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• MorrisAnderson team identified cost reductions exceeding a million dollars annually.
• Cost reductions, combined with the accelerated software development and marketing revenue program, resolved lender concerns and reestablished banking relationships, preserving all existing borrowing.
• Management was able to return the company to profitability while generating sufficient positive cash flow to service all business obligations and debt service.
• Re-established the banking relationship with the primary lender avoiding costly re-financing efforts.