Mike played a key role in turnaround efforts at a company through changes and improvements he suggested. The company has made steady operational improvements since March and positive results in operating margin. They will now hold quarterly employee meetings to discuss financial results. Additionally, the company exceeded expectations in June with increases in net sales, gross margin, and variable margin due to efficiencies in direct labor, installations, and logistics. The owner thanked those involved for their help and suggestions, believing the company has started to succeed financially.

1. Mike,
I thought you would be interested in the latest (company withheld) financial information I
reviewed with (controller name withheld.) They have made incredible progress.
You have played a key role in the turnaround efforts with the changes/improvements that
you have suggested which are now very evident in the variable cost components. See my
comments to (name withheld) and (name withheld)
(Company withheld) has made a positive result in operating margin. They have show steady
improvement in operations since March.
I would recommend you keep this feedback to yourself since (company withheld) should
decide what they tell their employees and the outside suppliers/vendors. I know they share
most of this with their managers and for the first time they will hold quarterly employee
meetings to discuss their results.
Thank you for your commitment and a job well done.
Jim
Great news.
During my meeting with (controller name withheld.) he received word from La Salle Bank
that they have agreed to do the refinance.
They are still waiting for MB Finance Bank.
Results for June exceeded everyone's expectations.
Net sales were $6,055,298. This is $684,151 over budget.
Gross margin was 1,536,139. This is 300,000 better than last month which was the best of
the year.
Variable margin has improved from 41.9% in February to 46.8% in June.
Reasons:
Direct labor efficiencies.
Installation efficiencies.
Big improvement to logistics. Thanks to mike’s impute. (Name withheld)He is running a
good shipping department.
Income from operations +74,940. First plus of the year.
EBT -8,192
EBITDA +343,851.
New credit policy which we helped them with is paying dividends. Write offs are almost
gone. They are doing business with better customers since they evaluate them before
signing contracts.
They are also starting employee meetings with all employees on a quarterly basis. They are
modeling this after us.
*Owner name withheld) stopped into our meeting and could not thank us enough for all our
help and suggestions. He is showing all the signs that he believes they have started to really
make it around the bend. I talked to him about the improvement in variable margins:
Jan 31.7%, Feb 41.9%, Mar 39.5%, Apr 42.0%, May 44.1%, Jun 46.8%