Des Moines, Iowa
Trucker with logistics and leasing operations. $500 million annual sales. $150 million debt.
- As a result of the economic down turn, the company was facing mounting operating losses and losing market share due to high internal operating costs.
- Company required immediate right sizing and cost reduction efforts to stabilize cash and return to profitability.
- Bank was pressuring company to find a new lender due to their eroding financial position.
- Morris Anderson (MA) appointed interim COO and CRO to restructure company operations, stabilize operations, and cure relationship with the bank.
- MA identified over $20 million in SG&A personnel cost reductions to fund the turn around and restructuring (cost reductions had no impact on customer service levels or the timely performance of operations activities).
- Closed or sold over two dozen underperforming terminal operations (120 total remote sites across the country) which dramatically improved cash flow.
- Lead the investment banking effort to successfully sell the truck leasing division to a competitor at book value, which avoided a write down and a possible bankruptcy.
- Accomplished the restructuring outside of bankruptcy.
- The successful restructuring efforts returned the company to positive cash flow and profitability in nine months.
- Re-established the banking relationship with the primary lender, avoiding costly re-financing efforts.
- The 3rd Party Logistics company (3PL) is thriving today and one of the top 50 world wide 3PL providers.