$95 million transportation business, that operates with an owner-operator driver base, utilizing approximately 450 trucks and 800 trailers focused primarily on dedicated full truckload freight.
The Company experienced its first operating loss in 2013 due to under-utilization of newly acquired equipment and excess empty miles. Additionally, the Company obtained its first financial audit (financials previously were reviewed), which resulted in the recording of additional depreciation expense and a change in revenue recognition.
The Company implemented changes to its logistics software and operations to return to profitability. They were also growing to improve utilization and began approaching their borrowing capacity. As part of providing additional financing, the Company's lender wanted an independent consultant to evaluate the near-term liquidity position, financial reporting reliability and the impact of operations improvements on overall financial performance.
Due to industry knowledge, Fort Dearborn was able to efficiently review the systems, operating metrics and overall strategy and quickly verify the actions taken by management to return to profitability.
Fort Dearborn worked with management to forecast the financial impact of the improved results relating to insurance changes, a reduction in force, reduction in certain driver pay and a 33% improvement in empty miles.
Based on Fort Dearborn's verification and assessment of the Company's financial position, the Company resumed its normal lending relationship and reduced the frequency of its bank reporting requirements.
Within two weeks of the bank meeting the Company and Fort Dearborn, the Company received a waiver for its violation of loan covenants and was able to deliver their finalized audited financials to their key business partners.