Armored Vehicle Manufacturer

Company Overview

Armored Vehicle Manufacturer - A division of a publicly traded company that is a GSA-approved manufacturer of custom armored vehicles for the US Federal Departments of State, Defense, Homeland Security as well as other state and federal agencies.  These custom vehicles are built for a variety of specialized purposes including: assault, SWAT rapid deployment, prisoner transport, bomb squad, crime scene, executive transport and cash-in-transit.

Engagement Overview
•  At the time of our engagement, the Company reported over $200 million in revenue, operating numerous plants across three divisions.  The armored division contributed $25 million in sales.
•  The Company had lost money in each of the prior two fiscal years and was EBITDA negative in the prior year.

 

•  Working with management, Fort Dearborn developed a comprehensive operating plan, including strategies and tactics, designed to stabilize the Company and return it to profitability.

•  Key strategic initiatives included:
•  Implementing immediate expense reductions including a reduction in force.
•  Enacting immediate price increases.
•  Drawing on FDP’s experience with dealerships, implemented a strategic price increases on truck bodies, parts and service labor.
•  Recommending a plant consolidation strategy.
•  Initiating Continuous Improvement efforts and processes to capture shop floor costs in order to improve product costing and increase margin.
•  Identifying and effecting a key management change in the sales and marketing function.
•  Improved leadership and direction; revised pricing approach/strategy; reduced sales rep authority to offer discounts; revised  commission structure.
Results

 

•  Identified and implemented $5 million in annualized profit improvement measures.

•  The Operating Plan was presented to and approved by the Board of Directors, including key strategic initiatives such as implementing a plant consolidation strategy.

•  Stabilized the Company and its existing bank relationship affording Supreme the opportunity to pursue a senior debt refinancing.