CeresGardening(1) (1) - Ceres Gardening Case Background...

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Ceres Gardening
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2 Case Background Organic gardening industry Seeds Seedlings Plants Distribution methods Direct sales Stagnant Independent dealers Growing Pilot program with Menards
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3 Get Ceres Marketing program Expanding retailers Expanding retailer inventory Inventory increased ways Incremental sales to existing retailers Sales to new retailers Financial incentives Price discount of 15% Payment terms Net 120
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4 Get Ceres Estimated inventories $10 million in 2005 $22 million in 2006 External financing $4.5 million line of credit Long-term debt Debt covenants Vendor financing Accounts payable
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5 Debt Covenants Long-term debt Excludes line of credit Limited to 3.25 times EBITDA Must be free of bank debt 60 consecutive days per year EBITDA to fixed financial charges Interest plus long-term leases EBITDA to fixed financial charges of at least 2.0 Violating debt covenants is default
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  • Summer '16
  • Gruskin
  • Finance, Debt, $10 million, Ceres, $4.5 million, Ceres financial health

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