This increase drove revenue from 203580 in fiscal 14

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part of Fiscal 15 and in TTM 16. This increase drove revenue from $203,580 in Fiscal 14 to $257,299 in TTM 16, an increase of 23.6%. In addition to overall bookings, the Company also is in final stages of negotiations for an approximately $68,500 project for a large building in State 1. See further discussion on this project elsewhere in this report regarding this specific project. Insights The Company's strategic shift to focus on growing topline revenue instead of continued cost cutting measures allowed the Company to build its pipeline of work and grow the business organically over the Historical Period. Continued growth of the Company's pipeline with further leverage of fixed costs should drive additional increases in EBITDA margin. 8% 23% 31% 37% 43% 49% 54% 59% 64% 67% 70% 73% 80% 100% 0% 20% 40% 60% 80% 100% 1 2 3 4 5 6 7 8 9 10 11 12 12-18 Beyond 18 months % of bookings shipped Net bookings to revenue lag (months) Historical net bookings and sales orders $ in thousands Fiscal 14 Fiscal 15 TTM 16 Number of sales orders (actual) 12,670 13,944 14,395 Total net bookings 219,021 264,032 334,264 Net booking size per sales order 17 19 23 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 Fiscal 14 Fiscal 15 TTM 16 $ in 000's Bookings Backlog Revenue Historical Period bookings-to-revenue lag
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© 2016 Grant Thornton LLP | Project Lightning | October 21, 2016 DRAFT 11 219,021 264,032 334,264 22,023 22,987 8,540 61,692 150,000 170,000 190,000 210,000 230,000 250,000 270,000 290,000 310,000 330,000 350,000 Fiscal 14 Volume Contract value Fiscal 15 Volume Contract value TTM 16 Annual Bookings (000s) Growth in bookings, driven by increased value of contracts, is creating substantial increases in Product 1 gross margins in TTM 16 Insights, opportunities and risks Observations The bridge chart above left presents the impact of contract value and number of contracts (volume) in annual contract bookings over the Historical Period. Overall, the primary driver of bookings growth during the Historical Period is related to the increased value of projects contracted by the Company. This is consistent with the strategic vision of the new president to pursue larger scale projects, as implemented in Fiscal 15. 88% of bookings growth is attributable to increased contract value in TTM 16. This growth in bookings translated to high gross margin growth in TTM 16, particularly in the Product 1 products line. Insights The Company's revenue growth in TTM 16 is driven by the increased value of contracts and sales orders in Fiscal 15 and YTD 16, consistent with the Company's strategic vision. This has resulted in strong growth in gross margins, specifically within the Company Product 1 products line. We expect the Company to sustain or grow gross margins over the near term, based upon strong contract value driven bookings growth in TTM 16. 32,857 45,239 5,880 412 1,229 3,148 1,867 (153) 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Fiscal 15 Window products Other manufacturing Commissions Project management and subcontracting Sales fee surcharge Other service TTM 16 Gross margin (000s) Contract value-volume bookings bridge TTM 16 gross margin bridge
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© 2016 Grant Thornton LLP | Project Lightning | October 21, 2016 DRAFT 12 0 500 1,000 1,500 2,000 2,500 3,000 3,500 0 5,000 10,000 15,000 20,000 25,000 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Thereafter Gross margin backlog Windows Storefront
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  • Spring '08
  • McCaffrey
  • Revenue, Grant Thornton LLP

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