Metrics avg direct labor headcount 1021 1000 1118 avg

Info icon This preview shows pages 50–53. Sign up to view the full content.

Metrics Avg. direct labor headcount 1,021 1,000 1,118 Avg. salary per headcount 27 28 32 Avg. direct labor per headcount 31 32 37
Image of page 50

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

© 2016 Grant Thornton LLP | Project Lightning | October 21, 2016 DRAFT 51 Fixed manufacturing overhead expenses decreased 1.8% as a percentage of revenue in TTM 16, as the Company leveraged these costs across strong revenue growth Income statement analysis Observations The table to the left presents total fixed manufacturing overhead costs as summarized in the total cost of goods sold table presented previously in the report. Overall, fixed manufacturing overhead costs increased $2,712 (10.8%) over the Historical Period, while revenues increased $53,719 (26.4%). This is a primary driver of gross margin improvement in the TTM 16 period. The largest component of the fixed manufacturing overhead growth is attributable to personnel costs. These costs increased as average headcount increased from 167 in Fiscal 14 to 194 in TTM 16. Average wages per employee increased slightly as well, but the primary driver is the increase in personnel. Benefits increased $506 over the Historical Period. This includes vacation and holiday pay for both direct labor employees and fixed manufacturing employees, as these costs are not attributable to specific projects. On a monthly basis, fixed manufacturing overhead costs are applied on an actual basis to WIP on the basis of pounds of aluminum and applied to finished goods on the basis of percentage of sales. The Company has consistently utilized the same costs pools over the Historical Period to identify fixed manufacturing costs to be allocated to WIP and finished goods inventory. These actual costs are expensed when products are sold and are included in the net overhead WIP account to the left. Fixed manufacturing overhead detail $ in thousands Fiscal 14 Fiscal 15 TTM16 Fiscal 14 Fiscal 15 TTM16 Fixed personnel costs % of revenue Salaried employees 4,541 5,037 5,434 2.2% 2.4% 2.1% Hourly labor 1,923 2,180 2,474 0.9% 1.0% 1.0% Payroll taxes 198 233 257 0.1% 0.1% 0.1% Benefits 7,381 7,681 7,887 3.6% 3.7% 3.1% Total compensation 14,043 15,130 16,052 6.9% 7.3% 6.2% Utilities 3,962 3,631 3,808 1.9% 1.7% 1.5% Depreciation and amortization 2,785 2,900 3,164 1.4% 1.4% 1.2% Supplies 855 888 1,115 0.4% 0.4% 0.4% Field service 756 836 938 0.4% 0.4% 0.4% Equipment 832 755 830 0.4% 0.4% 0.3% Contract services 704 736 690 0.3% 0.4% 0.3% Recruitment 180 88 160 0.1% 0.0% 0.1% Maintenance 650 538 564 0.3% 0.3% 0.2% Non-employee taxes 235 310 291 0.1% 0.1% 0.1% Tooling 102 152 287 0.0% 0.1% 0.1% Computer and software expense 198 166 276 0.1% 0.1% 0.1% Other 240 233 290 0.1% 0.1% 0.1% Overhead WIP (396) (202) (606) -0.2% -0.1% -0.2% Total fixed manufacturing overhead 25,148 26,162 27,860 12.4% 12.6% 10.8% Metrics Headcount 167 183 194 Average salary and wages per EE 39 39 41
Image of page 51
© 2016 Grant Thornton LLP | Project Lightning | October 21, 2016 DRAFT 52 SG&A expenses decreased 1.8% as a percentage of revenue from Fiscal 14 to TTM 16, driven by increasing revenues leveraging a relative fixed SG&A cost base Income statement analysis Observations The table to the left presents SG&A costs over the Historical Period as well as headcount and salary metrics.
Image of page 52

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 53
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '08
  • McCaffrey
  • Revenue, Grant Thornton LLP

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern