Investments in affiliates 20 non current assets 77639

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Investments in affiliates 20 - - Non-current assets 77,639 79,575 84,061 Total assets 172,090 175,077 193,713 Liabilities and equity Current liabilities Accounts payable 4,038 4,694 4,496 Accrued expenses 23,675 26,023 35,323 Current liabilities 27,713 30,718 39,818 Other liabilities - non-current 5,229 5,673 6,193 Non-current liabilities 5,229 5,673 6,193 Total liabilities 32,942 36,391 46,012 Common stock 47 47 47 Additional paid in capital 239,581 239,581 239,581 Retained earnings (100,479) (100,941) (91,926) Total liabilities and equity 172,090 175,077 193,713
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© 2016 Grant Thornton LLP | Project Lightning | October 21, 2016 DRAFT 56 Although AR increased with the growth in revenue, seasonality of the business should also be considered when addressing AR and working capital Balance sheet analysis Observations The table to the left presents the AR balances at the Historical Balance Sheet dates. The chart to the bottom left presents monthly AR balances. AR - trade is trade receivables that are realized from Company bookings. Pre-billed sales represents uncollected invoices issued to customers before materials are shipped. Refer to unearned revenue discussion in accrued expenses for additional detail. Sales retainage is used for direct jobs to account for funds withheld until the completion of a project. This amount is typically 10.0%, but can vary depending on the terms of each contract. The retainage will not be invoiced to the customer until the job is complete. AR-other consists of expenses related to an insurance receivable arising from a warehouse flood. The Company recorded expenses expected to be reimbursed by insurance to this account. However, the insurance check received exceeded recorded expenses. The Company is awaiting additional receipts before taking this variance into income. See the Quality of Working Capital WC-05 for additional detail. Please see the subsequent slide for discussion of the allowances. Insights Although AR will correlate with the rise of revenue, the business does incur fluctuations due to seasonality. These fluctuations should be considered when addressing working capital of the business and the required delivery thereof at close of the transaction. Accounts receivable $ in thousands November 29, 2014 November 28, 2015 August 27, 2016 AR - trade 33,907 39,970 46,485 Pre-billed sales 992 677 2,582 Sales retainage - not invoiced 612 128 1,274 AR - other 20 145 (81) Gross AR 35,531 40,919 50,260 Less: allowance for credit memos (712) (570) (669) Less: allowance for doubtful accounts (365) (285) (254) Net accounts receivable balance 34,454 40,065 49,337 Credit memos % of gross accounts receivable 2.0% 1.4% 1.3% Doubtful accounts % of gross accounts receivable 1.0% 0.7% 0.5% Days sales outstanding 58 61 60 750 10,750 20,750 30,750 40,750 50,750 60,750 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov AR in 000's Fiscal 14 Fiscal 15 YTD 16
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© 2016 Grant Thornton LLP | Project Lightning | October 21, 2016 DRAFT 57 0 100 200 300 400 500 600 700 800 900 0 10,000 20,000 30,000 40,000 50,000 60,000 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Adjusted allowance in 000's AR - trade in 000's AR - trade Allowance for credit memos Allowance for doubtful accounts
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  • Spring '08
  • McCaffrey
  • Revenue, Grant Thornton LLP

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