Curtain wall lineal gross margin revenue backlog 000s

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Curtain wall Lineal Gross margin Revenue backlog (000s) Manufacturing revenue backlog as of Oct-16 is expected to yield $18,506 of gross margins based on historical margins Insights, opportunities and risks Observations The chart to the left presents expected timing of realization of the manufacturing backlog as of October 7, 2016 for both revenues and gross margins. Note this analysis excludes the backlog of service revenues. The Company's manufacturing backlog is $133,489, excluding the estimated $68,500 Wanda project obtained in Oct-16 as the final contract has not been signed. See discussion of the Wanda project further in the Key Insights section of the report on page 14. The contractual backlog is estimated to yield $18,506 in gross margins, based on YTD 16 margins for each of the respective product lines. The composition of the Company's current backlog is driven primarily by Product 1, comprising 62% of manufacturing backlog. Backlog as of August 27, 2016 is $28,154 higher than August 29, 2015 and $59,887 higher than August 30, 2014. Insights Revenue growth of 23.6% from Fiscal 15 to TTM 16 to $257,299 is buoyed by the historically high backlog, which is expected to grow as the Company continues to win large projects. A prospective buyer will reap both the revenue and EBITDA benefit of this backlog post transaction and into the future. Current manufacturing backlog analysis $ in thousands Windows Storefront Curtain wall Lineal Total Revenue 82,579 11,812 26,526 12,597 133,514 Contribution margin 24,196 2,433 6,897 1,940 35,465 Gross margin 13,543 1,535 3,289 139 18,506 Gross margin % 16.4% 13.0% 12.4% 1.1% 13.9% Manufacturing gross margin presented above excludes service revenues and gross margin that will be generated by in conjunction with manufacturing backlog.
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© 2016 Grant Thornton LLP | Project Lightning | October 21, 2016 DRAFT 13 The Company's Historical Period capex investment of $15,038 creates capacity for revenue growth and will generate future efficiencies and cost savings Insights, opportunities and risks Observations Major growth capital investments include: Glass shop expansion : This 19,000 (actual) square foot expansion within the State 3 facility includes two automated glass cutters which increase capacity of Product 1 production while creating efficiencies with automated glass cutters. The new expansion began production in Apr-16. As of Aug-16, $5,299 of the projected $5,800 investment has been capitalized, with $500 in costs expected to complete the expansion. Factory glazed Product 2 expansion: In the Company's State 4 location, the Company added increased capabilities in Feb-16 to produce unitized Product 2 products. Prior to this expansion, unitized Product 2 products were required to be outsourced. Management estimates this expansion will yield increased capacity of $20M based on one operating shift. Significant portions of the Wanda project are expected to be completed at this location. Capital investments of approximately $500 were infused to add this capability.
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  • Spring '08
  • McCaffrey
  • Revenue, Grant Thornton LLP

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