Project Lightning Redacted.pdf

Thermal strut expansion the company added an

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Thermal strut expansion : The Company added an additional crimper cell creating 33% additional capacity to the existing three cells. The cost of the additional equipment was approximately $700. Thermal fill and debridge expansion: The Company added an additional debridge cell to its existing thermal department to increase capacity. The capital outlay required for the new equipment was approximately $400. Insights The Company achieved increased capacity through the expansion of unitized Product 2 capabilities, additions of equipment and efficiencies through automation of the glass cutting lines. These are expected to generate cost savings to existing lines through automation efficiencies and enable the Company to perform a larger breadth of fabrication in-house. 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Fiscal 10 Fiscal 11 Fiscal 12 Fiscal 13 Fiscal 14 Fiscal 15 Fiscal 16 $ in thousands Manufacturing growth Manufacturing maintenance SG&A Capex Included in SG&A capital appropriations is a $2,400 remodel of the Subsidiary building in State 3. Observations The table above presents budgeted capital appropriations by year from Fiscal 10 through Fiscal 16. Manufacturing growth CapEx represents investments to add capacity or generate cost savings through efficiencies. Manufacturing maintenance and SG&A CapEx are investments required to maintain current operations, including replacements of equipment and upgraded technology. The Company invested significant capital in infrastructure and equipment in the Historical Period, specifically in Fiscal 15, to increase capacity and generate efficiencies to produce cost savings. Overall, gross PPE increased $15,038 from Dec-13 to Aug-16.
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© 2016 Grant Thornton LLP | Project Lightning | October 21, 2016 DRAFT 14 Other key observations Insights, opportunities and risks Topic Observations Insights The Company operates at an independent level from Target Co., using services that can be leveraged if they are already in place at an acquirer's organization. Our diligence procedures confirmed the Company operates independently of Target Co. corporate with few shared services shared between them. See MA-05 for a detailed explanation of these expenses, which relate to profit sharing, LTIPs, legal, audit and tax fees, payroll, HR and market share analyses. The acquirer should determine if these costs can be incremental with the acquirer's organization. The Company has a verbal agreement to perform the largest project in the Company's history, at approximately $68,500. The Company is currently in final negotiations for the Wanda Tower, a contract approximately valued at $68,500 to fabricate unitized Product 2 at the to be third largest building in State 1. This project is expected to begin in the fourth quarter of 2017 and performed through 2019. The Company's newly built unitized Product 2 line in State 4 will be utilized to perform the work.
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  • Spring '08
  • McCaffrey
  • Revenue, Grant Thornton LLP

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