The Urgent Need for Change and The Superior Path Forward
OUR PLAN: A THREE-PRONGED STRATEGY FOR
UNLOCKING UP TO ~$25 PER SHARE IN THE NEAR-
TERM
Utilize extensive experience to
drive cross-selling opportunities
across metals business units
Implement targeted sales tactics
within the Chemicals Segment to
increase volume and utilization
Pursue Operationally-Focused
Gross Profit Enhancements
-
Synalloy has tremendous potential under new leadership with a fresh plan
Plan Overview
Projected Value Creation Stemming From Plan Execution
✓ Prioritize Immediate Strategic $ in millions
Revenue Opportunities
Unlock supply chain savings
under coordinated logistics
strategy
Improve inventory management
Realize manufacturing
efficiencies
Restructure plant-level
accounting policies and incentive
compensation
Remove Non-Economic and
Wasteful SG&A Spending
Eliminate non-essential,
discretionary spending
Work to improve and
consolidate back office functions
Reduce bureaucracy and
enhance culture of data-driven
decision making
PRIVET
FUND
UPG
STRONGER TOGETHER
$13.5
2019 Reported Adj. EBITDA
2019 PF Adj. EBITDA
Market Multiple ¹¹
[1]
Enterprise Value
(-) Net Debt
Revenue Opportunity
$3.2
Equity Value
Shares Outstanding
I Potential Share Price
I
|
I
I
I
I
I
I
$19.9
COGS Opportunity
I
01.
$6.8
Executive Summary
02. 03. 04. 05.
SG&A Opportunity
1. Note: 7.0x is the current median market valuation of the Company's closest direct peer group. This group consists of WOR,
USAP, ZEUS, IIIN, NWPX, RYI, HWKN, VNTR, TREC, and NGVT
$43.4
2019 Pro-Forma Adj. EBITDA
$43.4 million
7.0x
$303.8 million
($77.7 million)
$226.1 million
9.1 million
$24.961
20View entire presentation