The Urgent Need for Change and The Superior Path Forward
BALLOONING DEBT LEAVES STOCKHOLDERS AT
RISK
We believe that keeping a balance of nearly 7x debt to EBITDA is incredibly dangerous
for a business that operates in cyclical segments
▪ Even CEO Craig Bram acknowledges that operating at high leverage is dangerous - which is why he has
publicly stated that stockholders should be uncomfortable with leverage of over 3x
PRIVET
FUND
Question: "Okay. And then can you just talk about
where you would take the leverage to [...] Would
you take it above 3 times?"
UPG
STRONGER TOGETHER
01. 02. 03. 04. 05.
CEO Craig Bram: "No, that's not an area we'd be
comfortable with. If you look at during my tenure as
CEO going back to 2011, our leverage is averaged
about 1.75 times. [...] But 3 times is not a level that
we would be comfortable with again recognizing
that our businesses are cyclical. And while we
don't see any signs at all of any softening in our
end markets right now, we certainly don't want
to go out and be sitting over 3 and then have
things start heading south a little bit."
" (1)
Meaningful Change is
Required at Synalloy
If action is not taken immediately, Synalloy stockholders could be in grave danger
1. Source: Synalloy fourth quarter 2018 earnings call transcript
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