The Urgent Need for Change and The Superior Path Forward
THE COMPANY IS INCAPABLE OF MANAGING ITS
INVENTORY
200% as
much
relative
I capital tied
up in
I inventory
5.5x
PRIVET
FUND
3.1x
UPG
STRONGER TOGETHER
4.9x
2011 A
3.1x
4.5x
3.5x
1. Source: Public filings
Inventory Turns
4.8x
2.8x
4.9x
2.3x
4.8x
2.0x
4.7x
2.6x
4.7x
2.5x
2012A 2013A 2014A
-Synalloy Corp
Over/(Underperformance) (2.4x) (1.7x) (1.0x) (2.0x) (2.6x) (2.8x) (2.0x) (2.2x) (2.1x)
vs. Closest Direct Peers
Group
4.7x
2015A 2016A 2017A 2018A
-Closest Direct Peers - Median
2.6x
01. 02. 03. 04. 05.
Meaningful Change is
Required at Synalloy
By only turning its inventory approximately -2.5x times per year over the past nine
years, the Company has been dramatically exposed to fluctuations in raw material
prices, causing it to incur significant cash losses
2019A
I
On average I
since 2011, I
-2.0x less
1
efficient in I
turning I
inventory I
into sales I
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