The Urgent Need for Change and The Superior Path Forward
SYNALLOY BY THE NUMBERS: CURRENT
LEADERSHIP HAS FAILED STOCKHOLDERS
Staggering Long-Term Share Price
Underperformance of 293%
Since Mr. Bram took over as CEO in 2011, Synalloy has
underperformed the NASDAQ 100 Non-Financial Index by 293%.
Synalloy has also underperformed peers, and relevant indices,
over every other relevant time horizon thereafter.
PRIVET
FUND
$164 Million in Reckless Spending on
Acquisitions and CapEx During Bram Tenure
This is an unacceptable level of spending for a company with a sub-
$100 million market capitalization and no enduring growth.
Acquisitions and capital expenditures have not driven material
income growth or value creation for stockholders.
Excessive Corporate Costs of $8.4 Million in
2019
Corporate costs have ballooned and remained exceedingly high
since Mr. Bram moved the Company's headquarters to Richmond,
Virginia (275+ miles from any Synalloy manufacturing facility).
Spending is up 442%, from only $1.5 million prior to his arrival.
UPG
STRONGER TOGETHER
01.
02. 03. 04. 05.
Executive Summary
Dangerously High Leverage of 6.8x LTM
Adjusted EBITDA
High leverage has put Synalloy in a precarious financial position
and at risk of tripping loan covenants. Wasteful spending and the
inability to grow earnings has led to a massive amount of leverage
and a deteriorating credit profile.
Wasted $26 Million+ in Cumulative Cash
Throughout Recent Years
Poor inventory management and commodity price speculation has
resulted in losses nearing 30% of Synalloy's market capitalization.
We believe Mr. Bram's mismanagement is to blame, but the Board
has rewarded him with nearly $1 million in average yearly
compensation.
Missed Guidance by an Egregious 60% in 2019
Management's lack of understanding of Synalloy's businesses and
their capabilities has not only led to poor strategic decision-
making, but also a track record of guidance misses. Synalloy has
missed stated public guidance in four of the past five years.
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