The Urgent Need for Change and The Superior Path Forward
SYNALLOY'S DANGEROUSLY HIGH DEBT
REINFORCES OUR CASE FOR URGENT CHANGE
▪ Mr. Bram's growth through acquisition
strategy was fueled with debt
We are very concerned that Synalloy could breach covenants if current leadership
maintains its pattern of deteriorating financial performance and reckless spending
H
■
Unfortunately, acquired businesses
have failed to meet financial
expectations
All Synalloy stakeholders are now
in the perilous position of hoping
the Company can meet its future
obligations
Synalloy's debt balance before current
leadership took over was only $0.2 million
compared to $77.7 million as of March 31,
2020, or 6.8x LTM Adj. EBITDA
PRIVET
FUND
Synalloy has yet to articulate its
approach to reducing debt and
maintaining solvency during these
turbulent times
UPG
STRONGER TOGETHER
1. Source: Company filings
1.2x
3.6x
2.3x
2011A 2012A 2013A
Ballooning Leverage
2.3x
4.2x
01. 02. 03. 04. 05.
2.1x
Executive Summary
2.2x
5.6x
6.8x
1.4x
il
2014A 2015A 2016A 2017A 2018A 2019A LTM
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