“The company's recent fiscal second quarter report showed revenue growing 18% from a year ago... management raised guidance for the full year, calling for revenue and profit growth of 15% and 14% respectively”
“We were able to take that company from 70 million in revenue down to 60 million … up to five million operating profit… paid off 8.5 million of the debt in 18 months, just by doing things like collecting receivables or DC inventory.”
James Andersen · Buyers and Builders · $2B Investor on People, 29x Returns & the Future of Private Equity
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What was described
Applied activity-based costing to a private-label snack nut company, cut revenue from $70 M to $60 M but increased operating profit to $5 M and paid off $8.5 M of debt in 18 months by collecting receivables and DC inventory
$70 M revenue, $500 k operating loss, $10 M debt, $60 M revenue, $5 M profit, $8.5 M debt paid off, 18 months
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