EBITDA Solutions for Manufacturers

For CEO’s, CFO’s COO’s and Vice Presidents Only

Who left the lights on?

Every day, millions of people depart their homestead forgetting to do one thing – turn out the lights, turn off the coffee pot, etcetera. To a home owner, the cost may not hurt the family budget too much.

Now let’s consider the multi-level corporation, especially manufacturers, where a 200 horsepower pump remains powered on continuously - where it may not be necessary.

Consider a pollution control system designed improperly, may consume 50% to 80% more energy than necessary.

• How does a company principal know where to look when the EBITDA ship is full of holes ?

A company principal may have an awareness that theie process is inefficient but may not know where to begin when seeking to lower manufacturing costs.

A distressed manufacturing operation bends under the inefficiencies of poorly designed process and process support equipment.

• What makes up EBITDA

EBITDA equals Revenues Minus Costs

(Excluding interest expenses, taxes, depreciation, and amortization)

• How does a manufacturer control costs while at the mercy of Electric Utilities and Energy Companies?

Controlling energy costs is an exercise in identifying invisible opportunities.

Remember, the lights were left on, - what are the chances this will be recognized by your; Plant Manager, Plant Maintenance Manager, Production Supervisor or the Facilities Manager?

• What Opportunities exist to Reduce your Costs and Increase your EBTDA?

Knowing where & what to look for is essential to the cost reduction formula.

-    Moving air and material is costly is not engineered properly.
-    If your facility uses more than $10,000 per month in electricity
-    A simple half day walk-through can identify opportunities to reduce energy consumption.
-    The best part is - the cost is zero, the benefit is net dollars returned perpetually.

Call us to today to discuss your unrealized opportunities

EBITDA defined is earnings before interest, taxes, depreciation, and amortization. It measures a company’s financial performance by computing earnings from core business operations, without including the effects of capital structure, tax rates, and depreciation policies. It is used as a proxy for a company’s operating cash flow and is not defined under GAAP. EBITDA is often used to value a company, with the enterprise value of a company calculated as a multiple of its EBITDA.

EBITDA is usually expressed in industry on an annual basis, though just like any other earnings or cash flow measure it is also expressed on a quarterly or monthly basis. While last year’s EBITDA may be useful in assessing the performance of a company close to the start of the following year, it will lose its timeliness later on during that following year. To address that, you will often see a company’s EBITDA given for the last twelve months, which is often seen expressed as “LTM EBITDA.”