for nearly 30 years, the finley group, a trusted advisory firm consisting of dedicated seasoned...

For nearly 30 years, THE FINLEY GROUP, a trusted advisory firm consisting of dedicated seasoned business professionals, has been a valuable management resource for, improving the operational and financial results of healthy companies, returning underperforming companies back to health and steering organizations in crisis to maximize value…

Adding Value, Preserving Value, Recapturing Value

FINLEYTHE

GROUP

- 2 - Serious Challenges – Significant Results FINLEYGROUP

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The Finley Group Overview

Since 1985, The Finley Group has been a trusted advisor to owners, corporate executives, boards of directors; financial institutions, lawyers and private equity sponsors. Through constantly changing economic climates and unpredictable marketplace trends, the Finley Group’s primary goal is to enhance the decision making and functional capabilities of our clients. The Finley Group’s proficiency is in helping clients foresee, appraise and successfully resolve critical business issues in a fast, concise, and cost effective manner.

Our highly skilled professionals have a proven history of delivering results for companies in the following situations:

Transition Liquidity Challenges Operating Issues Family, Shareholder or Management Disputes Pressure from Lenders, Creditors or Customers

The Finley Group professionals are helping companies on a daily basis find the right formula that allows them to compete in today’s high-speed, continuously changing business landscape. Our pragmatic, results-oriented approach is uncomplicated and successful; using a collaborative mindset, we take advantage of the client’s strengths, and current marketplace opportunities to attack and eliminate the challenges at hand. The product of this approach is a unique partnership that becomes the catalyst which fosters the development and implementation of a comprehensive, supportable, and sustainable set of solutions for most situations.


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The Finley Group Overview

Scope of Services

Business Assessments

Strategy Competitive Position Management Team Business Plan

Cash Management / Cash Forecasting

Corporate Level Interim Management

Revenue Growth & Margin Initiatives

Working Capital Management

Cost Rationalization

Creditor / Vendor Advisory Services

Logistics & Supply Chain

Distribution Channel Rationalization

Core/Non-Core Asset Rationalization

Contingency / Succession Planning

Capital Structure Analysis

Our Corporate Renewal and Restructuring practice advises underperforming companies beginning to experience working capital and earnings erosion. These services often include cash flow management, creditor forbearance negotiations, debt repayment plans, non-core asset divestitures, cost rationalization, and capital structure analysis. We interpret our findings quickly and present a clear set of objectives, create actionable plans, and most importantly, we can assist your management team with delivering profitable results.

Why? It is hard to disagree that today’s global business environment continues to bring additional competition into the local marketplace on a daily basis, adding increased pressure on profits and cash flow. Volatile credit markets with no relief in sight and financial institutions dealing with their own capital issues continue to limit credit availability to organizations experiencing financial stress. These issues, among others, are forcing companies to de-lever their capital structure, improve operations, rethink their business model, shed non-core assets and find alternative methods to generate working capital liquidity. These external influences, together with normal business cycle trends and technological advancements, will cause more companies to experience operational and financial stress that will require third party assistance.

FINLEY makes the difference

The advisors you choose to assist your team is vital. The Finley Group professionals bring valuable advice, industry recognized certifications, and best practices into every situation across many industries and for nearly 30 years.

Our professionals have held senior operational and financial roles in addition to working as trusted advisors and understand the levels to navigate underperforming businesses. Our professionals can help you define clear objectives, create actionable plans and deliver results.


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The Finley Group - Proven Experience

Select Engagements

Insteel Industries, Inc. – TFG was hired by this ~$200M multi-national manufacture of Steel Wire reinforcing for Concrete Construction applications to assist a sub-committee of the Company’s Board of Directors and existing Management Team Our scope included an evaluation of overhead expenditures, product pricing, assistance with implementing a new Cost System, closing selected plants and rationalizing idle capacity, divesting non-productive assets, revising logistics model which generated over $1M annual savings, and simplifying a newly installed enterprise system reducing annual fees over $150,000.

• TFG’s initiatives resulted in:

Full recovery by all creditors even though initial analysis showed a $35MM shortfall Stock price appreciation from $1 per share to $18 per share Gross margin enhancement due to increased selling price on selected products Revised Management team remained in place Restructuring provided no shareholder dilution

Hendricks Furniture Group (d/b/a Boyles Distinctive Furniture) – The company hired TFG as its financial advisor to assist in its retail store and logistical operations restructuring. TFG guided the 34-store Debtor through a successful Chapter 11 proceeding and obtained a Confirmed Plan of Reorganization involving more than $15.0 million in unsecured debt in seven months.


Successful negotiations involving a $25 million exit financing credit facility Attracted new subordinated senior secured note of $2.0 million Implementation of a new merchandising strategy Successful bankruptcy reorganization


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Select Engagements

Project Kitchen – TFG was hired to assist North America’s largest manufacturer of building products and materials in evaluating one of its underperforming business units. This operating subsidiary was not meeting the Board’s required profit threshold and TFG was engaged to perform an assessment which included an evaluation of the management team, profitability analysis, business segment evaluation and identification of manufacturing efficiencies and cost rationalization opportunities.


Development of an actionable plan which provided the direction and timeline to navigate the business unit in order to exceed the Company’s profit requirement.

TFG’s scope was increased to run a sale process of this business unit which recently commenced

Project Wood – TFG was retained to advise a wood panel manufacturer (particleboard, thermally fused melamine and low/medium/high density fiberboard) with operating facilities located in North Carolina, Virginia and Ontario, Canada. TFG assisted the Company with implementing a turnaround plan focused on improving its operating cash position through enhancing gross margins (product and plant profitability), divesting of an underperforming asset (i.e., sale of business unit) and refinancing its senior secured credit facility.


Improved cash flow controls Divestiture of an underperforming operating facility in order to right-size the go-forward business Refinancing with new senior secured lender – full recovery by original lenders No shareholder dilution Logistic cost controls


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Select Engagements

Project Concrete – TFG is currently engaged by a large regional company specializing in the Redi-Mix, Block and Precast concrete business to facilitate an operational and financial restructure. Initial services included determining the viability of the current business structure and identifying all challenges, the review of the organizational and cost structure to identify reduction opportunities, and assessing the Company's capital structure and soliciting alternative sources for senior debt replacement/reduction.

• TFG’s on-going initiatives are:

The development of cash flow projections and continued improvement of cash flow controls Development of the current action plan to reduce debt, divest underperforming assets, thus improving cash flow Development of long term plan and projections based on the Company restructuring efforts Meetings and Communication with senior lenders to obtain forbearance and agreements to forgo payments of principle and

interest for an extended time period Communication and Meetings with key vendors to restructure unsecured debt Currently assessing refinancing opportunities and alternative investment opportunities

Project Home – TFG was hired by a $100 million regional home builder / developer, operating in five markets across North and South Carolina, to assess its business viability, facilitate a refinance and seek alternative sources of capital. Services included determining the viability of the current business plan, addressing key challenges, reviewing the effectiveness of management and the organizational structure, reviewing the cost structure and identifying reduction opportunities, and assessing the Company's capital structure and soliciting alternative sources for senior debt replacement/reduction.


Improved cash flow controls and developed cash flow projections Assisted Management in development of action plan to reduce debt, divest underperforming assets, thus improving cash flow Facilitated a refinance and is still assisting the company with alternative investment opportunities


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Select Engagements

Project Development – TFG was initially hired by this prominent commercial builder/developer to assess its operational practices and financial structure. Services included determining the viability of its current business model and assessing the effectiveness of its financial office and management. Upon presentation of the assessment, TFG was engaged to implement the recommended changes. TFG continues to act as a trusted advisor to the owners of this Company and has taken many different roles in assisting the Company since the initial engagement.

• TFG’s past and continuing initiatives:

Improved cash flow controls and developed cash flow projections Assisted Management in development of action plan to reduce debt, divest underperforming assets, thus enhancing cash flow Continued involvement in assessing different investment and development opportunities Continued oversight of the financial department and cash flow monitoring

AC Corporation – TFG was retained as the Financial Advisor for a Greensboro, NC based provider of Commercial & Industrial HVAC systems (~$75MM in Revenue). TFG guided the Company in reducing management layers and duplication, introducing strategic outsourcing of component products and cost management tools, and eliminating entitlement culture within the organization. Additionally, TFG continued acting as mentor to CEO for extended period of time after the successful 12-month engagement ended.


Successful refinance of debt with new senior secured lender Return to profitability and stability Lowered debt and working capital requirements by 25% Increase of Equity Valuation by 8x over last four years


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Industries Served

Manufacturing Aerospace and Defense Agricultural Machinery Automotive Parts Bricks & Tiles Building Products Food Products Candles Cement & Cement Products Commercial Bakery Chemical & Fertilizer Electronics Furniture HVAC Injection Molding Medical Equipment Signage Products Ship Maintenance & Repair Soft Drink Bottling Steel Fabrication Steel Coil & Wire Textile

Telecommunications Cable Installation Network Infrastructure National Call Center Satellite Communications CLECS

Retail Apparel

o Men’so Women’s

Automotive Car Wash Chain Convenience Stores Catalog Department Stores Dollar & Discount Stores Electronic & Appliance

Stores Furniture Stores Jewelry Resorts Restaurant Chains

HealthCare Home Health Medical Supply

o Manufacturingo Distribution

Medical Equipment R&D Medical Clinics Retirement Communities

o Independent Livingo Assisted Livingo Skilled Nursing

Service Aircraft Maintenance Agriculture & Farming

o Tobacco Farmingo Hog Growerso Commercial

Greenhouses & Plantso Peanut

Growing/Processing Architectural /Engineering

Services Cargo Airline Child Care Construction & Development

o Commercial o Residential

Disaster Restoration Education Financial Services Forestry Golf Courses Insurance

o Underwritingo Agencyo Premium Finance

Moving & Storage Printing Real Estate

o Commercialo Medical

Distribution / Transportation Aerospace Parts Auto Parts Chemical & Fertilizer Education Supplies Fuel and Lubricants Construction

o Doors and Windowso Staircaseso HVACo Lumber & Building

Material Commercial Signage Music & Video Truck & Trailer

o Distribution & Leasing

o LTL Hauling


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Professional Background

Telephone: 704-375-7542Cell: 704-560-8800Email: [email protected]

EDUCATIONB.S., Virginia Commonwealth UniversityExecutive Education –

- University of Virginia- Emory University

PROFESSIONAL ASSOCIATIONSMember, American Bankruptcy Institute

Member, American Institute of CPAs

Member, American Society of Appraisers - Business Valuation (inactive)

Member, Association of Insolvency and Restructuring Advisors

Member, Carolinas’ Chapter of Turnaround Management Association (Past President)

Mark has over 20 years experience providing financial, operational and capital advisory services across diverse industries which include:

automotive, aviation, consumer products, distribution, furniture, healthcare, manufacturing, retail, telecommunications and textiles.

Mark has advised both public and private companies on matters involving corporate renewal and restructuring. His direct experience involves addressing financial and operational issues that affect underperforming businesses and has advised clients on matters involving corporate finance/M&A (including Section 363 transactions) (buy-side, sell-side and merger integration), valuation disputes and fairness reporting, negotiation and allocation of purchase price and forensic and litigation.

A representative listing of Mark’s clients include:

Carpets of Dalton, Collins & Aikman, Delta Air Lines, Genesis Healthcare, Golden Chair, Havens Steel, Hendricks Furniture Group (d/b/a Boyles Furniture), Kmart Corp., Portrait Corporation of America, Queen City Audio Video Appliances, Sunterra Corporation and United Airlines.

Mark has spoken on corporate renewal and related topics at conferences sponsored by the American Bankruptcy Institute and the Turnaround Management Association.

Prior to joining The Finley Group, Mark was a Senior Vice President of a diverse financial services firm based in Chicago with principal activities in corporate renewal and investment banking. Before that, he served as a Director of a global consulting firm with its headquarters in New York.

Mark is a Certified Insolvency and Restructuring Advisor, holds formal qualifications in business valuations and has practiced as a Certified Public Accountant.


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Elaine is a highly effective, “results oriented” professional with over 35 years of financial experience in diverse industries including: automotive, aviation and pharmaceutical manufacturing and distribution, health care, biotech and waste management industries.

Since joining The Finley Group in 2001, Elaine has advised many of her clients on matters involving financial reporting, bankruptcy, corporate liquidations, acquisitions and merger integration. She has served in many roles and has been effective in controlling costs, returning profitability, selling non-core assets . . . thus, maximizing recovery. Some of those roles include:

• Chief Financial Officer of Wash Depot, where she assisted the company through a successful bankruptcy reorganization.

• As Chief Restructuring Officer of Carolina Steel and Wire, she lead the successful reorganization of two of the Company’s subsidiaries.

• As interim CFO at HLM Design, a national architectural and engineering firm, she was responsible for selling the firm through a 363 bankruptcy transaction to Heery International, a multi-national firm.

• Bankruptcy Trustee in a Complex Chapter 11 Case of a Mix Use Residential/Retail Development , responsible for the daily operations of the Development; investigation into the debtors prior actions and assets; and all case administration, resulting in a 100% return to the Unsecured Creditors.

• CRO of DRI Corporation, responsible for selling the Company as a going-concern through a 363 bankruptcy transaction, resulting in a 100% return to the Unsecured Creditors.

In addition to her interim management/advisory work, Elaine has extensive experience in due diligence work and forensics. Elaine has performed many successful forensic reviews, including one which resulted in the detection of a $100 million kite fraud involving seven banks.

Prior to joining The Finley Group, Elaine spent 6 years as the Chief Financial Officer of two public companies. In this capacity she completed a successful IPO and various private stock placements. She was also responsible for the successful negotiation of several debt facilities, as well as the acquisition and integration of multiple companies.


EDUCATIONB.S., The University of North Carolina at Chapel Hill

PROFESSIONAL ASSOCIATIONSMember, American Bankruptcy Institute

Member, Turnaround Management Association

Carolinas Chapter Board Member, International Women’s Insolvency and Restructuring Confederation


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EDUCATIONB.A., Wake Forest University

MBA, Kenan–Flagler Business School, The University of North Carolina at Chapel Hill

CERTIFICATIONSCertified Turnaround Professional

Certified Insolvency and Restructuring Advisor

PROFESSIONAL ASSOCIATIONSBoard Member, Turnaround Management Association (Carolina’s Chapter)

American Bankruptcy Institute

Association for Corporate Growth

Association of Insolvency and Restructuring Advisors

Matt specializes in corporate turnarounds and restructuring with an emphasis on financial, operational and management issues. Since joining the firm in 2002, he has worked for over 70 clients in a wide variety of industries including manufacturing, distribution, retail, agriculture, financial services, furniture, textiles, and golf and resort operations.

Matt has provided both advisory services and taken interim-management positions with his clients which have resulted in maximizing value for all stakeholders. On multiple occasions he has successfully negotiated financing arrangements with secured and unsecured lenders. Additionally, Matt has lead divestiture and sale efforts of non-core assets as well as entire businesses.

Matt was named the Chief Restructuring Officer for Sea Trail Corporation, a 54 hole golf course resort in Sunset Beach, NC. Matt lead the restructuring through a Chapter 11 bankruptcy that ultimately resulted in the sale of all of the assets through a 363 auction sale process. In addition, Matt was responsible for cash management to ensure the resort had sufficient liquidity for the highly seasonal business.

Matt served as part of the senior management team for The Thaxton Group, Inc., a diversified consumer financial services and insurance company which listed debt in excess of $240 million when it filed for Chapter 11 protection. Under Matt’s guidance, the Debtor delivered a Plan of Reorganization where the unsecured creditors received distributions in excess of 107% of their claims.

Additionally, Matt advised PeopLounger’s, Inc., a motion furniture company which filed for Chapter 11 protection in Mississippi. Matt aided the sale of the operational assets and served as Interim Chief Financial Officer of the new organization.

Matt is one of the few Turnaround Professionals to hold both the Certified Turnaround Professional (CTP) and Certified Insolvency and Restructuring Advisor (CIRA) designations. Matt has completed the required training to become a certified mediator in North Carolina.


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Jay is an experienced turnaround professional providing financial and capital advisory and turnaround management services in diverse industries including: manufacturing, apparel, distribution, specialty chemicals, furniture, and health care. His clients have included early stage, middle market and larger companies, both publicly and privately owned.

Before his work as a turnaround specialist, Jay had over twenty years as a senior corporate officer and Big Four management consultant. His operating roles include CEO, President, COO and CFO, in both privately held and public companies, in the manufacturing, power generation, environmental services, entertainment, specialty insurance, packaging and printing industries.

He has successfully completed engagements which included turnaround advisory, senior and mezzanine debt financing, the purchase and sale of companies, as buy side and sell side advisor, both within the bankruptcy process (Section 363) and conventional transactions. He has advised both debtors and creditor groups in Chapter 11 and Chapter 15 proceedings.

He earned an MBA from the Stern School of New York University, an MA from Queens College and a BA from Fordham University.


EDUCATIONB.A., Fordham University

MBA, Stern School of New York University

MA, Queens College

CERTIFICATIONSCertified Public Accountant (CPA)

PROFESSIONAL ASSOCIATIONSBoard Member, Turnaround Management Association (Carolina’s Chapter)

Member, Association for Corporate Growth

Director


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Jeff has over 30 years of experience in financial and general management. He has significant experience in providing professional services, and with managing manufacturing and distribution companies. This experience spans a wide variety of industries, including: crisis management and corporate renewal, commercial real estate, civil engineering/road construction, agriculture and waste/recycling. He is experienced with both public and private companies, including over 10 years in private equity environments.

Jeff has extensive experience with planning and implementing financial and operational turnarounds. His financial restructuring experience includes multiple refinancing transactions in conjunction with operational turnarounds. The operational restructuring projects have involved combining and consolidating administrative operations, closure and disposition of high cost manufacturing facilities while expanding low cost facilities, changing product pricing models and repositioning underperforming market channels.

With The Finley Group, Jeff has served in the roles of Chief Restructuring Officer, Chief Operating Officer and Chief Financial Officer. His engagements have included Insteel Industries and Velvet Ridge Greenhouses.


EDUCATIONBSBA, Appalachian State University

CERTIFICATIONSCertified Turnaround ProfessionalCertified Public AccountantCertified Fraud Examiner

PROFESSIONAL ASSOCIATIONSMember, American Institute of CPA’sMember, North Carolina Association of CPA’sMember, Carolinas’ Chapter of Turnaround Management AssociationMember, Association of Certified Fraud Examiners


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Eric has over 25 years experience as a C-level corporate executive and Board Advisor for under-performing Private Equity owned businesses. After a 20 year career as co-founder, co-owner and Chief Financial Officer of an international apparel manufacturer, Eric's most recent engagements have included temporary assignments in various industries including manufacturing, apparel, furniture, food products, equipment rental, and law enforcement training equipment.

Eric started his career with Price Waterhouse in 1983 which culminated in an opportunity at PL Industries, a Private Equity invested blue jean manufacturer with operations in the southeast US, Puerto Rico and Mexico. While at PL Industries, Eric helped grow revenue from $23MM to over $170MM to become one of the largest privately owned "private label" blue jean manufacturers in the US. As Chief Financial Officer, Eric was responsible for all financial reporting, warehouse/distribution, logistics and IT departments.

Following PL Industries, Eric's experience has included assignments as CEO of After Six (men's formalwear), COO of Barcalounger (leather recliners), and CFO of Marc Ecko Enterprises (young men's apparel retailer). Since 2011, the Private Equity Group engagements have been Board and/or Investor Advisor positions for companies in unique challenging circumstances. Although most of the roles have required financial restructuring with both senior and sub-debt lenders, the assignments often also involve the implementation of cost reduction initiatives.

Eric is a Certified Public Accountant, with active status in North Carolina.


EDUCATIONBS, University of North Carolina at Chapel Hill

CERTIFICATIONSCertified Public Accountant

PROFESSIONAL ASSOCIATIONSMember, North Carolina Association of CPA'sMember, AICPA


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Steve has over 30 years of experience in financial and general management, business ownership, and real estate development and management. He has provided extensive professional services to various service, manufacturing, retail, and distribution companies, primarily privately owned. Experience with interim management and advisory services for companies dealing with a range of issues from personnel (both too many and incorrect fit), tax liabilities and resultant operating problems, startup of new service business model including implementation and process, redesign of process to enhance operating profit and make personnel change for business unit, and creating process and tools to implement financial and operational turnaround. Steve has extensive experience in creating and implementing business plans and processes to enhance existing operating businesses for new owners, as well as for companies in various operating stages. This includes evaluation of business segments to determine viability and profitability and subsequent closing of not profitable business segments or negotiating the sale of the business segment or assets. He has negotiated repayment plans and work outs of vendor and other creditor debts in various stages up to and including civil judgments.

Steve has served in the roles of Chief Executive Officer, Chief Operating Officer, Chief Financial Officer and Controller.


EDUCATIONBBA-Finance Ohio University, Athens OhioBS-Accounting, University of North Carolina at Charlotte, Charlotte, North Carolina

CERTIFICATIONSCertified Public AccountantCertified Turnaround Associate

PROFESSIONAL ASSOCIATIONSMember, Carolinas’ Chapter of Turnaround Management Association

Steven R. McCauley

Associate


FINLEYTHE

GROUP

6100 Fairview Road, Suite 1220

Charlotte, North Carolina 28210

Office (704) 375 – 7542

Fax (704) 342 – 0879

www.finleygroup.com

for nearly 30 years, the finley group, a trusted advisory firm consisting of dedicated seasoned...

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