Page 3 - RosboroAR2017

TO OUR
Many thanks to our owners, lenders and employees for an incredible year. 2017 was an exciting year for Rosboro. It was not only the rst full year after the ownership change, it was a year lled with a litany of initiatives and projects. We executed a LEAN implementation on the manufacturing side of the business to reduce costs, improve e ciency and encourage proactive employee communications. We completed two large capital expenditure projects that were not only on time and on budget, but will change the e ciency and e ectiveness of the company for years to come. We laid the foundation for a new marketing and branding strategy to drive stronger glulam sales in the future. We increased our production levels
and exibility on the operating side of the business. We restructured and rebuilt the entire log acquisition department to acquire 100% of our raw material needs on the 3rd party log market for the rst time in more than
75 years and the team did an incredible job amidst some of the more di cult log markets in history. We launched several new products including our re-launch of the new and improved . We laid a foundation for addressing our long term strategic growth plans and focus. We were able to recapitalize our debt structure and retain many long standing lending partners in the process. Su ce it to say that it was an eventful year and it was a successful year.
LETTER
RESULTS: 2017 was very pro table for the company despite the many challenges that were presented throughout the year. Net sales were $138.3 million, $13.3 million better than projected. Income from operations was $17.8 million, $3.7 million better than projected. Cash ow (EBITDA) was $25.3 million for the year, $3.8 million better than projected.
The current year was a continuation of the positive trajectory the company has been on for the past few years. Our TTM (trailing twelve month)
OWNERS AND LENDERS
revenue has gone from $104.0 million in January, 2015 to $144.0 million in January of 2018. The TTM EBITDA has more than doubled over that same span from $12.1 million to $27.0 million, respectively.
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