An Interesting “Hand”And Why Performance Had

to Improve

The World’s Best Strippers™

My Background

IU Grad – DeHayes Taught Me Everything!Formed/bought/sold multiple companies Emphasis on chemical companies

(2 sold to public companies)

Bought Eldorado Chemical in 2001 a competitor to my former companyMuch “low-hanging” fruit    

Eldorado - Background

Formed in 1969 in San Antonio

Manufacturer of chemicals for aircraft/airline industry (paint strippers, cleaners, engine cleaners, etc)

Great industry reputationRobust list of prestige

accounts

The “Commercial”

The Hand We Were Dealt• Commenced negotiations with Eldorado

in late 2000• Negotiations took almost 1 year• First day on job…….

– September 11, 2001September 11, 2001– Biggest customer American Airlines– Triple “Whammy”

• Economy starting to “tank”• Industry problems exacerbated• Customer issues profound !

– Caught in a “Squeeze Play”

Since 9/11 … Improved Performance

• Lowered cost structure (assumed the “Fetal Position”)– Closed two plants– Stretched vendors

• Invested in better systems – “Lean” Manufacturing – ISO 9001 – Technology

• Focused only on core competencies – Strippers – (pruned unprofitable business)– Metal finishing– Hose-gasket division

• Found new markets (Industrial) for best products

Results To Date

• Sales up 24% from purchase• Profits up 10% from purchase• Weaning ourselves from

aerospace-dependency• Currently being “courted by” two

NYSE companies