Ads Logistics

Headquartered in Chesterton, IN ADS Logistics is a premier provider of fully-integrated supply chain management services in the United States and parts of Canada. With over 30 years of experience, ADS Logistics has emerged as the North American leader in metals transportation and warehousing. The Company is made up of three fully integrated divisions: 1) Trucking 2) Warehousing and 3) Intermodal.

Opportunities and Challenges:

  • Given the economic downturn in the automotive and manufacturing industries, ADS experienced a severe decline in its business
  • Revenue declined from an annualized run rate of $120mm to $75mm, producing negative EBITDA
  • SG&A reductions did not coincide with the incremental decline in revenues
  • The warehousing division occupied numerous facilities that were unprofitable and saddled by above market long-term leases

Solutions and Results:

  • QORVAL was installed as the CRO and several QORVAL team members took positions on the Board
  • Worked with the company to restructure driver incentives to improve profitability of the trucking divisions
  • Completed a comprehensive profitability analysis of the warehousing division and developed a strategy to exit unprofitable locations
  • Utilized the Chapter 11 process to restructure the business and exit unprofitable leases
  • Improved EBITDA from a run rate of negative $1.2mm to positive $5.5mm
  • Reduced annual SG&A by $4mm
  • Successfully reorganized the footprint of the warehousing division to achieve maximum utilization and profitability
  • Completed a successful restructuring and sale to the Company’s existing lenders
  • Exited bankruptcy in less than 60 days with a 363 sale process
  • Positioned the restructured company to actively capture the improved economic conditions in the automotive market

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