April 2026 Financial Review
Claylick Fabrication
Enter your password to access your report.
Incorrect password. Please try again.
PROSYNERGY BOOKKEEPING

April 2026 Insights for Claylick Fabrication

Prepared by Titus Kuepfer

🎥

Your video walkthrough will appear here.
Titus will send the link shortly.

Revenue
$700,573
↑ 23.8% vs Mar
Net Income
$159,747
↑ from -$4.8K
Cash in Bank
$46,990
RED Zone
Profit Quality
0.24
RED Zone
"April was a breakout month — $701K in revenue and $160K net profit driven by a major Food Processing job — but cash remains tight with the LOC maxed out."
Three Power Insights

YTD Revenue Up 6% — But April Was an Outlier

You're at $2.05M YTD vs $1.93M budget (+$116K ahead). However, April's $701K revenue included a major Food Processing job ($326K). Without it, April would have been ~$375K — below your prior trend. This matters: May backlog will determine whether you stay on track or drop back to baseline revenue.

→ Confirm: Does the Food Processing customer have repeat work? Pipeline determines cash position.

Cash Crisis — RED Zone with Zero Buffer

Ending cash $46,990 with $250K LOC maxed. Despite $160K April profit, only $7K hit the bank because $272K customer deposits were consumed and $124K vendor payments were made. You have zero financing flexibility.

→ Refinance the LOC with a term loan to lock in lower rates and restore flexibility.

Profit Quality Warning

Net profit $159.7K beat budget by $73.4K. But ending cash was only $47K. Starting from $39.6K in cash plus $159.7K profit = $199.3K available, you retained just $47K. That's a 23.6% conversion rate (healthy is 80%+). Working capital consumed $105.9K (mostly from burning through $271.6K in customer deposits while paying down $123.8K in vendor bills).

→ Get A/R to $300K if possible.
Profit & Loss Summary — Jan–Apr 2026
Line ItemJanFebMarAprYTD Total
Revenue$367,600$415,296$565,696$700,573$2,049,165
COGS$295,701$348,657$472,871$514,962$1,632,191
Gross Margin$71,899$66,639$92,824$185,612$416,974
Gross Margin %19.6%16.0%16.4%26.5%20.3%
Production Expenses$73,774$86,765$114,249$82,317$357,105
Admin & Overhead$90,195$101,469$124,451$104,189$420,304
Overhead Allocation-$175,135-$185,259-$183,427-$190,674-$734,495
EBITDA$83,064$63,664$37,551$189,780$374,059
EBITDA %22.6%15.3%6.6%27.1%18.3%
Finance & Non-Cash$29,957$30,973$42,366$30,033$133,329
Net Profit$53,106$32,690-$4,815$159,747$240,730
Net Margin %14.4%7.9%-0.9%22.8%11.7%
April Budget vs Actuals
Line ItemBudgetActualVariance% Var
Revenue$600,000$700,573+$100,573+16.8%
COGS$482,646$514,962-$32,316-6.7%
Gross Margin$117,354$185,611+$68,257+58.1%
GM %20.0%26.5%+6.5 pts
Absorption Adjustment$0-$4,168-$4,168
EBITDA$117,354$189,779+$72,425+61.7%
Finance & Non-Cash$31,000$30,033+$967+3.1%
Net Profit$86,354$159,746+$73,392+85.0%
YTD Budget vs Actuals (Jan–Apr)
Line ItemBudgetActualVariance% Var
Revenue$1,932,896$2,049,165+$116,269+6.0%
COGS$1,554,840$1,632,191-$77,351-5.0%
Gross Margin$378,056$416,974+$38,918+10.3%
GM %19.6%20.3%+0.7 pts
Absorption Adjustment$0-$42,915-$42,915
EBITDA$378,056$374,059-$3,997-1.1%
Finance & Non-Cash$123,000$133,329-$10,329-8.4%
Net Profit$255,056$240,730-$14,326-5.6%
YTD Performance Deep Dive — What the Numbers Tell Us
Revenue Trend

You're 6% ahead of annual budget at the 4-month mark ($2.05M actual vs $1.93M budget, +$116K). However, this masks volatility: Jan–Mar averaged $449K/month; April was $701K. The jump was driven entirely by the Food Processing job ($326K in April alone). Removing that, April would have been $375K — below trend.

Implication: YTD revenue is healthy, but May backlog is critical to sustain momentum.

Profitability vs Budget

YTD net profit is $240.7K vs $254.6K budget — a $13.9K miss (-5.4%). April beat budget by $73.4K (+85.0%), but this was offset by Jan–Mar underperformance. March actually posted a loss (-$4.8K net profit) due to under-absorption of overhead against lower billable hours. This is the key headwind: every month you're not at 100% billable hour capacity, overhead gets under-absorbed and hits the P&L.

Implication: March's loss was a one-time absorption variance. April's strong recovery shows the business can execute when demand is there.

COGS & Margin Quality

April COGS came in at 73.5% of revenue (budget 80%) — a 6.5-point favorable swing. This was the Food Processing job, which carried a 31.6% gross margin vs your 26.5% April average. YTD COGS is 79.6% (nearly on budget at 80%), but the Food Processing mix shows you have a high-margin product available. Repeating this work would meaningfully improve blended margin.

Implication: Food Processing is a margin game-changer. Prioritize pipeline development.

Profit Quality & Working Capital — The Hidden Story
April Profit vs Cash Paradox

You earned $159.7K in net profit but only added $7K to the bank. Why the $152.7K gap?

-$272K
Customer Deposits Consumed: Pre-collected cash used to fund April work
-$124K
A/P Paid Down: Vendor bills paid faster than normal (DPO compression)
+$186K
A/R Collections: Strong collections (18-day DSO) but not enough to offset deposits
+$104K
Inventory Release: First month all year where inventory declined (freed cash)
What This Means: Your April profit is "real" — underlying operations were strong. The deposit funding is now behind you, so May's cash position depends entirely on revenue and your normal A/R cycle. With deposits gone, you're back to a sustainable model.
YTD Working Capital Pattern
Month A/R Change A/P Change Inventory Change Deposits Change Net WC Impact
January -$118.4K
February ↓ $140.6K ↓ $198.1K ↑ $126.5K ↑ $247.2K +$63.2K
March ↑ $202.7K ↑ $243.0K ↑ $85.1K ↓ $97.5K -$142.4K
April ↓ $185.9K ↓ $123.8K ↓ $103.7K ↓ $271.6K -$105.9K
Every month has a negative working capital impact (deposits drain, A/P pays, inventory moves). This is a seasonal pattern for project-based businesses, but it creates cash volatility. February was the only exception (massive deposit inflow). Watch: if May brings lower deposits + continued A/P payments, cash can drop quickly despite profit.
Cash Flow Waterfall — April 2026

What This Means

Profit → Cash Gap
You earned $160K but only added $7K to the bank. Deposits collected earlier funded this month's work.
A/R Collections
You collected $186K — a strong month. Keep this pace up.
Deposits Consumed
$272K of pre-collected cash was used up. New deposits need to come in with new jobs.
Vendor Bills Paid Fast
$124K in A/P paid down. Consider stretching some payments to 30 days.
Inventory Released
First month inventory went DOWN this year — freed $104K in cash.
Key Accounts Snapshot
AccountAprilMoM
Cash in Bank$46,990↑ $7,420
Accounts Receivable$428,182 (DSO: 18 days)↓ $185,875
Accounts Payable$339,904 (DPO: 20 days)↓ $123,804
Line of Credit$250,000 (maxed)
Long-Term Debt$191,061↓ $12,250
Inventory$1,303,222↓ $103,676
Owner Equity$2,798,533↑ $159,747
Financial Health Ratios
Quick Ratio — 1.52×
Quick assets (cash + A/R) cover quick liabilities 1.5× over. Strong.
Healthy
Debt-to-Assets — 26%
Debt is 26% of total assets. Moderate leverage.
Healthy
Cash Trigger Zone — RED
$47K is below $100K threshold. Collections critical.
Act Now

Focus Areas Ahead

The Situation
You have $47K in cash with a maxed $250K LOC and zero buffer. Revenue will determine cash position. Fixed overhead is $180K+/month. May's backlog will be the tell.
Three Priorities
1. Revenue Pipeline: Confirm Food Processing repeat potential. If no repeat work, what's your May backlog? You need consistent $600K+ monthly revenue to cover $180K overhead comfortably.
2. Financing: Consider refinancing your $250K LOC with a 5-year business loan at ~6.5% instead of your current ~9% rate. This would save ~$6,250/year in interest ($31K over 5 years) while restoring LOC flexibility. Monthly payment: ~$5,500.
Leverage & Growth Opportunity

You're running well below industry-standard leverage. Manufacturing/fabrication companies typically operate at 45% debt-to-assets; you're at 26%. This gives you significant borrowing capacity.

Your Leverage Position:
• Current debt-to-assets: 26%
• Industry standard: 45%
• Available safe borrowing capacity: ~$900K+

If net profit remains steady at ~$160K/month, consider strategic fixed asset purchases (equipment, tooling, automation) in the next 2–3 months. A $100–200K investment at your 14% projected margin would have a 10–20 month payback depending on the size and the revenue lift achieved. You have the balance sheet strength to finance growth without strain.

How helpful was this month's review?

1 2 3 4 5 6
This report is prepared by Prosynergy Bookkeeping for informational purposes only. It does not constitute legal, tax, or accounting advice. All figures are derived from financial statements provided by the client and should be verified with your CPA. Accrual basis.