John's response to me:
XXXX,
For the record…
I thought months ago that the filing would be well before the cut-off. I
thought that was the plan.
I only knew the weekend before we went over the cut-off that we would not
be on time.
I check in with the CEO quite often, and I get the story as she shares it.
A COUPLE OF EXTRA NOTES… AND I HAVE NOT SHARED THESE BEFORE:
I do know that we have had to keep teams busy for weeks and some of the
revenues come in well after they are invoiced. EMPLOYEES have to be paid
and paid on time. You lose EMPLOYEES if you don’t keep up completely with
payroll. FRCN keeps up with payroll There are materials and equipment that
has to be kept fueled and working at all times so the crews can WORK.
There are the expense of signs, paint, paving materials and more. ALL of
those must be paid upfront even though major clients are invoiced.
People do not understand how being busy impacts cashflow. They have to put
out a ton of money to do business. They are collecting on invoices for
recent months, but many major companies PAY at 60 or even 90 days. We are
talking major companies who’s payment is coming without question. They PAY
a certain way, and that does have impact.
I know that you know this as logic, but you may not really understand that
operating as busy as they are is a real blessing for the balance sheets -
BUT - is a mixed blessing for cash flow.
Honestly - this company is doing a great JOB of the core business. I am
letting the CEO and everyone associated with the Company on the inside
that we need to take care of investors now.
Thanks for writing. Thanks for caring about all of this.
John
