Abraxas Group recently completed a successful restructuring and turnaround of a private equity backed middle market company. This engagement again highlights the value of our focus on transformational leadership. The company, an industrial services company with a nearly 40-year history, was successfully guided through an out-of-court restructuring and a dramatic turnaround was completed, with performance on track for a $6MM increase in EBITDA (YoY). The speed and scope of this outcome, and the value creation that resulted, proves our market thesis that an empowered change agent can drive radical value creation in troubled companies.

1. Industrial Services
Company
Engagement Recap
May 2018

2. Overview
• In November 2017, the lenders of a struggling private equity backed industrial
services company were weighing their options.
• Numerous management teams had attempted to revitalize the company, but
growth had stalled and the company’s financial sponsor was unwilling to continue
funding operating losses.
• Over the course of a 5 ½ month engagement, serving first as financial advisor and
then as interim CFO, David Johnson of Abraxas Group played a key role in
revitalizing the company.
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4. Rapid and Dramatic Improvement
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Q1 Results Showcased Robust YoY Improvement
EBITDA
• EBITDA increase of >300%
• EBITDA margin improvement of 689bps
Cost Structure
• Identified and implemented cost cuts
equal to 12% of revenue
• Targeted cost cuts fully identified and
largely implemented by the end of Q1 18
In addition to the robust improvement in the company’s profitability profile,
the radical shift in cost structure was achieved during a seasonal slow period
and implemented in a capital efficient manner.

5. Key Areas of Contribution
Worked in concert with executive team to develop and implement an actionable
turnaround plan for 2018
Cash
Management
Implemented intensive cash management, maintained rolling 13-week cash flow
forecasts, and supported the business during a seasonal slow period while minimizing
incremental funding need
Reports &
Forecasting
Supported Executive team in the development and rollout of a robust management
reporting framework, as well as refining management forecast and extending to a full 5-
year period
Team
Development
Upgraded the Finance Department through staff development and recruitment of
outside talent, including successor leadership
Abraxas Group played a key role in driving considerable value
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Plan

6. A third-party valuation analysis
indicates that the turnaround
generated substantial value since the
close of the out-of-court
restructuring in December.
This increase in valuation highlights
the extraordinary returns that can be
achieved in a successful turnaround.
Major value drivers:
• Gross margin expansion
• Cost structure rationalization
• Working capital improvement
• Sightline to a growth strategy
Value Creation
12/22/17
Enterprise
Value
4/20/18
Enterprise
Value
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> 75% Increase in
Enterprise Value

7. David Johnson
Email: david@abraxasgp.com
Ph: 312-505-7238
David Johnson, founder and managing partner of Abraxas Group, has
a 20-year track record of driving organizational change. David has
served as an interim executive or financial advisor to dozens of
middle market companies in turnaround and restructuring
situations.
Throughout his career, David has demonstrated a commitment to
thought leadership, with numerous speaking engagements and
articles on the topics of change management, performance
improvement, restructuring, turnaround, and value creation to his
credit.
David received his MBA from the University of Chicago and
completed his undergraduate studies at Fairleigh Dickinson
University.
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8. Chief Restructuring Officer
• Implemented changes
generating a 16% proforma
increase in EBITDA
• Successfully restructured $2MM
in critical vendor payables
Interim COO Interim CFO / VP Finance
• Developed and led turnaround
plan that generated a 6x YoY
increase in EBITDA
• Identified and implemented cost
savings opportunities exceeding
13% of operating budget
• 230% YoY increase in
comparable period EBITDA
• Settled $7.5 million in trade
payables at a 32% recovery rate
(resulting in savings of $5MM for
client)
Interim Executive Experience
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An experienced and versatile Interim Executive
David Johnson has been successful adding value in a number of interim
executive roles,