MICHAEL A. GRANT, C.P.A.
Summary of Qualifications
RESULTS oriented financial executive with a documented record of startup and turnaround performance. Profit oriented executive with a unique blend of skills and abilities in the areas of operations, financial analysis, financial reporting, feasibility analysis, due diligence, acquisition negotiation, staff training, staff motivation and supervision. Progressively responsible positions in both private and public companies that includes day-to-day overall operations management, budget preparation and maintenance, cash flow analysis and projections, debt, equity and off balance sheet financing, overall P&L responsibilities and strategic planning. This has resulted in overall SUCESSFUL FINANCIAL PERFORMANCE. Highly skilled negotiator and problem solver in analyzing situations and implementing process improvements for bottom line profitability. Key member of management teams with outstanding leadership qualities. An expert in managing a company with significant growth or in financial crisis.
Consulting and Business Ownership (2007 to Current)
Green Barn, LLC and Creative Concrete Products, LLC
In July 2007, engaged as a financial consultant for Meritage Homes of California in the Concord regional office. The initial engagement of three months was to assist with the quarterly business plan update, the net realizable value (NRV) adjustments to the land costs for all of the bay area and central valley subdivisions and to assist the Regional Vice President of Finance in other special projects. During the period of the engagement and though effective audit techniques, it was evident that the lot costs used for the NRV calculations and other key business decisions and negotiations with land bankers were incorrect which had significant impacts on the Region’s financial reporting and operational business decision making abilities in extremely sensitive market conditions.
Completed the September business plan update, the 2008 business plan and the first update to the 2008 business plan which included closing the Sacramento office, reductions in force and other G&A savings,
From lot-by-lot cost analyses, financial statement adjustments were proposed and booked that totaled over $8 Million and reconciled the proforma models to the actual costs incurred-to-date and estimates-to-complete,
Created a new Excel database proforma model to correct older versions, standardize the treatment of lot costs, plus add the capabilities for NRV reporting and summarizing data on the fly. This provided additional methods of sorting and combing the data for better decision making and reporting capabilities. The new model was then implemented for all projects in southern, northern and central California,
Completed a proforma cash flow analysis that was used for the negotiations of both Meritage Homes and their equity partner, Resmark, to sell off Meritage’s interest in a high rise condo project in Oakland at 15th and Jefferson,
Consulting engagement was extended from an initial three month term to a nine month term.
Beginning April, 2008, began working full time at Creative Concrete Products, LLC (CCP). CCP was purchased in 2001, sold in 2005 and repurchased in 2007. CCP is both a retailer and manufacturer of concrete tables and benches, fountains, bird baths, planters, pots and fine statuary. During the first two years of ownership, annual sales increased an average of 345% and the gross margin increased 20%. Personal and financial responsibility for 100% of all aspects of the business. Since my full time work at CCP, sales are ahead of the same period in the prior year by 65% and other labor costs have decreased by 45%. In process is a new database to standardize pricing and add the ability to quickly sort through literally thousands of products available to customers and a new brochure and marketing plan focusing on commercial customers.
Executive Vice President of Operations and Chief Financial Officer
Premier Homes Properties, Inc., Roseville, CA, (2001-2007)
Prior to my hire the Company was closing approximately 30 homes per year. The Company had a sole source for land and that same source for all acquisition, development and construction financing. Business was performed on hand-shake terms with 10 employees. None of the Company executive management, including the founder of the Company, had any experience in production homebuilding on a larger scale. Originally hired as Chief Financial Officer, my duties also entailed many operational items which led to promotion to act as both C.F.O., with full financial and accounting responsibility, and V.P. of Operations responsible for the coordination and performance of all construction, land acquisition, forward planning, development and purchasing activities.
Authored and implemented the use of strategic planning for the Company via the first business plan and budgets for all areas to create prospective financial statements and make strategic decisions,
Developed and implemented a cash flow management system to provide proforma data on the availability of cash for all current and future investment decisions,
Changed the pricing and sales methodology to incorporate a phased pricing plan with step-wise price increases in sales releases to ensure the Company receives the maximum sales price for its homes,
Developed and implemented a system, using a self-developed production activity scheduling system, to coordinate, monitor and manage the individual manager of each department using key milestones. Provided the leadership at weekly Manager Meetings to successfully accomplish this task,
Developed and implemented a standard financial reporting package to be used for all lenders and investors, including consolidating financial statements and cash flows,
Initiated and maintained relationships with outside lenders; Comerica Bank, Weyerhaeuser Realty Investors, Exchange Bank, North Valley Bank and Five Star Bank, for outside financing. Closed loans in excess of $250 Million. Responsible for the preparation through funding of all loan draws and management of all day-to-day banking relationships,
Initiated and maintained relationships with outside bonding companies. Received performance, labor and material bonds in excess of $80 Million,
Created all offsite contracts for subcontractors, suppliers and consultants as well as their respective scopes of work in an effort to standardize insurance and indemnity requirements. Responsible for all insurance and other risk management functions,
Promoted to Executive Vice President effective July 1, 2005,
Assisted in the purchase of Palomar Homes, Redding, in July 2006 including four active projects, taking over all warranty duties, optioning over 300 lots and converting all existing operations.
SUCESSFUL FINANCIAL PERFORMANCE
For each year that I was involved in the Company’s operations, the Company had record setting closings and profitability.
Home closings increased from 30 homes at 12/31/02 to 122 homes for 12/31/05, a 306% increase.
Net income before tax increased from $849,000 to $7.4 Million in 2004 and income of $5.8 Million in 2005, a 772% and 583% increase, respectively.
Cash from operations was used to further invest in the Company. As a result, the Company was able to receive the opportunity and to carry a large non-refundable deposit for over two years on a 500 lot project in Wheatland and a 148 lot project in Lincoln as well as purchase Palomar Homes in Redding in July 2006.
Controller-East Bay Division
Standard Pacific Corporation Pleasanton, CA (1999-2001)
Full financial responsibility for all aspects of accounting including general ledger, job cost and accounts payable. Assisted in the preparation and review of current and proforma projects for land acquisitions, forward planning, purchasing and sales. Acted as the liaison between Corporate and the Division for cash flows, strategic business planning, information systems, SEC and GAAP financial reporting, internal and external audit and financing transactions. Directly supervised the Accounting Department staff of five and indirectly supervised Division personnel of sixty-five.
First East Bay Division Controller to work with the Division President in order to complete quarterly audits of all budgets and actual costs, preparation of proformas or actual project financial results for each project by phase which has resulted in increased reliance upon the Controller position for future strategic planning. Prior position responsibilities included historical reporting only,
Completed the conversion of financial accounting records from McCosker software to J.D. Edwards,
Began a quarterly performance requirement for all Accounting staff to suggest cost savings ideas. As a result, the Accounting Department saved the Division over $200,000, annually,
Developed the first standardized proforma format for use within the Division. Worked with the corporate office to institute its use throughout all Divisions for computation of internal rates of return and comparison of proforma to actual results and to set future investment guidelines and measures of performance,
Developed divisional software programs for use by operations in the areas of construction scheduling, contact management, option sales and coordination and escrow tracking,
Completed off balance sheet financing transaction with Acacia Capital for 550 lots in the amount of $48 Million in 20 days, 535 lots in Hayward for $110 Million, and an A&D loan with Housing Capital for 183 lots totaling $32 Million. No other Standard Pacific Controller had as active a role in project financing functions,
Instituted a “Company store” for company logo-wear and other items that not only provided uniforms to field and warranty personnel, but also provided incentives to other employees within the division.
SUCESSFUL FINANCIAL PERFORMANCE
The East Bay Division met its business plan in all quarters of my tenure in terms of deliveries, gross profit and net income before tax. 1999 financial performance included delivery of 506 homes with revenues of $212 Million and net income before tax of $30 Million, 2000 financial performance totaled 494 deliveries with revenues of $204 Million and net income before tax of $41 Million. At the time of my departure, 2002 was on track to achieve the business plan goals of over 425 homes closed and net income before tax of $30 Million. The Northern California operations constituted approximately 40% of the entire Corporation’s bottom line income before tax.
Vice President and Controller-Bay Area Division
Western Pacific Housing Pleasanton, CA (1997-1999)
Divisional job duties included full financial responsibility for acquisitions, current projects, general and administrative expenses, warranty costs and design center operations. Held fully accountable for; 1) accuracy of accounting for offsite and lot-by-lot budgets, commitments and actuals, 2) cash-flow analyses including anticipated closings, starts and accounts payable cash requirements, 3) feasibility analyses for future acquisitions and audits of due diligence packages, 4) review of sales for compliance with feasibility and business plan projected results, 5) coordination with sales and construction departments to monitor, attest to and communicate delivery schedule changes, 6) risk management to ascertain contract and insurance requirement compliance and 7) main interface between corporate and the division.
At my own direction and ambition, prepared the first-ever business plan by a division. Reorganized the corporate reporting requirements to include division responsibilities for an annual business plan, a monthly business plan update, general and administration expense reporting with variance analyses. Successfully converted the corporate accounting method of lot costs to define and include a lot transfer cost. Worked with corporate consultants to provide cash flow downloads from the accounting system into the spreadsheet business plan templates. Assisted the preparation of and correction of the Irvine, San Diego and Culver City Division business plans for presentation to executive senior management,
Set up a new Accounting Department and completed the decentralization of processing all Divisional invoices including the on-site processing of accounts payable, internal and external budget preparation and standardized Divisional financial reporting,
Reviewed Divisional subcontracts and consulting agreements and identified significant contractual weaknesses, initiated changes to and implemented standardized contracts for future execution and drafted contract amendments to mitigate weaknesses,
Completed a lead role in the planning, implementation and conversion of the Divisional accounting and reporting systems from the Execudata Horizon accounting system, on a phase basis, to a J.D. Edwards system on a lot-by-lot basis.
SUCCESSFUL FINANCIAL PERFORMANCE
Fiscal Year 1998, partial year of operations, 3 home closings and the sale of 38 lots for breakeven operations. Fiscal Year 1999, the first full year of operations, 133 closings and the sale of 75 lots. Net profit before tax over $10 Million on Revenues of $63 Million. Projected Fiscal Year 2000, 220 closings with profits in excess of $7 Million on $83 Million Revenues.
General Partner (Member)
Summergate, LLC, Sacramento, CA (1996- 1997)
Responsible for the set up of a newly formed limited liability company. Directed the feasibility analysis, due diligence, equity and debt financing, and acquisition of The Village At Summergate, Tracy, California. Overall responsibility for all sales, marketing, purchasing, accounting and administrative functions. P&L responsibility and budget maintenance of over $12 million in revenues.
Reduced costs over $350,000 through effective competitive bidding techniques,
Implemented an automated accounting system including job cost system within 30 days of software selection,
Completed acquisition on December 16, 1996.
Vice President of Finance
Richmond American Homes, Rancho Cordova, CA (1993-1996)
State-wide responsibility for all financial functions including SEC financial reporting, bank financing, cash flow reporting, strategic business planning, budgeting, proforma and market analyses of all acquisitions, evaluation of asset performance, presentation of results to corporate officers and board of directors. Direct supervision of accounting, accounts payable, human resources and office administration departments up to 15 employees. Indirect supervision of up to 60 employees.
Supported corporate expansion through the acquisition of investment properties yielding increased revenues from $50 million to over $140 million,
Acquired Mesa Homes from Kemper Financial for $20 million. This acquisition alone increased the Southern Division’s revenues over $100 million over the next four year period with net profits in excess of $15 million,
Assisted in rebuilding the Southern California Division from 4 employees to over 70,
Completed the acquisition of over 1,900 finished lots,
Initiated a corporate nationwide study of automated sales tracking and tools.
SUCESSFUL FINANCIAL PERFORMANCE
Monetized Northern California high cost properties and replaced them with low cost land under flexible purchase terms to manage risk in an unstable market. Decreased Northern Division unsold home inventories from 60 to 10, an 83 percent decrease. Reduced general and overhead expenses 3% in the Northern Division through reorganization. As a result, the Northern Division returned to profitable operations in the first quarter of 1996, the first profitable quarter since 1992.
Professional Experience-Other Real Estate and Accounting
Chief Financial Officer
Live Oak Enterprises, Folsom, CA (1992-1993)
Chief Financial Officer
Panattoni Development Company, Sacramento, CA (1989-1992)
Senior Auditor and Microcomputer Coordinator
Education and Professional Development
San Diego State University, San Diego, CA, Bachelor of Science in Applied Arts and Sciences specializing in Business Administration- Finance. Minor in Music Performance.
HomeAid Northern California Chief Financial Officer and Finance Committee,
Home Builders Association of Northern California,
California State Contractors License, Class B,
California State Board of Accountancy Certified Public Accountant,
American Institute of Certified Public Accountants,
California Society of Certified Public Accountants,
Leadership Resources Management Development seminars,
Toastmasters International Communication and Leadership Program.