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Thomas Group, Inc. Message Board

  • mtgfriendofman mtgfriendofman Nov 4, 2008 9:25 AM Flag

    Recover! and Grow!

    Cash/Share Sept 30 $0.97
    Cash/Share June 30 $1.30

    Revenues Sept 30 $3.83M -72% vs last yr
    Revenues June 30 $5.40M

    Earnings Sept 30 -$0.20 vs profit last yr
    Earnings June 30 -$0.17

    Margin Sept 30 29% vs 53% last year
    Margin June 30 37%

    I like the motto "Recover! and Grow!" - but was hoping we'd see a little more recovery and growth. ;^(

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    • Remember this Earle - November 4, 2008 - Wazzup?

      Earle Steinberg, President and CEO, stated, "Our strategy for the renewal at Thomas Group can now be described as Recover! and Grow!

      "We have initiated aggressive efforts to build a pipeline of new business opportunities, even in these challenging economic times. Our efforts have begun to pay off, although we continue to balance the need for short term success against longer term, larger scale assignments needed to build a solid backlog for the future. Given the current period of economic stress in the economies worldwide, we believe that our emphasis on product and service offerings designed to improve our clients' operating margins positions us well in this recovery phase of our renewal strategy and on into the growth phase. It is not easy and will not occur quickly, but we are confident that we are on the right course to achieve the end results we, as your management team, and you, as our shareholders, expect.

    • Can't believe that the share price exceeds a buck, notwithstanding the reverse stock split. The leadership was able to secure a paycheck for a number of years, with poor performance in my view. Close the doors and give the money to management now rather than having the cash bleed out the door (and to management) over the unwinding period.

    • I wonder if they Recovered and Grew?

      Let's see what management has to offer (other than the continued depletion of cash and a declination in earnings and revenues). Why am I so pessimistic?

      But I bet that they talk a good game!! yada yada yada

    • I was a Resultant for a short time when I quickly recognized some fundamental shortcomings. First, the business model (business development, deal structure, etc.) was badly in need of updating. The old model just could not compete. Perhaps the new management will update it. Second (and maybe as a result of the first), the business in place was very concentrated in two customers. Lose either or both (in this case both) and this is what you get. The accolades that Taylor and team received for growth and profitability were misplaced. I chose to leave rather than wait for the inevitable meltdown. With the right leadership this organization could be a player.

    • I was told they let go most of the remaining resultants, of "put them on furlough", anyway. They keep the salesmen who do not close sales, pay a CFO $350K/year (for what?), and continue to decimate the ranks of the worker bees. If they DO get a contract, which seems more and more doubtful, how do they plan on staffing it,, with the salesmen??

    • What I find most alarming is NO reduction in SG&A, and SG&A exceeds contract revenues.

    • Only lost souls and deadbeats left. Since there has never been a sales effort and no sales staff the entire company is a joke. Medical sales was and is a joke with no real sales and no profitable projects. Dallas HQ is too over staffed with marginal players and no professionals except for President and Ch Bd and they are too late to fix a company with no useful staff or products.

      • 3 Replies to johnm2197
      • The only hope at this point is if they can get a big contract win. It seems that is what management is playing for. Otherwise, it would make sense to downsize to a smaller firm and restore some amount of profitability.

        This is the easiest type of business to restore profitability - they simply need to cut staff. No plants to close, no inventory to sell.

        The two major shareholders (65% of o/s shares)should had some incentive to restore shareholder value. I doubt they are willing to see their investment go to 0.

      • What is the calculation of burn rate of cash against remaining cash? I've heard TGIS has impressive corporate offices...can they be sublet to lower costs? Does this company really need two expensive executives at the top, regardless of their fine capabilities?

        Also, what prospects did management give for their pipeline? I'm a bit leery after the Taylor era.

    • Everyone must now be gone. No one speaking up in support of the company. Time to turn out the lights?

    • I think that you've summed up the situation. Quite a large drop in cash.

      • 1 Reply to acctboating1
      • health care and transportation are of little value to TG let the "leaders" go. and they have the humor to call these people leaders: They killed a company
        Earle Steinberg
        President and CEO
        Frank Tilley
        VP and Interim CFO
        Robin Stacey
        VP, Human Resources

        Tom Pick
        VP, Business Development
        Eric Labe
        Practice Leader, Healthcare
        Harrison Goldman
        Practice Leader, Transportation & Logistic

        Mark Ozenick
        Practice Leader, Aerospace
        & Defense and Private Equity
        Tom Zych
        Practice Leader, Government