Jim Gilreath, Gilreath Consultantcy, Skin-in-the-Game-Hiring

Confidential Bio of David Hayes for Gilreath Consultantcy Investor CFO Search S942 edited by Jim Gilreath.

Early Background:
David Hayes was born in Philadelphia, PA on April 10j, 1958. When he was 2 years old they moved to a suburb of the city called Norristown. This was home until after David graduated college. David’s father (Louis Hayes) was an engineer with degrees in electrical, mechanical, and civil engineering. His mother (Alice Hayes) was a stay at home Mom for most of his upbringing. By the time David was a teen his mother went to work for Allstate insurance in their claims area. Louis was very active in many local organizations until the day he died in 1998. He founded the local Youth Sports Association and was voted to the Board of Commissioners several times.

David is the third of four siblings. He has an older brother Paul who graduated from University of Pennsylvania and currently resides in Miami, FL where he manages the investigations department for a local law firm. Bonnie is his older sister. She graduated from the University of Colorado and now resides in Pittsburgh, PA where she is the office manager for her husband’s law practice. Joseph is the youngest. Joe graduated from Indiana University and lives in Siesta Key, FL. He is a multi state licensed CPA and has his own practice.

David went through his entire K-12 education in the Norristown school system, receiving his diploma in June 1976. Norristown graduated approximately 500 students per year at that time. He was routinely on the honor role but his real passion was sports. He played football, wrestled, and played baseball throughout his junior and senior high school days. Despite Norristown being one of the smallest schools in their league, David earned 1^st Team All-Suburban I Football honors in his senior year and was highly recruited by Division II & III college coaches. He was voted the teams Most Valuable Player. He was also named to the All Philadelphia Area First Team and was chosen to play in the Suburban Philadelphia All-Star Football game in the summer of 1976. At the end of his senior year, David was recognized and awarded the school’s Most Outstanding Athlete.

Secondery Education:
David chose to attend Harrisburg State College (later to become Harrisburg University) for several reasons. He was most impressed with the dedicated coaching staff and the excellent reputation that they had for producing winning football teams. In addition, the size of the school was right and most importantly the fields of study were perfectly aligned with David’s goals of pursuing Business & Economics. Harrisburg had a solid reputation for providing one of the best educations for the dollar as ranked by US News & World Report. That reputation that stands to this day. David chose Harrisburg over other colleges that accepted him including the University of Delaware and Princeton University.

David had a very successful freshman year which included making and playing on the highly ranked Harrisburg Football Team. Due to the time commitment and limitations on course selection placed on football players by the coaching staff, David made the hard decision to end his football career after the completion of his freshman year. The remainder of his undergraduate days was spent playing intramural sports, participating and leading the Economics & Business Club, and of course studying. David was named to the Deans List in 7 of his 8 semesters. He graduated Cum Laude in May 1980 with a Bachelors Degree in Business Administration, Accounting concentration as well as a minor in Economics. He was also inducted into the Phi Sigma Pi Honor Fraternity.

Although the economy was softening in 1980, David was recruited by Alloy Processing, a division of the Clarkson Company during his senior year. He moved to Hanover, PA immediately following graduation where he started his initial position as a staff accountant. David immediately decided to take advantage of the company’s policy of paying for continuing education. He enrolled in a Credit Management Program offered by the National Institute of Credit Management which he successfully completed in December 1980.

He also took several courses at nearby Penn State University (York Campus). Soon thereafter, David decided to enroll in the MBA program offered there. David began this process by attending night classes and was awarded his MBA degree from Penn State in August 1984.

Since that time David has continued his quest for knowledge by attending many seminars and mini courses on subjects including welding, teambuilding, relationship selling, sales & use taxation, and many software applications.

Early Career Work History:
McNeil Laboratories, Inc., Fort Washington, PA - Summers +

During the summers and semester breaks, David worked as an Administrative Services Clerk for this subsidiary of Johnson & Johnson. Performed duties as instructed. In David’s second summer, the Administrative Services Manager recognized David’s financial acumen and asked for his assistance in preparing his budget for the upcoming year. David did this in addition to his routine duties and assignments. His dedicated and positive work ethic earned him an unsolicited accommodation from the company President.

Alloy Processing Division. Clarkson Corporation ($90M Division) Hanover, PA - 6/80 –6/1982

Title:
Accountant I, June 1980 – May 1981
Financial Analyst - May 1981 – June 1982

Recruited out of Harrisburg, David received a solid fundamental foundation while performing entry level duties in this well run and structured accounting and financial department. David was responsible for monthly journal entries, cash reconciliations, assisted in the preparation of monthly and quarterly financial statements as well as product line profitability analysis.

After several months David wanted more responsibility and asked for such. The Accounting Manager gave him an assignment of writing detailed procedures for the department including accounts payables, accounts receivables, employee expense reimbursements, and journal entry preparation and approval. This project provided David the opportunity to learn and understand the minute details that must be considered and the controls that must be in place in order for everything to come together without problems. David took this project on with enthusiasm and the final result showed it. Upon completion he was immediately given another project, this time from the Corporate Controller. This project entailed learning about the entire company’s cash management cycle worldwide. David identified analyzed and recommended changes to how cash management was handled from country to country. He recommended changing banks in several countries due to the ease of transferring funds between banks that had existing relationships. This analysis also won him praise and he was soon promoted to Financial Analyst ahead of three other accountants with seniority.

The financial analysis & budgeting department introduced David to the world of corporate financial planning. Being a division of a Fortune 100 company, extensive reporting, forecasting and planning was required. David was part of a team of three people responsible for the preparation and presentation of this data. Specific deadlines had to be constantly met which required working around the clock at times. Some of the reporting that was done included annual operations plan, medium term plan (3 –5 years), three month rolling forecast and comparison, various profit center operating summaries, detailed product variance analysis including a price volume mix analysis, and the quarterly 10-Q. David really enjoyed the thrill of putting everything together and working hard to uncover problems and make them make sense.

Reason for Leaving:
1982 brought about a significant drop in revenue while at the same time material costs were escalating. In response to this, in about May of 1982 the company announced that it was instituting a company wide salary freeze for an indefinite period of time. David was due for an increase in June, one which he anticipated would be quite significant in light of what he had contributed over the past year. David had recently been married and was counting on this increase to support his new family commitments. David spoke to his manager and was assured that he was in fact in line for a significant increase, which had already been approved but was now on hold. After discussing this for some time, David began to look around to see what other opportunities were in the area. Coincidentally, prior to David compiling a résumé he was contacted by a person he knew from his home town who had recently moved to the area. They got together and David learned that this person had just taken over as CFO of a local company and was currently searching for an Accounting Supervisor. After discussions and several interviews, David was offered the position and left Alloy Processing.

MFP Industries, Inc. (Maynard Fruit Products) ($60M), Bloomsburg, PA - 6/82 – 6/1984

Title: Accounting Supervisor

MFP Industries, Inc. was a wholesaler/distributor of diverse fruit products supplied to major supermarket chains throughout the Northeastern US. David was responsible for accounts payable, accounts receivable, fixed asset administration, and the preparation of the monthly financial statements. Later product line profitability analysis, costing, and income tax preparation was added to his list of responsibilities. This was the first position where David had a staff reporting directly to him. His staff consisted of one professional and 4 clerks.

Some of the successful projects that David completed while at MFP include: automated several accounting processes that had previously been performed by hand, this automation saved labor hours as well as increased accuracy, established departmental procedures which enabled jobs to be rotated within the department thus increasing employee morale. MFP was very highly leveraged. Part of David’s job was to work with the reporting department of General Electric Credit Corporation (GECC), who provided the vast share of the operating cash.

Reason for Leaving:
GECC called the loans which required the company to sell its assets. David worked closely with the CFO to negotiate reduced payments to vendors to enable an offer to be accepted. The new owner offered David a position of Fixed Asset Manager with this larger company. David decided to leave because he did not feel that he would be adequately challenged in that position.

American Environmental Services, Inc. ($6M) Norristown, PA - 6/84 – 6/1985

Title: Controller

American Environmental Services, Inc. provided asbestos removal & cleanup services to commercial property owners throughout Pennsylvania. David was responsible for all aspects of accounting and finance. He successfully installed a computer system to do all billings, cash receipts, dispatching, and monthly financial statements. He also negotiated a significant loan from an existing vendor that enabled the company to continue its growth trend. He established all accounting systems and controls including accounts payable, accounts receivable, cash management, payroll, time reporting, insurance and fixed asset administration. He also redesigned existing insurance coverage providing better coverage at reduced costs. When David joined AMS, the company had a reputation of being a very slow pay, and having sloppy records. David cleaned this situation up and established good working relations with vendors. During the first year he had successfully set up credit terms with all major vendors, most of which were either doing business on cash terms or had a very small line of credit. David also utilized his interpersonal skills and acted as an ombudsmen with disgruntled employees. This relationship dropped the turnover rate considerably. In conjunction, he established and implemented a performance appraisal and review system. David also designed and implemented a costing system which greatly facilitated decision making. David had 5 direct reports.

Reason for Leaving:
Morale and ethical concerns about how the company handled legal and environmental and tax issues.

Static Incorporated, A Sealed Air Company (NYSE) ($3.5M), Concord, NH - 6/85 – 3/1987

Title: Controller

Static Incorporated made anti-static packaging for sensitive electronic parts. David was directly responsible for all aspects of accounting, finance, budgeting, and customer service. David had his arms around the accounting and finance operations within a very short period of time. He also got very involved in the costing issues and implemented cost containment programs in the plant.

David quickly earned the respect of the Production Manager as well as the Senior Vice President, who was also the previous owner and founder of the company. David’s first big responsibility was to coordinate the relocation of the operations from Pennsylvania to New Hampshire, including hiring all office staff and outfitting the new facilities. This task was accomplished on time and within budget. David was very successful at interviewing and hiring a staff of highly motivated and energetic employees. This caliber of people made the entire moving and learning the business process much easier for everyone. David proceeded to train personnel in both the accounting and customer service areas. David enjoyed having direct responsibility for the customer service operation. This enabled him to learn more about the sales and marketing functionality. He used his analytical and organizational skills to create automated systems that enabled the customer service staff to support the sales department to another level. The largest contribution in this area was to bring quoting into the customer service department and thus relieve the sales staff from this burden. This made the entire process more efficient and made everyone’s job satisfaction increase. This earned David the respect and admiration of the sales and marketing group. David also organized all accounting procedures including the computerization of financial processes, development and implementation of a multi location inventory control system, and the reduction of the monthly closing time.

Reason for Leaving:
The Company relocated its production operations to Norwalk, CT and its administration to Upper Montclair, NJ. David was offered a significant position in the corporate financial department reporting directly to the CEO. David & his wife made the difficult decision to stay in New Hampshire so they could raise their children in the small town that they had come to love.

Adhesive Technologies, Inc. ($9M), Hampton, NH - 3/87 – 4/1988

Title: Controller

Adhesive Technologies, Inc. manufactured & imported glue and glue guns from Asia for sale to big box retailers & hobby & crafts chains throughout the US. David was entirely responsible for all aspects of accounting, finance, budgeting, as well as the organization and management of the customer service operation. Some of David’s major accomplishments during his brief employment with Ad-Tech include: established an internal control system, initiated a comprehensive budgeting process complete with responsibility accounting by department, installed a timely and reliable financial reporting package, and instituted a cost accounting and part numbering system. David also reorganized administrative and production work flow and established human resources procedures. Ad-Tech had a French manufacturing subsidiary. David established a cash management procedure including foreign exchange transactions in coordination with that entity. He traded foreign exchange contracts to minimize the company’s exchange rate risk. He also designed and implemented a credit and collections procedure.

Reason for Leaving:
Opportunity with a high technology growth oriented company located closer to home. David was contacted by a former coworker from Static Inc. who recommended David for the position.

Recent Career History:

Thermal Spray Incorporated ($35M) Manchester, NH 4/88 – 2/2000

Title: Controller - 4/88 – 1/91

Thermal Spray Incorporated designs & manufactures thermal spray equipment that accelerates the dispersion of heated coating material from a spray torch towards the work piece. The deposited material forms a coating on the surface. David was responsible for all aspects of accounting, finance, budgeting, and purchasing. Established internal controls, operating procedures, and a responsibility accounting system, implemented a purchasing system, budgeting system, information management department, and a complete part numbering system, designed and implemented a timely and informative management reporting package, established a Profit Sharing and 401K program, and an IRS Section 125 benefits program. Converted manual systems to an integrated financial, manufacturing, and sales system.

Title: Vice President of Operations - 1/91 - 2/95

David remained responsible for everything above. In addition, he received sales responsibility for all large contracts involving zinc. Established multi-year contracts that have succeeded in maintaining large accounts of this “commodity” product, installation of a local and wide area network, researched, selected, and implemented an integrated manufacturing ERP/MRP software system (Mfg/Pro) including finance, order processing, sales analysis, work order processing, and purchasing, managed manufacturing operations and successfully reduced inventory, improved on time delivery, and reduced overhead rates, while sales increased on average 20%.

Title: Vice President & CFO - 2/95 – 2/2000

David remained completely responsible for all aspects of accounting, finance, budgeting, management information systems (MIS), risk management, and corporate legal matters. Responsible for all aspects of manufacturing including purchasing, inventory control, and production operations. Specific accomplishments include: established worldwide corporate financial reporting system. Central reporting for local management as well as corporate requirements including multi-currency transactions and consolidations, integral involvement in the legal transactions concerning the sale of Thermal Spray Inc. on three occasions and responsible for the acquisition and management of Metallurgical Processes, Inc., responsible for the establishment of a subsidiary located in Bristol, UK. Responsible for all aspects of finance, operations, and information system logistics. Established a European third party managed warehouse located in Amsterdam to service customers in Europe and the Middle East, handle all legal issues that require corporate resolutions, legal correspondence with banks and insurers, vendor and customer actions or threats of action. Founding member of the State Workers Compensation Manufacturers Trust, a self-insured workers’ compensation group. David served as Chairman of the Board of Trustees.

Reason for Leaving: Thermal Spray Inc. was sold to Axel Air, Inc, a competitor. David worked closely with the legal and financial personnel to enable a smooth and orderly transfer of ownership at the company. During this time David was offered a position as Controller of all Surface Processes products at Praxair’s corporate office in Indianapolis, IN. This would have been a significant, lucrative, and challenging position for David.

However, both of his children were in high school and he and his wife decided that this would not be a good time to relocate the kids. So, David turned the position down. The relationship continued when Praxair hired David as a consultant to tackle several financial and cost issues over the next two years.

Thermal Spray Inc.-Material Technologies, Inc. Pearland, TX - 2/98 - 2/2000

Title: President

(Sister Company to Thermal Spray Inc.) Responsible for the acquisition, including site selection, purchase contract, construction of a new facility, and the complete equipping of that facility. David negotiated tax abatements and land improvements with local economic development authorities, hired staff to administer and coordinate finance, production, engineering, quality, research, and administration with its sister company in Manchester, NH, Thermal Spray Inc, established operations priorities which resulted in a focused team effort to deliver top quality product to a highly demanding customer base, established all operating procedures significantly improving efficiencies, direct new product development efforts and strategic relationships with key accounts, established reporting requirements for tracking and improving process parameters including yields per machine per product, and overall continuous process improvement.

Reason for Leaving: See Above.

David Hayes Consulting, Sunapee, NH - 2/00 - Present

Title: Proprietor

David is the principal of this consulting practice concentrating on manufacturing operations. Various short and long-term projects including the identification, selection, and analysis of new business acquisition candidates, information system selection, installation and implementation, financial and administrative re-organization, banking workouts including cash flow analysis and debt restructuring, and operations efficiency studies & implementations.

Organizations & Affiliations:

Professional

Jan. ‘81 - Present - Active Member of the Institute of Management Accountants (IMA)

David has been a member of the IMA since 1981. He is past President of the NH Chapter.

April 1995 - Founding Member - State Workers Comp. Manufacturers Trust

Civic

Jan. ‘01 - Present - Mayoral appointment to the Economic Development Advisory Council (EDAC)

Mar. 2000 - 2003 - Elected to Sunapee Budget Committee

Mar. ‘98 - Present - Member Sunapee Economic Development Committee (Chair ‘02-‘04)

June ’96 - Present - Charter Member Sunapee Rotary Club (Vice President ‘05-06)

Nov. ‘88 - Present - Appointed as a Director of Sunapee Regional Development Corporation. David has held many positions on the Board and has been as officer several times. He currently serves as the Treasurer.

Family:
David was married to his high school sweetheart (Lois Brown) in September 1981. Lois graduated from the University of Missouri with a Bachelor of Science in Marketing. Before moving to NH, she was the assistant manager at the largest Woolworth store in the Philadelphia area. After moving, Lois worked for a retail store in the Sunapee area.

David & Lois wanted to start a family early. She gave birth to Robert Edward on October 17, 1983. Since David was still heavily involved at work and in his quest for his Masters degree, they decided that Lois would not go back to work and devote her full attention to raising Robert. In 1984 David & Lois moved back to the Philadelphia area after David accepted a new position. On May 6, 1985 Lois gave birth to Marie.

In 1985, David accepted another position that he knew would require a move to New Hampshire. In January 1986 the Hayes family moved to Sunapee, NH. Robert & Marie enjoyed the same luxury that David had of attending K – 12^th grades in the same school system (Hopkinton School District). Hopkinton is a small town of approximately 5,500 people. The school system graduates anywhere from 60 to 90 students per year. It is a rural and very safe place to raise children, and boasts that it has no traffic lights in the entire town. Robert graduated High School in June 2001. He is currently a junior at Babson College in Wellesley, MA majoring in finance and minoring in law. Robert also spent a semester studying abroad in Austria in his sophomore year. Marie graduated High School in June 2003. She is currently attending Wesleyan University in Middletown, CT majoring in journalism and minoring in Spanish. Both Robert & Marie have been named to the Dean’s List in each of their semesters at college.

Lois currently works as a licensed Instructional Assistant at the Elementary school in the local School District. She has been employed in this position for 11 years. Prior to being hired, Lois was in charge of coordinating volunteers for the school for three years. She did this job so well that she was recognized and presented with a certificate by then Governor Judd Gregg for her outstanding work as a volunteer.

David’s leisure time activities include hiking, golf, skiing & reading non-fiction.