Seaside Materials Turns Tide on Profitability
Advisory
Services Help Company Grow with Confidence
Growing pains can be brutal, especially when it
comes to your business.
Anthony and Frances Damiano know only too well.
In 1990, the couple started Seaside Materials, a
masonry and stone supply company, with 22 years
industry experience and ardent determination.
Under their hands-on leadership, the Monmouth
County establishment has expanded at an
astonishing pace, becoming one of Central New
Jersey’s largest distributors of interlocking
concrete pavers while catering to an upscale
clientele that extends as far north as Manhattan
and south as Atlantic City. Sales have surged
annually along with its product line that
encompasses a diverse range of raw materials,
stone countertops and finished architectural
accents.
Ironically, this very success created unexpected
challenges.
The Damianos were referred to Bartolomei
Pucciarelli, a Lawrenceville-based CPA and
business advisory firm, about three years ago by
their portfolio investment advisor. At the time,
Seaside Materials had severed ties with several
accounting firms, all reputable but none broadly
equipped to guide their thriving organization.
Despite robust sales, the company was on the
verge of financial distress. According to
Anthony Damiano, “We were feeding the giant and
clearly in danger of growing ourselves right out
of business.”
“For Seaside Materials, it was not just about
filing a tax return, but bringing the operation
under control and building a profitable
business,” explained Michael S. Pucciarelli,
CPA, principal, Bartolomei Pucciarelli.
 When
Bartolomei Pucciarelli first came on board,
Seaside Materials was squeezed by cash flow
problems and pursuing a sizeable line of credit
to keep them afloat. Mike Pucciarelli convinced
them to put those plans on hold, getting their
company back on its feet rather than crippling
itself with debt. Their work began with an
in-depth evaluation of the entire operation.
“You can’t just look at total sales, you have to
drill down to identify strengths, weaknesses,
threats and opportunities,” explained
Pucciarelli.
The diagnostic revealed compelling obstacles
hindering the company’s viability. While their
sales were climbing steadily, their inventory,
overhead and accounts receivables were also
increasing, ultimately stifling their profits
and leading to a cash shortfall. “When those
areas are not managed properly, a company can
grow themselves out of business,” stated
Pucciarelli.
One of the most dramatic improvements resulted
from a detailed product analysis that
highlighted how one of the company’s core
products, concrete block, represented 35 percent
of the company’s total sales but yielded little
profit. Adjustments in pricing and bulk
purchasing from a different manufacturer nearly
tripled the block’s profit margin within one
year. “That really opened our eyes,” asserted
Damiano.
Seaside Materials assessed and restructured
costs associated with each of its products,
learning how to better manage and streamline an
inventory containing well over 3,000 items
supplied by nearly 200 vendors.
With assistance from Bartolomei Pucciarelli, the
company also instituted more effective and
aggressive procedures and systems for accounts
receivable, reducing the average payment on
outstanding invoices from about 70 days to 47
days. Furthermore, they trimmed overhead
expenses and increased assets to posture the
company for healthy growth.
“Bartolomei Pucciarelli taught us how to be more
accountable to ourselves, to really understand
the inner workings of our business and make more
intelligent decisions on everything from
bookkeeping to inventory control,” stated
Damiano. Over the past two years, Seaside
Materials has doubled in size and revenue while
almost doubling its gross profit margin. “We’re
not just growing bigger, we’re growing
stronger.”
Recently, Seaside Materials secured its first
line of credit and obtained a term loan to build
a stone gallery that will expand its customer
base and generate additional revenue. “They’re
using credit wisely and fostering a solid
banking relationship,” noted Pucciarelli.
Bartolomei Pucciarelli also facilitated the
company’s partnership with a professional
marketing firm to develop a cohesive
communications plan for promoting this exciting
new initiative.
“We are experiencing a level of success and
profitability that astounds us,” added Damiano.
“There’s no doubt in our minds that we wouldn’t
be here without Mike’s guidance.”
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