Lanten-Enrech Building Group — Monthly CFO Report

CFO's Read

What happened. The company billed more than last month but earned less on every dollar: portfolio margin fell from 16.5% at bid to 13.6% today. Almost all of the drop comes from two jobs — Wynwood Podium and Marina Repairs — that each gave up 8 points.

Why it matters. Those 2.9 points are $2.35M of profit that will never show up. On top of that, the company has billed $486K ahead of work in place, so the bank balance looks better than what the business actually earned.

What to watch. The 13-week forecast drops below the cash floor in seven weeks, five of them back to back. This is not a profitability problem, it is a collection-speed problem: $1.21M in AR past 90 days and $976K of retainage stuck.

What to do. Run an EAC review with the PMs on both problem jobs before the August close, and freeze owner distributions until projected cash clears the floor four weeks running.

Contracted Backlog

$43.76M

14.4% GP embedded

Cumulative Margin Fade

−2.9 pts

Profit lost $2.35M

Net Over / (Under) Billing

$486K

Billed ahead of work

Available Liquidity

$8.97M

Cash $5.20M + line $3.77M

Current Portfolio GP%

13.5%

Bid at 16.5%

Revenue and Margin Trend

Earned revenue by month (bars) against portfolio gross margin (line). Selling more while earning less per dollar is the pattern that has to break.

What It Means

Revenue is up 27% since February while margin is down 2.2 points. The company is growing in volume and shrinking in profitability. Fix the estimating process before chasing more work.

Budget vs. Actual · Year to Date

Light bar: budget. Solid bar: actual.

What It Means

Revenue came in 4% under budget, but EBITDA came in 58% under. The gap is not in sales, it is in job cost. A revenue miss can be made up later; margin already given away on work in place cannot.

EBITDA Bridge · Where the $1.96M Went

Each red bar is a separate cause, not a restatement of the one before it. The three add up to exactly the difference between budget and actual.

What It Means

Of the $1.96M shortfall, only $344K comes from selling less. The other $1.61M came from inside the business: $1.31M of margin lost in the field and $302K of operating expense over plan.

What this means for the owner: winning more work does not fix this. Even if the company had hit its full revenue budget, EBITDA would have landed at $1.76M against $3.37M planned. The lever is job cost, not sales.

CFO's Read

Four of six jobs are running within estimate. The two that are not — Wynwood and Marina — are the only ones signed last fourth quarter, when the company bid aggressively to fill the schedule. This is not an execution problem, it is an estimating problem.

Action: review the EAC on both with the PM and document every change order performed without approval before the August close.

Margin Fade by Job

Gross margin at bid against margin implied by the current EAC. Each line is a job.

Within estimate Fade 1–3 pts · watch Fade >3 pts · intervene

WIP Schedule

Percentage-of-completion on a cost-to-cost basis. Earned revenue comes from cost progress, not from what was billed.

Job	Contract value	Cost to date	EAC	% complete	Earned revenue	Billed	Over / (Under)	Current GP%
Doral Logistics Center	$28,492,000	$19,374,600	$24,218,200	80%	$22,793,647	$23,505,900	$712,253	15.0%
Wynwood Podium	$17,807,500	$11,218,700	$16,026,800	70%	$12,465,183	$11,396,800	($1,068,383)	10.0%
Broward Schools Reroof	$8,799,000	$6,282,500	$7,391,200	85%	$7,479,126	$7,919,100	$439,974	16.0%
Coral Springs Medical TI	$6,075,500	$2,491,000	$4,981,900	50%	$3,037,811	$2,891,100	($146,711)	18.0%
Hialeah Warehouse Shell	$15,084,000	$3,936,900	$13,123,100	30%	$4,525,166	$5,279,400	$754,234	13.0%
FTL Marina Repairs	$4,106,200	$3,363,700	$3,737,500	90%	$3,695,525	$3,490,300	($205,225)	9.0%
Portfolio	$80,364,200	$46,667,400	$69,478,700	67%	$53,996,458	$54,482,600	$486,142	13.5%

How to Read Over/(Under) Billing

Overbilling means the client has been billed for work not yet performed: that is a liability, not profit. Underbilling is the opposite — the money is spent and not yet billed. Coral Springs and Marina are $352K underbilled; that gets fixed with a pay application, not with a call to the bank.

Change Order Log

Work performed without an approved order is cash already out the door against revenue no one has committed to in writing.

Job	No.	Description	Amount	Status	Days open
Wynwood Podium	CO-014	Additional slab reinforcement, level 3	$385,500	Performed unapproved	41
Wynwood Podium	CO-016	Glazing specification change	$268,200	In review	18
Wynwood Podium	CO-017	Facade rework per RFI-088	$222,100	In review	9
Doral Logistics Center	CO-019	Additional electrical service	$196,900	Approved	—
Doral Logistics Center	CO-021	Loading dock expansion	$117,300	Performed unapproved	26
Broward Schools Reroof	CO-009	Additional joint sealant	$75,400	Approved	—
Coral Springs Medical TI	CO-004	HVAC duct relocation	$129,900	In review	12
Hialeah Warehouse Shell	CO-011	Overexcavation, soft soil	$297,500	Approved	—
FTL Marina Repairs	CO-007	Deteriorated pile replacement	$62,900	Performed unapproved	63
FTL Marina Repairs	CO-008	Time extension, tidal delay	$92,200	In review	29
Total open	Approved $569,800 · In review $712,400		$1,847,900	Unapproved $565,700

What It Means

$566K performed without approval. That money is already spent and sits in no contract today. If the client does not recognize it, it comes straight out of profit. It is the single largest driver of this month’s fade.

Action: no crew starts extra work without a signed CO. All six open items get formally submitted this week with RFI backup and labor hours.

How to Use This Page

Pick a job to see where its margin is going: budget against actual cost by division, the fade broken out by cause, open change orders, and billing and retainage status.

Doral Logistics Center 15.0% · −1.5 ptsWynwood Podium 10.0% · −8.0 ptsBroward Schools Reroof 16.0% · +1.0 ptsCoral Springs Medical TI 18.0% · −0.5 ptsHialeah Warehouse Shell 13.0% · −1.5 ptsFTL Marina Repairs 9.0% · −8.0 pts

Contract value$28,492,000

Complete80%

Current GP%15.0%

Fade−1.5 pts

Cost overrun+$427K

Cost committed88%

Cost by CSI Division

Bid budget against current EAC. The variance by division is where you see exactly what was underestimated.

Division	Budget	Cost to date	EAC	Variance	% over
01 General Conditions	$2,019,600	$1,729,066	$2,078,200	+$58,600	+2.9%
03 Concrete	$4,776,600	$3,791,156	$4,885,500	+$108,900	+2.3%
05 Structural Steel	$6,641,200	$5,572,545	$6,896,700	+$255,500	+3.8%
07 Envelope & Roofing	$3,402,300	$2,704,606	$3,414,900	+$12,600	+0.4%
26 Electrical	$2,891,100	$2,301,043	$2,819,900	−$71,200	-2.5%
22/23 Mechanical & Plumbing	$4,060,100	$3,276,184	$4,123,000	+$62,900	+1.5%
Total	$23,790,900	$19,374,600	$24,218,200	+$427,380	+1.8%

Where the Fade Comes From

Cost overrun broken down by root cause. Each bar is a decision or an event, not an accounting entry.

CFO's Read

The overrun is material price, not productivity. The job is running well; the estimate simply went stale against the steel market. Fix the escalation factor on upcoming bids.

Billing & Collections

Billed to date$23,505,900

Earned revenue$22,793,647

Overbilling$712,253

Collected$20,866,200

Outstanding$2,639,700

Retainage held$1,428,800

Retainage % of billed6.1%

Change Orders on This Job

CO-019 · Additional electrical service
Approved$196,900

CO-021 · Loading dock expansion
Performed unapproved$117,300

Contract value$17,807,500

Complete70%

Current GP%10.0%

Fade−8.0 pts

Cost overrun+$1.42M

Cost committed79%

Cost by CSI Division

Bid budget against current EAC. The variance by division is where you see exactly what was underestimated.

Division	Budget	Cost to date	EAC	Variance	% over
01 General Conditions	$1,240,200	$1,027,931	$1,412,000	+$171,800	+13.9%
03 Concrete & Structure	$5,258,500	$3,982,993	$5,866,000	+$607,500	+11.6%
04 Masonry	$1,684,400	$1,238,233	$1,751,400	+$67,000	+4.0%
07/08 Facade & Glazing	$2,891,100	$2,229,993	$3,217,900	+$326,800	+11.3%
26 Electrical	$1,960,900	$1,438,988	$2,015,400	+$54,500	+2.8%
09 Finishes	$1,567,100	$1,300,562	$1,764,000	+$196,900	+12.6%
Total	$14,602,200	$11,218,700	$16,026,700	+$1,424,650	+9.8%

Where the Fade Comes From

Cost overrun broken down by root cause. Each bar is a decision or an event, not an accounting entry.

CFO's Read

Three of the four causes are controllable and none of them is the market. Structural labor was estimated 12% short, and the facade rework traces back to an RFI that took 34 days to answer. This job needs an EAC review with the PM before the August close.

Billing & Collections

Billed to date$11,396,800

Earned revenue$12,465,183

Underbilling$1,068,383

Collected$10,089,500

Outstanding$1,307,300

Retainage held$683,000

Retainage % of billed6.0%

Change Orders on This Job

CO-014 · Additional slab reinforcement, level 3
Performed unapproved$385,500

CO-016 · Glazing specification change
In review$268,200

CO-017 · Facade rework per RFI-088
In review$222,100

Contract value$8,799,000

Complete85%

Current GP%16.0%

Fade+1.0 pts

Cost overrun−$88K

Cost committed94%

Cost by CSI Division

Bid budget against current EAC. The variance by division is where you see exactly what was underestimated.

Division	Budget	Cost to date	EAC	Variance	% over
01 General Conditions	$636,900	$585,206	$662,000	+$25,100	+3.9%
02 Demolition	$913,400	$708,243	$859,000	−$54,400	-6.0%
07 Waterproofing & Roofing	$4,231,900	$3,568,344	$4,156,500	−$75,400	-1.8%
06 Structural Carpentry	$896,700	$736,899	$875,700	−$21,000	-2.3%
26 Electrical	$800,300	$683,808	$838,000	+$37,700	+4.7%
Total	$7,479,200	$6,282,500	$7,391,200	−$87,950	-1.2%

Where the Fade Comes From

Cost overrun broken down by root cause. Each bar is a decision or an event, not an accounting entry.

CFO's Read

The only job that improved its margin. The roofing crew outperformed the production standard used at bid. That real output is worth documenting and carrying into the next reroof estimates.

Billing & Collections

Billed to date$7,919,100

Earned revenue$7,479,126

Overbilling$439,974

Collected$7,211,000

Outstanding$708,100

Retainage held$473,500

Retainage % of billed6.0%

Change Orders on This Job

CO-009 · Additional joint sealant
Approved$75,400

Contract value$6,075,500

Complete50%

Current GP%18.0%

Fade−0.5 pts

Cost overrun+$30K

Cost committed71%

Cost by CSI Division

Bid budget against current EAC. The variance by division is where you see exactly what was underestimated.

Division	Budget	Cost to date	EAC	Variance	% over
01 General Conditions	$413,800	$224,437	$431,600	+$17,800	+4.3%
09 Interior Finishes	$1,617,300	$774,270	$1,596,400	−$20,900	-1.3%
22/23 Mechanical & Plumbing	$1,307,300	$672,876	$1,332,400	+$25,100	+1.9%
26 Electrical & Data	$1,110,400	$564,163	$1,139,700	+$29,300	+2.6%
08 Doors & Glazing	$502,800	$255,254	$481,900	−$20,900	-4.2%
Total	$4,951,600	$2,491,000	$4,982,000	+$30,368	+0.6%

Where the Fade Comes From

Cost overrun broken down by root cause. Each bar is a decision or an event, not an accounting entry.

CFO's Read

Healthy job, within range. What to watch is not the margin but that only 71% of cost is committed: there is still price exposure in mechanical and electrical.

Billing & Collections

Billed to date$2,891,100

Earned revenue$3,037,811

Underbilling$146,711

Collected$2,564,300

Outstanding$326,800

Retainage held$171,800

Retainage % of billed5.9%

Change Orders on This Job

CO-004 · HVAC duct relocation
In review$129,900

Contract value$15,084,000

Complete30%

Current GP%13.0%

Fade−1.5 pts

Cost overrun+$226K

Cost committed62%

Cost by CSI Division

Bid budget against current EAC. The variance by division is where you see exactly what was underestimated.

Division	Budget	Cost to date	EAC	Variance	% over
02 Earthwork	$2,036,300	$728,140	$2,333,800	+$297,500	+14.6%
03 Concrete & Slab	$4,575,500	$1,310,741	$4,504,300	−$71,200	-1.6%
05 Structural Steel	$3,540,600	$1,080,399	$3,565,700	+$25,100	+0.7%
07 Envelope	$1,684,400	$504,005	$1,697,000	+$12,600	+0.7%
01 General Conditions	$1,060,100	$313,615	$1,022,400	−$37,700	-3.6%
Total	$12,896,900	$3,936,900	$13,123,200	+$226,280	+1.8%

Where the Fade Comes From

Cost overrun broken down by root cause. Each bar is a decision or an event, not an accounting entry.

CFO's Read

The overrun landed in earthwork and is now behind us. What matters is that only 62% of cost is committed with the job at 30% complete: there is room to negotiate subcontracts and win back part of the point and a half lost.

Billing & Collections

Billed to date$5,279,400

Earned revenue$4,525,166

Overbilling$754,234

Collected$4,583,900

Outstanding$695,500

Retainage held$318,400

Retainage % of billed6.0%

Change Orders on This Job

CO-011 · Overexcavation, soft soil
Approved$297,500

Contract value$4,106,200

Complete90%

Current GP%9.0%

Fade−8.0 pts

Cost overrun+$329K

Cost committed96%

Cost by CSI Division

Bid budget against current EAC. The variance by division is where you see exactly what was underestimated.

Division	Budget	Cost to date	EAC	Variance	% over
02 Piles & Substructure	$1,430,500	$1,502,070	$1,604,800	+$174,300	+12.2%
03 Marine Concrete	$859,000	$797,386	$913,400	+$54,400	+6.3%
05 Hardware & Framing	$494,400	$472,309	$519,600	+$25,200	+5.1%
01 General Conditions	$410,600	$447,988	$502,800	+$92,200	+22.5%
09 Finishes & Protection	$213,700	$143,947	$196,900	−$16,800	-7.9%
Total	$3,408,200	$3,363,700	$3,737,500	+$329,354	+9.7%

Where the Fade Comes From

Cost overrun broken down by root cause. Each bar is a decision or an event, not an accounting entry.

CFO's Read

The hidden conditions were claimable and were not claimed in time. On top of that, $494K of retainage is held up behind a punch list open since March. Closing that punch list is the highest immediate-return action in the whole portfolio.

Billing & Collections

Billed to date$3,490,300

Earned revenue$3,695,525

Underbilling$205,225

Collected$2,798,900

Outstanding$691,400

Retainage held$494,400

Retainage % of billed14.2%

Change Orders on This Job

CO-007 · Deteriorated pile replacement
Performed unapproved$62,900

CO-008 · Time extension, tidal delay
In review$92,200

CFO's Read

The company is profitable and still runs short of cash in seven of the next thirteen weeks. The available credit line ($3.77M) covers the dip, but using it to finance slow collections is expensive and eats into bonding capacity.

Action: collect the $1.21M of AR past 90 days and close out the Marina punch list to release $494K of retainage. That alone erases the dip without touching the line.

Cash Forecast · 13 Weeks

Week-ending cash against the $3.14M operating floor.

Collections

Cash in bank$5,196,000

Available on line of credit$3,771,000

Total liquidity$8,967,000

AR current$8,820,000

AR 31–60 days$4,944,000

AR 61–90 days$2,284,000

AR 90+ days$1,207,000

DSO68 days

Retainage

Held by clients$2,858,000

Held from subcontractors$1,722,000

Net exposure$1,136,000

Releasable within 90 days$813,000

Stuck 180+ days$976,000

Marina Repairs has $494K held up by a punch list open since March. It is the easiest item on the balance sheet to free up.

CFO's Read

The $43.8M backlog looks healthy on volume but carries only 14.4% margin — below the 16% the business needs to cover fixed cost and debt service. A big backlog at thin margin is bad news dressed up as good news.

Action: raise the bid margin floor to 17% while backlog GP% stays under 15%, even if that means losing a few bids.

Backlog

Remaining on active jobs$26,368,000

Awarded, not started$17,389,000

Contracted Backlog$43,757,000

GP embedded$6,301,000

Backlog GP%14.4%

Months of coverage4.8 months

Book-to-burn, quarter0.92×

Bonding Capacity

Aggregate used · $43.76M42%

Aggregate limit$105,000,000

Single-job limit$35,000,000

Largest job in portfolio$28,492,000

Working capital$13,324,000

Current ratio1.42×

The surety looks at working capital and net worth. Every dollar distributed to the owner reduces how much work the company can chase.

Portfolio Concentration

Each job's share of total contract value.

What It Means

Doral Logistics is 35% of the portfolio. If that job slips or goes into dispute, it drags the whole company with it. This is the same concentration risk a bank weighs before renewing the line.

How to Use This Scorecard

Every metric carries its formula, source, target, and the recommended action when it is out of range. Click any one for the full definition. The six in red are the ones that need a decision this month.

Portfolio GP%13.5% Target ≥16.0%›

Formula(Contract value − EAC) ÷ Contract value

Source & frequencyWIP schedule · monthly

What it means for the ownerHow much gross profit is left on every contracted dollar, based on the total cost expected today.

Recommended action when out of rangeReview EAC job by job and split the fade by cause: estimating, productivity, or unbilled change orders.

Margin fade2.9 pts Target ≤1.0 pt›

FormulaBid GP% − current EAC GP%

Source & frequencyWIP vs. bid budget · monthly

What it means for the ownerHow much margin has evaporated between what was promised at signing and what is expected today.

Recommended action when out of rangeAudit the estimating process on the jobs with the worst fade and fix the cost factors before the next bid.

Net Over / (Under) Billing$486K Target ±2% of contract›

FormulaBilled to date − Earned revenue

Source & frequencyWIP schedule · monthly

What it means for the ownerPositive means the company billed for work not yet performed: that is the client’s money, not profit.

Recommended action when out of rangeCorrect underbillings with an immediate pay application, and never read overbilling as available cash.

DSO68 days Target ≤50 days›

FormulaAccounts receivable ÷ Average daily revenue

Source & frequencyBalance sheet + WIP · monthly

What it means for the ownerHow many days it takes the company to turn an invoice into cash.

Recommended action when out of rangeDocumented weekly collection plan on AR past 60 days; review AIA approval cycles with each client.

Days of cash13 days Target ≥30 days›

FormulaCash ÷ Average daily operating outflow

Source & frequency13-week cash forecast · weekly

What it means for the ownerHow long the company could operate on current cash if collections stopped today.

Recommended action when out of rangeAccelerate collections and release retainage before drawing on the credit line.

Retainage as % of AR14.2% Target ≤12%›

FormulaRetainage receivable ÷ Total accounts receivable

Source & frequencyBalance sheet · monthly

What it means for the ownerWhat share of what is owed to the company is held back and cannot be collected yet.

Recommended action when out of rangeClose open punch lists and negotiate partial release on substantially complete jobs.

Backlog GP%14.4% Target ≥16.0%›

FormulaGross profit embedded in backlog ÷ Contracted backlog

Source & frequencyBacklog + awarded budgets · monthly

What it means for the ownerThe margin carried by work not yet performed. It is the leading indicator of future profitability.

Recommended action when out of rangeRaise the bid margin floor until the target level is restored.

Months of backlog4.8 months Target ≥6.0 months›

FormulaContracted backlog ÷ Average monthly revenue

Source & frequencyBacklog + WIP · monthly

What it means for the ownerHow many months of work are secured at the current burn rate.

Recommended action when out of rangeKeep bid volume up without lowering the margin floor; track win rate by job type.

Book-to-burn0.92× Target ≥1.00×›

FormulaNew contracts booked in quarter ÷ Revenue earned in quarter

Source & frequencySigned contracts + WIP · quarterly

What it means for the ownerBelow 1.0, backlog is being consumed faster than it is being replaced.

Recommended action when out of rangeReview the bid pipeline and award rate by client type.

Bonding capacity used42% Target ≤70%›

FormulaBonded backlog ÷ Surety aggregate limit

Source & frequencySurety letter + backlog · quarterly

What it means for the ownerHow much capacity is left to chase new work before hitting the surety’s ceiling.

Recommended action when out of rangePreserve working capital and net worth; model the impact of any distribution before making it.

Current ratio1.42× Target ≥1.30×›

FormulaCurrent assets ÷ Current liabilities

Source & frequencyBalance sheet · monthly

What it means for the ownerAbility to cover short-term obligations. It is the ratio the bank and the surety watch most.

Recommended action when out of rangeProtect the current level by avoiding distributions and unfinanced CapEx.

EBITDA year to date$1.41M Budget $3.37M›

FormulaGross profit − Operating expense

Source & frequencyIncome statement · monthly

What it means for the ownerWhat the business actually generates before interest, taxes, and depreciation.

Recommended action when out of rangeThe shortfall comes from job cost, not from sales. Attacking the fade is the only lever that fixes it.

Risks & Red Flags

Concentrated margin fade. Wynwood and Marina account for $2.35M of lost profit. Both were signed in the same quarter under an aggressive bidding posture.
Cash looks better than it is. $486K of net overbilling is the client’s money, not earned profit.
Liquidity dip. Seven of the next thirteen weeks fall below the floor; projected cash bottoms at $650K against a $3.14M operating floor.
Portfolio concentration. A single job is 35% of contract value.
Thin-margin backlog. 14.4% against a 16% breakeven.
Stuck retainage. $976K with no movement in over 180 days, $494K of it behind an open punch list.

Recommendations

EAC review session with the PMs on Wynwood and Marina; document every change order performed without approval.Controller + PM · by Aug 29
Freeze owner distributions until projected cash clears the floor four consecutive weeks. Owner · effective immediately
Collection plan on the $1.21M of AR past 90 days, with a documented weekly call per client. Admin · reported every Friday
Close out the Marina punch list to release $494K of retainage. Superintendent · by Sep 15
Raise the bid margin floor to 17% while backlog GP% stays under 15%. Estimating + Owner · next bid
Audit the estimating process on jobs signed in Q4 2025 to pinpoint what was underestimated. Estimating · before September close

Next Steps with Compass

Job-by-job EAC reviewWeek of Aug 25

13-week cash forecast updateEvery Friday

August CFO reportSep 10

Estimating and margin-floor reviewSep 12

Credit line and surety renewal packageOctober

Illustrative data. The WIP schedule is the source of everything else in this report: revenue, margin, over/underbillings, cash forecast, and bonding capacity all come off the same six jobs. Prepared by Compass Planning Group from the close provided by management; this is not an audit or a review.