Woodstream may not be a household name, but its brands make life more pleasant for millions of Americans every year. The company produces, markets, and distributes a wide range of insect- and pest-control products, from traditional wooden mouse traps to Wi-Fi enabled zap traps that send mobile alerts when they’ve successfully killed a rodent. In addition, Woodstream makes electric fencing for livestock containment and is the global market leader in bird feeders. It sells both direct-to-consumer online and through major retailers.

All these businesses are, by nature, seasonal. “Retailers begin stocking our brands in their lawn-and-garden section in March or April, then typically carry them through the summer or fall, depending on the product line,” explains Andrew Church, CFO of Woodstream. “We manufacture goods all year long in two factories in the U.S. We also use contract manufacturers, primarily in Asia. Their heavy season is November through January, getting us ready for shipments that will peak in the spring.”

This means that every year the company’s expenditures accelerate in winter, and it takes several months for revenues and customer collections to catch up. “Early in the year, Woodstream is a net borrower,” Church says. “We draw on a seasonal revolving credit facility as we’re ramping up production. Then, when we start collecting on receivables, cash inflows exceed outflows. By mid spring, we’ve totally paid off our revolver debt.”

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?


NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Meg Waters

Meg Waters is the editor in chief of Treasury & Risk. She is the former editor in chief of BPM Magazine and the former managing editor of Business Finance.

More from this author

 

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2023 ALM Global, LLC. All Rights Reserved.