RICHARD A. JOHNSON, CTP

(770) 938-4861

   email:  rajohnsonctp@msn.com  website:   www.corporaterenewal.net 

             Richard A. Johnson is one of a small number of Professionals in the United States to be certified as a Turnaround Professional by the Association for Certification of Turnaround Professionals in conjunction with Northeastern University in Boston, Massachusetts.  His recent writing, Renewal Without Crisis, creates a framework for currently popular management choices such as Downsizing, Re-engineering, Activity Based Accounting and Empowerment.  It helps explain why companies who believe they are doing the same things are experiencing very different results.  His analysis identifies three controlling components of productivity, develops strategies to improve them, and suggests a more cost effective arrangement for corporations of the future called “Parallel Organization.”   His Four Laws of Productivity seeks to describe elements of productivity in simple terms suitable for use at the value added work level. 

EDUCATION, PROFESSIONAL ASSOCIATIONS AND BOARDS OF DIRECTORS

 

BSIE PURDUE UNIVERSITY, 1966;  CERTIFIED TURNAROUND PROFESSIONAL, 1995;  Past Chairman Atl. Chpt.  INSTITUTE OF MANAGEMENT CONSULTANTS;  Board of Dir. Atl. Chpt., TURNAROUND MANAGEMENT ASSOCIATION; Board of Directors, SOUTHERN SCOTTISH INNS; Past Chairman Audit Comm., HOSPITALITY INTERNATIONAL

 

OPERATING OFFICER - TURNAROUND PROFESSIONAL                     1966-Present

 

            Richard Johnson has been helping businesses grow and solving the problems of poorly performing businesses since 1966.  His initial projects focused on the manufacture of electronic components where he ultimately headed the team developing the equipment used in the production of the products.  Later, as division manager, he was responsible for the production and sale of magnetic recording heads for the computer peripheral industry.  Since then, Johnson has had operating responsibilities for businesses engaged in manufacturing, apartments, commercial rentals, real estate development, hotels, farmland, recreation, food service, franchising, and health care where he has employed hundreds of people from unskilled to highly trained professionals. His experience includes operations and franchising in 38 states and five countries. Since many of the properties were troubled when acquired, the solutions demonstrated creativity and the ability to arrange solutions meeting the objectives of multiple interests. The ability to draw on experiences in all of these industries gives a unique depth and breadth of knowledge to apply to new projects. In recent years he has focused on applying the lessons learned as a Turnaround Professional to companies in all levels of financial health.  He has traveled extensively, and as a licensed pilot, holds a multi-engine instrument rating.  The following are representative engagements organized by category from the dozens of companies and projects in which he has actively participated.

 

 

SEMINARS

 

           Johnson has been a co-presenter for seminars concerning Fundamentals of Inventory Management, and Cycle Counting for Record Accuracy.  He has also created seminars on productivity and related topics.  Companies who have attended seminars include Pulte Homes, Copeland Corporation, Edw. C. Levy Company, University of Arizona, Siemens, TG Lee Dairy, Delta Airlines, Johnson & Johnson, Regina USA, CIBA Vision, Mitsubishi, American Boa, Health Care Systems, North Atlantic Energy, Giant Tiger Wholesale Ltd., Diversitech Corp., John Deere, Perry Ellis International, Texas Instrument, Dean Foods, GECOM, Georgia Pacific, Defense Supply Center, Phillip Morris, Motorola, Jet Propulsion Labs A.B. Dick Company, American Can Company, Babcock & Wilcox, Copeland Corporation, Darnell Corporation, Digital Equipment Corporation, Esterline Corporation, Eaton Corporation, Evans Industries, Evans Paint Company, General Signal Company, General Telephone and Electric, Hercules Incorporated, IBM, IRS, Department of the Treasury, U.S. Government, Kirsch Company, Johnson and Johnson, The Johnson Rubber Company, Maremont Corporation, Magna Corporation, Division of Baker International, Medex Incorporated, The Miller Company, Mine Safety Appliances Company, MINCO, Inc., NCR Corporation, Nestle Company, Philip Morris,  Potter & Brumfield, Remington Building Products, Roper Corporation, Sharon Manufacturing Company, Simpson Paper Company, Smith Kline Beauchamp Corporation, Steel Heddle Manufacturing Company, Totes Incorporated, Union Carbide Corporation, UNISYS Corporation, U.S. Shoe Corporation, and Westinghouse Electric Corporation.

 

BANKRUPTCY AND LEGAL  

 

              Engaged to represent the stockholders in bankruptcy reorganization of United Companies, a $3B per year sub prime lender with a $7B securitization portfolio.  Was successful in getting a stockholders committee appointed, lifting the exclusivity period for Debtor-in- possession and submitting a competing plan.  Was responsible for review of operations, reports on the quality of loan servicing, value of repossessed properties and valuation of securitized portfolios.  Forensic investigation led to a dispute of value of the assets and eventually to a claim regarding mis-reporting of prior financial statements.  Claim on behalf of stockholders is being adjudicated.

 

           Engaged to settle all claims of a motel franchise company in bankruptcy.  Arranged for its dismissal from bankruptcy preserving the original stockholder, and arranged for the franchise agreements to be serviced by a previous creditor.  Another franchise company subsequently acquired the franchise contracts and other assets at a mutually satisfactory price.

 

           Engaged by a publicly traded company to improve liquidity and operations to avoid bankruptcy.  Efforts were successful in preventing such a filing.

 

            Since much of Johnson’s career has been spent dealing with turnaround projects outside the bankruptcy process, he has also had significant other court experience.  Efforts to clear or defend title in various projects, have given him the opportunity to oversee court cases in five states in County, District, State, Federal, Bankruptcy, and Maritime Courts, including several trips to the appeals courts.  Almost all were settled in favor of the interests he represented.

 

GOVERNMENT AND PUBLIC INSTITUTIONS

 

            Engaged by Georgia State, US Department of Labor, GA Dept of Labor to investigate availability of information at employer level needed for local Workforce Investment Boards and Workforce Planners to carry out the responsibilities mandated by the 1998 Workforce Investment Act.  Studies were the basis of presentations to the eight state Workforce Investment Regional Conference. 

 

            Engaged by the Mississippi Department of Labor to do a follow up study concerning availability of information needed to carry out the responsibilities of Local Workforce Investment Boards and Workforce Planners. 

 

              Engaged by Usery Center for the Workplace at Georgia State University to assist in writing and editing a study done in Georgia concerning notice by employers of pending expansions, layoffs, and closings. 

 

LENDER REPRESENTATION

 

               Engaged by one of several lenders attempting to recover loans to a failed condominium project in Florida.  By working with the previous owners, architects and the contractor, Johnson was able to complete units and find buyers at near market prices.  Client avoided all write-downs and yielded approximately 16% on their loan. Client was the only original lender on the project to avoid significant write off.

 

               Engaged by a Bank for the forensic evaluation of a $100MM creditors estate and to evaluate special asset loans, including lumber company, townhouses, vineyard, hog operations and agricultural land. 

 

FINANCING

 

                Engaged to secure numerous financings in Eastern US both Real Estate and Asset Based.  Has had borrowing relationships with in excess of 50 lenders.  Most recently secured financing for 4MM office building in Louisiana.

 

OPERATING OFFICER   

  

            Johnson arranged for the purchase and subsequently oversaw the management of a 300 bed Skilled Care Facility.  When acquired, facility was in foreclosure, and a petition for Bankruptcy had been filed.  The first operator had failed.  In doing so, he developed a poor image for the facility and left it in a state of financial disaster with a negative cash flow of approximately $1,200,000 per year.  Established new lines of credit, restructured staff and management, and established good relationships with Medicare and Medicaid.  Increased the facilities census from less than 40% when acquired to over 90%.  Staff grew to about 200 employees, over half of which were medical personnel.  Within two years, the facility became profitable and was sold to one of the premier Health Care Providers in the Chicago market for $1,800,000 more than was paid for it. Gain on invested capital was in the range of 30% per year.

 

            Johnson held the position of Division Manager for the manufacture of Precision Recording Heads for Computer Peripherals, Professional sound, and Auto Bank Teller Industries. Major customers included Docutel, Wang Labs, and RCA.  Prior manufacturing experience included seven years in the manufacturing of electronic components.  Major customers included IBM, RCA, Sylvania, Magnavox, G.E., and Motorola.  Specialty of cost analysis, and methods evolved into designing and building Production Equipment for plants in Illinois, Iowa, Taiwan, Mexico and South Dakota.  Company frequently outdistanced competition as a result of the equipment Johnson envisioned and built.   Some of the machines paid for themselves in as little as six weeks.  Product components patented in name are still in use world wide in communications, computer, and entertainment industries.

 

            Engaged to reopen, operate and clear title on a 200-room Hotel.  The previous owner had defaulted on a land lease, bank mortgage, and second mortgage.  Title to the collateral that was pledged for the down payment, was clouded, and the security position was in doubt.  The Landholder, Bank, Purchaser, and holder of the Second Mortgage had filed litigation.  Relations with the city were severely strained. Seventy rooms had no furniture, water, or phone service.  Most of the rest lacked functional air conditioners, phones or linen. Out of the 200 rooms, only 70 were reasonably close to being habitable.  The pool equipment was inoperable, the paint was peeling from the exterior, water pipes were burst, the utilities were shut off, and the Fire Marshall had closed the ballroom and meeting rooms.  When operating, the property had been losing three hundred thousand dollars per year.

 

            Johnson negotiated a purchase of the first mortgage at a discount of $473,000.  Settled the litigation with the landowner without giving up significant ownership rights.  Within the first year the litigation with the previous owner was resolved.  The collateral for the second mortgage, now estimated to be worth $800,000 was recovered at a cost of $150,000.  Title on the facility was cleared.  By the end of the second year, the property was operating at break even.  All 200 rooms were equipped and habitable.  The lounge and restaurant were open. The ballroom and meeting rooms were open and functioning.  Pool equipment had been replaced. The building had been repainted. Operating and accounting systems were installed and trained employees were in place. The value of the project increased by an estimated $500,000. The project demonstrated tenacity, ability to build a team, negotiating skills, and ability to achieve goals where others had failed, using a minimum of resources and strong skills in setting priorities.  It also demonstrated the ability to quickly grasp a new industry, and a willingness to work long hours, setting aside personal agendas when necessary.

 

            Engaged to purchase an 18-hole course, Clubhouse, Olympic size pool, and about 20 acres of miscellaneous land, Johnson became a minority shareholder.  Originally only an investor, between 1985 and 1988 assumed operating control.  During those three years, the project was profitable and yielded a return of about 25% on invested capital.  Property sold during the distressed real estate markets of the early 90's at double the original purchase price.  Much of growing understanding of personal interactions came from reflecting on choices made with this project as a background. It demonstrates ability to deal with diverse customer interests over an extended period and a willingness and ability to sort priorities and act with integrity during difficult circumstances.

 

REAL ESTATE AND CONSTRUCTION

 

            As a General Contractor and Developer, Johnson has developed Single Family, Multifamily, Office, and Commercial properties subdivisions in 17 Illinois, Wisc, and Florida communities, and worked on projects for others in several additional states. He has been a principle in approximately $50,000,000 in transactions and has had credit relationships with more than 40 lenders.  Farm holdings exceeded three thousand acres and yielded 500,000 bushels of corn per year.  He has been a consultant for Banks, Savings and Loans, and a firm representing projects for the FSLIC, FDIC, & RTC.  In these capacities, he successfully dealt with scores of financial institutions and regulatory agencies in several States at the Local, County, State and Federal level.  The following projects included real estate or construction as part of the engagement.

 

James Terrace Apartments

Genoa City Apartments

Aurora Kroger Center

Sunrise Land Venture

Suds & Duds, Inc.

Family Car Wash

Grove Maid Laundry

Milwaukee Avenue Laundry

Grove Knoll Subdivision

McKeon Construction Condominiums

Wheatland Ridge Land Venture

Chirinand Medical Center

Silver Lake Library

Salem Land Holdings

Carriage Development

Silver Ridge Subdivision

Alaqua Vineyards

Chippawa Hills Subdivision

Barrington Lakes Real Estate

Livingston Farms

Lake Summerset II

South Barrington Properties

McHenry Lakes Estates

Perdido Vineyards

Suburban Health Care Corp.

Health Care Ventures

Crokin Construction

Millstream Builders

United Recreational Development

Carriage Hills Golf Course

Red Roof Inns

Carriage Inn

Alahunt, Inc

Red Carpet Inns

Downtowner & Passport Inns

Sun King Condominiums

Master Host Inns

Castlegate Hotel

Meadow Hill Subdivision

Timber Woods

Aqua Lane Estates

Sorrensen Subdivision

Tower Lake Subdivision

Timber Lake Joint Venture

Livingston Co. Farms

Beloit Farms

Silver Lake Land Venture

Silver Hills Subdivision

Millstream Realty

Todds Woods Subdivision

Shoreline Apartments

Arbour Landing

Shed Farms

Cricket Hill Subdivision

Houma Atrium

Dream Gardens

Comfort Inn, Atlanta

United Companies Financial Corp.

Hospitality International

Southern Scottish Inns

Buena Vista Hotel

L A Cruise

Tollview Office Complex