CEO BRIEF · ONE PAGE
Tallgrass Distribution Co.
April 2026 · Distribution / wholesale
Composed from the reviewed close. Same facts as the management report — one page.
What happened
- Inventory days on hand rose to 62 in April from 58 — the Q2 pre-buy on the Westbrook SKU line landed three weeks early and $214K of stock is sitting longer than planned. Turns slipped from 6.3x to 5.9x annualized; ~$120K of cash is tied up vs the March working-capital plan.
- DSO stretched to 47 days from 44 — two national accounts (Tarrant Foods, Lindgren Supply) moved to net-60 terms this quarter and $61K is now past 90 days. The worker flagged it as a terms-mix shift; the supervisor read it as collections slippage, so it routed to your inbox for the call.
- Gross margin held at 24.0% vs the 23.2% Q1 plan — the renegotiated Crompton freight contract cut landed-cost per pallet ~3%, which flows straight through on the thin distribution margin.
The numbers
Cash status
Cash-positive
Revenue
$1,420,000
+$38,000 · +2.7% vs plan
Monthly outflow
$1,352,000
+$41,000 · +3.1% vs plan
Gross margin
24.0%
DSO / DPO (days)
47 / 38
What to expect
Cash $742,000 today → $111,237 in week 13; the lowest point is $52,014 in week 5. No cash-floor breach inside the horizon.
What needs your decision
· Inventory days on hand rose to 62 in April from 58 — the Q2 pre-buy on the Westbrook SKU line landed three weeks early and $214K of stock is sitting longer than planned. Turns slipped from 6.3x to 5.9x annualized; ~$120K of cash is tied up vs the March working-capital plan. — You · 05 Jun