April Revenue
$139K
▼ 28.4% vs March
Mar was $194,722 — a peak month
Net Income
$15,165
≈ Flat vs March ($15,221)
3-mo rolling avg: $10,218
Cash in Bank
$15,331
▲ Back in positive territory
Prior month: −$2,829
Profit Quality Score
0.92
✓ Healthy
Target range: 0.80–1.20
"April was a milestone month — Skyland hit its strongest gross margins and net income of the year, and the bank is back in positive territory, though a $20K payable to Rock Consolidated means collections remain the immediate priority."
Three Power Insights
📈 Margins Are Breaking Open — Up 12 Points Since January
Skyland's gross margin hit 41.6% in April — the strongest of the year, up from 29.8% in January. For every $100 in revenue, you're keeping $12 more than four months ago. This is strong evidence that buying discipline and pricing are working. The rolling three-month net income average is $10,218, and April came in 48% above that baseline.
✅ Action: Document your buying process and vendor negotiations now while it's working — this protects the margin as volume scales back toward March's peak.
🏦 The Bank Is Back — But Rock Consolidated Needs Attention Now
The checking account is positive at $15,331, recovered from −$2,829 in March. However, Rock Consolidated LLC carries a $20,444.86 current payable — the single largest vendor balance, and it exceeds the entire bank balance on its own. This isn't a crisis, but the timing is tight: collecting $6,000 in near-term receivables before that invoice hits keeps cash solidly positive.
📞 Action: Collect from Sheldon Strite ($4,000, 1–30 days) and Joe Hite ($2,400, 1–30 days) before Rock Consolidated is paid. Deadline: May 26.
🗂️ $16,000 in A/R Is 90+ Days Old — Real Money on the Table
Two-thirds of outstanding receivables ($16,015 of $23,948) are more than 90 days old. Keelen Phelps alone owes $8,385 — 35% of total A/R, sitting idle for over three months. These aren't written off; they're deprioritized. A targeted call campaign this week could recover $10K+ and directly solve the Rock Consolidated timing challenge above.
📞 Action: Call Keelen Phelps this week — $8,385 at 91+ days is worth a 10-minute conversation.
P&L Summary — January through April 2026
|
Jan |
Feb |
Mar |
Apr |
4-Mo Avg |
| Revenue |
$134,871 |
$121,566 |
$194,722 |
$139,438 |
$147,649 |
| Cost of Equipment Sold |
$94,707 |
$80,924 |
$122,778 |
$81,371 |
$94,945 |
| Gross Profit |
$40,165 |
$40,642 |
$71,944 |
$58,067 |
$52,704 |
| Gross Margin % |
29.8% |
33.4% |
36.9% |
41.6% ▲ |
35.4% |
| Operating Expenses |
$43,913 |
$34,646 |
$53,140 |
$37,555 |
$42,314 |
| Net Operating Income |
−$3,749 |
$5,996 |
$18,804 |
$20,511 |
$10,390 |
| Net Income |
−$8,488 |
$268 |
$15,221 |
$15,165 |
$5,542 |
Contribution Margin View — April 2026
Based on Tim's proposed account restructuring: Equipment Repairs moved from Operating Expenses to Rental COGS
🔧 Equipment Sales
Revenue$101,765
Direct COGS$81,371
Contribution$20,394
20.0%
🏗️ Equipment Rental
Revenue$37,673
Fleet Maintenance$6,721
Contribution$30,952
82.1%
📌 The rental fleet is a margin machine. Once the equipment is financed, every rental dollar keeps 82¢ after maintenance. Growing rental as a share of total revenue is the highest-leverage move in the business.
What This Means
Revenue & A/R
$139K in sales plus $19K collected from outstanding receivables added real cash to the month.
Equipment Inventory
$14K more equipment was purchased for resale than sold — inventory is actively building.
A/P Net Change
Rock Consolidated added to payables, preserving ~$10K in cash this month versus prior expectations.
Loan Payments
$7,800 in monthly debt service is fixed — recurs every month for the rental fleet financing.
Undeposited Funds
$10,601 in Undeposited Funds represents real receipts in transit — cleared the bank in early May.
📅 Before Next Month
The Event
Rock Consolidated LLC is carrying a $20,444.86 current payable — the single largest vendor balance on the books, and it exceeds the entire bank balance of $15,331. This invoice is current and needs to be addressed before end of May.
Estimated Impact
Paying Rock Consolidated in full without new collections would draw the bank to approximately −$5,114. Combined with ~$7,800 in recurring monthly loan payments and ~$7,526 in other upcoming vendor bills (Jenkins Iron & Steel, Red Rock Auto, Kingdom Equipment), total May cash obligations approach $35,000+ before revenue.
One Action Item
Collect from Sheldon Strite ($4,000) and Joe Hite ($2,400) in the 1–30 day bucket, and call Keelen Phelps ($8,385, 91+ days). Recovering $10K+ this week keeps cash positive through the Rock Consolidated payment cycle. Deadline: May 26.