I was accused of being gossipy in the Wally thread, but it later revealed to be the truth what I announced 6 months ago...does this gives me a credibility to post another "gossip", this time regarding Burger yachts? Follow me on this or add some details if you know them...we aren't a beneficiary association here, are we?
Teena, I can't imagine how a rumor like this got started, but I'm pretty sure nothing could be further from the truth. I've spoken with David Ross about their investment in new infrastructure in recent years, the status of the big boat demand the yard is seeing, and his expectation of this continuing well into the future. As you know, Mirgab V, Burger's biggest build ever, was delivered just a few months ago. Among others currently in build are "Time For Us", "Areti I and Areti II", "Sycara", "Sea Owl", "Liberty". Five more builds are slated to start in the next 12 months. They include Hull 512 designed by Espen Oino, Hull 510 (Burger's first steel hull in 43 years), Hull 513, a 136' yacht for a current Burger owner, and two more builds already named... the 135' "Lady Gayle Marie" and the 147' "Keyser Soze". The status of Burger's order book is very healthy. This doesn't preclude a yard from experiencing cash flow problems from time-to-time, but Burger has literally rebuilt their entire yard and added substantial capability in a relatively short period of time. This consumes huge reserves, but David Ross is an extremely astute businessman and I think he's laying the groundwork for the future.
I wish you are right. I don't wish troubles to nobody, as a matter of facts I hope the thing was really just a temporary cash flow problem, as you mentioned.
all yacht builders in the U.S.A. have cash flow problems. It comes with the todays high cost of living, materials, and labor. Its great that Burger raised the bar with building bigger. Dave Ross is a good leader. You have to love what you do.
I met with David & Katie Ross at the Miami Show on Thursday. We spoke at length on the subject, one which they, nor I, see any reason to issue a press release or public statement. Over the past few years, the Burger yard has expanded at such a rapid pace that David found himself in the enviable position of having so many new builds, he needed outside funding to bring them to fruition in a timely manner. Burger's order book is jammed. To meet the delivery dates requires additional labor and LOTS of materials to build multiple boats. About the same time he was getting quotes from banks to refinance for the future, an "angel" of sorts stepped in and offered David the resources without the red tape. This angel is a former Burger owner who also has a boat in build with the yard. I'm not at liberty to discuss the owner, but the investment is literally hobby money for this gentleman, who has no interest in micro managing the company. His primary reason for investment was having a sincere interest in the yard and the people at Burger. According to David, Burger has NEVER been in a stronger financial position than it is today... and he's putting it to good use. He's sending 80 Burger employees to a week long class on raising production efficiency. This is an expensive proposition that should amortize itself within the first build, thus putting Burger ahead of the game in the future. Additionally, Burger has now eliminated ALL of their outstanding debt and has more cash in the bank than ever before. The net result, in my eyes, is David has never been more relaxed and more confident in the future. Remember... he's completely resurrected a company, added huge capacity, substantially increased the size of their yachts and all the while... trying to keep the company in the black. This is not easily done in custom boat building, especially among serious worldwide competition from established yards who have NOT needed to revitalize their operations.
