ASCEND Transformation Program - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended |
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May 31, 2022 |
May 31, 2022 |
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ACEND Transformation Costs [Abstract] | ||
ASCEND Transformation Costs |
Note 3. ASCEND Transformation Program
On March 23, 2022, the Company announced the launch of ASCEND, a new transformation program focused on driving accelerated earnings growth and efficiency across the business with the goal of delivering an incremental $40 to $50 million of annual operating profit once fully implemented. As part of ASCEND, the Company will focus on the following key initiatives: (i) accelerating organic growth go-to-market strategies, (ii) improving operational excellence and production efficiency by utilizing a lean approach and (iii) driving greater efficiency and productivity in Selling, General and Administrative ("SG&A") by better leveraging resources to create a more efficient and agile organization.
The Company is currently developing plans for the implementation of this program and continues to anticipate investing approximately $60 to $65 million (as disclosed in Note 16, "Subsequent Event," $6 to $10 million, of these investments relate to the ASCEND restructuring plan). Elements of these investments could include such cash costs as capital expenditures, restructuring costs, third-party support, and incentive costs. We do not anticipate significant non-cash costs to be incurred as part of the ASCEND program. Total program expenses were approximately $3.9 million for the three months ended May 31, 2022, which were recorded within SG&A expenses and were largely comprised of third-party support costs.
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Incremental Operating Profit | $ 40.0 | |
Incremental Operating Profit Maximum | 50.0 | |
ASCEND transformation program charges | 3.9 | |
Anticipated Invested Expense | 60.0 | |
Anticipated Invested Expense Maximum | $ 65.0 |