Railroad Controls Limited

Client: Railroad Controls Limited
Line of Business: Construction
Services: Audit
Client Contact: Paul D. Bickley, Executive Vice President

Growing company needs a growing firm

As one of the fastest growing railroad signal construction and material integration companies in North America, Railroad Controls Limited (www.railroadcontrols.com) has expanded from revenues of $20 million in 2002 to $250 million just six years later.

Founded in 1994, the company offers comprehensive integrated signal services, relieving railroad companies of the expensive tasks of legal and regulatory compliant design, construction and testing. Customers consist of more than fifty railroads throughout the United States and Canada including Class 1, short line and commuter rail systems. The company is headquartered in Benbrook, Texas, with offices and subsidiaries in Missouri, West Virginia, South Carolina and three different Canadian provinces.

When the company hit the $20 million revenue mark in 2002, their bank required a formal audit, recalls Paul D. Bickley, executive vice president for the family of RCL Companies. “So, we had to get an auditor—and we wanted one we could grow with,” he explains.

Prior to joining Railroad Controls, Bickley had worked for a large, international public accounting firm. Because of that previous relationship, he first turned to a former associate at that firm to gauge their interest in handling Railroad Controls’ audit needs.

“We were too small for them, and instead they suggested Weaver,” Bickley says. “I was quite familiar with the firm. I knew Lloyd Weaver early in my career, and also knew Weaver’s chairman, Mack Lawhon, on a personal basis. We thought that they would be a good fit for us—and they have been.”

Led by partner Carter Rouse, CPA, Weaver first provided audit services to the company. As Railroad Controls has grown through both acquisitions and general business development activities, the company has reached out to Weaver for additional services—including relying on the firm’s accounting expertise, as well as preparation of 401K audits and some tax services.

“We’ve thrown a lot of things at them as we’ve expanded,” explains Bickley. “As we’ve acquired companies, including one in Canada, Weaver has helped us by answering some of our technical questions. For example, they made some recommendations on how to handle foreign currency on the balance sheet, they keep us up-to-date with new accounting requirements, and they helped us somewhat with our mergers when we acquired some companies.”

Additionally, says Bickley, Weaver has made recommendations on the structure of certain contracts, with the company subsequently making changes as a result of those discussions. “We rely on them on as a backstop and in giving us advice,” he adds.

“As they have continued to build and expand their business, Railroad Controls’ accounting needs have increased and become more complex,” agrees Rouse. “We’ve helped them resolve those accounting and internal control issues related to the substantial growth they’ve experienced.”

Bickley attributes the quality of service and the excellent relationship shared by the two companies to Weaver’s size. “In comparison to any of the big accounting firms, Weaver is still small-town enough that we are dealing with the principals here in Fort Worth, versus a national firm with headquarters in New York,” he explains. “Yet they have the level of expertise that we need, including SEC experience if we ever go that route.”

He is also extremely satisfied with the Weaver team’s quality of work and speedy response times. “Whether I’m calling our partner, Carter, or any member of the field team, they respond back to me immediately,” Bickley concludes. “In spite of our tremendous growth, they’ve grown right along with us. That was our goal when we hired them and they haven’t missed a beat.”

Paul D. Bickley
Executive Vice President
Railroad Controls Limited
www.railroadcontrols.com

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