Client Overview: Commercial printing company with revenues in excess of $1.5M in revenues. The company’s services and products include commercial print, envelopes, labels, packaging and business documents through a network of production, fulfillment and distribution facilities throughout North America.
Opportunities/Challenges:
Stock price had gone from $21 to $2 in 9 months
Credit rating had been downgraded to BBB-
Shareholder lawsuits had been initiated
EBITDA had diminished from $170M to $110M
Solutions:
Provided accessible leadership to investment community, customers and employees, and direction to the organization
Initiated and implemented $55.8M in cost reduction; EBITDA plan of $205M in 2006.
Restructured the organization, eliminating two layers of management
Rebuilt relationship and reached control agreement with dissident shareholder
Results:
Stock price increase:
2+ to 5+ on announcement that the BOD was seeking alternatives
5+ to 7+ on announcement of CEO search
7+ to 10+ on announcement in changes and restructuring
10+ to 26+ on execution of plan by current management
Increased market capitalization from $375M to $750M, increasing share price from $10 to $14.50 per share