Case Studies

Turning Point Brands, Inc.

We helped Turning Point carry out its IPO and establish an investor relations program.

SITUATION:

Created from a leveraged buyout in the late 1980s, Turning Point Brands was at a crossroads. It had a portfolio of popular brands which included Zig-Zag cigarette papers and Beech-Nut chewing tobacco. But the company also had accumulated substantial debt. It was, in essence, working for the bankers as a substantial percentage of its cash flow went toward interest. Management embarked on an initial public offering which would allow it to pursue a growth strategy through acquisitions and brand management.

HOW WE HELPED:

We worked with the CEO, CFO and senior executives to carry out the IPO, from providing input on test-the-waters presentations, to news releases and media relations, to the actual bell-ringing ceremony and employee communication. Additionally, we coordinated the company’s public face through its website materials, and implemented a system that tracked investor, fund manager and analyst meetings and comments and helped target potential investors.

As part of the ongoing investor relations program, we helped develop quarterly earnings call scripts, earnings releases, quarterly investor fact sheets, participation in non-deal roadshows, formal presentations to investor and analyst groups, media relations activities, the annual meeting presentation and annual reports to shareholders.

RESULTS:

The company’s stock was priced at $10 at the IPO in May 2016, and the funds generated through the IPO kickstarted the company’s growth program.  Leverage was dramatically reduced through the IPO and subsequent refinancings, allowing the company to pursue growth organically and through consolidation.  By the first quarter of 2018, the stock price had  more than doubled, and the company had completed four acquisitions.

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Genlyte Group, Inc.

We helped Genlyte overcome misunderstandings within the investment community.

SITUATION: Genlyte, a company supplying lighting and fixtures to commercial, residential and industrial markets, was posting record sales and profits a despite rough economy.  Stock performance was lackluster. The company’s outreach to the investment community was inconsistent.

WHAT WE DID: We designed a comprehensive program to fight back.

First, we asked management what problems they thought investors had with Genlyte. They felt, because of a recent merger, the corporate structure wasn’t well understood.  Then we surveyed analysts and institutional fund managers, asking them about company performance, quality of management, and the existing investor relations program…

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Sigcorp

 Mozaic helped this merged company with its introduction to Wall Street.

SITUATION: Two similar sized utilities serving two-thirds of Indiana  – Indiana Energy and SIGCORP – were selling their business combination as a “merger of equals.”  Mozaic was the combined company’s resource to reach sell-side and buy-side analysts in the inaugural visit to Wall Street.

WHAT WE DID: We met with management, scripted speaking points and developed a powerful financial presentation that outlined the companies’ past successes, expected merger savings and future opportunities. We explained why Vectren was a great investment.

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Addington Resources

 Mozaic helped tell a restructuring story which helped maintain market value despite the charges needed to jettison unprofitable operations and refocus on mining.

SITUATION: After many quarters of losses, Addington Resources’ chairman Larry Addington decided on a new direction. Coal mining was profitable, but an expansion into gold mining, citrus farming and environmental services was not.

WHAT WE DID: We helped the company formulate and execute a plan to communicate its actions to restore profitability…

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