A new CEO, a new direction

Addington Logo Addington Resources – Terry McWilliams helped the new CEO communicate a corporate direction that would focus on profitable operations and jettison forays into non-core businesses.

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.

An outside industry veteran, Kirby J. Taylor, was appointed president and chief executive officer by the board. Taylor arranged to sell off unprofitable divisions and properties.

WHAT WE DID:

Taylor’s predecessor rarely communicated with the financial community. We felt it was imperative that he tell Wall Street exactly what was going to be done to turn around the company, and what results were expected. IR counsel arranged analyst forums in New York and Boston for Taylor to tell his restructuring story to Wall Street. In addition to an analyst teleconference, we used investor publications (annual report and quarterlies) to reinforce the restructuring story.

RESULTS:

Despite steep charges that were incurred for the restructuring, Addington’s stock maintained its value in the market.