IR Case Studies
From IPO to IR
From IPO to IR
Turning Point Brands, Inc.
Turning Point Brands, Inc.
We helped a Louisville-based company carry out its IPO and establish a full-fledged investor relations program.
Challenge
Challenge
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 -- the company had accumulated substantial debt. It was, in essence, working for the bankers, as a substantial percentage of cash flow went toward interest. Management embarked on an initial public offering which would allow it to pursue a growth strategy through acquisitions and more effective brand management.
Our approach and results
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.
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 thecompany 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.
You're missing our value
You're missing our value
Genlyte Group, Inc.
Genlyte Group, Inc.
Undervalued and virtually ignored by the Street, Mozaic devised an awareness program that caught the attention of analysts and investors.
Challenge
Challenge
Genlyte, a company that manufactured and sold lighting and fixtures to commercial, residential and industrial markets, had performed well in spite of a choppy economy. It had record earnings, yet the company's stock performance was lackluster. The company had an inconsistent relationship with Wall Street; Mozaic was hired to investigate and develop a program to help repair the breech.
Our approach and results
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 to share what they knew about Genlyte, its performance, quality of management, and the existing investor relations program.
We shared our findings and potential messaging with management, identified likely analysts and investors, scheduled conversations with the CFO, sent information packages, developed a quarterly corporate performance fact sheet for widespread distribution and launched a campaign to reach national business media.
Genlyte’s stock price moved to a 52-week high while companies in its industry peer group increased only incrementally during a time when the NASDAQ index was falling sharply. Genlyte's stock traded at higher multiples. From being followed by no analysts at the time of our engagement, Genlyte had 9 analysts when it was acquired at a premium by Philips for $2.8 billion.
An Unveiling to Wall Street
An Unveiling to Wall Street
Vectren, Inc. (merger of SIGCORP and Indiana Energy)
Vectren, Inc. (merger of SIGCORP and Indiana Energy)
Mozaic helped introduce the newly merged company to Wall Street utility analysts.
Challenge
Challenge
Two similar sized utilities serving two-thirds of Indiana – Indiana Energy and SIGCORP – were selling their business combination named Vectren 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.
Deregulation was changing the face of the utility industry across the country, and many utilities were consolidating to improve efficiency and service. Vectren management wanted the Street to know that this friendly “merger of equals” transaction would benefit all stakeholders and would foster growth of the company’s telecom and non-regulated operations.
Our approach and results
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. By the company’s first earnings teleconference, a key industry analyst upgraded his opinion and the stock continued to peak. Despite significant merger-related costs, stock performance was positive over glowing expectations of future operating synergies. Vectren’s traditional investor base – individual shareholders – stayed loyal. Additional analysts had expanded coverage.
New CEO, New Plan
New CEO, New Plan
Addington Resources, Inc.
Addington Resources, Inc.
Terry McWilliams helped the new CEO communicate a restructuring story to eliminate unprofitable operations and refocus on its core business.
Challenge
Challenge
After many quarters of losses, Addington Resources decided on a new direction. Coal mining was profitable, but expansions into gold mining, citrus farming and environmental services were not. The board appointed an outside industry veteran, Kirby J. Taylor, as president and chief executive officer to tackle the problem. Taylor arranged to sell off unprofitable divisions and properties.
Approach and results
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.
Despite steep corporate restructuring charges, Addington Resources' stock held its value in the market.
