Driving change with senior level leadership
Wholesale Broadband Network Provider – Crisis Management for a Full Scale Turnaround
An innovative broadband network provider of wholesale bandwidth (providing metro and long haul bandwidth, IP, Ethernet, collocation and dark fiber to international carriers, wireless, ISPs, and national carriers in the Southeast US) experienced record-breaking growth by quickly expanding and lighting its fiber footprint. With the telecommunications market facing growing uncertainty, the goal of cash-flow breakeven and long-term profitability began to move farther from reality.
It became obvious to shareholders that resources needed to be re-evaluated and re-aligned in order to continue efficient and effective growth of the business. The company needed help to quickly put a plan in place to reduce operating costs by $14M (from $53M) and realize initial cost savings immediately.
Our Interim Executive was brought aboard to lead the crisis management team of this full scale turnaround. Decisive action items were immediately put into place to secure the customer base, attack over budget expenses ($6M), stabilize and re-build the executive team while completing the last network construction stage utilizing $10 million less than what was originally planned.
Our Interim CEO successfully:
- Established a new quality service vision, based on Reliability and Responsiveness.
- Re-positioned the company from a broad national strategy to a more focused regional provider.
- Implemented network quality and performance metrics.
- Monetized assets by developing solutions to reverse fiber swaps and reduce excess assets (inventory, facilities, and vehicles).
- Improved revenues 72% over prior year through introduction of Advanced Services (IP, Ethernet) and Latin American sales while reducing planned capital expenditures by $12M by expanding network capacity into Latin America with sale of first Venezuelan in-country -customers, increasing customer count each quarter in a deteriorating carrier market and stimulating revenue growth in spite of multiple large customer bankruptcy declarations.
- Reduced expenses $2.5M in monthly expense burn rate. Improved cash collections $1M per month over prior year.
- Saved shareholders $44M cash in total.
The company was ultimately divested as the best intended strategic solution.
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