Case Studies

Maximizing value in a declining market SITUATION: How can a lighting and fixtures manufacturer grow in the face of an economic slowdown, and within a mature industry? That's the situation that faces Genlyte Group, Incorporated, a billion-dollar (in sales) lighting designer, manufacturer and marketer for the commercial, industrial and residential markets. Genlyte engaged Mozaic in the summer of 2000 to address this issue. While the company had posted record sales and earnings, stock price growth was lackluster. Efforts to reach the investment community were inconsistent. WHAT WE DID: We designed a comprehensive program that combined many elements. First, we interviewed management to (internally) identify problems that might be cited by investors. Surveys showed that many people didn't understand Genlyte's corporate structure. In 1998, the company combined their operations with Thomas Industries' lighting business in a third company called Genlyte Thomas LLC. Then, using this information, we surveyed analysts and institutional fund managers for their opinions about Genlyte's performance, the quality of management, and the state of the company's investor relations program. This contact gave us an "in" in a follow-up series of marketing efforts in which our staff scheduled analyst and fund manager conversations with the CFO; sent information packages in response to requests for information from our phone calls. We also developed a corporate quarterly fact sheet that was sent to fund managers invested in the building products industry, as well as to analysts and portfolio managers in related industries. Mailing costs were reduced by converting the printed piece to a PDF file that was attached to an email. Additionally, a national business media campaign was launched to seek business stories in publications like Investors Business Daily, Barrons, and similar business/finance newspapers. RESULTS: As a result of our efforts, Genlyte's stock price moved to a 52-week high while their peer group index increased only incrementally, and the technology-laden NASDAQ index fell sharply. The stock's P/E - once trading around industry levels - began to trade at higher multiples.

Selling energy to Wall Street SITUATION: How do two companies sell a "merger of equals" to Wall Street? Indiana Energy and SIGCORP, Inc., two Indiana utilities that provide natural gas and electricity to about two-thirds of Indiana, used Mozaic as their resource to reach sell-side and buy-side analysts in Vectren Corporation's inaugural visit to Wall Street. Deregulation is changing the face of the utility industry across the country, and many utilities are consolidating to improve efficiency and service. 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. 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. In short, we told why Vectren represents a great investment. RESULTS: By the company's first earnings teleconference, a key industry analyst upgraded his opinion and the stock continued to peak. Despite merger-related costs that accounted for nearly half of Vectren's first quarter earnings, its stock performance was positive Merger savings were expected to generate synergies of $200 million over the next decade, and the company aggressively acquired related gas utility and telecom businesses while California and the rest of the nation suffered price shocks from wholesale gas price increases. Traditionally, Vectren's investor base has been supportive. A 1999 Rivel Research Group study for Vectren suggested that individual shareholders were strongly loyal and had faith in management's ability to navigate the company into the deregulated energy environment. Nearing the second quarter of 2001, Vectren coverage has been provided by additional companies.

Building a bank without bricks and mortar SITUATION: Chester Porter had an idea. Why not leverage his Kentucky banking experience and build an Internet bank that could provide financial products and services beyond his existing banks' small Kentucky communities? The result of that effort is USAccess Bank. WHAT WE DID: Mozaic developed the corporate communications launch plan, trained executives to maximize their media exposure and provided the media expertise the launch the bank. RESULTS: Results included dozens of articles and broadcast/online interviews in local, regional and national media. The online bank, just an idea in February 1999, has grown into an institution nearing $200 million in deposits and thousands of customers in all 50 states. We continue to seek and place online opportunities for its top executives, as they position the bank for further growth.

Communicating the "changing of the guard" and new strategies SITUATION: In 1994, Addington Resources' chairman Larry Addington decided that a new direction had to be taken. His coal mining operations in Eastern Kentucky had been consistently profitable in the past. But the company was showing a loss for its operations across the board, which included ventures in gold mining, citrus farming and environmental services. An outside industry veteran, Kirby J. Taylor, was appointed president and chief executive officer by the board, and Taylor went to work. Taylor arranged to sell off unprofitable divisions and properties. WHAT WE DID: Taylor's predecessor rarely communicated with the financial community. To tell this story, we felt it was imperative to 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 messages the restructuring story. RESULTS: Despite steep charges that were incurred for the restructuring, Addington's stock maintained its value in the market.