Changes At Level 3 Communications Could Spell Opportunity


INTRODUCTION:

Level 3 Communications (LVLT) provides a broad range of integrated communications services. Over time some may have viewed our past articles as slightly critical of management.  In 2011 our article titled, “Level 3 Communications: Is It Time For A Change In Leadership?“ questioned whether  a change should be made if performance (generally top line growth) was not improved.  We posed the question again in a recent article than a few weeks later on April 11 the question was answered. LVLT issued a statement concerning leadership transition planning for the company.  Jeffrey K. Storey was named as CEO and James Crowe was out not only as CEO but also as a Board member by not standing for reelection at the company’s 2013 Annual Meeting.  Is now the time to invest in a company undergoing a transformation and a change in leadership?  We’ll look at the following in an attempt to provide additional insight into the company and what lies ahead:

  • New CEO – Jeffrey K. Storey
  • Financial performance & focus
  • Valuation
  • Conclusion

JEFFREY K. STOREY:

This is not the first time Jeff Storey replaced an outgoing CEO in this industry.  Williams Communications Group, Inc. emerged from Chapter 11 proceedings as WilTel Communications Group on October 16, 2002. Howard Janzen resigned as president, CEO and as a director. The new board selected Jeffrey K. Storey to serve as president and chief executive officer and as a member of the board of directors.  The board had this to say:
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