The JSI team wishes its clients, their families, and members of their organizations well during this very trying time. Over the course of the last week or so, many clients have indicated concern surrounding the COVID-19 virus and the potential disruptive effects it could have on their finances, and have reached out to engage us to either conduct an analysis or validate their own forecasts.
With the prospect of the magnitude of the disruption all businesses face in 2020, JSI has created an insightful tool that allows your company to easily and rapidly:
- Model a range of varying impacts, of both magnitude and timing, to end user-based revenue streams;
- Understand at what displacement levels falling below minimum desired levels of liquid working cash and/or negative cash flow are experienced;
- Model what impact scenarios result in debt service coverage falling below acceptable levels;
- Define impact on EBITDA and cash flow at varying levels of service disruption in absolute terms, and in relation to budget;
- Model an array of contingency “what-ifs” that dynamically illustrate the foregoing stats based on varying levels of assumed:
- Pre-planned investment elimination / deferral; and,
- Accounts payable deferrals – level and timing
- Produce a number of pre-formed illustrations and graphs identifying the forecasted impact as netted against modeled contingencies for you to use as management/Board briefing/planning material.
We’re facing extraordinary times and an unprecedented level of uncertainty. JSI’s COVID-19 Impact and Contingency Response Template represents a simple, yet insightful, tool to both understand the range of potential impacts to your financial position in 2020, and easily model contingency plans addressing the impacts forecasted. The model can either be purchased and self-populated or we can assist in running the models.
If you would like to know more about the tool or are interested in having us model potential impact scenarios for you, please call Steve Meltzer at 240-556-1248 or reach out to Dave Lewis at 941-257-4291 or Bhavini Sokhey at 240-556-1251.
Companies Should Know Full Extent of A-CAM II Funding and Whether or Not A-CAM II Can Benefit Them
Legacy companies are quickly facing the critical June 17th deadline by which they must either elect A-CAM II or decide to remain on Legacy support. Companies whose annual amount of A-CAM II funding is less than their 2018 Legacy support claims should be aware that the FCC has yet to provide the full amount of support these carriers will receive if they elect A-CAM II. JSI has reached out informally to FCC Wireline Bureau staff urging them to release this vital information as soon as possible.
According to Report 15.1 of the offer, for some companies, the annual amount of A-CAM II support is less than their 2018 Legacy support claims. What is not shown, however, is the amount of Legacy support these companies will continue to receive for a period of time as they “glide” down to model support if they elect A-CAM II. When this Legacy “glidepath” support plus model support is compared with a 10-year projection of potential legacy support, some of these companies may find that A-CAM II is the right choice for them. Even for those who remain on Legacy, conducting such an analysis provides assurance that the company reviewed all relevant data before making this monumental decision.
While we await the official release of the glidepath data, JSI can provide your company with an estimate of this “glidepath” funding so that you can know the full amount of funding were you to elect A-CAM II. We can also provide you with a comparison of projected Legacy support over the 10-year period and discuss other factors with you which may impact future Legacy support, such as potential increases in support due to deployment of standalone broadband (also known as CBOL) or reduction in support due to competitive overlap.
JSI also will be hosting a webinar on June 4th covering the various implementation items for ACAM II electors such as HUBB reporting, changes to tariffs and the option to elect incentive regulation for business data services.
Please contact John Kuykendall or Steve Meltzer, both of whom can be reached at 301-459-7590, if you would like our assistance with the A-CAM II analysis, would like to know more about the webinar, or have any questions about the upcoming election.
The 2019 winners of the Staurulakis Family Scholarships are four exceptional students, all with 4.0 GPAs, who have excelled academically, while participating in school activities, volunteering and working in their communities. The scholarships are given out as part of the Foundation for Rural Service (FRS) scholarship program. FRS awarded $ 125,000 for 54 scholarships to rural youth across the United States. These four students were selected to receive the $5,000 FRS Staurulakis Family Scholarships, which give preference to outstanding applicants with an interest in science, math, medicine, or engineering.
This year’s four winners (from left to right above) are:
Gabriel Gibson of Blocker, Okla.
Sponsored by Canadian Valley in Crowder, Okla.
Gabriel will be his class’s Valedictorian and plans to attend Eastern Oklahoma State College this fall, where he will study pre-dentistry. In high school, he participated in music, show choir, student council, Business Professionals of America and the Academic Team. In his free time, Gabriel works on his family’s ranch and learned how to artificially inseminate cows so that his family could breed award-winning Red Angus and Hereford cattle.
Elor Mayan of Myrtle Beach, S.C.
Sponsored by Horry Telephone Company in Conway, S.C.
Graduating at the top of his class, Elor will attend the University of South Carolina in the fall and plans to study nursing. Elor has been very active in the community, volunteering more than 300 hours in the last year, including with Hurricane Florence relief efforts. He plans to return to a rural community to provide quality care to an area with limited access to health services.
Kenneth Stier of Greensburg, Ind.
Sponsored by Enhanced Telecommunications in Sunman, Ind.
Kenneth also will graduate at the top of his class. He is very active in his community and church. He spearheaded a project to bring fiber connections to his town of 130 people by creating flyers and brochures that he then distributed to the entire town. He met ETC’s goal of 60 households and the telco is deploying fiber to the town. Kenneth plans to study Mechanical Engineering at Indiana University—Purdue University Columbus (IUPUC) this fall.
Savannah Burris of Holyoke, Col.
Sponsored by Phillips County Telco in Holyoke, Col.
Savannah maintained academic excellence while participating in several sports and clubs, volunteering at her church and other local organizations, cleaning up local highways, coordinating Veteran’s Day breakfasts for her community, and running her own pet care business. Her experiences working at the local nursing and rehab center have inspired her to study nursing at the University of Colorado at Colorado Springs this fall.
These scholarships were established as part of JSI’s 50th Anniversary celebration in 2012 in honor of Manny and Leo’s parents, John and Chresanthe Staurulakis, and continue each year as part of the FRS scholarship program. FRS scholarship recipients are selected by an independent team of reviewers from the education field. To be eligible, recipients must be sponsored by a NTCA member company, and must indicate a desire to return to their rural communities once their collegiate studies have been completed.
JSI does not administer these scholarships. The program is administered by the Foundation for Rural Service. More information about both the Staurulakis Family Scholarships and the FRS scholarship program can be found here – https://www.frs.org/programs/scholarships. The 2020 deadline is March 1, 2020.