Telecom Peer Analysis

JSI has compiled an extensive database of financial data from more than 150 ILECS, ranging from less than 1,000 to more than 100,000 access lines. With this information, JSI can compare your company's financial and operational results to companies of similar size or population density. In addition, JSI can create custom peer groups, including specific state or regional groups; cooperatives and commercial companies; and stand-alone vs. holding company groups. The peer analysis is designed to generate questions for research and further study in defining why a particular company may differ significantly from the established norm – an issue that can be answered by JSI’s professionals and the client’s company-specific knowledge. Users of this service can be assured that all company data is kept in absolute confidence, and peer studies will never identify the companies or reveal their financial results.

Profit Center Analysis

Given the myriad business opportunities accessible to rural ILECs, JSI believes that a consistent method of comparison and evaluation of financial results is essential to maximizing returns and minimizing risk. JSI has developed sophisticated financial models designed to compare the results of many business ventures and place them in the context of a client’s overall financial position. The information from this analysis can be critical in determining which business operations should be focused on and which should be considered for elimination or exit. This analysis can be done on an entity (affiliate) basis, or on a line-of-business basis within a single entity, based on client needs.

JSI also provides independent telecom providers with much-needed budgeting and forecasting assistance, covering revenues, expenses, capital expenditures, and overall financial statements. In addition, JSI compiles financial performance reports providing clients with an overall financial evaluation of their company, as well as determining their over/under-earnings status. The report also offers a detailed evaluation of the financial performance of various non-regulated subsidiaries. Also, JSI performs due diligence on behalf of a prospective buyer in the acquisition of a telecommunications provider and offers business case preparation, either designing from the ground up or reviewing already prepared materials, to ensure that all bases have been covered when considering a new venture.

Financial Management

JSI works with clients to review their overall financial situation, and assists in setting goals and establishing benchmarks. We highlight areas that should be monitored for problems, as well as identify promising trends on which to focus decision-making and resource allocation. We make sure you have a comprehensive understanding of your current financial situation and are ready to take advantage of opportunities when they arise.

Turning to loan procurement management, JSI can help determine if you are maximizing your debt resources and ensure that the rates you are paying, as well as the terms and conditions, are reasonable. JSI works with clients on cash flow management, helping them recognize and manage overall cash flow in order to achieve business flexibility. We help determine projections and plan for sufficient cash on hand to meet all business requirements, and forecast future ventures to ascertain the cash needed for support within the context of the overall business plan. For cooperatives, JSI assists with capital credit management, helping to determine which years and what amount of capital credits should be retired, as well as the best method for paying capital credits back to the co-op members.

JSI conducts company specific lead-lag studies, which can be used to improve your NECA settlements, as well as be more aware of potential revenue collection problems. JSI also provides complete financial and regulatory support for determining rates for specific services, as well as overall rates in the context of a state rate case. We can also help provide data to analyze whether individual services are generating sufficient revenue to guarantee full cost recovery. In reviewing capital recovery, JSI can analyze your company's current depreciation rates to determine if an appropriate level of asset recovery is in place. We can file studies with state or federal regulators to support recommended changes.

JSI prepares earnings monitoring reports for both rate-of-return and non-rate-of-return companies to ensure both regulated and non-regulated services and profit centers are achieving budgeted targets. We pro-actively analyze current and projected earnings to help formulate strategy to maximize earnings in a rate-of-return environment. Finally, JSI assists in the preparation of required FCC, state PSC, and RUS forms in the financial and operational arenas. We ensure timely submission and make sure that assessments from regulatory bodies are appropriate.

For more information about JSI’s financial services, please call Brian Sullivan or Bhavini Sokhey at 301-459-7590, or e-mail bsullivan@jsitel.com or bsokhey@jsitel.com.