Mail Carriers of America
Client
Mail Carriers of America (MCA), Inc., is the largest contract mail carrier for outsourced ground transportation for the United States Postal Service (USPS). The Company provides surface transportation through a network of 19 facilities, more than 800 tractors and 2,000 employees. Annual revenues are approximately $150 million.
Challenge
The Company faced a wide range of issues, including an increasing cost structure, a disgruntled work force and a failed attempt to centralize through technology. The Company also faced aging operating equipment, union issues and a deteriorating service record. These challenges occurred at the time when the USPS was transitioning its supply base to a more competitive environment. MCA was highly leveraged as a result of an industry roll-up strategy. The Company was operating under a forbearance agreement with its primary lenders.
Solution
Operating as interim CEO and COO, Bridge refocused and reorganized the Company. The Bridge team:
- Created a decentralized management structure at the terminal level, which helped to ensure the high service levels demanded by USPS.
- Implemented business management systems that focused on key operating measures. These systems helped to drive improvement in service and reduce cost.
- Enhanced a customer diversification strategy to leverage the Company's equipment base and offset risk of USPS transition plan.
- Developed a capital investment plan implemented to replace the aging fleet and equipment.
- Worked with existing secured and subordinated debt holders to restructure the Company. This provided the operating space necessary to rebuild value into the Company.
Results
Outstanding secured debt and subordinated debt was successfully restructured, operations were stabilized, customer service was improved, fleet replacement plans were implemented and costs were significantly reduced.
