Weathering a Power Outage on Profitability
Construction, manufacturing, and technology are among the most cyclical industries in business. CapStone Solutions, a service provider for the telecommunications and energy space, is no stranger to periods of expansion and contraction that correlate to broader economic trends. Four years ago, in the face of an economy at a standstill, CapStone was struggling to navigate all the curveballs the pandemic was throwing at them. They weren’t alone, but it only took two years for the business to turn around from significant annual losses to healthy profitability. It’s a rebound story that few leaders get to tell.
A 60% woman-owned business, Carlen Moreland and her husband Matt were among the original cofounders of CapStone Solutions in 2006. The company is a leading developer of cell phone sites and towers in the Pacific Northwest, serving major carriers including T-Mobile, AT&T, Verizon, and Dish. CapStone Solutions and CapStone Solar also provide electrical and solar energy solutions for commercial and residential needs.
Since its beginning, CapStone has experienced steady growth, much due in part to America’s continued investment in wireless technology. However, the onset of the pandemic in 2020 put their industry to a screeching halt, a struggle many business owners remember well. All non-essential work was put on hold, followed by disruptions to global supply chains and logistics networks, which led to delays in network deployments and upgrades, as well as shortages of certain equipment that CapStone relied on. With supply costs remaining high, project costs increased, but profitability for the company drastically fell. CapStone continued to pay their employees through the downturn and by the end of 2020, the business realized a multi- million net operating loss.
Out of covenant with their bank, the Morelands knew they needed help. Through thoughtful leadership, and careful analysis and planning, Matt and Carlen began to right the ship. They brought in Turning Point to help them gain visibility into the future with dynamic modeling to show how different decisions will impact results. Julie Stead and Ben Conrad, the lead consultants on their account, helped build out a turnaround plan for their bank, which the Morelands proudly achieved in just 12-months (6 months ahead of goal). By 2022, in just 24 months, CapStone increased profitability by 200%.
Matt and Carlen credit the success of the business to their loyal customers, dedicated employees, and determined internal leadership team, especially their committed directors, Chris Black, Marissa Wright, Jeff Larcom, and Anna Blank. Their partnership with Turning Point helped guide them by providing visibility into the impact strategic initiatives had on future results of operations. “In business, especially one like ours, facing operational challenges and weathering losses are inevitable parts of the journey. I am grateful for the support we had all around us. The additional resources, tools, and expertise that Julie and her team were able to deliver were a key component to all of this,” says Carlen. “It has certainly been a learning experience turning adversity into opportunity following the turmoil caused by the pandemic. I have to give a lot of credit to our employees and business partners for sticking with us as we navigated choppy waters” adds Matt.
“CapStone has been doing all the right things. Matt and Carlen have built a strong management team to support the company as it continues to grow, and their high-profile strategic partnerships in the telecom space solidify their position as a trustworthy and reliable provider,” says Julie Stead, partner at Turning Point. “This is a company that is committed to paving the way for a sustainable and interconnected future. I am eager to see them thrive.”
Recognized by the Department of Energy as a Qualified Energy Service Company, CapStone makes it a priority to serve the demands of its customers without sacrificing the well-being of employees. The Morelands are known for hiring military veterans and investing in their team by fostering an environment based on mentorship and growth. With a mission to empower a brighter tomorrow for all, it only makes sense that Carlen and Matt rely on energy, communication, and connectivity in every step they take.
