Gogo Inc. (NASDAQ: GOGO) rose Friday after the company disclosed that it was reviewing strategic alternatives for the company.
The Chicago-based Gogo, a provider of broadband connectivity products and services for aviation, today announced that it has completed a comprehensive analysis of its business and is implementing an Integrated Business Plan designed to improve the Company's operational and financial performance.
The IBP, branded as "Gogo 2020", transforms Gogo's business model and is intended to significantly reduce its cost structure, improve quality, drive revenue, streamline business processes and prudently strengthen its balance sheet.
CEO Oakleigh Thorne said, "The initiatives we are executing under our Integrated Business Plan demonstrate our commitment to taking aggressive action to position Gogo for sustainable value creation. Gogo 2020 represents a new era for Gogo with a significantly reduced cost structure, much lower capital expenditures, and a streamlined and standardized approach to meeting the needs of our customers with improved quality and service.
Gogo 2020 resulted in targeting free cash flow break-even for the full year 2020; targeting significant annual Earnings Before Interest, Taxes, Depreciation and Amortization growth each year in our plan, reaching over $200 million in 2022.
The plans also entails continuing to build on the significant improvement in 2Ku performance metrics, including availability of over 97% in June, by enhancing product and service quality, and maintaining cash capex reduction in 2018 with further material reductions in 2019.
Shares in Gogo bowed 40 cents, or 8.3%, in Friday trading to $4.42
