Experience

Hammer Decision Support Systems, Woodland Park, Colorado                                             January 2009 – Present

Owner/ Operations Research, Systems Engineering, and Corporate Finance and Strategy

Booz and Company/ Booz Allen Hamilton, New York, New York                              October 2006 – December 2008

Associate/ Corporate Finance, Strategy, and Operations Research

Lockheed Martin Corporation, Colorado Springs, Colorado Springs, Colorado         July 2005 – September 2006

Task Lead/ Senior Systems Engineer, Modeling and Simulation, Extended Air Defense Simulation (EADSIM)

Northrop Grumman Corporation, Fort Huachuca, Arizona                                             September 2005 – July 2005

Scenario Developer/ Modeling and Simulation, Joint Conflict and Tactical Simulation (JCATS)

United States Army, Fort Huachuca, Arizona                                                                     July 2001 – September 2004

Linguist/ Arabic and German Voice Interceptor, SIGINT and All Source Analysis

Education

Master of Science in Finance, Indiana University, Kelley School of Business, Bloomington, Indiana

Master of Business Administration, Indiana University, Kelley School of Business, Bloomington, Indiana

Bachelor of Science in Liberal Studies, Arabic, German Concentrations, Excelsior College, Albany, New York

Associate of Arts in the Arabic Language, Defense Language Institute, Monterey, California

Continuing Education – Mathematics, Spring 2009, Pikes Peak Community College, Colorado Springs, Colorado

I.            WORK EXPERIENCE

January 2009 – Present

Owner/ Operations Research, Finance, and Strategy Consultant, Hammer Decision Support Systems, Woodland Park, Colorado

Financial Modeling and Analysis in Python and VBA Programming Languages

·         Developed a data-extraction program that obtains historical stock prices using Python and analyzes continuously compounding returns against the probability of exceeding the risk-free rate using VBA.

Research and Development of Risk-Based Capabilities Analysis to Los Alamos National Laboratory

·         Presented the development and application of a risk-based capabilities analysis and valuation method I engineered for Capabilities Based Assessments (CBA) upon request to the Los Alamos National Laboratory Center for Non-Linear Studies (LANL- CNLS) 2009 Risk Symposium.

·         Developed software using VBA to automate a CBA’s risk-assessment and gap analysis process.

Marketing Strategy Development to United States Combatant Commands

·         Advised a major software developer for common operating picture (COP), command and control (C2), and situational awareness (SA) systems on applicability to Homeland Defense (HD) and Civil Support (CS) missions in the context of the HD/CS Capabilities Based Assessment and Joint Operating Concept (JOC).

·         Ensured client was well-connected in NORAD-USNORTHCOM by establishing meetings and leveraging relationships between clients and key decision-makers in USNORTHCOM J3, J5, and J8.

October 2006 – December 2008

Corporate Finance, Strategy Simulation, Operations Research, and Modeling and Simulations Associate, Booz and Company, New York, New York

Portfolio Analysis for Global Aerospace and Defense Systems Supplier and Services Company

• Discussed with client how an low industry EV/EBITDA multiple implied low growth expectations despite exceptional total shareholder return.  Framed the challenge as one primarily of portfolio management as opposed to investor expectations.
• Demonstrated the underinvestment in the defense aftermarket segment as opposed to its commercial OEM comparing the market to book ratios versus segment assets.
• Explained various options for the commercial OEM segment such as “retain, public divestiture, spin off, and split off,” exploring several prospective acquisitions for the Defense segment and prospective acquirers for the commercial OEM while considering the tax implications of each (i.e. IRC §(s)338, 355, 361)
• Developed experiments using Visual Basic for Applications in Microsoft Excel to test the correlation of vertical integration, horizontal integration, scale, and market plays in the Aerospace and Defense industry to total shareholder return, market to book, and enterprise value as a percentage of earnings before interest, taxes, depreciation, and amortization.
• Created strategies based on conclusions arrived at during the study, emphasizing the multiplying effects of scale and horizontal integration on commercial and military aerospace business cycles.

Private Equity Issuance Consulting to a Regulated Electric Utilities Company for Expert Testimony

·         Advised a large-cap, regulated electric utilities client on effects of raising capital through public and private equity for use in expert testimony before the Washington Utilities and Transportation Commission.

·         Analyzed the preferred and common equity issuance as a percentage of average daily trading volume for the client’s regulated peer set using Capital IQ, Bloomberg’s, and Microsoft Excel.

·         Modeled the historical effects of large public equity issuance in the regulated utilities industry on total shareholder return, growth expectations, and credit ratings.

·         Provided case studies to regulators showing the advantages of using private equity to raise large amounts of capital while decreasing risk and enhancing corporate value, allowing the client to make a successful case for privatization through leveraged buyout.

Financial Risk Analysis for Nuclear Project Finance to a Regulated Energy Company

·         Advised a large-cap, regulated energy client seeking to construct the first nuclear power plant in 25 years through highly leveraged, project finance on the associated financial risks.

·         Calculated the interest rate risk involved by building a stochastic, 30-year Treasury yield curve using deterministic non-linear interpolation in Oracle’s Crystal Ball, calculating the spot and forward rates of semi-annual maturities out to 30-years, spreading the debt across 30 forward-rate, revolving tranches, and running several hundred-thousand trials to arrive at the average annual debt-servicing cost.

·         Determined the credit spread risk by measuring the average credit spread and volatility for 10-year corporate credit ratings from Moody’s, S&P, and Fitch using 15 years of weekly data.  Conveyed the relationship between rising interest rates and decreasing credit spreads to the client.

·         Created an accurate credit rating model for the client using forward-stepwise and backward-stepwise, multiple linear regression to analyze the relationship of liquidity and solvency metrics to credit ratings.  Predicted the most likely credit rating for the project given the use of corporate, project, and hybrid financing.  Developed the model in 1 hour when industry practice usually requires 2-3 days.  Later improved the model by developing a model based on Merton’s option pricing theory.

Organizational Strategy Consulting for Business Development and Procurement to an Oil & Gas Company

• Advised the largest, independent US oil and gas company on industry best practices for business development.
• Demonstrated how decentralized organizations established decision rights, information systems, committee structures, and performance based motivation to attain “first mover” status for key leaseholds and acreage.
• Counseled client on the need for a centralized mergers and acquisitions function to identify external growth opportunities, develop qualifying criteria and screen targets, and manage and monitor acquisitions.  Illustrated that competitors had been able to recognize smaller and more frequent opportunities earlier through a centralized M&A function resulting in acquisition costs going from $15,000/net acre to $250/net acre.
• Focused the client’s attention on the transition of supplier relationships in the exploration and production industry from transactional, turnkey fixed-contract style relationships to strategic joint venture, cost-plus contracts that enhanced R&D effectiveness and technological positioning.

Capabilities Based Assessment for NORAD-USNORTHCOM/J8 and the Assistant Secretary of Defense

·         Advised NORAD-USNORTHCOM/J8 and the Assistant Secretary of Defense for Homeland Defense as an expert in the Joint Capabilities Integration Development System (JCIDS) for the Homeland Defense/Civil Support Capabilities Based Assessment (CBA).

·         Reduced the time needed for the CBA from 18 months to 2 months by developing a risk assessment and gap analysis technique for capital budgeting and strategy development that surveyed qualitative input from key stakeholders and transformed it into quantitative performance metrics through multiple logistic regression using retail credit risk models, utilizing Statistical Package for the Social Sciences (SPSS).

·         Applied the Black-Scholes option-pricing model to the CBA and conducted a full risk assessment on the Department of Defense using the innovative technique in coordination with the Department of Homeland Security, State Department, and the Department of Energy with a 95% approval rating.

·         Presented the method to the Office of the Undersecretary of Defense for Readiness, the Joint Staff Joint Analytic Data Management Council, the National Guard Bureau, and the Military Operations Research Society.

·         Nominated for the 76^th MORS Symposium Richard H. Barchi Prize for contributions to the field of military operations research in capital budgeting, risk assessment, and gap analysis.

·         Invited to write on multiple logistic regression, risk assessment, and capital budgeting for the Military Operations Research Journal.

Capabilities Analysis for Air Force Space Command’s Space Radar Program

·         Conducted capabilities analysis of High Resolution Terrain Imagery (HRTI), Advanced Geospatial Intelligence (AGI), and Surface Moving Target Indication (SMTI) as the HRTI, AGI, and SMTI study lead.

·         Coordinated efforts concerning feasibility between the Space Radar (SR) Integrated Program Office (IPO), the National Geospatial Intelligence Agency (NGA), the National Reconnaissance Office (NRO), and the Air Force Research Laboratories

July 2005 – October 2006

Senior Systems Engineer, Task Lead of Simulation, Modeling and Operations Research, Lockheed Martin, Colorado Springs, Colorado

Optimization Modeling for Resource Allocation to National Special Security Events

• Developed optimization algorithms and programs for sensor allocation in support of NORAD-USNORTHCOM/J3/J8/AN. Repaired an optimization program inappropriately using a greedy algorithm to allocate sensors by rewriting the solution as a set-coverage, integer program.  Applied the optimization program using data from simulations I developed in EADSIM for the allocation of sensors for President Gerald Ford’s funeral, Super Bowls XL and XLI, and for the planning of the 2010 Winter Olympics.
• Nominated for the 74^th MORS Symposium Richard H. Barchi Prize for contributions to the field of military operations research in missile defense resource allocation and optimization, and invited to write on set-coverage integer programming mathematics for the Military Operations Research Journal.

September 2004 – July 2005

Simulation Operator and Scenario Developer, Northrop Grumman, Fort Huachuca, Arizona

• Developed training simulations for intelligence analysts using Joint Conflict and Tactical Simulation (JCATS) and provided analysis of results to military client for training improvements.
• Applied Six Sigma DMAIC process to improve the performance of training and scenario development.

July 2001 – September 2004

Arabic and German Linguist and Intelligence Analyst, United States Army, Fort Huachuca, Arizona

·         Provided direct translation to over 1000 Jordanian and German military officers at the International Military Student Office and training to over 500 US military intelligence professionals.

II.      INTELLECTUAL CONTRIBUTIONS

Refereed Proceedings and Presentations

Charlton, Jonathan R., Quantifying the Interrelationships and Tradeoffs between Capabilities and Plans: DOD’s Economy of Risk, Presentation to the 76^th Military Operations Research Society Symposium, United States Coast Guard Academy, June 2008.

Nominated for 76^th MORSS Richard H. Barchi Prize

Presentation to the Los Alamos Laboratory Center for Non-Linear Studies’ 2009 Risk Symposium, Santa Fe, NM, April 2009.

Charlton, Jonathan R., An Analysis of Sensor Coverage Data for National Special Security Events (NSSEs) Using Air Defense Models and the Sensor Coverage Optimizer (SCO), Presentation to the 74^h Military Operations Research Society Symposium, United States Air Force Academy, June 2006.

Nominated for 74^th MORSS Richard H. Barchi Prize

Workbooks and Software

Charlton, Jonathan R., Capabilities Based Assessments Made Easy, 2009 Resource Series CBA Workbook and Hammer CBA Risk Survey and Processor Builder, Software, 2009.

Published on Social Science Research Network: http://ssrn.com/abstract=1413180

Working Papers

Charlton, Jonathan R., Developing a New, Probabilistic Model of Asset Pricing, working draft, July 2009.

Published on Social Science Research Network: http://ssrn.com/abstract=1396503

Ranked in Top 10 most downloaded econometric papers.