DIRTT Environmental Solutions Ltd. (the "Company", "DIRTT") (TSX:DRT) today announced changes to its senior management team and Board of Directors, effective immediately.
In the fourth quarter of 2017, the Board embarked on an internal assessment of its capabilities, Adjusted EBITDA, new growth opportunities, governance, and shareholder returns. The senior management changes implemented reflect the ongoing commitment to the Company in realizing its full growth potential and the resulting combination of recommended changes by the Board to improve performance, succession planning, strategy, and corporate governance.
Michael Goldstein has joined the Company as Interim President and CEO and Peter Henry has joined as Interim CFO. Goldstein will also join the Board of Directors.
Mogens Smed moves into a new role as Executive Chair, from his previous position as CEO. Smed will continue to focus on the success of DIRTT’s sales partner network, as well as key business development initiatives, reporting to the CEO.
Scott Jenkins, who held the roles of President, Interim CFO, and Director, has departed the Company.
Steve Parry, Chairman of the Board, will transition to the role of independent Lead Director, retaining responsibility for the oversight of operations and affairs of the Board.
"We are pleased to welcome both Michael Goldstein and Peter Henry to DIRTT," says Smed. "These changes are an important step in our path as a company and will support our growth ambitions. The Board and management team are committed to the success of DIRTT and achieving our full potential."
The primary sales, operational, and product development activities of the Company are not directly impacted by these changes. DIRTT’s day to day engagement with clients and its sales partners remains the same, with incoming executives supporting and reinforcing the work of the leadership team. One-time costs related to these changes are expected to be in the $1.5-$2 million range per year for the three years starting 2017.
The Board wishes to thank the entire DIRTT team for their support, leadership and commitment to excellence.
A conference call and webcast for the investment community will be hosted by Steve Parry, Michael Goldstein, Mogens Smed, and Ha Tran (VP Finance), on Tuesday, January 2, 2018 at 9 a.m. ET (7 a.m. MT).
To access the conference call by telephone, dial +1 877.479.7708 (toll-free in North America). Please dial-in 10 minutes prior to the start of the call. In addition, a live webcast (listen-only mode) of the conference call will be available at: https://edge.media-server.com/m6/p/ztzy7nos.
Investors are invited to submit questions by email before and during the conference call. Please send them to email@example.com. A replay of the conference call will be available at +1 855.859.2056 by entering passcode 5396836, from noon (ET) Tuesday, January 2, 2018 until 11:59 p.m. (ET) Tuesday, January 9, 2018, at https://edge.media-server.com/m6/p/ztzy7nos, and on DIRTT’s website at www.dirtt.net/company/investor.
Forward Looking Information
Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. The Company’s success will depend, in part, on its ability to maintain and manage growth effectively. To take advantage of future growth opportunities and manage the growth of the Company’s operations and personnel, DIRTT will need to continue to improve its operational, financial and management controls and reporting systems and procedures. Failure to effectively manage growth could result in difficulty in implementing products or securing customers and Partners; declines in quality or customer satisfaction; increases in costs; and difficulties in introducing new features or other operational difficulties. Any of these difficulties could adversely impact the Company’s business performance and results of operations. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under the Company's continuous disclosure obligations.
Michael is known for his entrepreneurial leadership of global technology businesses and has had top leadership mandates in private, TSX, NASDAQ, venture, and private equity businesses. Most recently as Chairman and then Acting CEO of Photon Control (TSX.V: PHO), he is credited with doubled market cap, growing cash, revenue, order-book, and gross margin.
Previous as CEO of Actuality Medical, Michael built a disruptive 3D imaging device company to address markets in surgical and radiation oncology with participants from Sloan Kettering, Siteman Cancer, Mayo Clinic, and Harvard/Beth Israel. As President of new imaging device technology company iFire Technology Inc., at the time a subsidiary of Westaim (TSX:WED), Michael scaled the company from lab to pilot FAB through acquisitions and strategic alliances in Japan, Korea, and Europe. As Chief Commercial Officer for Ballard Power [NASDAQ:BLDP], Michael is credited with doubling revenue, doubling order book, strategic acquisitions, and increasing margins by 80% in three years.
Previously, Michael led global divisions of larger multi-national enterprises with end markets in technology and industrial equipment. As the EVP and GM for a division of $6B Orlecon, [SIX:OERL], Michael was credited with increasing profitability and efficiency through an economic downturn. Michael started his career with General Electric Company, where he held progressively senior positions and was ultimately responsible for principal elements of NASA’s Mars Observer Mission spacecraft in connection with Jet Propulsion Labs and NASA.
Michael’s companies consistently achieve international recognition for their work including: Ideas That Changed The World, MIT 50K, American Society for Therapeutic Radiation and Oncology Award, National Institute of Standards Award, and The Discovery Award, The Discovery Channel, CBS TV, Scientific American, Wired, The Wall Street Journal, Business Week, Forbes, and CSI New York.
Michael’s education includes a Bachelor’s degree in Engineering from the University of Southern Illinois, and an MBA from the Wharton School, University of Pennsylvania.
Peter has over 40 years of experience in delivering audits and other assurance services in a variety of industries, including oil and gas exploration and development, energy transportation, energy services, manufacturing and distribution and airline transportation. Peter has served companies of various sizes from smaller junior oil and gas companies to large multinational manufacturing and distribution corporations. He has considerable experience in managing international audit assignments and drawing on his significant experience in financial reporting, to bring effective solutions to clients.
For many years, he was the audit engagement partner on a company with over $15 billion in market capitalization, with operations in Canada, United States, Europe, South America and Australia. He has served as the Sarbanes-Oxley (SOX) resource partner for KPMG’s Calgary office and has significant experience in assessing accounting processes and internal controls. In 2005, Peter led the KPMG team helping a major energy transportation company to document and test its financial reporting processes and controls on its initial adoption of SOX reporting. In addition to his numerous audit engagements, Peter was also the senior partner for KPMG’s Accounting Advisory Practice in the Calgary office. This practice area assists companies addressing complex accounting and reporting matters such as accounting for business combinations, pension accounting, stock based compensation, financial instruments, accounting for foreign currency transactions and sustainability reporting.
During his over 31 years as a KPMG partner, Peter had overall responsibility for the KPMG Information Risk Management (IRM) practice for the Prairies region, and Information Technology, Human Resources and Training for the audit practice. KPMG’s IRM practice provides services for Information Technology security assessments, business continuity planning and IT strategy.
The Board and management team are committed to the success of DIRTT and achieving our full potentialMogens Smed, Executive Chair
DIRTT Environmental Solutions uses its 3D software to create prefabricated interiors. Each space is tailored to our clients' needs. Manufacturing facilities are located in Phoenix, Savannah and Calgary. DIRTT works with nearly 100 Partners throughout North America, the Middle East and Asia. DIRTT trades on the Toronto Stock Exchange under the symbol "DRT".
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