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PICO Holdings, Inc. Announces Management Reorganization
In connection with the foregoing, the Company’s Compensation Committee approved, and the Company entered into, an Employment Agreement with Ms. Timian - Palmer, an amended Employment Agreement with Mr. Webb, an amended Executive Bonus Plan for Ms. Timian - Palmer and Mr. Webb, and a Transition Agreement with Mr. Perri. Concurrently with this press release, the Company is filing a Current Report on Form 8-K with the
“The Board is delighted to announce the appointment of Dorothy as the new CEO of the Company. The Company has achieved much in the last two years and its assets now consist almost entirely of
“The board is also incredibly pleased Max was willing to stay as our Executive Chairman. The board believes Max has done a terrific job as CEO and we are extraordinarily pleased he was willing to stay on this role as well as oversee our finance and reporting functions once the transition to move those functions to
“We believe this reorganization of the management structure and the closure of the
“Once the transition is complete we will provide further guidance to the normalized annual cash burn rate savings before the one - off costs associated with the reorganization.”
Mr. Webb commented:
“I am very pleased to pass the CEO role over to Dorothy. We have been colleagues for over 20 years and I believe she is exactly the right person at this point in the Company’s evolution to be leading the execution of the Company’s business plan. Dorothy is very creative and clever in finding water solutions to the water scarcities that exist in the markets we serve - and she and the Vidler team have the deep and extensive local knowledge in those markets that is essential for maximizing the value of our water portfolio. I look forward to working with Dorothy and the Board as we continue to monetize assets and reduce our normalized annual cash burn rate.
“I wish to thank
Ms. Timian - Palmer commented:
“I am honored to become CEO of
“I wish to thank Max for the job he has done as CEO these past couple of years and I am very pleased that in his role of Executive Chairman he will continue to provide me with his insights and financial expertise as I take on my new role. Max has shown leadership and commitment to shareholder value and I aim to emulate those actions.”
Currently, we believe the highest potential return to shareholders is from a return of capital to shareholders. As we monetize assets, rather than reinvest the proceeds, we intend to return the capital derived therefrom, less any working capital requirements, back to shareholders through a stock repurchase program or by other means such as special dividends taking into effect liquidity requirements, debt covenants and any other contractual and legal restrictions that may exist at the time.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Statements in this press release that are not historical, including statements regarding the reorganization of our management structure, the closure of our
In addition, a number of other factors may cause results to differ materially from our expectations, such as: any slow down or downturn in the housing recovery or in the real estate markets in which Vidler operates; fluctuations in the prices of water and water rights; physical, governmental and legal restrictions on water and water rights; a downturn in some sectors of the stock market; general economic conditions; prolonged weakness in the overall U.S. and global economies; and the continued service and availability of key management personnel.
For further information regarding risks and uncertainties associated with our business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of our
We undertake no obligation to (and we expressly disclaim any obligation to) update our forward-looking statements, whether as a result of new information, subsequent events, or otherwise, in order to reflect any event or circumstance which may arise after the date of this press release, except as may otherwise be required by law. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
This news release was distributed by GlobeNewswire, www.globenewswire.com.
Source: PICO Holdings Inc.