HC2 Holdings, Inc. (“HC2” or the “Company”) (NYSE: HCHC), a
diversified holding company, announced today its Board of Directors
has appointed Wayne Barr, Jr. as interim Chief Executive Officer.
Mr. Barr succeeds Philip A. Falcone, effective immediately.
The Board of Directors intends to commence a
search for a permanent CEO and has formed a search committee
comprised of Chairman Avie Glazer, and directors Warren Gfeller and
Michael Gorzynski.
“After a thorough review, the new HC2 Board has
determined that the best course of action is to appoint Wayne as
interim CEO while we embark on a search for a permanent successor,”
said Mr. Glazer, Chairman of the Board of Directors of HC2. “With
Wayne’s extensive financial and strategic experience, his
familiarity with HC2 since its inception, along with the incumbent
HC2 team that has been effectively executing on transforming our
business, we are confident that he will skillfully guide HC2
through this next phase and create value for our stockholders.
“At the same time, we also want to thank Phil
for his contributions to HC2,” added Mr. Glazer. “Phil helped build
HC2 over the past six years, acquiring undervalued assets and
growing them under the HC2 umbrella. He has set the stage for
HC2 to succeed in its next chapter. We wish him all the best
in his future endeavors.”
Mr. Barr will continue to serve on the recently
created Executive Committee of the Board, comprised of Chairman
Avie Glazer, Michael Gorzynski and Mr. Barr, while Shelly Lombard
will replace Mr. Barr on the Compensation Committee, effective
immediately.
Mr. Barr has served as a director of HC2
since January 2014, as well as serving as a director of
certain HC2 subsidiaries. Since March 2019, Mr. Barr has
been President and CEO of CCUR Holdings, Inc. (OTCQB: CCUR)
(“CCUR”). He joined the CCUR board in 2016 and was also Executive
Chairman of CCUR until April 2020. Mr. Barr is also
a member of the board of directors of Alaska Communications Group,
Inc., (NASDAQ: ALSK), where he is chairman of the Compensation and
Personnel Committee and serves on the Nominating and Governance
Committee.
“I appreciate the Board’s confidence, and I am
proud to be leading our excellent team on an interim basis through
this important period,” said Mr. Barr. “All of our businesses
and our teams have stepped up admirably during these challenging
times, and we are on the right path with respect to de-levering our
balance sheet and strengthening our capital structure.
Additionally, our Board continues to evaluate all strategic options
in order to unlock additional value for our
stockholders.”
About HC2
HC2 Holdings, Inc. is a publicly traded
(NYSE:HCHC) diversified holding company, which seeks opportunities
to acquire and grow businesses that can generate long-term
sustainable free cash flow and attractive returns in order to
maximize value for all stakeholders. HC2 has a diverse array of
operating subsidiaries across multiple reportable segments,
including Construction, Energy, Telecommunications, Life Sciences,
Broadcasting, Insurance and Other. HC2's largest operating
subsidiary is DBM Global Inc., a family of companies providing
fully integrated structural and steel construction services.
Founded in 1994, HC2 is headquartered in New York, New York. Learn
more about HC2 and its portfolio companies at www.hc2.com.
Cautionary Statement Regarding
Forward-Looking Statements
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995: This press release
contains, and certain oral statements made by our representatives
from time to time may contain, forward-looking statements.
Generally, forward-looking statements include information
describing actions, events, results, strategies and expectations
and are generally identifiable by use of the words “believes,”
“expects,” “intends,” “anticipates,” “plans,” “seeks,” “estimates,”
“projects,” “may,” “will,” “could,” “might,” or “continues” or
similar expressions. The forward-looking statements in this press
release include, without limitation, any statements regarding HC2’s
expectations regarding building shareholder value, future cash
flow, longer-term growth and invested assets, the timing and
effects of redeeming the 11.5% Notes, reducing HC2's leverage and
interest expense, the timing or prospects of any refinancing of
HC2's remaining corporate debt, and any statements regarding HC2’s
expectations regarding entering definitive agreements in respect of
the potential divestitures of Continental Insurance and/or DBM
Global. Such statements are based on the beliefs and
assumptions of HC2’s management and the management of HC2’s
subsidiaries and portfolio companies. The Company believes
these judgments are reasonable, but you should understand that
these statements are not guarantees of performance or results, and
the Company’s actual results could differ materially from those
expressed or implied in the forward-looking statements due to a
variety of important factors, both positive and negative, that may
be revised or supplemented in subsequent statements and reports
filed with the Securities and Exchange Commission (“SEC”),
including in our reports on Forms 10-K, 10-Q, and 8-K. Such
important factors include, without limitation, issues related to
the restatement of our financial statements; the fact that we have
historically identified material weaknesses in our internal control
over financial reporting, and any inability to remediate future
material weaknesses; capital market conditions, including the
ability of HC2 and HC2’s subsidiaries to raise capital; the ability
of HC2’s subsidiaries and portfolio companies to generate
sufficient net income and cash flows to make upstream cash
distributions; volatility in the trading price of HC2 common stock;
the ability of HC2 and its subsidiaries and portfolio companies to
identify any suitable future acquisition or disposition
opportunities; our ability to realize efficiencies, cost savings,
income and margin improvements, growth, economies of scale and
other anticipated benefits of strategic transactions; difficulties
related to the integration of financial reporting of acquired or
target businesses; difficulties completing pending and future
acquisitions and dispositions; effects of litigation,
indemnification claims, and other contingent liabilities; changes
in regulations and tax laws; and risks that may affect the
performance of the operating subsidiaries and portfolio companies
of HC2. Although HC2 believes its expectations and
assumptions regarding its future operating performance are
reasonable, there can be no assurance that the expectations
reflected herein will be achieved. These risks and other
important factors discussed under the caption “Risk Factors” in our
most recent Annual Report on Form 10-K filed with the SEC, and our
other reports filed with the SEC could cause actual results to
differ materially from those indicated by the forward-looking
statements made in this press release.
You should not place undue reliance on
forward-looking statements. All forward-looking statements
attributable to HC2 or persons acting on its behalf are expressly
qualified in their entirety by the foregoing cautionary
statements. All such statements speak only as of the date
made, and unless legally required, HC2 undertakes no obligation to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise.
Contact:Investor Relations
Garrett Edson ir@hc2.com (212) 235-2691
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