The Board of Directors names Daniel Urness
President and Acting Chief Executive Officer
Today, Cavco Industries, Inc. (Nasdaq: CVCO) (the "Company")
announced executive leadership changes. The Company's Board of
Directors (the "Board") has appointed Daniel Urness as President
and Acting Chief Executive Officer, effective immediately. In his
new role, Mr. Urness will be responsible for day-to-day leadership
of the Company. The Company also announced that Joshua Barsetti,
the Company's Chief Accounting Officer, will assume the duties of
principal financial officer for purposes of financial filings and
certifications.
William Boor, Chairman of the Company's Audit
Committee, a member of the Company's Compensation Committee and an
independent member of the Board since July 2008, will assume the
duties of non-executive Chairman of the Board.
Daniel Urness has worked for and on behalf of
the Company for nearly 20 years in numerous leadership positions
and has long been part of the Company’s Chief Executive Officer
succession plan. Most recently, Mr. Urness served as Cavco's
Executive Vice President, Chief Financial Officer and Treasurer
until August 2018, when he resigned from that position to work more
closely with the Company's home building production facilities to
gain additional experience as part of the Company's succession
planning efforts. As Executive Vice President, Mr. Urness played a
key role in advancing Cavco's operational initiatives, which
established the foundation for the Company's successes.
"The Board fully supports Cavco's current
strategy and is confident that Dan Urness is the right person to
build on our Company's success," commented Mr. Boor. "We are
fortunate to have Dan return to our executive leadership team as
our new President and Acting Chief Executive Officer," he
added.
Joseph Stegmayer, former Chairman, President and
Chief Executive Officer, commented that "Dan Urness is a great
choice to lead Cavco. He is a strong leader, with the ability to
connect with customers, partners and teammates. His institutional
knowledge of our Company and significant industry experience will
ensure a smooth leadership transition. I look forward to continuing
to serve the Company in my new role."
The Company also announced that it had received
a subpoena from the Securities and Exchange Commission's Division
of Enforcement ("SEC") requesting certain documents relating to,
among other items, trading of the stock of another public company.
Subsequent to sending the Company a subpoena, the SEC sent a
subpoena for documents and testimony to Joseph Stegmayer, regarding
similar issues. The Company has initiated an independent
investigation and intends to cooperate fully with the SEC's
investigation. Please see Part II, Item 1, Legal Proceedings
section of the Company's quarterly report on Form 10-Q for the
period ended September 29, 2018, filed with the Securities and
Exchange Commission contemporaneously with the issuance of this
press release, for additional information regarding this
matter.
Mr. Stegmayer stepped down from his position as
Chairman, President and Chief Executive Officer of the Company
after an internal investigation, conducted by independent legal
counsel, identified certain violations of Company policy related to
securities trading activities conducted by Mr. Stegmayer. The
Board's decision to transition Mr. Stegmayer to a non-executive
role allows the Company to retain his deep industry and operational
experience.
"The Board took actions that it believes to be
in the best interest of the Company and its stakeholders,"
commented Mr. Boor. "Cavco remains a strong Company and is well
positioned for the future under Dan's leadership."
Daniel Urness, President and Acting Chief Executive
Officer
Mr. Urness, 50, was previously Cavco's Executive Vice President,
Chief Financial Officer and Treasurer from April 2015 until August
2018. Previously, Mr. Urness served as Cavco's Vice President,
Chief Financial Officer and Treasurer from January 2006 to April
2015 and as a director and/or officer of certain of Cavco's major
subsidiaries, including Palm Harbor Homes, Inc., Fleetwood Homes,
Inc., CountryPlace Acceptance Corp. and Standard Casualty Company.
Mr. Urness was also Cavco's Interim Chief Financial Officer from
August 2005 to January 2006, Corporate Controller from May 2005 to
August 2005, financial consultant to the Company from June 2002 to
May 2005 and Controller from May 1999 to June 2002. Prior to
joining Cavco, Mr. Urness served as manager and staff at Deloitte
& Touche LLP for approximately six years.
Joshua Barsetti, Principal Financial
Officer
Mr. Barsetti, 38, has served as Cavco's Chief Accounting Officer
since August 31, 2018. Previously, Mr. Barsetti served as the
Company's Senior Director of Financial Administration from August
2017 to August 2018 and as the Company's Director of Internal Audit
from October 2014 to August 2017. Prior to joining Cavco, he served
as the Director of Financial Reporting at Universal Technical
Institute ("UTI") from November 2013 to October 2014 and previously
served as UTI's Audit Manager and Senior Audit Manager from May
2011 to November 2013. He held various internal audit positions at
Viad Corp. from September 2005 to May 2011, most recently as an
Internal Audit Manager. Mr. Barsetti holds a Bachelor's degree in
Accounting from Northern Arizona University and is a registered
Certified Public Accountant.
William Boor, Chairman of the Board
Mr. Boor is Chief Executive Officer of Great Lakes Brewing
Company, a large craft brewery in Cleveland, Ohio, a position he
has held since September 2015. From December 2014 to September
2015, Mr. Boor was principal of MIB Holding Co LLC, a mining
development company. From 2007 to 2014, Mr. Boor served in various
executive positions with Cliffs Natural Resources, Inc. ("Cliffs"),
most recently serving as Executive Vice President - Corporate
Development and Chief Strategy/Risk Officer and
President-Ferroalloys. Among other roles prior to Cliffs, Mr.
Boor held the position of Vice President, Corporate Development at
Centex Corporation. During that tenure, Cavco was a
subsidiary of Centex, and Mr. Boor worked on the Cavco strategy and
its eventual spin-off in 2003. Mr. Boor earned a Master of
Business Administration degree from Harvard Business School and is
a Chartered Financial Analyst.
About Cavco Industries, Inc.
Cavco Industries, Inc., headquartered in Phoenix, Arizona,
designs and produces factory-built housing products primarily
distributed through a network of independent and Company-owned
retailers. The Company is one of the largest producers of
manufactured homes in the United States, based on reported
wholesale shipments, marketed under a variety of brand names
including Cavco Homes, Fleetwood Homes, Palm Harbor Homes, Fairmont
Homes, Friendship Homes, Chariot Eagle and Lexington Homes.
The Company is also a leading producer of park model RVs,
vacation cabins, and systems-built commercial structures, as well
as modular homes built primarily under the Nationwide Homes brand.
Cavco's mortgage subsidiary, CountryPlace Mortgage, is an approved
Fannie Mae and Freddie Mac seller/servicer, a Ginnie Mae
mortgage-backed securities issuer that offers conforming mortgages,
non-conforming mortgages and home-only loans to purchasers of
factory-built homes. Our insurance subsidiary, Standard Casualty,
provides property and casualty insurance to owners of manufactured
homes.
Forward-Looking Statements
Certain statements contained in this release are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, Section 21E of the Securities Exchange Act of 1934 and the
Private Securities Litigation Reform Act of 1995. In general, all
statements that are not historical in nature are forward-looking.
These include predictions concerning the success of the Company's
future operations. All forward-looking statements are subject
to risks and uncertainties, many of which are beyond our control.
Actual results could differ materially from those contemplated by
the forward-looking statements as a result of certain factors,
including, but not limited to, potential financial impact on the
Company; the risk of potential litigation or regulatory action
arising from the internal investigation and its findings; and
potential reputational damage that the Company may suffer as a
result of the matters under investigation. Readers are specifically
referred to the Risk Factors described in Item 1A of the 2018 Form
10-K, as may be amended from time to time, which identify important
risks that could cause actual results to differ from those
contained in the forward-looking statements. Cavco expressly
disclaims any obligation to update any forward-looking statements
contained in this release, whether as a result of new information,
future events or otherwise. Investors should not place any reliance
on any such forward-looking statements.
Media Contact:John
LovalloPhone:
917-612-8419Email: jlovallo@levick.com
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