EDMONTON, Jan. 10, 2012 /CNW/ - In 2010, the Board of Directors of ZCL Composites Inc. was faced with a succession challenge following the retirement of the Company's founder and President, Ven Côté.
After considering its alternatives, the Board agreed to accept Rod Graham's offer to become the President and Chief Executive Officer of the Company. The Board felt that Mr. Graham was the obvious choice, having had eight years' involvement with the Company, most recently serving as Vice-Chair. He had become very knowledgeable about ZCL's business and had developed important relationships with both its internal and external stakeholders, including customers, suppliers, employees, and the capital markets and investment community.
Rod Graham accepted this challenge and immediately proceeded to work with the Board and management to effect a restructuring of the Company, focused primarily on improving earnings. As part of that strategy, non-core businesses were exited and non-core assets were disposed of or monetized. In 2011, ZCL has returned to profitability, and has established a strong order backlog. In addition, the Company's net long-term debt has been reduced from a high of $20.6 million in the third quarter of 2010 to just under $13 million at the end of the third quarter of 2011.
Mr. Graham has achieved many of the goals and objectives set by himself and the Board and is looking forward to a positive outlook for ZCL for 2012 and 2013. Weighing in family considerations, he has recommended to the Board that now is the time to begin a transition to a new, permanent CEO.
The Board has accepted Rod Graham's recommendation and will immediately begin a search process to accomplish an orderly transition during 2012. At the end of the transition period, likely by the fourth quarter of 2012, Mr. Graham will retire as CEO and will remain as a Director.
On behalf of the Board, I salute Rod Graham for the enormous personal commitment he has made to turn ZCL around. We value him greatly, and we look forward to him continuing to serve ZCL in this future capacity.
James S. Edwards
Chairman of the Board
ZCL Composites Inc.