In another exec shake-up, Covetrus CFO steps down
Covetrus Inc. (Nasdaq: CVET), the newly public Portland-based company whose chairman and CEO have both turned over in the past three months, is now changing its chief financial officer.
Christine T. Komola has stepped down as Covetrus CFO and executive vice president and will serve as an advisor for a one-month transition period, the company said Monday in a news release.
Stuart B. Gleichenhaus, an executive with 40 years of operational and financial experience in over a dozen publicly-traded and private equity-owned companies, has been named interim CFO. Covetrus has hired a search firm to find someone for the role on a permanent basis.
Covetrus gave no reason for Komola’s departure. In September, she, Covetrus and then-president and CEO Benjamin Shaw were sued by investors who claimed the company and the two executives made false and misleading statements before Covetrus went public in February.
The class-action suit by the City of Hollywood (Fla.) Police Officers’ Retirement System alleged Covetrus overstated its ability to manage inventory and supply chain services, while understating a variety of costs and business threats.
Shaw resigned Oct. 22. His father, David Shaw, who served as chairman of Covetrus, resigned in September from that role but remains a member of the Covetrus board.
Benjamin Shaw has been replaced by Benjamin Wolin, now acting president and CEO.
On Nov. 12, Covetrus reported third-quarter results that included revenue of $1.02 billion and adjusted net income of $19 million, above most analysts' predictions. However, the company recorded a goodwill impairment charge of $939 million and wound up with a $906 million loss, or $8.09 per share, for the quarter.
Covetrus also scaled back projected earnings for the year slightly, to a range of $190 million to $196 million. In Monday's release, the company reaffirmed its guidance.
By Wednesday morning, shares of Covetrus were trading below $13, after selling for as much as $13.67 Monday.
The company, a global provider of animal-health products, services and technology, has 5,500 employees including about 300 in Portland. Covetrus was formed by the merger of Portland-based Vets First Choice, founded by the Shaws, and the veterinary products business of Henry Schein Inc. (Nasdaq: HSIC) in Melville, N.Y.
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