Henry Brothers management change
FAIR LAWN, N.J.--Henry Bros. Electronics, a publicly traded security systems integrator based here, announced in early March that long-time president and company co-founder Irvin Witcosky has resigned his position, including his place on the board of directors. Brian Reach replaces Witcosky, while retaining the role of chief operating officer, to which he was appointed in August 2006. He immediately took command of day-to-day management of sales and marketing for the company.
The management change comes on the heels of a year-end report that saw Henry Bros. backtrack from a 2005 that saw $2.1 million in operating profits to a 2006 that saw $1.3 million in operating losses on flat revenues of roughly $42 million per year. However, $1.2 million of the operating losses are attributable to a non-cash charge associated with goodwill impairment.
"We have made significant corrective steps to ensure greater visibility and operating efficiencies in our business," chief executive officer Jim Henry said in a statement accompanying the financial results, "including a stronger management team, enhanced forecasting and greater oversight."
Reach said his primary goals for the company in working with Henry is to capitalize on the Henry Bros. brand name and national footprint, along with the cachet lent by its list of marquee customers.
As he looks to grow the company, both organically and through acquisition, he said the company's standing as one of the few large publicly traded integrators has its pros and cons. While the outside rules and transparency can be negatives, "The positive is that we have access to capital markets that our competitors don't. We trade accountability off in exchange for flexibility with our capital structure ... That's an important ingredient, having a different form of currency [company stock] to be used in doing exchanges."
Reach joined the Henry Bros. board in 2004, and has previously served as vice chairman of Henry Bros. Prior to that appointment, he was chief financial officer for Globix Corporation, IPC Information Systems, Celadon Group and Cantel Medical.