Since Walter Investment Management Corp (NYSE: WAC) decided to let go of its CEO Denmar Dixon several months ago, the question has been who will replace him. The reason WAC parted ways with Dixon was that it felt the CEO was unable to put an end to the deterioration or revenue and profits.
Though WAC tapped its executive chairman George Award to serve as caretaker CEO, the company has been on the search for a permanent CEO and it has just announced its finding. The company has decided to hire mortgage industry veteran Anthony Renzi as its CEO. Until his hiring, Renzi was the head of operations at Citigroup Inc. (NYSE: C)’s North America mortgage, commercial bank and retail bank.
Walter Investment Management Corp. (NYSE: WAC) said in a press release that Renzi has more than 30 years of experience in mortgage industry. It is that wealth of experience that makes WAC believes that in Renzi it has an executive capable of turning around its shrinking fortunes. Renzi is set to formally begin work at WAC in 4Q2016 and he has been offered $2.5 million in signing bonus.
A tough period
At Walter Investment Management Corp (NYSE: WAC), Renzi will likely not have a honeymoon moment. The company’s declining revenues and deteriorating bottom-line are issues of serious concern to the board and shareholders. They will expect Renzi to immediately put a bottom to the shrinking revenues and profits and then embark on growing the figures.
A number of measures have already been initiated at WAC to try and improve the company’s financial performance. Those measures include headcount reduction and consolidation of the office. WAC is also monetizing some of its assets in what can be seen as efforts to improve liquidity because the in-coming CEO will need so much in cash to engineer a turnaround.
How did Walter Investment Management Corp. (NYSE: WAC) fare in 2Q?
Walter Investment Management Corp. (NYSE: WAC) posted another downbeat quarter in 2Q2016 whereby both topline and bottom-line figures weakened further. Revenue of $187.5 million was down 55% YoY and EPS loss of $6.49 widened significantly from EPS loss of $1.01 a year ago.