CLEVELAND, OHIO – In October 1997, Lawn & Landscape published an exclusive interview that included Bill Foley's predictions for the future. At that point, LESCO's stock was at an all-time high, the number of LESCO service centers continued growing and life was good. It was so good that Foley predicted LESCO would have more than 600 service centers in place by 2002. Today, the company has 227 service centers, and LESCO announced Foley's resignation.
The last few years have presented numerous challenges for LESCO and Foley, who took over the company's top spot in 1993. Foley’s aggressive expansion plan drove the organization to a powerful position as the leading distributor of turf care products in the country with more than 230 locations at one point. But while the company’s annual sales climbed from $145 million when he assumed control to more than $500 million last year, profits fell. The company lost almost $3 million last year.
Meanwhile, the company’s stock price dropped as well, from a high of $25 a share in late 1997 to a low of $6.10 a share last December. To make matters worse for Foley, some of the company’s largest individual shareholders, especially Michael FitzGibbon, one of the company’s directors and son of one of its founders, were increasingly critical about his growth plans.
These aren’t Foley’s concerns any longer. Michael DiMino, who was hired as president and chief operating officer in December, was appointed president and chief executive officer. In addition, Marty Erbaugh, former owner of the Cleveland-area lawn care company Lawnmark, was appointed chairman of the board of directors for LESCO.
“By accepting Mr. Foley’s resignation and naming Michael P. DiMino to the position of president and chief executive officer, the board of directors took the necessary step to solidify the management of the company,” stated Erbaugh in a release distributed by the company. “The board of directors and the management team of LESCO are committed to improving the financial performance that our shareholders expect following a difficult and disappointing 2001.”
“Our founders, Jim FitzGibbon and Bob Burkhardt, were passionate about our products and customer service. I share our founders’ passion,” related DiMino. “I look forward to presenting our vision of how we are going to unlock the value inherent within LESCO’s unique business model.”
DiMino and Jeffrey Rutherford, who was named chief financial officer in February, will travel to New York to make a presentation outlining LESCO’s short- and long-term goals and opportunities to its investors on April 9, and that meeting will be simulcast on the company’s Web site at www.lesco.com.
Before joining LESCO, DiMino served three years as president of Uniforms To You, a division of Cintas Corp. Previously, he was senior vice president of sales and marketing for Uniforms To You, and he also held sales and personnel management positions in the health care industry.