Energy Recovery, Inc. (NASDAQ:ERII), the leader in pressure energy technology for industrial fluid flows, announced that it has appointed Mr. Joel Gay as Chief Executive Officer and as a member of its Board of Directors, effective immediately. Mr. Gay previously served as the Company’s Chief Financial Officer and joined Energy Recovery in 2012.
Mr. Gay brings substantial experience in leading multiple corporate disciplines in global small-cap and large-cap companies. He has been overseeing and directing the day-to-day affairs of Energy Recovery with direct oversight from the Board of Directors since the announcement of the Company’s Chief Executive Officer transition. The appointment is part of Energy Recovery’s continued focus on maintaining a disciplined approach to targeting its select markets within the oil & gas, chemical processing, and sea water reverse osmosis seawater desalination industries.
Mr. Hans Peter Michelet, Chairman of the Board of Directors, stated, “We are very pleased to have Joel continue his leadership role as CEO. As we continue to refine our go-to-market strategy, we understand thatEnergy Recovery is not simply a supplier or services provider to various industrial markets. Energy Recovery is synonymous with innovation, and we will leverage our core expertise to take advantage of appropriate variations in our business model, including licensing. We conducted a comprehensive search for the Company’s next leader and concluded that Joel is the right individual with the right experience, vision and acumen.”
Mr. Michelet continued, “During the transition period, Joel has successfully led the Company and created stability. He has implemented a number of key operating and strategic initiatives, including rationalizing our cost structure and re-focusing the Company’s sales strategy. Importantly, Joel has led the development and process behind Energy Recovery’s paradigm-shifting technology—the VorTeq™. For the last year and a half, he has directly managed and led the VorTeq initiative, including the execution of our strategic alliance with Liberty Oilfield Services. In fact, his involvement extends to the creation of intellectual property as he is identified as an inventor in several VorTeq patent applications. Our Board of Directors and management are aligned in our vision and plan for execution. We are confident that Joel is the best person to lead the Company in this next phase of its development. We believe that our current management team will execute on these re-focused strategic initiatives, which also include market expansion into the oil and gas industry and a continued strengthening of Energy Recovery’s leading position in reverse osmosis sea water desalination.”
Mr. Ole Peter Lorentzen, the Company’s largest shareholder and a member of the Board of Directors, added, “Joel’s appointment as Chief Executive Officer is the right decision. Ludvig Lorentzen AS has significantly invested in Energy Recovery, and we feel Joel is the right individual to lead us through our new initiatives, expand our technology portfolio and markets, and increase long-term shareholder value. ”
Mr. Gay stated, “I look forward to continuing my work with the talented team here at Energy Recovery as we move forward with our strategic market expansion and product commercialization. We have made some significant and necessary changes to our operating structure since the beginning of 2015, which, I believe, will enable the Company to better capitalize and execute on its business opportunities. From the successful launch of the VorTeq solution to the re-focusing of our strategic execution, our executive team is fully committed to creating long-term shareholder value. I also will provide shareholders with an accurate depiction of the progress Energy Recovery is making in the various markets we are pursuing and intend to provide them with regular and meaningful updates going forward. I very much appreciate the Board’s support over the past few months, their vote of confidence through my appointment as Chief Executive Officer, and am optimistic about the road ahead.”
Mr. Gay has served as Energy Recovery’s Chief Financial Officer since June 2014. He joined Energy Recovery inJanuary 2012 and has held several positions at the Company. Prior to this, Mr. Gay held various roles at theAegion Corporation (NASDAQ:AEGN), most notably as the CFO of its largest division (North America). Mr. Gay has also held several positions within the Service Master Corporation and began his career in entrepreneurial finance.
Mr. Gay also serves on the board of GDG Constructors as an Executive Director and Chair of the Audit Committee. Mr. Gay holds an MBA from the University of Chicago’s Booth School of Business and a B.A. fromSt. Thomas University.
Company to Conduct Search for Chief Financial Officer
The Company’s Board of Directors will conduct a search for a new Chief Financial Officer to replace Mr. Gay in the coming weeks and will keep investors apprised of its progress. (Original Source)
Shares of Energy Recovery closed yesterday at $3.37 . ERII has a 1-year high of $6.18 and a 1-year low of $2.49. The stock’s 50-day moving average is $3.06 and its 200-day moving average is $3.93.
On the ratings front, Ardour analyst Jinming Liu downgraded ERII to Hold, with a price target of $3.50, In a report issued on March 11. The current price target represents a slight upside potential from current levels, In a report issued on March 11. The current price target represents a slight upside potential from current levels
According to TipRanks.com, Liu has a total average return of -2.9%, a 53.8% success rate, and is ranked #2970 out of 3579 analysts.
Energy Recovery Inc is engaged in designing, developing, and manufacturing of energy recovery devices that transform untapped energy into reusable energy from industrial fluid flows and pressure cycles.