KGIC Inc LGLTF

Here's our new CEO...

[BigPapaStock]

https://ca.linkedin.com/in/shawnklerer

I like his resume.  All of this is still not adding up to me.  I think costs ran out of control mainly due to large acquisitions which led to high integration costs.  The acquisitions more than doubled revenues, but as stated by Shawn Klerer in today's release:

"There is plenty of work to do on integration and the expense side of the equation to drive profitability. Fourth quarter results for 2014 include a number of non-recurring expenses and are not necessarily indicative of run rate expectations going forward," said Mr. Klerer. "The key objective for 2015 is a renewed focus on profitability with an emphasis on reducing the cost of operations and improving margins. Some initiatives have already been implemented, and I will be spending the next 90 days uncovering additional opportunities to streamline operations and launching our previously announced student housing initiative."

He also stated the following:

"As I look at this business, I see both temporary negatives and lasting positives," said chief operating officer, Shawn Klerer. "The negatives include costs that are too high, managerial processes that lack rigour and a drop in first quarter revenue. The positives include a solid base of schools, strong organic growth and highly valuable assets that can be monetized in the near term. Revenue in the first quarter fell year over year partly as a result of our rebranding exercise that led to the closing of some smaller, less profitable schools. As of April, these schools have been integrated into other schools and we expect profitability to improve."

I like this guy.  He seems optimistic that LOY can be turned around and that there is a good business here.  It just takes proper management.  The reason for the poor performance is clearly stated.  It sounds like things will get back on track in coming quarters.  "Temporary negatives and lasting positives".