GOOD!!!!!!!!!!! - Wolf - According to TheNewspaper, Redflex’ new CEO Paul Clark told investors at the end of 2014 that the company may be considering a shift away from the photo ticket enforcement business, at least in the United States. Said Clark, “North America (particularly the US), where the bulk of our asset base, EBITDA and cash flow resides, continues to be a low/no-growth market made more challenging by public pushback against photo enforcement… Redflex needs to be de-risked. Revenue volatility, geographic and product concentration risks, class actions, federal investigations, different technology platforms all create a high risk business. To move into the non-Photo Enforcement market, organically or inorganically.” Clark also outlined some of the other issues facing his company, “Over just the past three years, this company has seen seven directors leave the organization, has had three chairmen and is on its third group CEO. Seven directors. Three chairmen. Three CEOs. Over three years.” NJ notes that Redflex CEO Karen Finley was indicted in August of 2014 on allegations that she bribed officials in an effort to earn the since-lost Chicago red light camera contract. Another federal lawsuit alleges that Redflex executives bribed officials in 13 states in an attempt to obtain taxpayer funding. The company reportedly expects to lose $12 million fighting its legal battles. Redflex CEO Clark also blamed his company’s troubles on a “negative community reaction driving contract terminations (not new contracts), legislation changes, lower enforcement levels and multiple class actions.” benswann/facing-losses-and-pushback-from-angry-americans-redflex-may-quit-the-red-light-camera-business/
Posted on: Wed, 14 Jan 2015 21:00:03 +0000