Chairman, CEO and President Of Insurance Auto Auctions to Resign
2 December 1998
James P. Alampi, Chairman, CEO and President Of Insurance Auto Auctions to Resign for Other Challenges
Former Company Executive to Lead IAAI on Interim Basis,
As Company Seeks New CEO to Manage Future Growth
SCHAUMBURG, Ill., Dec. 1 -- Insurance Auto Auctions, Inc.
, today announced that James P. Alampi, Chairman, Chief
Executive Officer and President, will resign from the company effective
December 31, 1998. After completing the successful reorganization and
turnaround of Insurance Auto Auctions, Mr. Alampi will leave the company to
pursue other opportunities in a former industry. Christopher G. Knowles, a
director of the company, will come out of retirement to serve as interim CEO
as the company begins a nationwide search for Mr. Alampi's successor.
Also, the company's board elected Thomas J. O'Malia as the non-executive
Chairman of the Board. O'Malia commented, "We are very sorry to lose an
accomplished and experienced executive such as Jim. He has helped the company
identify near-term profit improvement opportunities and played an important
role in helping us complete a strategic plan that outlines innovative growth
initiatives. Jim played a key role in the turnaround of Insurance Auto
Auctions, as the lead member of a strong management team that he put in place.
Jim's leadership served Insurance Auto Auctions well during our turnaround
phase and he leaves us with an accomplished senior management team. We
support his decision and wish him well in his future pursuits."
O'Malia said, "We will continue to focus on completing our transformation
from a traditional auto salvage company to a service operation that manages
the entire process of cash recovery from total-loss and recovered-theft
vehicles. We will pursue the same profit enhancing strategies Jim brought to
the company and keep our current management team in place. We recognize the
increasingly important role that value-added services and technology play
within the total process of auto salvage and that this area will lead the
company's future growth. We expect to find a new leader with a broad
understanding of the services industry. "
Alampi stated, "I am pleased with the accomplishments that have been made
in improving the company's financial position, and I am proud to have helped
this executive team in defining and focusing our organization on unique growth
opportunities for the future. While I am clearly leaving behind a compelling
opportunity, my decision is based on an opportunity to build and lead a
company in the fast-paced world of business-to-business e-commerce. This may
be a once in a lifetime opportunity, and while the time is never ideal, I am
confident that we have put the elements in place at IAA to continue the
strategic direction that has already shown dramatic improvement in results."
Thomas J. O'Malia was part of the founding team of Los Angeles Auto
Salvage, a forerunner of Insurance Auto Auctions. He has been a director of
the company since September 1993. From 1985 to April 1994, he was the founder
and Chief Executive Officer of ShopTrac Data Collection Systems, Inc., a
manufacturing software company that was merged into Kronos, Inc. in April
1994. From April 1994 to July 1995, Mr. O'Malia was General
Manager-Manufacturing Systems Division of Kronos, Inc. In July 1995, Mr.
O'Malia returned to be the director of the nationally ranked Entrepreneur
Program at the University of Southern California. He has been part of the
Marshall School Faculty since 1981.
Christopher G. Knowles has been a director of the company since June 1994.
From January 1994 to March 1996, Mr. Knowles held various positions at
Insurance Auto Auctions, including President and Chief Operating Officer.
Prior to joining Insurance Auto Auctions, Mr. Knowles was Chairman and Chief
Executive Officer from 1980 to 1994 of Underwriters Salvage Company, a
multi-location salvage operation that Insurance Auto Auctions acquired in
1994.
Founded in 1982, Insurance Auto Auctions, Inc. is the largest provider of
automotive and specialty salvage services in the United States, providing
insurance companies with cost-effective, turnkey solutions to process and sell
total-loss and recovered-theft vehicles, a $3 billion per year industry. The
company currently has 49 auction sites across the United States.
This press release contains forward-looking information that is subject to
certain risks and uncertainties that could cause actual results to differ
materially from those projected, expressed or implied by such forward-looking
information. The company's actual results could differ materially from those
discussed or implied herein. Factors that could cause or contribute to such
differences include, but are not limited to, those discussed in the company's
annual report, Form 10-K for the fiscal year ended December 31, 1997, or
subsequent quarterly reports. Among these risks are legislative acts, weather
conditions, changes in the market value of salvage, outcome of litigation,
competition, quality and quantity of inventory available from suppliers and
dependence on key insurance company suppliers.