AlerisLife Announces Leadership Transition and Business Update

Rhea-AI Summary

AlerisLife Inc. (Nasdaq: ALR) has appointed Jeff Leer as Interim President and CEO, effective May 1, 2022, following the resignation of Katie Potter. Leer, previously Executive VP, CFO, and Treasurer since 2019, will maintain his financial responsibilities while leading the company. The Board has also engaged Alvarez & Marsal for a comprehensive operational review, aiming to enhance financial performance. Recommendations are expected by Q2's end, and a search for a permanent CEO will begin post-review.

Positive

• Jeff Leer's prior experience as CFO positions him well for leadership during this transitional phase.
• Engagement of Alvarez & Marsal may lead to operational improvements and enhanced financial performance.

Negative

• Concerns about continuity and experience gaps following the leadership change.
• Dependence on A&M's recommendations, which may not guarantee the anticipated improvements.

Jeff Leer Appointed Interim President and Chief Executive Officer

Board of Directors Engages Healthcare Consulting Group of Alvarez & Marsal to Conduct Operational Review

NEWTON, Mass.--(BUSINESS WIRE)-- AlerisLife Inc. (Nasdaq: ALR) today announced that it has named Jeff Leer as Interim President and Chief Executive Officer, effective May 1, 2022. Mr. Leer has served as Executive Vice President, Chief Financial Officer and Treasurer of ALR since 2019 and will continue these responsibilities. Mr. Leer succeeds Katie Potter, who resigned as President and Chief Executive Officer, effective April 30, 2022.

ALR also announced that its Board of Directors has engaged the healthcare consulting group of Alvarez & Marsal (A&M) to conduct a comprehensive operational review. A&M expects to complete its review and make recommendations to the Board of Directors for consideration by the end of the second quarter. The Board does not intend to commence a search for a permanent CEO until A&M’s operational review is completed.

Adam Portnoy, Chair of the AlerisLife Board of Directors, said:

“Jeff’s experience as the Company’s CFO positions him well to lead the business on an interim basis and work with A&M as they review AlerisLife’s operations. Given the dynamic shifts in the senior living industry and the disruption caused by the COVID-19 pandemic, we believe that now is the right time to undertake an operational review to ensure that the Company will deliver enhanced financial performance and value creation over the long term.”

“On behalf of the entire Board, I want to thank Katie for her years of leadership and vision at ALR and the senior living industry. Katie’s tenure included guiding the Company through the unprecedented COVID-19 pandemic and creating a business foundation to help position ALR to service the senior living industry.”

Prior to joining AlerisLife in 2019, Mr. Leer held senior accounting and finance positions at The RMR Group (Nasdaq: RMR) and its affiliates, including serving as Chief Financial Officer and Treasurer of Office Properties Income Trust (Nasdaq: OPI). Previously, Mr. Leer held various accounting and finance positions at several Fortune 500 companies, including Boston Scientific Corporation and Dell Technologies. Mr. Leer is also a certified public accountant.

Jeff Leer, Interim President and Chief Executive Officer, and Chief Financial Officer, said:

“I have the support of the strong team in place across AlerisLife, including the accounting and finance groups, as I take on the additional responsibilities of serving as Interim President & CEO. In the short term, my focus will be on working with A&M to advance the operational review of the business while supporting the Board.”

About AlerisLife (Nasdaq: ALR):

AlerisLife enriches and inspires the lives of its older adult customers across the United States by delivering an exceptional and enhanced resident experience to senior living and active adult residents, while also offering lifestyle services to the younger “choice-based” consumer. The Company is headquartered in Newton, Massachusetts. For more information, visit www.alerislife.com.

WARNING REGARDING FORWARD-LOOKING STATEMENTS

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever ALR uses words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “will,” “may” and negatives or derivatives of these or similar expressions, ALR is making forward-looking statements. These forward-looking statements are based upon ALR’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by ALR’s forward-looking statements as a result of various factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond ALR’s control. For example:

• Statements about A&M’s engagement, including the duration of its review and ALR’s ability to finalize a plan with the help of A&M to improve ALR’s financial performance at ALR’s senior living communities and Ageility clinics. A&M’s work may take longer than anticipated and its recommendations, and the Company’s plan to improve performance, may not result in the anticipated financial and operational benefits for ALR.
• Statements about the ALR Board of Directors appointing a successor President and Chief Executive Officer. The Board of Directors may not be able to identify and engage a successor in a timely manner and ALR’s performance may not improve despite the appointment of a successor.

The information contained in ALR’s filings with the Securities and Exchange Commission, or SEC, including under “Risk Factors” in ALR’s periodic reports, or incorporated therein, identifies other important factors that could cause ALR’s actual results to differ materially from those stated in or implied by ALR’s forward-looking statements. ALR’s filings with the SEC are available on the SEC’s website at www.sec.gov.

You should not place undue reliance upon forward-looking statements.

Except as required by law, ALR does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220501005053/en/

Michael Kodesch, Director, Investor Relations

(617) 796-8234

Source: AlerisLife

FAQ

What led to Jeff Leer becoming Interim CEO of AlerisLife?

Jeff Leer was appointed Interim CEO following the resignation of Katie Potter, effective April 30, 2022.

What is the role of Alvarez & Marsal for AlerisLife?

Alvarez & Marsal has been engaged to conduct a comprehensive operational review for AlerisLife to identify potential improvements.

When can we expect recommendations from Alvarez & Marsal?

The recommendations from Alvarez & Marsal are expected by the end of the second quarter.

How might Jeff Leer's appointment impact AlerisLife's performance?

Leer's experience as CFO may facilitate a smoother transition and improve operational focus.

What challenges does AlerisLife face during this leadership transition?

Potential challenges include continuity of vision and operational effectiveness without a permanent CEO.