PAE Announces CEO Transition

Rhea-AI Summary

On March 16, 2021, PAE appointed Charles Peiffer as Interim President and CEO effective March 19, following John Heller's resignation. Peiffer, who has served as CFO since 2014, is expected to lead during the search for a permanent CEO. The Board of Directors will engage an executive search firm to identify suitable candidates. PAE reiterated its fiscal year 2021 guidance, projecting revenues of $3,050 million to $3,150 million, adjusted EBITDA of $205 million to $215 million, and cash flow of at least $120 million.

Positive

• Appointment of Charles Peiffer as Interim CEO, expected to guide the company during leadership transition.
• Reiteration of fiscal year 2021 guidance: revenue between $3,050M - $3,150M, adjusted EBITDA of $205M - $215M, cash flow of at least $120M.

Negative

• Leadership transition may create uncertainty among investors and stakeholders.
• John Heller's resignation may reflect internal challenges or instability within the executive team.

Charles Peiffer Appointed Interim CEO
Company Reiterates Fiscal Year 2021 Guidance

FALLS CHURCH, Va., March 16, 2021 (GLOBE NEWSWIRE) -- PAE Incorporated (“PAE” or the “Company”) (NASDAQ: PAE, PAEWW) today announced that Charles Peiffer, Executive Vice President and Chief Financial Officer, has been appointed by the Board of Directors to serve in the additional role of Interim President and Chief Executive Officer, effective March 19, 2021. Mr. Peiffer’s appointment follows John Heller’s decision to resign from his position of President and Chief Executive Officer for personal reasons.

The Company noted that the Board will initiate a formal search process to identify a permanent CEO. The Board will engage an executive search firm and will consider both internal and external candidates.

“Charlie has been a valuable member of the PAE team since he joined in 2014, and we are fortunate to have a leader of his caliber and experience to step into the President and CEO role on an interim basis while the Board conducts its search process,” said Marshall Heinberg, Chairman of the Board of Directors. “Charlie has a deep understanding of our business, operations and strategy, and a true appreciation for the hard work and dedication of our employees. We are confident Charlie is the ideal person to support the Company through this interim period, and we appreciate his willingness to take on this expanded role.”

“I look forward to working alongside the Board and leading our talented and experienced management team,” said Mr. Peiffer. “PAE has strong momentum entering 2021 with recent flagship contract wins and continued progress integrating the acquisitions we announced in Fall 2020. We will continue to execute our strategy as we expand the business with a focus on high-margin contracts and enhance our capabilities, customer presence and contract vehicles. We are confident that PAE will continue on its path of growth and success.”

Mr. Heinberg said, “On behalf of everyone at PAE, I want to thank John for his contributions and for helping to guide PAE to this point. During his tenure, PAE has grown into a leader in delivering mission-critical services to the U.S. Government and international partners, with a global workforce of nearly 20,000 employees dedicated to providing the essential services our clients need to tackle some of the world’s toughest challenges. John’s efforts culminated in PAE becoming a publicly traded company last year, and we wish him well in his future endeavors.”

Mr. Heller said, “I am proud of all that we have accomplished together at PAE. I have profound respect for the team and every confidence that the Company will continue to grow and deliver great service in the future.”

PAE reiterated its fiscal year 2021 guidance for revenue of $3,050 million to $3,150 million, adjusted EBITDA of $205 million to $215 million, and cash flow provided by operations of at least $120 million.

About Charles Peiffer

Mr. Peiffer has served as the Executive Vice President and Chief Financial Officer of PAE since 2014. Prior to being named to this position, Mr. Peiffer served as the Senior Vice President and CFO at IAP Worldwide Services Inc. from 2009 to 2014, a leading provider of facility management, contingency support, power solutions and technical services. Prior to his position at IAP, Mr. Peiffer served as Vice President of Finance and CFO from 2003 to 2009 at Fluid Technologies, an operating segment of ITT, Inc., a specialty component producer for the aerospace, transportation, energy and industrial markets. In addition, Mr. Peiffer has held financial leadership roles at Avaya Communications, Lucent Technologies, AlliedSignal, Lockheed Martin, Martin Marietta and General Electric. Mr. Peiffer earned his Master’s degree in Banking and Finance from Saint Joseph’s University and his Bachelor’s degree in Business and Accounting from Philadelphia University.

Forward-Looking Statements

This press release contains a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to management’s assumptions, expectations, projections, intentions and/or beliefs about future events or occurrences, and include, but are not limited to, statements about PAE’s leadership transition, PAE’s possible or assumed future results of operations and cash flows, financial results, business strategies, debt levels, competitive position, industry environment, potential growth opportunities, potential impact of COVID-19, effects of regulation, backlog, estimation of resources for contracts, risks related to IDIQ contracts, risks related to integration of acquisitions, strategy for and management of growth, needs for additional capital, risks related to U.S. government contracting generally, including congressional approval of appropriations, and bid protests. These forward-looking statements are based on PAE’s management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.

About PAE

For over 65 years, PAE has tackled the world’s toughest challenges to deliver agile and steadfast solutions to the U.S. government and its allies. With a global workforce of approximately 20,000 on all seven continents and in approximately 60 countries, PAE delivers a broad range of operational support services to meet the critical needs of our clients. Our headquarters is in Falls Church, Virginia. Find us online at pae.com, on Facebook, Twitter and LinkedIn.

For investor inquiries regarding PAE:

Mark Zindler
Vice President Investor Relations
PAE
703-717-6017
mark.zindler@pae.com

For media inquiries regarding PAE:

Terrence Nowlin
Senior Communications Manager
PAE
703-656-7423
terrence.nowlin@pae.com

FAQ

Who was appointed Interim CEO of PAE in March 2021?

Charles Peiffer was appointed as Interim President and CEO of PAE effective March 19, 2021.

What is PAE's revenue guidance for fiscal year 2021?

PAE's revenue guidance for fiscal year 2021 is projected between $3,050 million and $3,150 million.

What is the adjusted EBITDA guidance for PAE in 2021?

The adjusted EBITDA guidance for PAE in fiscal year 2021 is between $205 million and $215 million.

How did Charles Peiffer's previous role relate to his new position?

Before becoming Interim CEO, Charles Peiffer served as Executive Vice President and Chief Financial Officer at PAE since 2014.