0001193805-16-003644.txt : 20160728 0001193805-16-003644.hdr.sgml : 20160728 20160728080122 ACCESSION NUMBER: 0001193805-16-003644 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20160728 DATE AS OF CHANGE: 20160728 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: RTI SURGICAL, INC. CENTRAL INDEX KEY: 0001100441 STANDARD INDUSTRIAL CLASSIFICATION: ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842] IRS NUMBER: 593466543 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-60813 FILM NUMBER: 161788419 BUSINESS ADDRESS: STREET 1: 11621 RESEARCH CIRCLE CITY: ALACHUA STATE: FL ZIP: 32615 BUSINESS PHONE: 386-418-8888 MAIL ADDRESS: STREET 1: 11621 RESEARCH CIRCLE CITY: ALACHUA STATE: FL ZIP: 32615 FORMER COMPANY: FORMER CONFORMED NAME: RTI Biologics, Inc. DATE OF NAME CHANGE: 20080227 FORMER COMPANY: FORMER CONFORMED NAME: REGENERATION TECHNOLOGIES INC DATE OF NAME CHANGE: 19991206 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Krensavage Asset Management, LLC CENTRAL INDEX KEY: 0001609251 IRS NUMBER: 262520930 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 130 EAST 59TH STREET STREET 2: 11TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 212-888-1582 MAIL ADDRESS: STREET 1: 130 EAST 59TH STREET STREET 2: 11TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10022 SC 13D/A 1 e615238_sc13da-rti.htm AMENDMENT NO. 4 TO THE SCHEDULE 13D sc13da410653002_07272016.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13D
(Rule 13d-101)

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO § 240.13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
§ 240.13d-2(a)

(Amendment No. 4)1

RTI Surgical, Inc.
(Name of Issuer)

Common Stock, par value $0.001 per share
(Title of Class of Securities)

74975N105
(CUSIP Number)
 
MICHAEL P. KRENSAVAGE
KRENSAVAGE ASSET MANAGEMENT, LLC
130 E. 59th St.
11th Floor
New York, NY 10022
(212) 518-1970
 
STEVE WOLOSKY, ESQ.
OLSHAN FROME WOLOSKY LLP
1325 Avenue of the Americas
New York, New York 10019
(212) 451-2300
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)

July 27, 2016
(Date of Event Which Requires Filing of This Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box ¨.

Note:  Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits.  See § 240.13d-7 for other parties to whom copies are to be sent.


_______________
1              The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
 
 
 
 
CUSIP NO. 74975N105
 
1
NAME OF REPORTING PERSON
 
KRENSAVAGE PARTNERS, LP
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) o
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
WC
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
DELAWARE
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
3,424,289
8
SHARED VOTING POWER
 
- 0 -
9
SOLE DISPOSITIVE POWER
 
3,424,289
10
SHARED DISPOSITIVE POWER
 
- 0 -
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
3,424,289
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
o
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
5.9%
14
TYPE OF REPORTING PERSON
 
PN

 
2
 
CUSIP NO. 74975N105
 
1
NAME OF REPORTING PERSON
 
KRENSAVAGE ADVISORS, LLC
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) o
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
AF
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
DELAWARE
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
3,424,289
8
SHARED VOTING POWER
 
- 0 -
9
SOLE DISPOSITIVE POWER
 
3,424,289
10
SHARED DISPOSITIVE POWER
 
- 0 -
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
3,424,289
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
o
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
5.9%
14
TYPE OF REPORTING PERSON
 
OO

 
3
 
CUSIP NO. 74975N105
 
1
NAME OF REPORTING PERSON
 
KRENSAVAGE PARTNERS TOO, LP
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) o
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
WC
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
DELAWARE
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
630,475
8
SHARED VOTING POWER
 
- 0 -
9
SOLE DISPOSITIVE POWER
 
630,475
10
SHARED DISPOSITIVE POWER
 
- 0 -
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
630,475
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
o
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
1.1%
14
TYPE OF REPORTING PERSON
 
PN

 
4
 
CUSIP NO. 74975N105
 
1
NAME OF REPORTING PERSON
 
KRENSAVAGE ADVISORS TOO, LLC
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) o
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
AF
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
DELAWARE
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
630,475
8
SHARED VOTING POWER
 
- 0 -
9
SOLE DISPOSITIVE POWER
 
630,475
10
SHARED DISPOSITIVE POWER
 
- 0 -
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
630,475
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
o
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
1.1%
14
TYPE OF REPORTING PERSON
 
OO

 
5
 
CUSIP NO. 74975N105
 
1
NAME OF REPORTING PERSON
 
KRENSAVAGE ASSET MANAGEMENT, LLC
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) o
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
AF
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
DELAWARE
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
4,054,764
8
SHARED VOTING POWER
 
- 0 -
9
SOLE DISPOSITIVE POWER
 
4,054,764
10
SHARED DISPOSITIVE POWER
 
- 0 -
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
4,054,764
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
o
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
7.0%
14
TYPE OF REPORTING PERSON
 
IA

 
6
 
CUSIP NO. 74975N105
 
1
NAME OF REPORTING PERSON
 
MICHAEL P. KRENSAVAGE
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) o
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
AF
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
USA
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
4,054,764
8
SHARED VOTING POWER
 
-0-
9
SOLE DISPOSITIVE POWER
 
4,054,764
10
SHARED DISPOSITIVE POWER
 
-0-
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
4,054,764
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
o
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
7.0%
14
TYPE OF REPORTING PERSON
 
IN

 
7
 
CUSIP NO. 74975N105
 
The following constitutes Amendment No. 4 to the Schedule 13D filed by the undersigned (“Amendment No. 4”).  This Amendment No. 4 amends the Schedule 13D as specifically set forth herein.
 
Item 3.
Source and Amount of Funds or Other Consideration.
 
 
Item 3 is hereby amended and restated to read as follows:
 
The Shares purchased by each of Krensavage Partners and Krensavage Partners Too were purchased with working capital (which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business) in open market purchases.  The aggregate purchase price of the 3,424,289 Shares directly owned by Krensavage Partners is approximately $13,560,184, including brokerage commissions.  The aggregate purchase price of the 630,475 Shares directly owned by Krensavage Partners Too is approximately $2,994,756, including brokerage commissions.

Item 4.
Purpose of the Transaction.
 
 
Item 4 is hereby amended to add the following:
 
On July 27, 2016, Krensavage Asset Management and its affiliates (collectively, “Krensavage”) delivered a letter to Curtis M. Selquist, Chairman of the Issuer’s Board of Directors (the “Board”), expressing its concerns with the Issuer’s operating results for the second quarter of 2016 as well as certain actions taken by the Issuer’s management team and Board in connection with the 2016 annual meeting of shareholders (the “2016 Annual Meeting”), including, among others: (i) squandering $2.7 million, or eight times Krensavage’s budget and more than 20% of the Issuer’s cash on hand at the end of June 2016, on a proxy contest instead of settling with Krensavage; (ii) amending the Issuer’s Amended and Restated Bylaws on July 6, 2016 to complicate the nomination of directors; (iii) cutting guidance for fiscal 2016 after the conclusion of the 2016 Annual Meeting; (iv) hiring consultants to develop a plan for the Issuer after claiming that Krensavage lacked such a plan during the proxy fight; (v) retaining Brian K. Hutchison as chief executive after more than 14 years of failed promises and eroding shareholder value; and (vi) using “adjusted EBITDA” to evaluate performance, which Krensavage finds misleading because it not only ignores the Issuer’s massive capital spending (similar to EBITDA) but also ignores other real expenses of the Issuer.  A copy of the letter is attached hereto as exhibit 99.1 and is incorporated herein by reference.

Item 5.
Interest in Securities of the Issuer.
 
 
Items 5(a)-(c) are hereby amended and restated to read as follows:
 
The aggregate percentage of Shares reported owned by each person named herein is based upon 58,026,674 Shares outstanding, as of April 27, 2016, which is the total number of Shares outstanding as reported in the Issuer’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on May 4, 2016.
 
A.
Krensavage Partners
 
 
(a)
As of the close of business on July 27, 2016, Krensavage Partners directly owns 3,424,289 Shares.
 
Percentage: Approximately 5.9%
 
 
8
 
CUSIP NO. 74975N105
 
 
(b)
1. Sole power to vote or direct vote: 3,424,289
 
2. Shared power to vote or direct vote: 0
 
3. Sole power to dispose or direct the disposition: 3,424,289
 
4. Shared power to dispose or direct the disposition: 0

 
(c)
The transactions in the Shares by Krensavage Partners since the filing of Amendment No. 3 to the Schedule 13D are set forth in Schedule A and are incorporated herein by reference.
 
B.
Krensavage Advisors
 
 
(a)
Krensavage Advisors, as the general partner of Krensavage Partners, may be deemed the beneficial owner of the 3,424,289 Shares owned by Krensavage Partners.
 
Percentage: Approximately 5.9%
 
 
(b)
1. Sole power to vote or direct vote: 3,424,289
 
2. Shared power to vote or direct vote: 0
 
3. Sole power to dispose or direct the disposition: 3,424,289
 
4. Shared power to dispose or direct the disposition: 0

 
(c)
Krensavage Advisors has not entered into any transactions in the Shares since the filing of Amendment No. 3 to the Schedule 13D.  The transactions in the Shares on behalf of Krensavage Partners since the filing of Amendment No. 3 to the Schedule 13D are set forth in Schedule A and are incorporated herein by reference.
 
C.
Krensavage Partners Too
 
 
(a)
As of the close of business on July 27, 2016, Krensavage Partners Too directly owns 630,475 Shares.
 
Percentage: 1.1%
 
 
(b)
1. Sole power to vote or direct vote: 630,475
 
2. Shared power to vote or direct vote: 0
 
3. Sole power to dispose or direct the disposition: 630,475
 
4. Shared power to dispose or direct the disposition: 0

 
(c)
The transactions in the Shares by Krensavage Partners Too since the filing of Amendment No. 3 to the Schedule 13D are set forth in Schedule A and are incorporated herein by reference.
 
D.
Krensavage Advisors Too
 
 
(a)
Krensavage Advisors Too, as the general partner of Krensavage Partners Too, may be deemed the beneficial owner of the 630,475 Shares owned by Krensavage Partners Too.
 
Percentage: 1.1%
 
 
(b)
1. Sole power to vote or direct vote: 630,475
 
2. Shared power to vote or direct vote: 0
 
3. Sole power to dispose or direct the disposition: 630,475
 
4. Shared power to dispose or direct the disposition: 0
 
 
9
 
CUSIP NO. 74975N105
 
 
(c)
Krensavage Advisors Too has not entered into any transactions in the Shares since the filing of Amendment No. 3 to the Schedule 13D.  The transactions in the Shares on behalf of Krensavage Partners Too since the filing of Amendment No. 3 to the Schedule 13D are set forth in Schedule A and are incorporated herein by reference.
 
E.
Krensavage Asset Management
 
 
(a)
Krensavage Asset Management, as the investment manager of each of Krensavage Partners and Krensavage Partners Too, may be deemed the beneficial owner of the (i) 3,424,289 Shares owned by Krensavage Partners and (ii) 630,475 Shares owned by Krensavage Partners Too.
 
Percentage: Approximately 7.0%
 
 
(b)
1. Sole power to vote or direct vote: 4,054,764
 
2. Shared power to vote or direct vote: 0
 
3. Sole power to dispose or direct the disposition: 4,054,764
 
4. Shared power to dispose or direct the disposition: 0

 
(c)
Krensavage Asset Management has not entered into any transactions in the Shares since the filing of Amendment No. 3 to the Schedule 13D.  The transactions in the Shares on behalf of each of Krensavage Partners and Krensavage Partners Too since the filing of Amendment No. 3 to the Schedule 13D are set forth in Schedule A and are incorporated herein by reference.
 
F.
Mr. Krensavage
 
 
(a)
Mr. Krensavage, as the managing member of Krensavage Asset Management, may be deemed the beneficial owner of the (i) 3,424,289 Shares owned by Krensavage Partners and (ii) 630,475 Shares owned by Krensavage Partners Too.
 
Percentage: Approximately 7.0%
 
 
(b)
1. Sole power to vote or direct vote: 4,054,764
 
2. Shared power to vote or direct vote: 0
 
3. Sole power to dispose or direct the disposition: 4,054,764
 
4. Shared power to dispose or direct the disposition: 0

 
(c)
Mr. Krensavage has not entered into any transactions in the Shares since the filing of Amendment No. 3 to the Schedule 13D.  The transactions in the Shares on behalf of each of Krensavage Partners and Krensavage Partners Too since the filing of Amendment No. 3 to the Schedule 13D are set forth in Schedule A and are incorporated herein by reference.
 
The Reporting Persons, as members of a “group” for the purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, may be deemed the beneficial owner of the Shares directly owned by the other Reporting Persons.  Each Reporting Person disclaims beneficial ownership of such Shares except to the extent of his or its pecuniary interest therein.
 
 
10
 
CUSIP NO. 74975N105
 
Item 7.
Material to be Filed as Exhibits.
 
 
Item 7 is hereby amended to add the following exhibit:
 
 
99.1
Letter to the Chairman of the Board, dated July 27, 2016.
 
 
11
 
CUSIP NO. 74975N105
 
SIGNATURES
 
After reasonable inquiry and to the best of his knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.
 
Dated:  July 28, 2016
 
  Krensavage Partners, LP
   
 
By:
 Krensavage Asset Management, LLC
Investment Manager
     
 
By:
 /s/ Michael P. Krensavage
   
Name:
 Michael P. Krensavage
   
Title:
 Managing Member
 
 
  Krensavage Partners Too, LP
   
 
By:
 Krensavage Asset Management, LLC
Investment Manager
     
 
By:
 /s/ Michael P. Krensavage
   
Name:
 Michael P. Krensavage
   
Title:
 Managing Member

  Krensavage Advisors, LLC
   
 
By:
 /s/ Michael P. Krensavage
   
Name:
 Michael P. Krensavage
   
Title:
 Owner
 
 
  Krensavage Advisors Too, LLC
   
 
By:
 /s/ Michael P. Krensavage
   
Name:
 Michael P. Krensavage
   
Title:
 Owner
 
 
  Krensavage Asset Management, LLC
   
 
By:
 /s/ Michael P. Krensavage
   
Name:
 Michael P. Krensavage
   
Title:
 Managing Member
 

 
/s/ Michael P. Krensavage
 
MICHAEL P. KRENSAVAGE

 
12
 
CUSIP NO. 74975N105
 
SCHEDULE A
 
Transactions in the Shares Since the Filing of Amendment No. 3 to the Schedule 13D
 
Shares of Common Stock
Purchased / (Sold)
Price Per
Share($)
Date of
Purchase / Sale
     
KRENSAVAGE PARTNERS, LP
     
75
3.7500
05/31/2016
16,834
3.7248
06/01/2016
9,360
3.6659
06/03/2016
9,432
3.6939
06/08/2016
21,150
3.7753
06/09/2016
8,544
3.7142
06/10/2016
16,941
3.7471
06/21/2016
841
3.7000
06/22/2016
8,481
3.6600
06/24/2016
33,768
3.5737
06/27/2016
337,173
3.4505
07/27/2016
     
KRENSAVAGE PARTNERS TOO, LP
     
25
3.7500
05/31/2016
3,076
3.7248
06/01/2016
1,736
3.6659
06/03/2016
568
3.6939
06/08/2016
3,850
3.7753
06/09/2016
1,556
3.7142
06/10/2016
3,059
3.7471
06/21/2016
159
3.7000
06/22/2016
1,519
3.6600
06/24/2016
6,232
3.5737
06/27/2016
6,763
3.6511
07/06/2016
62,827
3.4505
07/27/2016






 
 EX-99.1 2 e615238_ex99-1.htm LETTER TO THE CHAIRMAN OF THE BOARD, DATED JULY 27, 2016 ex991to13da410653002_072716.htm
Exhibit 99.1
 
 
130 E 59th St
11th Floor
New York, NY 10022
 

Curtis M. Selquist
Chairman
RTI Surgical, Inc.
11621 Research Circle
Alachua, FL 32615

July 27, 2016

Dear Mr. Selquist,

Congratulations on your victory against Krensavage Asset Management LLC and its efforts to protect the shareholder through our failed proxy fight. You won this time.

The $2.7 million you squandered—or roughly eight times our budget—overwhelmed our five-person firm. We pose the following questions to your newly-entrenched management:

What motivates your board to thwart shareholder rights by amending the company’s bylaws July 6 to complicate the nomination of directors?

When did you decide to cut your 2016 guidance? Would shareholders have voted differently in the proxy fight had they known you would again miss your targets?

Institutional Shareholder Services Inc. criticized a newly-installed director, Paul G. Thomas, for serving on too many boards. How will his appointment to the board of Cohera Medical, Inc. this month affect his commitment to RTI?

Does Thomas’ role as chief executive of penny stock Roka Bioscience, Inc. (NASDAQ: ROKA) detract from his efforts at RTI? How would he explain the decline of Roka stock to 91 cents from $12? Does that give him special qualifications to serve on RTI’s board?

RTI during its proxy battle claimed Krensavage lacks plans for the company. Do you grasp the irony of your disclosure July 27 that you plan to hire consultants to devise a plan? How much will you pay the consultants? Why are you hiring consultants instead of investment bankers?

Why did the company insist on squandering $2.7 million—or more than 20% of cash on hand at the end of June--on a proxy battle instead of settling with us?

Why does RTI retain Brian K. Hutchison as chief executive after more than 14 years of failed promises and eroding shareholder value? What does the July 27 earnings warning say about his grasp of the business?
 
 
 
 

How do you justify the 17-year tenure of director Peter F. Gearen?

The directors we proposed said they would consider spending their own money to buy RTI shares on the open market. Will your newly-installed directors buy shares and act like owners or will they ride the corporate gravy train?

What is the return on investment on the $57.7 million of capital improvements since the beginning 2013? The expenditures represent roughly 17% of your enterprise value, as calculated by Bloomberg. What have you purchased?

Why does the company employ “adjusted EBITDA” to evaluate performance? EBITDA provides a misleading view because, among other reasons, it ignores your massive capital spending. “Adjusted” EBITDA is even worse because it ignores other real expenses.

We look forward to your response.


Regards,

/s/ Michael P. Krensavage

Michael P. Krensavage


 
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