The Ryland Group Inc.'s No. 2 executive for nearly five years intends to leave the Columbia-based homebuilder at the end of this month.
Michael D. Mangan, a Ryland executive vice president and its chief financial officer, will resign from the company "to pursue other personal and professional opportunities," the company said.
Mangan joined Ryland in November 1994 as part of a management restructuring led by R. Chad Dreier, the company's chairman and chief executive officer.
In recent quarters, after several dismal performances, Ryland appears to have turned a corner financially.
"By all measures, we've turned the company around," said Mangan, 42. "And I've been wrestling with what to do. For me, personally, the next best step for me will be other than at Ryland."
In its most recent three-month reporting period, the company generated record second-quarter net income of $17.6 million, double its earnings from the same period in 1998. At the same time, Ryland posted records for new orders, backlog of outstanding sales contracts and homebuilding revenue for the quarter.
"I am confident that the talents and professional expertise he demonstrated at Ryland will lead to his continued success," Dreier said of Mangan. "We will miss him, and we wish him all the best."
Mangan said he does not have another job lined up, but he has "a couple of things working."
Mangan, who made $1.01 million in 1998, hinted that his departure was tied to Dreier's recent renewal of an employment contract.
"He's going to be here and that's great for the company," Mangan said. "But it offered me a limited amount of room to grow."
Before joining Ryland, Mangan was with General Motors for 14 years. There, he was group CFO of GMAC Mortgage Corp., the automaker's mortgage subsidiary, and Residential Funding Corp., a GM loan conduit company with a $20 billion mortgage servicing portfolio.
Ryland Chief Accounting Officer David L. Fristoe and Treasurer Bruce N. Haase will assume Mangan's responsibilities on an interim basis.
"Certainly he's been instrumental in their effort to improve," said R. Bentley Offutt, president of Offutt Securities, a Hunt Valley stock brokerage. "He's built up a good group under him. For the interim, they'll be fine."