LSI Industries Inc. (NASDAQ:LYTS)
today announced that it will permanently close its
existing LSI Retail Graphics LLC manufacturing facility, and that
it will expand its office space in Woonsocket, Rhode Island.
Scheduled Graphics Manufacturing Consolidation, and
Office Expansion
LSI announced to its employees this week that it intends to
continue its strategic focus on operational efficiency and
excellence in its Graphics Segment by consolidating its Woonsocket,
Rhode Island manufacturing operation into its North Canton, Ohio
operation. This decision will leverage the available
manufacturing capacity of the 212,000 square-foot North Canton
facility to offer greater economies of scale, higher levels of
production, more efficient processes, and consistent quality
control. The Company will sell the existing facility and
anticipates that the closure of the manufacturing facility and
consolidation into North Canton, Ohio will occur by December 31,
2016.
In Woonsocket, LSI also intends to increase its Sales, Project
Management, and Service support for its customers by moving to a
larger Image Center and office. This will provide increased
meeting space and product demonstration area, which LSI calls its
iZone. The Image Center will be in the immediate vicinity of
the current plant facility.
The Company will record estimated restructuring
costs totaling, in the aggregate, between $320,000 and $360,000
over the second, third and fourth fiscal quarters.
Restructuring costs primarily include employee-related costs
(severance) and the probable impairment of manufacturing equipment,
and also include plant shut down expenses, expenses related to
preparation of the facility for sale, legal expenses, and other
related costs. The Company expects the closure of this
facility and expansion of office space will result in annual net
operating profit improvement and cost savings of approximately
$680,000, before consideration of the restructuring costs.
Summary Comments
Dennis Wells, Chief Executive Officer and President, stated,
“The action we are taking to close the Woonsocket manufacturing
facility, while a difficult decision, gives the Company the
opportunity to make more efficient use of its capacity in its North
Canton graphics facility. This represents another step in our
ongoing commitment to the lean transformation of our operations and
facilities, to a culture of continuous and long-term cost
reduction, and to continuation of the improvement in profitability
that we have achieved in the past two years.”
"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995
This document contains certain forward-looking statements that
are subject to numerous assumptions, risks or
uncertainties. The Private Securities Litigation Reform
Act of 1995 provides a safe harbor for forward-looking
statements. Forward-looking statements may be identified
by words such as “estimates,” “anticipates,” “projects,” “plans,”
“expects,” “intends,” “believes,” “seeks,” “may,” “will,” “should”
or the negative versions of those words and similar expressions,
and by the context in which they are used. Such
statements, whether expressed or implied, are based upon current
expectations of the Company and speak only as of the date
made. Actual results could differ materially from those
contained in or implied by such forward-looking statements as a
result of a variety of risks and uncertainties over which the
Company may have no control. These risks and
uncertainties include, but are not limited to, the impact of
competitive products and services, product demand and market
acceptance risks, potential costs associated with litigation and
regulatory compliance, reliance on key customers, financial
difficulties experienced by customers, the cyclical and seasonal
nature of our business, the adequacy of reserves and allowances for
doubtful accounts, fluctuations in operating results or costs
whether as a result of uncertainties inherent in tax and accounting
matters or otherwise, unexpected difficulties in integrating
acquired businesses, the ability to retain key employees of
acquired businesses, unfavorable economic and market conditions,
the results of asset impairment assessments, the Company’s ability
to maintain an effective system of internal control over financial
reporting, our ability to remediate any material weaknesses in our
internal control over financial reporting and any other risk
factors that are identified herein. You are cautioned to
not place undue reliance on these forward-looking
statements. In addition to the factors described in this
paragraph, the risk factors identified in our Form 10-K and other
filings the Company may make with the SEC constitute risks and
uncertainties that may affect the financial performance of the
Company and are incorporated herein by reference. The
Company does not undertake and hereby disclaims any duty to update
any forward-looking statements to reflect subsequent events or
circumstances.
About the Company
We are a customer-centric company that positions itself as a
value-added, trusted partner in developing superior image solutions
through our world-class lighting, graphics, and technology
capabilities. Our core strategy of "Lighting + Graphics +
Technology = Complete Image Solutions" differentiates us from our
competitors.
We are committed to advancing solid-state LED technology to make
affordable, high performance, energy-efficient lighting and custom
graphic products that bring value to our customers. We have a
vast offering of innovative solutions for virtually any lighting or
graphics application. In addition, we provide sophisticated
lighting and energy management control solutions to help customers
manage their energy performance. Further, we provide a full
range of design support, engineering, installation and project
management services to our customers.
We are a vertically integrated U.S.-based manufacturer
concentrating on serving customers in North America and Latin
America. Our major markets include commercial / industrial
lighting, petroleum / convenience store and multi-site retail
(including automobile dealerships, restaurants and national retail
accounts). Headquartered in Cincinnati, Ohio, LSI has
facilities in Ohio, California, Kansas, Kentucky, New York, Rhode
Island and Texas. The Company’s common shares are traded on
the NASDAQ Global Select Market under the symbol LYTS.
For further information, contact Dennis Wells,
Chief Executive Officer and President at (513) 793-3200.
Additional note: Today’s news
release, along with past releases from LSI Industries, is available
on the Company’s internet site at www.lsi-industries.com or by
email or fax, by calling the Investor Relations Department at (513)
793-3200.
CONTACT:
DENNIS WELLS
(513) 793-3200
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