CINCINNATI, Oct. 8, 2014 (GLOBE NEWSWIRE) -- LSI Industries Inc. (Nasdaq:LYTS) today reported that it recently completed the sale of two assets in connection with its on-going program to streamline its manufacturing operations and reduce costs.
Effective September 30, 2014, LSI sold all of the capital stock of LSI Saco Technologies Inc. for $1.93 million. This cash transaction resulted in a one-time, non-cash after-tax charge of approximately $566,000 during the first fiscal quarter ended September 30, 2014. On an annual basis, it is estimated that cost savings will be approximately $600,000.
Effective September 25, 2014, LSI sold one of its two manufacturing facilities in Woonsocket, Rhode Island for $1 million. This cash transaction resulted in a one-time net gain of approximately $344,000 (approximately $224,000 on an after-tax basis). Production from this facility has been moved to LSI's remaining graphics facility in Woonsocket as well as to its graphics facility in North Canton, Ohio and will improve utilization in both facilities. On an annual basis, it is estimated that cost savings will be approximately $175,000.
Robert J. Ready, Executive Chairman, commented, "During fiscal 2014 we instituted a program to find ways to reduce our manufacturing costs and increase profits. The now completed sales of Saco Technologies and the Woonsocket plant are two of the first actions to accomplish these goals. In the case of Saco Technologies, we felt we had completed the transition of learning the solid-state LED technology and related disciplines, which was the reason we acquired the business. Saco provided LSI with much needed knowledge and experience as we made the decision to develop LED-based products. Now, some eight years later, we are a leader in this industry, with LED lighting representing approximately 45% of total lighting sales and, in some cases, over 80% in certain niche markets. We will continue our working relationship with Saco and Fred Jalbout, to whom we sold the business back to in the first quarter. There will be no loss of our LED intellectual property as Saco pursues its own business plan. Because we have unused capacity in our North Canton facility, it made economic sense to close one of our plants in Rhode Island and move those production requirements. Customers will receive the same level of service while we reduce overhead and improve profitability."
"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, and the results of asset impairment assessments. 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
Leadership. Strength. Innovation. Those are the key values behind the smart vision upon which LSI Industries Inc. was founded when established in 1976. Today LSI demonstrates this in our dedication to advancing technology throughout all aspects of our business – in both product solutions and production techniques. We are committed to American innovation through technology.
We are a vertically integrated manufacturer who combines assimilated technology, design and manufacturing to produce the most efficient, high quality products possible. We are dedicated to advancing solid-state technology to make affordable, high performance, energy efficient lighting and custom graphic products that bring value to our customers. In addition, we can provide sophisticated lighting and energy management control solutions to help customers manage their energy performance. Further, we offer design support, engineering, installation and project management for custom graphics rollout programs for today's retail environment.
LSI is proud to be an American company with an American work force, building an American product. We are a U.S. manufacturer with marketing / sales efforts throughout the world with concentration currently on North America, Latin America, Australia, New Zealand, Asia, Europe and the Middle East. Our major markets include the commercial / industrial lighting, petroleum / convenience store, multi-site retail (including automobile dealerships, restaurants and national retail accounts), sports and entertainment markets. Headquartered in Cincinnati, Ohio, LSI has facilities in Ohio, Kansas, Kentucky, New York, North Carolina, Oregon, Rhode Island, and Texas. The Company's common shares are traded on the NASDAQ Global Select Market under the symbol LYTS.
As we redefine LSI Industries' place in the markets we serve, we will emphasize our commitment to preserving the foundation of a well-managed, financially strong and creatively unique company with even stronger emphasis on a growing technology base. Through the Leadership, Strength and Innovation that is core to our culture, we move forward continuing our transition to a technology-reliant company with lighting and graphics and the ability to provide the stronger performance our many partners expect.
For further information, contact either Bob Ready, Chief Executive Officer, or Ron Stowell, Vice President, Chief Financial Officer, and Treasurer at (513) 793-3200.
CONTACT: BOB READY OR RON STOWELL (513) 793-3200
Source:LSI Industries Inc.