LSI INDUSTRIES COMPLETES SALE OF NORTH CANTON, OHIO FACILITY
Company Receives $7.6 million in Net Cash Proceeds on Asset Sale
CINCINNATI, March 18, 2020 (GLOBE NEWSWIRE) -- LSI Industries Inc. (NASDAQ: LYTS, “LSI” or the “Company”) a leading U.S. based manufacturer of indoor/outdoor lighting and graphics solutions, today announced that the Company has completed the sale of its North Canton, Ohio manufacturing facility.
The Company is in the process of relocating its existing operations to a smaller, leased facility in the North Canton area while retaining its existing workforce. As previously disclosed, recent advancements in graphics technology, together with other productivity improvements, allowed for a significant reduction in square footage required to support the ongoing growth of the business. The production transition will be fully completed by June 2020.
LSI has received $7.6 million in net proceeds from the sale of the North Canton facility. The Company intends to use these net proceeds to reduce outstanding indebtedness while continuing to invest selectively in the ongoing growth of the business. As of December 31, 2019, LSI had total net debt of $9.2 million, a reduction of $29.4 million from the end of the company fiscal year, June 30, 2019.
“The sale of the North Canton facility represents another important step toward further maximizing the systemic efficiency of our supply chain and asset base. Relocating to a nearby leased facility allows us to retain our valuable skilled workforce in North Canton, ensuring that we continue to provide the innovation, quality and service our customers expect from LSI,” stated Jim Clark, President and CEO of LSI Industries. “Our reduction in debt during the past year has materially improved our capital position, providing the flexibility to invest in targeted, profitable market verticals consistent with the long-term focus of our leadership team.”
ABOUT LSI INDUSTRIES
Headquartered in Blue Ash, Ohio (Greater Cincinnati), LSI Industries is a leading producer of lighting, graphics and technology solutions. It’s Indoor and Outdoor products and services are valued by architects, engineers, distributors and contractors for their quality, reliability, and innovation. The company’s products are used extensively in automotive dealerships, petroleum/c-store locations, quick service restaurants, grocery stores and pharmacies, retail establishments, sports complexes, parking lots and garages, and commercial and industrial buildings. LSI has approximately 1,200 employees at seven manufacturing plants in the United States, including its corporate headquarters and international subsidiaries. Additional information about LSI is available at -industries.com.
FORWARD-LOOKING STATEMENTS
Forward-looking statements may be identified by words such as “estimates,” “anticipates,” “encourage,” “projects,” “plans,” “expects,” “can,” “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. For details on the uncertainties that may cause our actual results to be materially different than those expressed in our forward-looking statements, visit -industries.com/fls as well as our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q which contain risk factors.
CONTACTS
Investor Contact:
Noel Ryan, IRC
720.778.2415
Media Contact:
Mike Wallner
Sr. Manager of Communications, LSI Industries
(513) 372-3417
