SUMR Brands Restructures Business, Sets Earnings Date
$7.5 Million of Annual Cost Savings Expected
WOONSOCKET, R.I., Feb. 14, 2020 (GLOBE NEWSWIRE) -- SUMR Brands ("SUMR Brands" or the "Company") (NASDAQ: SUMR), a global leader in premium infant and juvenile products, today announced that the Company has taken steps to further streamline operations and improve its financial outlook. The Company has begun enacting a strategic restructuring plan that it anticipates will result in annualized cost savings of approximately $7.5 million when complete. In addition to headcount savings and supplier cost concessions already implemented, the Company expects to sublease a portion of its warehousing facility in Riverside, California and vacate its UK distribution center, as well as undertake other identified initiatives. The UK closure, scheduled for the end of March, is expected to result in operating efficiencies and better customer service; international product distribution (outside North America) will, henceforth, be handled by the Company’s existing third-party facility in China.
“We continue to focus on the fundamentals – reducing costs and taking steps designed to speed products to market – as we work towards improving the Company’s underlying financial performance.” said Stuart Noyes, Interim CEO. “Recently-enacted initiatives and those in process are expected to save the Company approximately $7.5 million on an annualized basis, and, in the near future, we will begin benefitting from tariff changes already announced with China. Specifically, a 50% reduction in the List 4A tariffs – from 15% to 7.5% -- becomes effective February 14, positively impacting cash flow. We remain committed to delivering higher bottom-line results and increasing shareholder value going forward.”
As a reminder, the Company will host a Special Shareholders Meeting on March 5. 2020, to approve a potential reverse stock split. Due to the timing of this and other matters related to its restructuring activities, SUMR Brands will host its fourth quarter, 2019 earnings conference call on Thursday, March 19; additional details will be provided closer to that date.
About SUMR Brands, Inc.
Based in Woonsocket, Rhode Island, the Company is a global leader of premium juvenile brands driven by a commitment to people, products, and purpose. The Company is made up of a diverse group of experts with a passion to make family life better by selling proprietary, innovative products across several core categories. For more information about the Company, please visit .
Forward-Looking Statements
Certain statements in this release that are not historical fact may be deemed “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and the Company intends that such forward-looking statements be subject to the safe harbor created thereby. These statements are accompanied by words such as “anticipate,” “expect,” “project,” “will,” “believes,” “estimate” and similar expressions, and include statements regarding the Company’s expectations with respect to restructuring activities in 2020, including expected annualized cost savings of $7.5 million, the impact of the closure of its UK distribution center, and improved financial performance as a result of the restructuring activities, and the impact of reduced tariffs on future cash flow.. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include the Company’s ability to successfully implement restructuring activities, the impact of increased tariffs, additional tariffs or import or export taxes on the cost and pricing of the Company’s products and therefore demand for the Company’s products; the Company’s ability to meet its liquidity requirements; the concentration of the Company’s business with retail customers; the ability of the Company to compete in its industry; the Company’s ability to continue to control costs and expenses; the Company’s dependence on key personnel; the Company’s reliance on foreign suppliers; the Company’s ability to manage inventory levels and meet customer demand; the Company’s ability to maintain sufficient availability under and to comply with the financial and other covenants in its loan agreements; increases in raw materials costs; and other risks as detailed in the Company’s most recent Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information contained in this release.
Company Contact:
Chris Witty
Investor Relations
646-438-9385
