Financial Release

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LSI Industries Inc. Announces the Consolidation of Graphics Manufacturing, and the Expansion of Office Space of Its LSI Retail Graphics Facility in Woonsocket, RI

CINCINNATI, Nov. 15, 2016 (GLOBE NEWSWIRE) -- 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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LSI Industries Inc.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding LSI Industries Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.