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.”Tagged with LSI Industries