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."

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