SCHMITT PROVIDES COVID-19 UPDATE AND SUPPORT PLANS
March 26 2020 - 10:39AM
Schmitt Industries, Inc. (NASDAQ: SMIT) (the “Company” or
“Schmitt”), in response to the current economic and market
conditions due to the COVID-19 pandemic, made the following
announcements.
First, Schmitt has implemented COVID-19 response and business
continuity plans to protect its employees and their families, to
safeguard continuity of Schmitt operations, and to ensure full
support to its customers and partners. For the time being, we have
implemented new safety guidelines that maximize interpersonal space
to protect employees working on location, while all other employees
who can telecommute work remotely.
Second, Schmitt intends to fully retain its employees during
these extraordinary times. Although Schmitt anticipates revenue
pressure on their business lines, Schmitt believes that its strong
backlog and steady revenue from Xact’s internet of things (IoT)
monitoring will support revenue and operations over the coming
months. However, if revenues decline significantly, Schmitt expects
that its CEO and CFO will decrease their compensation levels to
help reduce costs and support employee retention.
Third, Schmitt’s strong cash position and long-term view
position the Company to continue investing in the business and be
positioned for value-enhancing opportunities during the current
economic challenges, while still returning value to its
shareholders through its announced share repurchase program.
Michael Zapata, Schmitt’s CEO and Chairman, commented, “In
response to current market conditions and an unprecedented
environment, we are focused on protecting our people, their
families and the business, while investing and building momentum in
our operations to position the company for long-term success. I’m
confident we will be stronger in the coming months as we address
and move past the COVID-19 pandemic together.”
About Schmitt Industries
Schmitt Industries, Inc., founded in 1987, designs, manufactures
and sells high precision test and measurement products, solutions
and services through its Acuity® and Xact® product lines. Acuity
provides laser and white light sensor distance measurement and
dimensional sizing products, and our Xact line provides
ultrasonic-based remote tank monitoring products and related
monitoring revenues for markets in the Internet of Things
environment.
Safe Harbor StatementThis document may contain
forward-looking statements made pursuant to the Private Securities
Litigation Reform Act of 1995. These statements are not guarantees
of future performance and involve risks and uncertainties that are
difficult to predict. Actual outcomes and results may differ
materially from what is expressed or forecasted in such
forward-looking statements due to numerous factors. A complete
discussion of the risks and uncertainties that may affect Schmitt’s
business, including the business of its subsidiary, is included in
“Risk Factors” in the Company’s most recent Annual Report on Form
10-K as filed by the Company with the Securities and Exchange
Commission.
Contact:Schmitt Industries, Inc.Michael R.
ZapataChief Executive Officer (503) 227-7908
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