SUMR Brands Provides Update on Operations & Business Activity
January 21 2020 - 9:27AM
SUMR Brands ("SUMR Brands" or the "Company") (NASDAQ: SUMR), a
global leader in premium infant and juvenile products, today
announced that the Company continues to mark progress as it works
towards improving long-term financial results, as indicated by the
following:
- Has enacted further cost-cutting and streamlining initiatives
throughout the organization to achieve sharper brand positioning
and product focus, higher margins, and increased cash flow;
- Was provided confirmation in the fourth quarter that the
Company has been granted tariff exclusions for a key product line,
resulting in refunds to be received on certain previously-paid
tariffs;
- Anticipates an improved tariff outlook based on recent
U.S.-China trade agreements;
- Has been given ongoing support from its banking group with
emphasis on restructuring of the Company; and
- Continues to strategically analyze SUMR’s operations to unlock
shareholder value.
“Having now been at SUMR Brands just over a
month, I am pleased to say that the Company is moving forward on a
number of fronts to address our growth outlook, margins, and cash
flow,” said Stuart Noyes, Interim CEO. “While we recently announced
preparations for a pending reverse stock split – to address the
possibility of a NASDAQ delisting – the Company itself remains
dedicated to cutting costs, improving product differentiation, and
looking to unlock value for our shareholders through various
strategic initiatives. In addition, we are encouraged by the stable
tariff outlook and the recent tariff exemption for one of our
important product categories – both positive developments.”
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 www.sumrbrands.com.
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 expected impact of continued cost cutting
and streamlining actions by the Company, including better brand
positioning and product focus, higher margins, and improved 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 impact of recently imposed tariffs or new
tariffs on the cost and pricing of 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 develop, market and launch new
products; the Company’s ability to manage inventory levels and meet
customer demand; the Company’s ability to grow sales with existing
and new customers and in new channels; the Company’s ability to
maintain availability under its loan agreements; 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 WittyInvestor
Relations646-438-9385cwitty@darrowir.com
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