PORTLAND, Ore., March 26, 2020 (GLOBE NEWSWIRE) -- Schmitt Industries, Inc. (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 Statement
This 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.
Schmitt Industries, Inc.
Michael R. Zapata
Chief Executive Officer