INTRICON CORPORATION (NASDAQ:IIN) Files An 8-K Costs Associated with Exit or Disposal Activities
Item 2.05. Costs Associated with Exit or Disposal Activities.
On June 25, 2019, the officers of the Company approved the closing of its IntriCon UK Limited subsidiary, which is expected to reduce costs by approximately $1.0 million annually. As part of this plan, IntriCon UK Limited ceased all business activity effective June 28, 2019, completed the sale of its PC Werth accessory business assets and entered into a distribution agreement with Puretone Ltd., whereby Puretone will distribute IntriCon branded hearing aids into the National Health Service system on the Company’s behalf. The decision to close IntriCon U.K. not only provides the Company with a reduced cost structure, but enables the Company to better focus our resources on our value-based hearing healthcare opportunities, most notably the large emerging OTC hearing aid market in the United States.
In connection with its decision to close IntriCon UK Limited, the Company is evaluating the resulting asset impairment and one-time employee termination costs. The Company currently estimates the one-time employee termination costs to approximate $100,000 to $200,000. In addition, the Company estimates one-time, non-cash impairment charges, including write-off of leasehold improvements, intercompany currency translation, and prepaid assets, to range from $800,000 to $1,200,000. The majority of the expected charges will be recorded in the Company’s results from discontinued operations for the second quarter ending June 30, 2019. IntriCon UK Limited generated revenue of $2.5 million in 2018 and $1.1 million in the first half of 2019.
Item 2.06. Material Impairments.
The information set forth above in Item 2.05 is hereby incorporated into Item 2.06 by reference.
Item 7.01 Regulation FD Disclosure.
On July 2, 2019, the Company issued a press release concerning its UK Limited subsidiary. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.
Statements made in this Current Report on Form 8-K that are not historical facts, such as estimates of costs or charges, or reductions in costs or charges, as a result of the closing of the Company’s IntriCon UK Limited subsidiary, or that include forward-looking terminology, such as “estimated,” “expected” and “anticipated,” are “forward-looking statements” within the meaning of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be affected by known and unknown risks, uncertainties and other factors that are beyond the Company’s control, and may cause the Company’s actual results, performance or achievements to differ materially from the results, performance and achievements expressed or implied in the forward-looking statements. These risks, uncertainties and other factors are detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2018. The Company disclaims any intent or obligation to publicly update or revise any forward-looking statements, regardless of whether new information becomes available, future developments occur or otherwise.
INTRICON CORP Exhibit
EX-99.1 2 intricon191429_ex99-1.htm PRESS RELEASE DATED JULY 2,…
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About INTRICON CORPORATION (NASDAQ:IIN)
IntriCon Corporation is engaged in designing, developing, engineering, manufacturing and distributing body-worn devices. The Company operates through body-worn device segment. The Company serves the body-worn device market by designing, developing, engineering and manufacturing micro-miniature products, microelectronics, micro-mechanical assemblies, complete assemblies and software solutions, primarily for the value hearing health market, the medical bio-telemetry market and the professional audio communication market. The Company has facilities in Minnesota, California, Singapore, Indonesia, the United Kingdom and Germany, and operates through its subsidiaries. The Company’s product offering includes a hearing aid discount program for health plans. This program is available around the nation to health insurers, including employer-sponsored, individual and Medicare plans. The Company also has various international value hearing aid (VHA) initiatives.