ACCO Brands Corporation Announces COVID-19 Business Update and First Quarter 2020 Earnings Webcast
April 13 2020 - 9:15AM
Business Wire
ACCO Brands Corporation (NYSE: ACCO) today announced that due to
the uncertainty associated with the global economic disruption from
the COVID-19 pandemic, the Company is withdrawing its annual
guidance that was given on February 11. The company intends to
further discuss its guidance when it reports first quarter earnings
on May 4, 2020.
“Our top priority is the safety and well-being of our employees,
and we have taken early actions to keep our employees safe. We
appreciate the effort everyone is making under difficult
circumstances,” said Boris Elisman, Chairman and Chief Executive
Officer of ACCO Brands. “We ended 2019 in a strong financial
position. As we face the ramifications of the COVID-19 pandemic, we
anticipate lower near-term demand in many of our markets. As such,
we are taking actions now to better align our costs with the
external environment, with minimal permanent workforce reductions
at this time,” Elisman continued.
In response to the economic uncertainties, the Company has
undertaken many cost reduction initiatives beyond its normal
productivity plans and intends to take additional actions in the
near future. Some of these additional actions are temporary to
further preserve financial flexibility. These actions include
a:
- 50-percent temporary reduction in CEO base salary
- 30-percent temporary reduction in base salary of U.S.-based
senior executives
- 50-percent temporary reduction in cash retainer fees to the
Board of Directors
The company will provide an update on its cost reduction
initiatives on its first quarter earnings conference call.
As of March 31, the Company had cash on hand of approximately
$91 million, as well as approximately $450 million available on its
committed revolving credit facility. There are no debt maturities
before May 2024.
The Company also announced that it will release its first
quarter 2020 earnings after the market close on May 4, 2020. The
Company will host a conference call and webcast to discuss the
results on May 5 at 8:30 a.m. EDT. The webcast can be accessed
through the Investor Relations section of www.accobrands.com and
will be available for replay.
Forward Looking Statements
Statements contained in this press release, other than
statements of historical fact, particularly those anticipating
future financial performance, business prospects, growth, operating
strategies, available liquidity and similar matters are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements, which
are generally identifiable by the use of the words "will,"
"believe," "expect," "intend," "anticipate," "estimate,"
"forecast," "project," "plan," and similar expressions, are subject
to certain risks and uncertainties, are made as of the date hereof,
and we undertake no duty or obligation to update them. Because
actual results may differ materially from those suggested or
implied by such forward-looking statements, you should not place
undue reliance on them when deciding whether to buy, sell or hold
the company’s securities.
The results of any cost reduction initiatives and productivity
plans depend on numerous factors, including potential changes to
the final implementation of these initiatives and plans, and the
extent to which they achieve their stated objectives to reduce
costs and improve our efficiency and effectiveness. The
availability of funds under our revolving credit facility is
subject to risks related to potential adverse events affecting our
business and the judgment of our lenders as to whether we are
permitted to draw funds under the facility at any particular
time.
Among the factors that could cause our actual results to differ
materially from our forward-looking statements are: the impact,
which may intensify, of the COVID-19 global pandemic on our
business, operations, results of operation and financial condition,
including manufacturing, distribution and supply chain disruptions,
delay of customer purchases or loss of customers, the financial
condition of our suppliers and customers, including their ability
to fund their operations and pay their invoices, the impact of U.S.
and foreign government actions being taken and to be taken to
curtail the spread of the virus, issues that affect consumer
spending decisions during periods of economic uncertainty or
weakness, and other risks and uncertainties described in “Part 1,
Item 1A” in our Annual Report on Form 10-K for the year ended
December 31, 2019, and in other reports we file with the Securities
and Exchange Commission.
About ACCO Brands Corporation
ACCO Brands Corporation (NYSE: ACCO) is one of the world's
largest designers, marketers and manufacturers of branded academic,
consumer and business products. Our widely recognized brands
include Artline®, AT-A-GLANCE®, Barrilito®, Derwent®, Esselte®,
Five Star®, Foroni®, GBC®, Hilroy®, Kensington®, Leitz®, Mead®,
Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, Wilson Jones® and
many others. Our products are sold in more than 100 countries
around the world. More information about ACCO Brands, the Home of
Great Brands Built by Great People, can be found at
www.accobrands.com.
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Christine Hanneman Investor Relations (847) 796-4320
Julie McEwan Media Relations (937) 974-8162
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