Fort Lauderdale, FL, June 22, 2023 (GLOBE NEWSWIRE) -- The Singing Machine Company, Inc. (“Singing Machine” or the “Company”) (NASDAQ: MICS) – the worldwide leader in consumer karaoke products, today announced it has entered into a logistics agreement with Logistics Plus, Inc. (“LP”), a global leader of supply chain solutions, to distribute Singing Machine’s karaoke products throughout the U.S. and Canada.
LP is a specialized, full-service logistics company with operations in 45+ countries worldwide. LP is a top third-party logistics provider, a top 100 logistics company, a top freight brokerage and dedicated logistics and warehousing service provider. LP has over 1.37 million square feet in southern California, including Chino, Colton, San Bernardino, and Riverside, and over 5 million square feet across the United States.
In response to significant rising costs of commercial real estate, labor, and supply-chain costs in southern California, the Company has decided to not renew its lease on its approximate 90,000 sq. ft of warehouse space in Ontario, California. As a result, Singing Machine has opted to shift to a 100% variable-cost model, eliminating unneeded staffing, leasing, warehousing systems and equipment, and other fixed costs. The impact of this shift in operations will allow the Company to eliminate annually in excess of $1.6 million in fixed rent expense and approximately $1.2 million in direct and indirect labor expense.
“The supply chain has obviously been a huge focus over the last few years. The macro environment is rapidly changing with fixed logistics costs rising significantly in the southern California market. In order to stay competitive, we felt a strong need to re-examine our logistics operations globally in order to find ways to stay ahead of the curve and operate more efficiently,” commented Gary Atkinson, CEO of the Singing Machine. “With most of our major customers now accepting direct import delivery directly from China, we can pivot away from our need for a fixed in-house logistics solution. This should enable us to be more nimble in response to any changing environment, together with the benefit of working with one solution provider to coordinate all of our distribution throughout North America.”
About The Singing Machine
The Singing Machine Company, Inc. (NASDAQ: MICS) is the worldwide leader in consumer karaoke products. Based in Fort Lauderdale, Florida, and founded over forty years ago, the Company designs and distributes the industry's widest assortment of at-home and in-car karaoke entertainment products. Their portfolio is marketed under both proprietary brands and popular licenses, including Carpool Karaoke and Sesame Street. Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products and is also developing the world’s first globally available, fully integrated in-car karaoke system. The Company also has a new philanthropic initiative, CARE-eoke by Singing Machine, to focus on the social impact of karaoke for children and adults of all ages who would benefit from singing. Their products are sold in over 25,000 locations worldwide, including Amazon, Costco, Sam’s Club, Target, and Walmart. To learn more, go to www.singingmachine.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "may", "could", "expects", "projects," "intends", "plans", "believes", "predicts", "anticipates", "hopes", "estimates" and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon several assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the Company's control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors described in the Company's filings with the Securities and Exchange Commission. The forward-looking statements are applicable only as of the date on which they are made, and the Company does not assume any obligation to update any forward-looking statements.
Investor Relations Contact:
investors@singingmachine.com
www.singingmachine.com
www.singingmachine.com/investors
