Company is On Track to Achieve $10 Million in Annual Integration Savings
"We are executing on our operational plan to become more efficient and provide our customers with improved service and products, further establishing us as a leader in in-flight entertainment and connectivity," commented
The Plan includes the closure of GEE's
Expenses relating to employee termination benefits, which primarily include severance and transition-related expenses, of approximately
$2.7 million. The Company expects to record between $2.0- $2.3 millionof these employee charges in the second half of 2014, and the remaining $0.4- $0.7 millionin the first quarter of 2015.
In connection with the closure of its
Germany-based operations, GEE expects to dispose of approximately 11,000 square feet of leased facilities in Duisburg and Munich. GEE currently estimates that it will incur facilities-related restructuring charges beginning in the third quarter of 2014 and continuing through the first quarter of 2015 of approximately $0.5 millionin the aggregate.
Beginning in the third quarter of 2014 through the first half of 2015, GEE anticipates incurring restructuring expenditures in an aggregate amount of
$1.5- $2.0 millioncomprised of legal and professional fees associated with the execution of the Plan.
Management intends to discuss the implementation and progress of the Plan in greater detail during its third quarter 2014 financial results conference call to be held in
We make forward-looking statements in this press release. These forward-looking statements relate to expectations or forecasts for future events, including without limitation, the timing of, and expected annual savings from, the Plan, and expected costs to be incurred in connection with the Plan. These statements may be preceded by, followed by or include the words "may," "might," "will," "will likely result," "should," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "continue," "target" or similar expressions. These forward-looking statements are based on information available to us as of the date they were made, and should not be relied upon as representing our views as of any subsequent date. These forward-looking statements are subject to a number of risks and uncertainties, including without limitation unexpected delays in implementing the Plan, additional costs in implementing the Plan and other factors not anticipated by, or outside the control of, GEE affecting the implementation of the Plan, as well as those risks and uncertainties described in our most recent annual report on Form 10-K, as amended, and subsequently filed reports on Form 10-Q, as amended. As a result, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Kevin TrosianVice President, Corporate Development and Investor Relations +1 310-740-8624 firstname.lastname@example.org email@example.com
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