Universal Automotive Industries, Inc. Relocates to Larger Facility
27 October 1999
Universal Automotive Industries, Inc. Relocates to Larger Facility and Sells BuildingCHICAGO, Oct. 26 -- Universal Automotive Industries, Inc. , recently completed a move to a larger distribution and headquarters facility located in a southern suburb of Chicago. The Company believes that the move to this 263,000 square foot leased facility will be the basis for more efficient warehouse operations and facilitate the Company's growth plans. The Company's former Chicago distribution center building has been sold in a cash transaction netting proceeds of approximately $3 million. Under the terms of its Credit Agreement with LaSalle National Bank, the proceeds paid down the existing term loan. Universal will recognize an after-tax gain on this transaction of approximately $740 thousand or $0.11 per share. Arvin Scott, CEO and President commented, "The facility realignment sets the stage for UBP to achieve its growth and profitability objectives. We believe the benefits to be huge in terms of customer satisfaction and operational efficiencies. From a financial perspective, the building sale strengthens our balance sheet and will lower debt service." The Company is a manufacturer and distributor of brake rotors, drums, disc brake pads, relined brake shoes, wheel cylinders and brake hoses for the automotive aftermarket. The Company markets approximately 50% of its product under its UBP trademark (Universal Brake Parts) and as the Ultimate brand, with the balance under its customers' private labels. For further information, contact the Company c/o Jerome J. Hiss, CFO (708-293-4050). This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by safe harbors created hereby. Such forward-looking statements involve known and unknown risks, uncertainties (including those risk factors referenced in the Company's filings with the Securities and Exchange Commission), and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance, or achievements of the Company expressed or implied by such forward-looking statements.