New organizational structure to maximize revenue opportunities and reduce costs across several operating units
Cost saving initiatives are expected to reduce ongoing operating expenses in excess of $1 million annually beginning in January 2024; Management expects the Company's operating units to be cash flow positive in the second quarter of 2024
NEW YORK, NY, Dec. 18, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire -- Applied UV, Inc. ("Applied UV" or the "Company") (Nasdaq: AUVI), a leader in global food security, air quality, and specialty building solutions today announced the successful integration of its PURO and Airocide businesses into its Sterilumen subsidiary to optimize its portfolio, reduce costs, deliver margin expansion and drive sustainable shareholder value creation. The Company believes the PURO and Airocide integration and other cost saving initiatives previously completed are expected to reduce ongoing operating expenses annually by approximately $1 million beginning in fiscal 2024.
"We believe the product platform and breadth of solutions created through this integration is of the highest quality and well diversified and allows SteriLumen to be a truly global player across North America, Europe, Asia, and the Middle East. In addition, we have been able to leverage the combined product offerings to generate greater opportunities for growth in revenue, and to provide enhanced technical support, customer retention, and customer life cycle management," said Max Munn, CEO of Applied UV. Munn went on to say: "The thesis that we had when we acquired PURO has proven to be correct, as demonstrated by the fact that our global customers are constantly seeking solution providers that can deliver products anywhere in the world and can provide integrated offerings to meet their growing needs. We believe the completion of our transformation plan represents a clear path to create a more profitable and focused Applied UV."
This integration allows us to gain from the natural synergies between these two businesses resulting in a unique market-facing business that provides optimal leverage and benefits. These benefits include:
Expanded Sales & Marketing Capabilities
- Significantly expands the portfolio of air and surface disinfection solutions available to customers on a global basis;
- Access to SteriLumen's global distribution footprint with 89 dealers/distributors in 52 Countries;
- Enhanced 'cross selling' revenue opportunities;
- Combination of management organizations, marketing, and "go-to-market" sales teams, expected to lower operating costs and improve margins; and
- Recent trade show in Dubai of ground-breaking solutions with technologies aimed at revolutionizing food safety and preservation standards that address the region's unique climate challenges confirmed the significant interest in both the Airocide Pro and PURO's patented Fighter Flex HVAC disinfection system.
Improved Operating Performance
- Singular improved focus on quality and lean strategies to improve customer satisfaction, reduce costs, and ensure long-term competitiveness.
- Elimination of overlapping administrative, management and operations-related employee positions; and
- Facility optimization and rationalization of certain real estate leases, as a result of the Company's shifting substantially all SteriLumen disinfection-related product manufacturing to Canon, Virginia ('CVI'), a subsidiary of Canon U.S.A., Inc.
In addition to sales growth, this integration is expected to create significant cost reduction in an ongoing process of expense reduction. A major step in this direction is the consolidation of warehouse and manufacturing operations at our Airocide facility in Kennesaw, GA. This move will optimize our production capabilities and enhance our supply chain efficiency, allowing us to serve our customers better and faster.
"This integration marks a pivotal moment in the company's evolution, creating a unified sales team that has already begun to unlock significant synergies and opportunities with our existing customer base. This streamlined approach allows us to leverage our combined strengths, offering a more comprehensive suite of air and surface disinfection solutions to our clients," stated Brian Stern, President of PURO.
Stern added, "One of the most exciting aspects of this integration is the opening of substantial sales opportunities through our expanded global distribution network, particularly in Europe, the Middle East, and Asia. By combining the business of PURO and Airocide under the Sterilumen umbrella, we are well-positioned to meet the growing demand for high-quality disinfection technologies across these key markets."
About PURO UV Disinfection Lighting
PURO UV Disinfection Lighting promotes health and safety by bringing proven and powerful UV light disinfection devices to all indoor spaces where people gather including hospitals, schools and universities, medical and manufacturing facilities, transportation, office buildings, and much more, all without the use of chemicals. From HVAC systems to in room and upper air disinfection, PURO Lighting products offer a wide variety of UV technologies to provide continuous disinfection of air in occupied spaces and can rapidly disinfect any indoor area inactivating up to 99.9% of viruses, bacteria, fungi and more including SARS-CoV-2 virus.
About Applied UV
Applied UV, Inc. engages in the pursuit of technologies focused on global food security, air quality, and specialty building solutions tailored for the commercial and hospitality sectors.
More details about Applied UV, Inc., and its subsidiaries can be found at https://applieduvinc.com.
Forward-Looking Statements
The information contained herein may contain "forward-looking statements." Forward-looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "expect," "future," "intend," "plan," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward-looking statements. Such statements include, but are not limited to, statements contained in this press release relating to its business strategy. Forward-looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The Company's actual results may differ materially from those contemplated by the forward-looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward-looking statements. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. These forward-looking statements and factors that may cause such differences include, without limitation, the risks disclosed in the Company's Annual Report on Form 10-K filed with the SEC on March 31, 2023, and in the Company's subsequent filings with the SEC. The Company cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.
For Additional Company Information:
Applied UV, Inc.
Max Munn
Applied UV Founder, CEO & Director
Max.munn@applieduvinc.com
Investor Relations Contact:
TraDigital IR
Kevin McGrath
+1-646-418-7002
kevin@tradigitalir.com
