Select Interior Concepts Provides Update On COVID-19 - Seite 2

Select Interior Concepts believes its balance sheet will enable it to effectively manage the economic impact of COVID-19. The Company and its Board of Directors have taken the following measures to provide enhanced financial flexibility during the COVID-19 pandemic:

• Drawn $35 million under its existing ABL facility to increase cash on hand
• Amended the term loan agreement to enhance financial flexibility, including the suspension of the net leverage ratio covenant through the end of 2020, among other factors
• Suspended capital expenditures, with the exception of safety-related maintenance expenditures
• Reduced salaries for management, led by the executive team including a 30% reduction for the Chief Executive Officer
• Reduced bonuses and other general and administrative expenses
• Frozen hiring, targeted furloughs and reductions of workforce across business units
• Eliminated Board of Director fees for the remainder of 2020

Cash as of first quarter 2020 was in excess of $35 million and total liquidity was in excess of $70 million, with no term loan or ABL debt maturities until 2023. The Company believes that it is well prepared to preserve liquidity with its current capital position, disciplined cost controls and discretionary spending curtailments. Given that the extent and duration of the evolving COVID-19 situation remains uncertain, the Company will continue to evaluate additional opportunities to further strengthen its financial flexibility. The Company will provide additional updates on its financial performance and capital resources when results for the first quarter are reported in May 2020.

Mr. Johnson stated, “The efforts to enhance our financial strength will better position our Company for success into an uncertain demand environment. Our ability to amend our term facility reflects the resiliency of our business model and recognition of our strong cash flow performance. In addition, the strategic investments we have made in recent years to expand our footprint, broaden our product offerings and enhance our online tools have strengthened our position to better navigate this current crisis and win into the recovery. We will continue to manage our business in a manner that preserves our financial flexibility and promotes safe practices for the benefit of everyone.”