Note N - Sale of Direct Mail Equipment

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Sale of Direct Mail Equipment [Text Block]

Note N — Sale of Direct Mail Equipment

On

April 24, 2020,

we sold the majority of the production equipment from our Jacksonville facility to Summit Direct Mail Inc. (“Summit”) for

$1.5

million.  In addition, the Company entered into a strategic partnership with Summit, pursuant to which the Company will manage client relationships and Summit will perform the direct mail campaigns under our direction.  We act as principal in these transactions, and will account for the associated revenue on a gross basis.

The Company is well positioned to provide the full suite of marketing solutions to Summit customers and will leverage the expanded print and direct mail capabilities provided by the partnership with Summit to grow our business. 

As a result of this sale, we booked a

$1.9

 million impairment charge on our Jacksonville facility and recognized a

$1.2

million

capital loss from fixed asset disposal associated with the Summit deal.  These expenses were 

included in our restructuring expense in the

three

months ended

June 30, 2020.