J. Emerson's questions to Natuzzi SpA (NTZ) leadership • Q2 2024
Question
J. Emerson of Emerson Investment Group asked for the net cash proceeds from the High Point building sale, whether the cash would enable rapid U.S. expansion, the nature of the sale (i.e., sale-leaseback), and if a share buyback was being considered.
Answer
Executive Carlo Silvestri confirmed the gross proceeds are $12.1 million in cash, which is above the asset's net book value. CEO Antonio Achille clarified the sale is a "dry sale," not a sale-leaseback with long-term liabilities, and that the elimination of maintenance costs would offset any future rent. He reiterated a gradual, not "rapid," expansion strategy. Regarding a share buyback, Achille stated it's a matter for the Board and that strong operational investment opportunities also exist.