JULY 07, 2004 -- Collegiate Pacific Lifts Q4 Sales Guidance
Collegiate Pacific said that Q4 sales exceeded previous guidance. Sales for the period ending June 30 were approximately $18.2 million, up from a previous guidance was for sales in the $17 - $18 million range.
Michael J. Blumenfeld, CEO, stated: "The combination of strong organic growth and solid contributions from our newly acquired Tomark and Kesslers properties resulted in the largest sales quarter in history for the company. Fourth Quarter sales will reflect a more than 150% increase over the year ago period. These results do not include any contribution from the pending acquisition of Dixie Sporting Goods, which is targeted to close on or before August 15, 2004."
"We are pleased with the progress being made from each of our newly acquired operations. We have completed the integration of Tomark Sports, increased gross margins over 600 basis points within that Division, and enhanced the internal sales growth rates of that entity. Kesslers Team Sports met or exceeded each of its internal milestones for the quarter. The Dixie transaction is on pace and we remain optimistic as to their anticipated contributions."
Mr. Blumenfeld continued: "During Fiscal 2004 Collegiate Pacific emerged as a lead participant in the $6B institutional / team sporting goods channel. We are pleased with the ongoing build-out of both the operational and financial platform. The simplified capital structure and clean balance sheet leave Collegiate in a strong position moving forward as we evaluate new strategic relationships and transactions. We maintain a full pipeline of targets under review and remain committed to partnering with only those properties that can be accretive on a near immediate basis."
Balle de Match Appoints CEO
Southern California-based tennis apparel manufacturer Balle de Match announces tennis industry veteran John R. Embree as its new CEO. Previously, he was VP/GM of Wilson Sporting Goods' Racquet Sports division globally for over six years. During his tenure with Wilson Racquet Sports, the company witnessed record years in sales and gross profits in 1999, 2000 and 2001. At Balle de Match, Embree will manage sales and marketing functions as well as day to day operations. "Balle de Match is a wonderful little company whose product is underdeveloped and underexposed," said Embree. "With a more intense focus on driving the top line revenue via increased distribution, and by establishing a corporate financial discipline, I think this brand has great potential to grow, especially at the grassroots. Of all the opportunities available to me since my departure from Wilson, this is an ideal scenario and one that I had been looking for."
S&W Seeks To Restructure Debt
Smith & Wesson Holding Corp.retained the San Francisco-based investment banking firm of Merriman Curhan Ford & Co. to assist the company in restructuring its corporate debt and to provide additional investment banking services. CEO Roy Cuny stated, "Our current debt structure, which was put in place at the time of the acquisition of our business from U.K.-based Tompkins, PLC, is no longer consistent with our performance or growth plans. Among other things, our current indebtedness contains restrictive covenants that limit our discretion with respect to various business matters and require cash security of approximately $22.8 million, thereby making this cash unavailable for our operations. We believe we will be able to obtain less expensive, more flexible debt financing to expand our business."
New Era's Plans Big Marketing Push for MLB's All-Star Weekend
New Era Cap Co., the exclusive manufacturer of the MLB official uniform cap, is planning a series of marketing events for the 75th Major League Baseball All-Star Game Week, July 9-13, in Houston, TX. The company will host a 40' x 40' Interactive booth during John Hancock All-Star FanFest in the Making of the Game area of Baseball City, located in the George R. Brown Convention Center. New Era will have on display a custom made and branded Bourget Chopper, part of the celebration of the company's 50th anniversary of the 59FIFTY, its signature cap.. New Era has also teamed up with Upper Deck Trading Card Co to giveaway trading cards featuring New Era's AC, home and road, caps for all 30 teams, and fundamental training tips for aspiring baseball players. New Era has partnered with Majestic Athletic in a 16 truck mobile billboard campaign featuring the 2004 All-Star Week caps by New Era and jerseys by Majestic.
New Era will also have a strong retail presence during the 2004 All-Star Week with the New Era Road Vehicle (NERV), which will be presented in conjunction with The Shed and Aramark in Houston. The NERV, a 35-foot New Era branded mobile merchandising unit, offers fans a large selection of New Era 2004 All-Star commemorative headwear, MLB Authentic Collection caps, as well as caps for other Major League Baseball teams.
Eddie Bauer Joins Hollywood Stars For Outdoor Campaign
Eddie Bauer is joining forces with leading Hollywood personalities, the Environmental Media Association (EMA) and the Conde Nast publishing group as part of an environmental campaign. Celebrities including Daryl Hannah, Rob Lowe, Amy Smart, Christian Slater, Henry Simmons, Melina Kanakaredes, Dean Cain and Peter Horton will all appear in a communications campaign that Eddie Bauer is placing in 13 Conde Nast publications, as well as in Bauer's three retail channels (retail stores, online and catalog). Playing off Eddie Bauer's new "Explore Eddie Bauer" brand campaign, the message encourages everyone to "Explore Your Environment." It features testimonials from the actors on their personal efforts to preserve the environment and calls for the public to join the campaign. The actors are pictured wearing Eddie Bauer apparel, including a 100 percent organic cotton t-shirt that will be sold in Eddie Bauer retail channels from July 14 - August 25. Said Fabian Mansson, CEO of Eddie Bauer, "Eddie Bauer is a brand with strong links to the outdoors and it's our goal to encourage all people to get outside and enjoy nature. We're thrilled to have the support of the entertainment community in this effort." The talented group of people who contributed their time and good names to this cause will create extensive awareness and support for this important pursuit." The ads will appear in Vogue, GQ, Lucky, Vanity Fair, Glamour, Self, Details, Cargo, Gourmet, Bon Appetit, Conde Nast Traveler, Wired, and The New Yorker.
Shorts: K2 Inc. has closed its previously announced acquisition of Volkl Sports Holding AG, and The Marker Group. The purchase price was approximately $124 million plus the assumption of seasonal working capital debt. Additionally, K2 announced that the net proceeds from the recently completed $200 million, 7 3/8% senior notes offering have been released from escrow in connection with the closing of Volkl and Marker... OTB Jeanswear was named the title sponsor and the "official clothing sponsor" of the Core Tour, a nationwide action sports and music festival tour owned and operated by Pro Sports & Entertainment Inc. This marks the third year of the Core Tour's sponsorship association with OTB Jeanswear....West Marine, Inc. reported that net sales for the five weeks ended July 3, were $102.7 million, a 4.3% increase over net sales of $98.4 million for the same five-week period a year ago. Comparable store net sales increased 1.8%. John Edmondson, CEO, said sales were impacted unseasonably cool and wet weather in key markets throughout the country, late product delivery from a few key vendors, and dropoff in sales over the July 4th weekend. "We think this may indicate some slowing in consumer spending," says Edmonson.