Action Performance Announces Corporate Developments.PHOENIX--(BUSINESS WIRE)--Dec. 16, 1999-- Action Performance Companies Inc. (Nasdaq: ACTN ACTN Action ACTN Acetone ) Thursday announced that first quarter results will be lower than expectations due to delays encountered in completing and implementing special promotional programs. The company also announced that the former senior vice president of Worldwide Marketing and Business Development and several members of his staff are no longer with the company. Fred W. Wagenhals, chairman, president and chief executive officer of the company, will once again assume the primary role for the company's marketing efforts, including special promotional programs. Revenue for the first quarter ending Dec. 31, 1999 is estimated to be between $65 million and $70 million, and earnings are expected to be between $0.07 and $0.10 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, excluding the effect of non-recurring charges. Although the delays in marketing programs will also affect the remaining quarters of fiscal 2000, the company anticipates that its revenue will increase from the comparable periods of fiscal 1999 by more than 10 percent in the fiscal second quarter and by more than 20 percent in each of the third and fourth fiscal quarters. The company also announced that it was indefinitely postponing the proposed initial public offering of its Internet subsidiary, goracing.com. The company will pursue various strategic relationships and continue to enhance the operations of goracing.com. The company will record non-recurring charges of up to $2 million in the first quarter relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc expenses incurred in connection with the proposed public offering and various management restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. . The company further announced that its board of directors has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the repurchase of up to $40 million of its common stock from time to time in the open market or through privately negotiated transactions. The initial term of the repurchase program will be one year, subject to extension depending on market conditions. Wagenhals stated, "While we are disappointed with the delays in connection with special promotional programs, we believe these setbacks are temporary. We remain extremely confident in our Company's ability to set the industry standard in developing innovative and exciting products and programs for licensed motorsports products. "Our underlying business remains sound; we see continued strong growth in the domestic and international motorsports markets; and we have licenses with the best drivers, teams, sponsors, sanctioning bodies, and racing venues in the industry. Our determination to repurchase stock reflects this confidence and our belief that our stock is extremely undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. ." Action Performance Companies Inc. is the leader in the design, marketing, promotion and distribution of licensed motorsports merchandise. Its products include a broad range of motorsports-related die-cast car replica collectibles, apparel, souvenirs, and other memorabilia. The company markets and distributes products through a variety of channels, including the 170,000-member Racing Collectables Club of America (RCCA RCCA Root Cause and Corrective Action (to prevent the recurrence of a defect by eliminating its cause) RCCA Rural Community College Alliance RCCA Roller Coaster Corporation of America RCCA Rod Cluster Control Assembly ), online through SpeedMall at goracing.com, trackside track·side n. The area near a track, especially a racetrack. at racing events, mass retail department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. , and a worldwide network of wholesale distributors and specialty dealers. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . The company's actual results could differ materially from those set forth in the forward-looking statements. Factors that might cause such a difference include, among others, competitive pressures, seasonality, the company's ability to successfully implement special promotional programs, constantly changing technology, acceptance of the company's products and services in the marketplace and other risks detailed in the company's Securities and Exchange Commission filings, including the company's Form 10-K/A dated Sept. 30, 1998. |
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