Action Performance Retires Additional $5.2 Million 4 3/4 Percent Notes Due 2005 in Ongoing Debt Reduction Strategy; Moody's Upgrades Credit Ratings.Business Editors & Sports Writers PHOENIX--(BUSINESS WIRE)--June 28, 2001 Action Performance Companies Inc. (Company) (Nasdaq:ACTN ACTN Action ACTN Acetone ), the leader in the design, marketing, promotion, and distribution of licensed motorsports merchandise, today reported it has repurchased an additional $5.2 million of its 4 3/4 percent convertible subordinated notes due 2005 in an ongoing strategy to reduce its long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . The $5.2 million of notes were retired in exchange for 199,200 shares of common stock. The shares used in these private transactions were previously acquired by the Company as treasury shares at an average price of $8.25 per share under a previously authorized stock Authorized Stock The maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation. This figure is usually listed in the capital accounts section of the balance sheet. repurchase program. Since January 2001, the Company has retired $38.2 million of the 4 3/4 percent notes due 2005, leaving $61.8 million outstanding. David Martin, Action Performance CFO See Chief Financial Officer. , commented: "This additional debt reduction further improves Action's balance sheet and will result in lower levels of future interest and principal repayment commitments. We believe that Moody's recent upgrade of the remaining notes and the Company's credit rating confirms the success of our continuing efforts to strengthen the Company's financial position." Martin further stated that the gain on this transaction will be recorded as an extraordinary item in the Company's fiscal 2001 third quarter results. About Action Performance 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 trackside track·side n. The area near a track, especially a racetrack. at racing events, a worldwide network of wholesale distributors and specialty dealers, QVC QVC Quality Value Convenience QVC Question Valid Command , the 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 ), goracing.com, and mass retail department stores and chains. This news release contains forward-looking statements regarding the Company's debt-reduction strategy, financial condition and shareholder value. The Company's actual results could differ materially from those set forth in the forward-looking statements. Factors that might cause such differences include, among others, the actual impact of the exchange on the company, competitive pressures, acceptance of the Company's products and services in the marketplace, the success of new marketing programs, the Company's ability to successfully execute its restructuring, and other risks discussed in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. dated Sept. 30, 2000, on file with the U.S. Securities and Exchange Commission. |
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