Baldwin Piano Sells Eleven Retail Piano Stores to Biasco for $4.6 Million; Sale will Further Reduce Debt and SG&A Expenses.Business Editors MASON, Ohio--(BUSINESS WIRE)--March 22, 2001 Baldwin Piano & Organ Company (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : BPAO BPAO Benefits Planning Assistance and Outreach ) today announced the $4.6 million sale of eleven retail piano stores -- located in Cincinnati, Atlanta, Indianapolis, Louisville and Lexington -- to an affiliate of Chicago-based Biasco Musical Instrument Company, Baldwin's largest dealer. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the transaction will be used to further reduce outstanding debt. The sale includes all retail piano inventories, lease obligations, and a lease of a company-owned retail store in Atlanta. Biasco also agreed to sell only the Baldwin family of products -- Baldwin, Chickering, Wurlitzer, Pianovelle and ConcertMaster con·cert·mas·ter n. The first violinist in a symphony orchestra. -- in these cities. The sale will be recorded in first quarter 2001 as part of continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , along with a pre-tax contingent liability Contingent Liability 1. The possibility of an obligation to pay certain sums dependent on future events. 2. Defined obligations by a company that must be met, but the probability of payment is minimal. Notes: 1. of approximately $250,000 related to certain other potential incentives offered to the buyer. Karen L. Hendricks, chairman and chief executive officer of Baldwin said, "For Baldwin, the benefit of operating our own retail stores does not currently outweigh the risk of high fixed expenses and required inventory levels. While our retail stores have enjoyed strong market penetration, their overall performance has not produced an adequate return on investment. We believe that the sale to Biasco, one of the nation's largest and most successful piano retailers, will result in higher sales for Baldwin and reduce our annual SG&A expenses by $4.2 million. This sale is part of our ongoing plan to deleverage Baldwin's balance sheet and restore the company to profitability." Baldwin Piano & Organ Company, the maker of America's best selling pianos, has marketed keyboard musical products for over 140 years. "Safe Harbor" statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, reliance on key strategic alliances, fluctuations in operating results and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission. |
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