Brass Eagle Inc. Announces Charge for Receivable Exposure Related to K-Mart Chapter 11 Filing; Pre Announces Sales and Earnings.Business Editors BENTONVILLE, Ark.--(BUSINESS WIRE)--Feb. 5, 2002 Brass Eagle Inc. (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 : XTRM XTRM Extreme ) the worldwide leader in the manufacturing, marketing and distribution of paintball paintball Sports medicine A sport in which marble-sized gelatin capsules filled with a nontoxic dye are shot at speeds of 300 kph/200 mph Warning: products today announced that it would incur a one-time charge in the fourth quarter ended December 31, 2001, related to receivable exposure with K-Mart Corporation (NYSE NYSE See: New York Stock Exchange : KM). On January 22, 2002 K-Mart petitioned the court for Chapter 11 bankruptcy protection, which allows the number two U.S. discount retailer to keep operating while restructuring its finances. As a consequence, Brass Eagle's earnings for the fiscal year will reflect a one-time, charge of approximately $0.09 per share on a diluted basis. Brass Eagle currently sees no additional material effects on its earnings related to the retailer's bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. filing. The Company has resumed shipping to K-Mart and is negotiating a new vendor agreement for 2002. The Company also stated that fourth quarter net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight will be $34.2 million, and it expects diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , before the one-time charge, to range between $0.32 and $0.34. Including the one-time, charge, diluted earnings per share are expected to range between $0.23 and $0.25. The Company expects to report its actual fourth quarter and fiscal year 2001 results on February 26, 2002. Brass Eagle is unique in providing a full line of paintball markers and accessory products from beginner through competition level. The Company is the dominant supplier of products for this rapidly growing sport. Brass Eagle was named one of the "Top 100" Hot Growth Companies by Business Week magazine in 1998, 1999 and 2001, and one of the IW Growing Companies 25, America's Most Successful Small Manufacturers by Industry Week magazine. Certain statements in this press release (including statements containing the words "expect," "will," "believe," "continue," "anticipate," "could," "intend" and similar words) may constitute 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. within the meaning of 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. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Brass Eagle, its industry or others to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from Brass Eagle's expectations include the following: (1) Intensifying competition, including specifically the intensification of price competition, the entry of new competitors and the introduction of new products by new and existing competitors; (2) Failure to obtain new customers or retain existing customers; (3) Inability to carry out marketing, sales or other business plans and strategies; (4) Loss of key executives; (5) General economic and business conditions which are less favorable than expected; and (6) Unanticipated changes in industry trends. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion