Collegiate Pacific May Expand Stock Buybacks; CEO to Participate in Buying.Business Editors DALLAS--(BUSINESS WIRE)--April 3, 2003 Collegiate col·le·giate adj. 1. Of, relating to, or held to resemble a college. 2. Of, for, or typical of college students. 3. Of or relating to a collegiate church. Pacific (AMEX AMEX See: American Stock Exchange :BOO) said today that it may expand its stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. programs which could result in the Company going private. Michael Blumenfeld, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "Collegiate Pacific has a current, perpetual PERPETUAL. That which is to last without limitation as to time; as, a perpetual statute, which is one without limit as to time, although not expressed to be so. buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may program that has no restrictions to time or quantity of shares purchased. Like many public companies we have intended to use our stock as a currency to externally expand and unfortunately the overall market for microcap microcap 1. Of or relating to the common stock of a company with a small capitalization, usually between $50 million and $250 million. Microcap stocks tend to experience volatile price movements and are subject to investment fraud schemes. and small cap stocks has not fared well for some time regardless of the quality of financial reports. Since we have no interest in issuing shares in transactions at current prices, our stock does reflect the values we are seeking. The value at $5 per share of the outstanding shares not owned by management represents approximately 36 months of anticipated cash flows. Therefore without incurring any significant debt the Company could theoretically purchase all the outstanding shares, if they remained at $5 per share, during this period. While it is not a specific intent to take the Company private, the net result of expanded stock purchases could trigger such an event. As the majority shareholder it is my intention to participate in the proposed buybacks at a level that will be determined by price and availability of shares. "Collegiate Pacific is in an unusual position of generating strong cash flows with little use of these funds for capital expenditures. This allows a disproportiante quantity of our cash flow to be set aside for cash dividends or stock purchases." Collegiate Pacific is the nation's fastest growing manufacturer and supplier of sports equipment primarily to the institutional markets. The Company offers more than 3,200 products to 35,000 existing customers. This report includes "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and is subject to the safe-harbor created by that section. The Company's actual results may differ from the results discussed in any forward looking statements. |
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