Fitness financials: Brunswick plans tender offer to buy back $75 million in debt, plus Forzani Group, Costco

Brunswick Corp., parent of Life Fitness, said it has launched a tender offer to buy back up to $75 million of its debt, Forzani swung to a Q2 loss, and Costco reported flat August sales.

Brunswick plans tender offer to buy back $75 million in debt

Brunswick Corp. (NYSE: BC), parent of Life Fitness, said it has launched a tender offer to buy back up to $75 million of its debt. The tender offer will close Sept. 30.

It will purchase the 11.75 percent senior secured notes due in 2013 in what it called a modified “Dutch auction.” The $75 million in notes represents 30 percent of its outstanding 2013 notes.

Noteholders will pick their selling price between $930 and $990 per $1,000 principal amount of 2013 notes. Brunswick will pay the lowest price in that range at which it can purchase up to $75 million in notes.

Holders who tender their notes before an early participation deadline of 5 p.m. on Sept. 17, will receive an additional payment of $30 per $1,000 in notes.

Forzani swings to Q2 loss

Forzani Group (TSX: FGL) swung to a quarterly loss as a cold and wet summer bit “deeply” into the sales of warm-weather products at Canada’s biggest sporting goods retailer.

Its second-quarter net loss was CDN $4.4 million (USD $4.07 million), or CDN $0.14 a share (USD $0.12), compared to a profit of CDN $1.6 million (USD $1.48 million), or CDN $0.05 a share (USD $0.04), a year earlier.

The company said results included some sales for the key back-to-school shopping period, though the majority of those revenues will be reflected in its third-quarter numbers.

For the three months ended Aug. 2, revenue increased slightly to CDN $296.5 million (USD $274.4 million) from CDN $295.6 million (USD $273.6 million) a year earlier.

“Our results were impacted by a cautious consumer and a wet and cold summer across much of Canada that cut deeply into the sale of seasonal items. We anticipate that this cautious consumer attitude will prevail for the remainder of the fiscal year,” CEO Bob Sartor said in a statement.

Also, the company said it planned to consolidate its two outdoor and lifestyle banners — Coast Mountain and Atmosphere — under the Atmosphere name to improve efficiencies and reduce overlap.

Forzani also said it finished a technology harmonization project over the summer, which let it cut 28 jobs at its information technology group. It expects the move will trim annual expenses by CDN $3 million (USD $2.77 million).

(Conversion of Canadian dollars into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of Sept. 8.)

Costco reports flat August sales

Costco Wholesale (Nasdaq: COST) said its same-store sales slipped 2 percent in August. Lower gas prices and the stronger dollar weighed on results. Excluding both items, same-store sales gained 2 percent for the month.

Total sales for the period ended Aug. 30 were flat at $5.4 billion, while fourth-quarter sales fell 3 percent to $21.9 billion.

The company said it had a slight improvement in non-food categories such as sporting goods, toys, seasonal and hardware.

–Compiled by Wendy Geister

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