Outdoor financials: Deckers to restate financials, plus Quiksilver/Rossignol, Dick's, Jarden/Coleman, Columbia Sportswear, GSI Commerce, Bausch & Lomb, Wellman
Deckers to restate financials, French newspaper reports Quiksilver looking to sell Rossignol, Dick's board OKs 2-for-1 stock split, Coleman CEO resigns, Columbia Sportswear's European general manager resigns, GSI Commerce closes sale of Accretive Commerce, Proxy advisors back Bausch & Lomb sale, and Wellman raises price of polyester staple fiber.
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Deckers to restate financials
Deckers Outdoor (Nasdaq: DECK) will pay up to an estimated $9.1 million and restate financial statements due to underpayment of some tax payments related to a Chinese subsidiary, according to a filing with the Securities and Exchange Commission.
The company said it underreported employee payroll declarations and underpaid some tax payments to authorities in China for one of its foreign subsidiaries, Holbrook Ltd., based in Hong Kong.
Deckers will restate its financial statements for the fiscal years 2004 to 2006 and some financial statements related to fiscal 2002 and 2003 and said such prior financial statements should not be relied upon. The total correction to its financial statements could range between $6.1 million and $9.1 million, the company said.
Deckers said the underpayment was due to a material weakness resulting in insufficient supervision and oversight of local accounting staff in the Holbrook subsidiary. As a result, it has changed the management and reporting structure of its accounting staff in China and it also separated its financial accounting and disbursement functions and introduced third-party preparation and reporting of payroll.
Due to the delayed filing of the company’s quarterly report for the period ended June 30, 2007, the Nasdaq Stock Market put Deckers on notice in August that it could be delisted from the exchange for not complying with SEC filing requirements.
French newspaper reports Quiksilver looking to sell Rossignol
According to an article in the French newspaper La Tribune, Quiksilver (NYSE: ZQK) is studying three offers for its Rossignol unit, two-and-a-half years after it bought the French maker of winter sporting goods for EUR 360 million (USD $500 million).
The candidates to buy Rossignol were investment funds specializing in business turnaround, the newspaper La Tribune said. One of the funds had the support of Rossignol Chairman Jean-Francois Gautier, while another had the support of Quiksilver Vice President Thierry Miremont, it added.
Of the news, one market watcher noted in Motley Fool, an online financial newsletter, that the company plans to keep the brand name and continue a Rossignol apparel line, but it wants to unload the hardgoods segment. The ski maker had been facing declining sales and rising costs before the buyout, while losing market share to K2 and others.
“The company’s idea — aside from bailing out a family friend of Quiksilver’s president — was to splash the Rossignol name on shirts, jackets and other paraphernalia. While the skis might have lost their wax on the racks, the name still held cachet,” wrote contributor Rich Duprey in a Motley Fool article. “CEO Bob McKnight wanted retail clothing sales to grow to 20 times their then-$50 million size. Unfortunately, a clunky ski manufacturer came tethered to the deal, dragging Quiksilver’s own performance down.”
Dick’s board OKs 2-for-1 stock split
The board of directors for Dick’s Sporting Goods (NYSE: DKS) has approved a 2-for-1 split of the company’s common stock in the form of a dividend. The company plans to give shareholders of record on Sept. 28 one additional share of common stock for each share held and one additional share of Class B stock for each Class B share held. The additional shares are expected to be distributed around Oct. 19.
Coleman CEO resigns
Gary Kiedaisch, CEO of Coleman, has resigned effective immediately for personal reasons, according to a statement from the company. Coleman CFO Sam Solomon has been named the interim CEO. Vice President of Finance Dan Hogan is the acting CFO.
Jarden Chairman and CEO Martin Franklin said that Kiedaisch is expected to help Coleman make the transition to a new CEO. Jarden (NYSE: JAH) is Coleman’s parent company.
Kiedaisch, 60, became Coleman’s CEO in January of 2005. He came to Coleman from Bauer Nike Hockey, where he was chairman, CEO and president. He has also been CEO of Bolle and Stowe Mountain Resort.
Columbia Sportswear’s European general manager resigns
Columbia Sportswear (Nasdaq: COLM) said Paul Gils, general manager Europe, has resigned his position for personal reasons. European operations will be overseen by a transition management team led by Mick McCormick, vice president of sales. McCormick previously served as executive vice president of global sales for Callaway Golf prior to joining Columbia Sportswear.
GSI Commerce closes sale of Accretive Commerce
GSI Commerce (Nasdaq: GSIC) has closed its acquisition of Accretive Commerce, a Huntersville, N.C.-based, e-commerce solutions provider for $97.5 million in cash.
“We are excited to welcome the employees and partners of Accretive Commerce and we look forward to growing the business as one company,” said Michael G. Rubin, GSI chairman and CEO, in a statement.
Proxy advisors back Bausch & Lomb sale
Bausch & Lomb (NYSE: BOL) said four proxy advisory firms recommended that shareholders approve the $3.67 billion sale of the company to private equity firm Warburg Pincus.
In a statement, the company said Institutional Shareholder Services, Egan-Jones Proxy Services, Glass Lewis & Co., and Proxy Governance Inc. recommended the sale.
In May, Bausch & Lomb entered into an agreement with Warburg Pincus to sell the company at $65 per share in cash, or about $3.67 billion, plus $830 million in assumed debt. In August, Bausch & Lomb asked shareholders to approve the sale. A special shareholder meeting is scheduled for Sept. 21 to vote on the matter.
In July, Advanced Medical Optics Inc. made an unsolicited counter bid for $4.2 billion, or $45 per share in cash and $30 in stock, but withdrew the offer last month.
Wellman raises price of polyester staple fiber
Effective with its Oct. 15, 2007, shipments, Wellman (NYSE: WLM) said it will increase the price of all Fortrel polyester staple fiber products by 3 cents per pound.
Steve Ates, vice president of sales and marketing, made the announcement noting, “This price increase is necessary due to the rising cost of Ethylene Glycol, a primary raw material used in the manufacture of polyester staple fiber.”
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