Fitness financials: Court dismisses Bally class action lawsuit, plus Life Time Fitness, Brunswick, Winmark, Sara Lee

A court dismissed Bally's class action lawsuit for alleged securities fraud, an analyst upgrade sent Life Time Fitness stock up, Brunswick sold $250 million in floaters, Winmark reported Q2 income results, and a Sara Lee spinoff is expected in the fall.

Court dismisses Bally's class action lawsuit for alleged securities fraud
Bally Total Fitness (NYSE: BFT) said the U.S. District Court, Northern District of Illinois, dismissed a consolidated class action against the company and certain of its current and former officers for alleged securities fraud. Bally added in a statement that the federal court had previously consolidated 10 separate actions into the consolidated class action complaint. The court dismissed the complaint without prejudice, allowing the plaintiffs until Aug. 14 to file an amended complaint, the company said in a statement.

Analyst upgrade sends Life Time Fitness stock up
Shares of Life Time Fitness (NYSE: LTM) jumped in afternoon trading on July 20 after a Merrill Lynch analyst issued a positive research note, saying there is growth ahead for the company.

Shares rose $1.52, or 3.6 percent, to $44.20 on the New York Stock Exchange. The stock has traded in a 52-week range of $30.93 to $49.82 and is up 12 percent since the beginning of the year.

Analyst Michael Keara lifted his rating to "Buy" from "Neutral" in a client note, citing valuation. Although he noted that shares are down about 14 percent since May, he set a $52 target price.

"This has created a buying opportunity for investors to own one of the few unit growth equity stories remaining," wrote Keara. "The more uncertain the near-term outlook for discretionary consumer spending becomes, the more we like Life Time Fitness."

The Merrill analyst added that should consumer slowdown become very pronounced in the second half of the year, Life Time could offset any sales decrease with lowered general and administrative expenses. He also said he expects inline or higher-than-expected earnings from Life Time, which could drive shares higher. In-center revenue should lift returns, and the company could benefit from sustained or accelerated new store growth, he wrote.

Life Time closed at $43.41 on July 20.

Brunswick sells $250 million in floaters
Brunswick Corp. (NYSE: BC), parent of Life Fitness, sold $250 million in three-year floating-rate notes, said joint lead manager Merrill Lunch & Co. J.P. Morgan was the other joint lead manager for the sale.

Winmark reports Q2 income results
Winmark Corp. (Nasdaq: WINA), parent of the Play It Again Sports franchise, reported net income for the second quarter of $650,400, or $.11 per share diluted, compared to net income of $542,600, or $.08 per share diluted, in 2005.

"During the second quarter, the franchising business continued its modest growth, and our leasing businesses added assets at an acceptable level," said John Morgan, Winmark's CEO and chairman, in a statement. "We launched a $50 million subordinated debt offering which, when combined with our bank line of credit and cash flow from operations, will allow us to finance our growth for the foreseeable future."

Sara Lee spinoff expected in fall
Sara Lee (NYSE:SLE) said its apparel business will borrow $2.6 billion to establish itself as a separate, publicly traded company. Sara Lee will, in turn, receive a one-time payment of $2.4 billion from the new entity, to be called Hanesbrands Inc. The new business will include brands such as Champion, which has a licensing agreement for Champion-branded equipment with Lamar Fitness, and will most likely be spun off to Sara Lee shareholders in early September, Sara Lee said. Sara Lee has been divesting businesses in an attempt to rebound from a long stretch of sluggish results. It will not retain any ownership in Hanesbrands following the spinoff.

For more information about this company or its financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS® Stock Market Updates. Click on:


Fitness financials: Q3 sales flat for Brunswick's LF division, plus Amer, Life Time Fitness, Russell, GSI, Sara Lee, The Sports Club

Brunswick reports flat Q3 sales for Life Fitness divisionThird-quarter profit rose 21 percent for Brunswick Corp. (NYSE: BC), parent of Life Fitness, Hammer Strength and Parabody, aided by a large reduction in the company's tax provision. For the quarter, net sales increased 13 more

Outdoor financials: Gander Mountain securities class action lawsuit dismissed, plus Russell, adidas/Reebok

Gander Mountain securities class action lawsuit dismissed On Jan. 17, Gander Mountain (Nasdaq: GMTN) said the U.S. District Court for the District of Minnesota has dismissed in its entirety and with prejudice the consolidated securities class action complaint filed against the more

Outdoor financials: VF's Q2 results exceed analyst predictions, plus Sara Lee, Sportsman's Guide, Winmark

VF's Q2 results exceed analyst predictionsVF Corp. (NYSE: VFC) turned in another record quarter, beating analyst expectations with revenues that rose 8 percent and earnings per share that grew 4 percent for the second quarter. It also raised its full-year financial forecast. Net more

Bally shareholder class-action lawsuit still pending, hearings set

A court hearing has been set for the pending shareholder class-action lawsuit against Bally Total Fitness Holding Corp., but no other action has been taken since shareholders began filing federal class action complaints in late May. The complaints were in response to Bally (NYSE: more

Fitness financials: Bally delays filing annual report, plus Nautilus, Sports Authority, Gaiam, Amer, Sara Lee, Life Time Fitness, Under Armour, Sears

Bally delays filing annual report, board OKs bonus for CEO TobackBally Total Fitness (NYSE: BFT) missed the March 16 deadline to file its 2005 annual report and said it expects to have it in to the SEC in April. The delay of its annual 10-K report stems primarily from a delay in more

Primedia and Big Stone lawsuits dismissed in federal court

The lawsuits Primedia (Climbing magazine) vs. Big Stone (Rock and Ice, and Trail Runner) and the counterclaim Big Stone vs. Primedia were dismissed in federal court on Nov. 22, as agreed upon by both parties. In other words, the issue is settled and over. The court documents more

Fitness financials: 2005 woes follow Bally into New Year, plus Nike, Finish Line, Sara Lee, Health Fitness, Russell, adidas, Wal-Mart

2005 woes follow Bally into the New YearBally Total Fitness (NYSE: BFT) rang in the New Year with an amendment to its third-quarter 10-Q filing, a delay of the sale of its Crunch Fitness chain until mid-January, and an accusation that its two largest shareholders may be more

Fitness financial: Dick’s settles class action lawsuits

Dick’s settles class action lawsuits Dick's Sporting Goods (NYSE: DKS) said it has agreed to pay up to $15 million to settle various class action lawsuits that had alleged a failure to pay overtime and other promised wages. The settlement will result in a pretax charge of about more

Fitness financials: Bally gets forbearance extensions from lenders, plus Brunswick, Nautilus, Winmark, GSI Commerce

Bally gets forbearance extensions from lendersBally Total Fitness (Pink Sheets: BFTH) said it received forbearance extensions until July 31 from a majority of holders of its 9-7/8 percent senior subordinated notes due 2007 and its 10-1/2 percent senior notes due 2011 and from the more