Fitness financials: Nasdaq threatens to delist Big 5, Bally to speak with investors, plus Wal-Mart, Costco, Cybex

Fitness financials: Big 5 to restate 2002-2004 results, Nasdaq threatens delisting. Bally speaks with investors. Wal-Mart and Costco report March sales. Adams Harkness initiates coverage of Cybex.
Author:
Updated:
Original:

Big 5 to restate 2002-2004 results, Nasdaq threatens delisting
On April 8, Big 5 Sporting Goods Corp. (Nasdaq: BGFV) reported that it received a notice from Nasdaq saying that it fails to comply with Nasdaq listing standards due to the delayed filing of its annual report on Form 10-K with the Securities and Exchange Commission and that its securities are therefore subject to delisting from the Nasdaq National Market.

The day before, Big 5 had said it was restating 2002, 2003 and 2004 financial results to reflect accounting changes, including lease accounting, and said it was again delaying the filing of its 2004 annual report. Due to the amount of additional work associated with the restatements, the company's financial statements and the associated audit will not be completed by the deadline and Big 5 expects to file its annual report on Form 10-K within the next few weeks.

As a result of the delay in filing the Form 10-K, effective April 11, the fifth character "E" will be appended to Big 5's trading symbol on the Nasdaq Stock Market, indicating that the company is delinquent in its filings with the SEC. Accordingly, the trading symbol for the its common stock will be BGFVE.

Big 5 said it intends to appeal the determination, which will stay the delisting until the appeal has been heard and a Nasdaq panel has rendered its decision. Big 5 said it intends to submit a written request for hearing to Nasdaq's Office of Listing Qualifications Hearings, but has no assurance that the panel will grant its request for continued listing.

Big 5's filing delays are a result of an adjustment related to a previously disclosed allowance for sales returns, which is expected to add about 2 cents per share to previously reported fiscal 2004 results and to reduce earnings per share for fiscal 2002 by 1 cent. The adjustment is not expected to change earnings per share for fiscal 2003. The lease accounting adjustments are not expected to change earnings per share for fiscal 2002 or 2004, and are expected to reduce fiscal 2003 earnings per share by 1 cent, it added.

Despite its challenges, Big 5 also reported that it achieved its 37th consecutive quarter of positive same-store sales performance for the fiscal quarter ended April 3, 2005. It expects to report, based upon preliminary sales results, a same-store sales increase of 1.7 percent for the first fiscal quarter compared to last year.

Bally speaks with investors
Bally Total Fitness Holding (NYSE: BFT) has filed a form 8-K with the SEC. The form said that it has secured an amendment and waiver to its existing credit agreement with its revolving credit and term loan lenders. The amendment provides Bally with additional covenant flexibility by exempting from the calculation certain costs incurred by Bally Total Fitness in connection with the SEC and Department of Justice investigations and other matters. The amendment also waives certain technical defaults. The company also announced that it would hold a conference call with investors on April 12 to discuss its financial situation and to answer questions.  

Wal-Mart reports March sales
Wal-Mart Stores Inc. (NYSE: WMT) saw its same-store sales for March rise 4.3 percent. Total sales for the month were $27.98 billion, up 11.3 percent from $25.13 billion last year. It's ranked as the 12th largest store in the world, according to Forbes.

Costco's same-store sales up 7 percent
Costco Wholesale (NasdaqNM: COST) reported a 7 percent increase in same-stores sales in March. Total sales for the five weeks ended April 3 rose 10 percent to $4.87 billion. Forbes said it is ranked as the 245th largest store in the world.

Adams Harkness initiates coverage of Cybex
On April 6, coverage was initiated on Cybex International (AMEX: CYB) by Adams Harkness. The investment group has given it the "buy" stamp of approval.

For more information about these companies or their financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS® Stock Market Updates. Click on:www.snewsnet.com/cgi-bin/snews/stock_report.html  

Related

Fitness financials: Stride Rite to purchase Saucony, plus Big 5, Everlast, Finish Line, Costco, Wal-Mart

Stride Rite to purchase SauconyHind's parent Saucony (NasdaqNM: SCNYA and SCNYB) has been picked up by Stride Rite Corp. for $170 million -- about $23 a share. Taking into account cash reserves at Saucony, Stride Rite said the deal would cost it about $140 million. Stride Rite is ...read more

Fitness financials: Bally debt holders OK waiver, plus Cybex, Gaiam, adidas/Reebok, Crocs, Nautilus, Wal-Mart, Costco

Bally debt holders OK waiverBally Total Fitness (NYSE: BFT) said it has received approval from a majority of holders of its senior notes to waive financial reporting covenant defaults until July 10 after the company failed to file its 2005 financials on time. Majority approval ...read more

Fitness financials: Town Sports drops IPO price, plus Bally, Cybex, Everlast, Costco, Finish Line, Wal-Mart

Town Sports drops IPO price, starts tradingAfter cutting the price of its initial public offering, Town Sports International Holdings (Nasdaq: CLUB) was a slow mover on the Nasdaq Stock Exchange on June 2. Town Sports, the third-largest U.S. fitness club operator, cut its planned ...read more

Fitness financials: Big 5 Nasdaq listing still hanging on, plus Bally, Saucony, Sears, Sara Lee, Puma, Wal-Mart

Fitness financials: Big 5 Nasdaq listing still hanging on, plus Bally, Saucony, Sears, Sara Lee, Puma, Wal-Mart Big 5 Nasdaq listing still hanging onNasdaq gave Big 5 Sporting Goods (Nasdaq: BGFVE) another reprieve and has agreed to continue listing its stock since the company ...read more

Fitness financials: adidas orders decline for first time in 10 quarters, plus Foot Locker, TSI, Cybex, Bally, Wal-Mart, Costco, Sears, Sport Chalet, Health Fitness Corp.

adidas-Salomon sales up, stock falls based on 2005 forecastDespite strong sales for the third quarter partly boosted by adidas numbers, adidas-Salomon (ADSG.DE) saw its stock drop after forecasting its sales will be flat in the first half of 2005. Still, the wave adidas has been ...read more

Fitness financials: Icon records $110 million year-end loss and negative EBITDA, plus Forzani, Big 5, Bally, Finish Line, Amer, Nautilus, Costco, Wal-Mart

Icon Health & Fitness, which filed its year-end and quarterly statement a few days late after requesting a filing extension saying it needed extra time due to discontinued operations, reported net sales for the year ended May 31, 2005 were down 9.5 percent, or $94.1 million, to ...read more

Fitness financials: Lenders give Bally $280 million credit, plus Icon, Crocs, Wal-Mart, Costco

Lenders give Bally $280 million credit Bally Total Fitness (NYSE:BFT), which warned last month that it may not be able to fulfill its credit agreement, said its lenders had agreed to a credit totaling $280 million. The news shot its shares up 50.1 percent on Oct. 4 -- more than ...read more

Fitness financials: Nautilus lowers Q1 guidance, share prices sink; plus Bally, Puma, Costco, Wal-Mart

Nautilus lowers Q1 guidance, share prices sinkNautilus (NYSE: NLS) lowered its first-quarter earnings guidance based on sluggish sales of its home fitness products in North America. For the first quarter, the company said it now expects earnings per diluted share of $0.08-$0.09 ...read more

Fitness financials: Forzani Group quarter a bit rocky, plus Bally, Costco, Wal-Mart, Sears

Forzani Group quarter a bit rockyThe Forzani Group Ltd. (TSX: FGL) cut its earnings forecast for the fiscal year because of weak back-to-school sales, sending shares of the Calgary-based Canadian sporting goods giant to its worst level in about three years. Forzani, which ...read more