Fitness financials: Saucony shareholder plans "no" vote to sale, plus Nike, Finish Line, Amer Sports

Saucony shareholder plans "no" vote to sale, Nike Q4 strong, but stock drops on cautious forecast, Finish Line Q1 net income jumps 23 percent, Amer Sports 2005 warrants subscribed
Author:
Updated:
Original:

Saucony shareholder plans "no" vote to sale
Saucony (NasdaqNM: SCNYA and SCNYB) shareholder Fairview Capital Investment Management -- which holds a 2.6 percent stake -- said it will vote against Saucony's proposed sale to Stride Rite Corp. (NYSE: SRR) because the sale price is "inadequate." Stride Rite has offered to pay $23 per share for Saucony class A and class B common stock.

The lack of an independent committee during the strategic review process and Saucony's earlier rejection of a higher, $25 offer in April were among the factors that caused Fairview to oppose the deal, the shareholder said. It added that it believes Saucony shareholders "will receive zero control premium and none of the projected cost-saving synergies."

In addition, "executive benefits" payments to Saucony President and CEO John Fisher and to Charles Gottesman, Saucony's executive vice president of business development, would effectively pay them $26 for each of their shares, Fairview said.

Saucony did get a bit of good news. It ranked No. 37 on Forbes' list of the 100 fastest-growing small public companies Companies were screened by Zacks, a financial research firm, which identified companies with annual revenue of less than $200 million and a stock price of more than $1 and ranked them based on the past three years' earnings growth, revenue growth, and stock performance. Saucony's revenue was $166.6 million.

Nike Q4 strong, but stock drops on cautious forecast
Nike (NYSE:NKE) posted better-than-expected quarterly earnings on strong sales of high-priced athletic shoes, but its stock dropped 5 percent after a cautious revenue forecast.

Net income rose to $349.5 million, or $1.30 per share, in the fourth quarter ended May 31, from $305.0 million, or $1.13 per share, a year earlier. The per-share earnings were 3 cents better than the average forecast among analysts.

Nike's fourth-quarter revenue rose 7 percent to $3.7 billion as demand grew across all regions and the weak dollar helped boost the value of overseas sales. In the United States, the company's No. 1 market, revenue increased 3 percent to $1.3 billion, including a 7 percent rise in U.S. athletic footwear revenue to $907.2 million. Asia-Pacific revenue rose 19 percent to $535 million, while revenue in the Europe-Middle East-Africa region increased 4 percent to $1.1 billion. Revenue from the company's other brands, such as Cole Haan, Converse and Hurley, rose 6 percent, to $529.2 million.

Worldwide orders for athletic footwear and apparel for delivery from June through November increased 9.5 percent from a year earlier to $6.3 billion. Future orders in the United States rose 10 percent.

The results come as a recent fashion shift to premium athletic shoes has padded profits at companies like Nike, analysts said. According to marketing firm NPD Group, demand for athletic shoes that cost more than $100 a pair grew 18 percent in the United States last year, to almost $600 million.

In its conference call, Nike said it still expects high single-digit revenue growth for fiscal 2006 but forecast growth in the first quarter will be toward the low end of the expected range of 7 percent to 9 percent.

Nike shares were down $4.50 to $84.85 in morning trade on the New York Stock Exchange on June 27.

Finish Line Q1 net income jumps 23 percent
For its first quarter, Finish Line (Nasdaq: FINL) reported a 23 percent increase in net income -- $12.7 million, or $0.26 per diluted share, vs. $10.4 million, or $0.21 per diluted share last year.

Net sales increased 13 percent to $291.3 million for the quarter compared to $258.0 million reported in 2004. Comparable store net sales increased 2 percent this year on top of a 14 percent increase reported last year.

Merchandise inventories on a consolidated basis were $259.8 million. Its store merchandise inventories were $255.6 million compared to $221.6 million. On a per square foot basis, Finish Line store merchandise inventories increased approximately 3 percent compared to one year ago.

During the quarter, it opened 28 new stores, remodeled seven existing stores and closed one store in the quarter. It now operates 625 Finish Line stores.

Amer Sports 2005 warrants subscribed
Amer Sports said all 500,000 2005 warrants have been subscribed. Each warrant entitles its holder to subscribe for one Amer Sports Corp. share whose accounting countervalue is Euro 4. Waiving the pre-emptive subscription right of shareholders, the warrants were granted for subscription by Amera Oy, a fully-owned subsidiary of Amer Sports, and they will be used as long-term incentives for the company's group management in 2005-2009. Warrants will be granted to the group management after the publication of the 2007 financial statements.

The share subscription price is Euro 14.86, which is the share turnover-weighted average price of Amer Sports's shares on the Helsinki Stock Exchange during the period from Jan. 2 to Feb. 14, 2005, plus 10 percent. The share subscription period will begin on March 1, 2008, and end on Dec. 31, 2009.
 
In other company news, the London listing authority has approved the delisting of Amer Sports shares from the official list of London Stock Exchange. Delisting took place on June 24. Its ordinary shares will continue to be traded on the main list of the Helsinki Stock Exchange.

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.htmlÂ

Related

Fitness financials: Sherborne says it controls Nautilus' board after shareholder vote, plus Nike, Amer Sports, Life Time Fitness

Sherborne says it controls Nautilus' board after shareholder vote Although the results are not official yet, Sherborne Investors LP, which owns a 23.5-percent stake in Nautilus (NYSE: NLS), issued a press release saying it had succeeded in its effort to gain control of the board ...read more

Outdoor financials: Saucony shareholders vote in favor of sale to Stride Rite, plus Rocky, Sport Chalet, West Marine, Wolverine

Saucony shareholders vote in favor of sale to Stride RiteAt a special meeting of shareholders on Sept. 16, Saucony (Nasdaq: SCNYA and SCNYB) shareholders voted "overwhelmingly" to adopt the merger agreement under which The Stride Rite Corp. (NYSE: SRR) will acquire Saucony. ...read more

Fitness financials: Cybex receives new term loan, plus Nike, Amer Group, Bally Total Fitness, Finish Line

Cybex gets commitment for loan that will save $1 million per yearCybex International Inc. (AMEX: CYB) has announced it received a commitment from GMAC Commercial Finance to provide a term facility of up to $13 million, the proceeds of which will be used to repay higher cost real ...read more

Fitness financials: Brunswick stock drops 13 percent as it lowers yearly forecast, plus Big 5, Saucony/Stride Rite, Nike, Russell, Sport Chalet, Cybex, Forzani, NRF, Finish Line, Reebok, consumer index, Amer, Wal-Mart

Brunswick stock drops 13 percent as it lowers yearly forecastAs its marine division moves into the off season, Brunswick Corp. (NYSE: BC) said it has "tempered the assumptions behind our previous earnings estimates" as it sees how the economy pans out after the triple whammy of ...read more

Fitness financials: New Saucony/Hind parent reports Q2 profit down 23 percent, plus Finish Line, Sears Holdings, Amer Sports, Hibbett Sports

New Saucony/Hind parent reports Q2 profit down 23 percent Collective Brands (NYSE: PSS), which changed its name from Payless ShoeSource earlier this month, said its fiscal second-quarter profit declined 23 percent from higher costs and lower sales. It is now the parent of the ...read more

Fitness financials: Bally completes additional sale/leaseback transactions, reports annual meeting results, plus Nike, Cybex, Amer Sports, Finish Line, Wal-Mart

Bally completes additional sale/leaseback transactions, reports annual meeting resultsOn Dec 29, Bally Total Fitness (NYSE: BFT) said that it closed on two additional sale/leaseback transactions with respect to four properties, generating approximately $13.5 million in net ...read more

Fitness financials: Nautilus shareholder seeks to oust directors, plus Everlast, Nike, Big 5, Finish Line, George Foreman Enterprises

Nautilus shareholder seeks to oust directors A major Nautilus (NYSE: NLS) shareholder has sent a demand letter to the fitness manufacturer urging the removal of four board members and the election of replacements. In the Sept. 20 letter filed with the SEC, Sherborne Investors ...read more

Fitness financials: Amer Sports receives notification of change in shareholding, plus Brunswick, Nike

Amer Sports receives notification of change in shareholding Amer Sports Corporation has received information to the effect that the Danske Bank A/S Helsinki Branch's share capital and voting rights of Amer Sports are still over one-twentieth due to derivative contract ...read more

Fitness financials: Amer Sports notified of shareholder's increased voting rights, plus Accell Group

Amer Sports notified of shareholder's increased voting rights Amer Sports, parent of Precor, said it has been notified that the Danske Bank A/S Helsinki branch's ownership of its share capital and voting rights has reached one-twentieth following a share transaction on May 16. ...read more