Sportsman's Guide restates financial statements, withdraws public offering
The Sportsman's Guide (NasdaqNM: SGDE) is restating some of its previously reported financial statements after the SEC said the catalog retailer needed to change its accounting for membership fees.
Additionally, it is withdrawing a proposed public offering of 2.5 million shares of common stock. Company management cited uncertain market conditions as reasons for the withdrawal.
The SEC reviewed the company's 2004 Annual Report on Form 10-K and questioned the timing of revenue recognition of the Buyer's Club membership fees. As a result, The Sportsman's Guide is changing its accounting for Buyer's Club membership fees.
The restatement will increase net earnings for the quarters ended March 31, 2005, and 2004 by $161,000, or $0.02 per diluted share, and $141,000, or $0.01 per diluted share, respectively. The restatement will also increase net earnings by approximately $2,000 and $35,000 for the years ended Dec. 31, 2004, and 2003, respectively, with no impact on diluted earnings per share in either period.
"While the impact of the change for the last several annual periods is not material, we are restating previously issued consolidated financial statements because the effects of the accounting change to certain past quarterly periods are more significant and we have included a schedule showing such with this release. We believe all of our recent trends with respect to revenue and earnings growth remain intact in all material respects and this accounting change will have no impact on our cash flows in the past or future periods," Gregory Binkley, president and CEO of The Sportsman's Guide, said in a statement.
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.
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