Outdoor financials: Wellman reports loss in Q4 and FY 2005, plus GSI, Wolverine, Winmark

Wellman reports loss in Q4 and FY 2005, GSI posts record '05 fiscal year, Wolverine declares quarterly dividend, and charges knock Winmark Q4 net income down.
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Wellman reports loss in Q4 and FY 2005
Wellman (NYSE: WLM) stated that its quarterly loss more than tripled as legal costs and Hurricane Katrina drove up costs.

Its fourth-quarter sales were $301.3 million in 2005, compared to $372.2 million in 2004. The net loss attributable to stockholders was $15.5 million, or $0.49 per diluted share, compared to a net loss of $4.7 million, or $0.15 per diluted share, for the 2004 quarter.

"The non-operational charges we incurred in 2005 relating to law suits alleging the company engaged in price fixing ($35.9 million) and the additional costs we incurred as a result of hurricane Katrina ($24.0 million) totaled approximately $60 million, resulting in a pretax loss of $48.0 million for 2005 which is less than the pre-tax loss of $54.5 million for 2004. The fourth quarter 2005 results were negatively affected by $16.6 million of the aforementioned charges relating to hurricane Katrina," Tom Duff, Wellman's chairman and CEO, said.

For the 2005 fiscal year, sales for the company hit a record -- $1,376.9 billion. 2004 sales were $1,305.0 billion. Wellman reported a net loss of $44.2 million, or $1.40 per diluted share, compared to a net loss of $51.1 million, or $1.61 per diluted share, for the full year 2004.

GSI posts record '05 fiscal year
GSI Commerce (Nasdaq: GSIC) reported double-digit increases in its fourth quarter and for the 2005 fiscal year. The company increased its net revenues 27 percent to a record $172.3 million and reported net income of $11.7 million, or $0.25 per diluted share, compared to net revenues of $135.6 million and net income of $10.1 million, or $0.23 per diluted share, for 2004's fiscal fourth quarter. For the fiscal year 2005, the company increased its net revenues 31 percent to a record $440.4 million and reported net income of $2.7 million, or $0.06 per diluted share, compared to net revenues of $335.1 million and a net loss of $0.3 million, or $0.01 per diluted share, for fiscal year 2004.

Wolverine declares quarterly dividend
Directors of Wolverine World Wide (NYSE: WWW) declared a quarterly cash dividend increase of 15.4 percent to $.075 per share of common stock. The dividend is payable on May 1, 2006, to stockholders of record on April 3, 2006, and represents a $.30 per share annual dividend. The company said this is its 13th consecutive year of double-digit dividend increases.

Charges knock Winmark Q4 net income down
Winmark Corp. (Nasdaq: WINA) reported a disappointing fourth quarter and full year results, hit by impairment and compensation charges. It provides financial services and develops franchises for Play It Again Sports.

Its fourth-quarter net loss was $68,600, or $0.01 per share diluted, compared to net income of $980,100, or $0.15 per share diluted, for the same period last year.

The company said fourth-quarter results were negatively impacted by two items: an impairment charge related to Winmark's investment in eFrame of $937,610, or $0.08 per share and a stock option compensation charge of approximately $420,000 or $0.04 per share.

Net income for the full year was $2.1 million, or $0.33 per share diluted, compared to net income of $4.1 million, or $0.63 per share, in 2004. Revenues for the year were $26.6 million, down from $27.2 million in 2004.

"2005 was a year where we continued to improve our franchising business and build the leasing sales and operations infrastructure to support future growth," John Morgan, the company's chairman and CEO, said in a statement. "2006 will be the first full year that both our franchise and leasing businesses will be firmly in place."

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