by The Editors on October 29, 2010
by The Editors on October 28, 2010
In among the other news reported today during Volcom’s third quarter results report was the announcement that the Board of Directors has approved a special $1 a share dividend for shareholders (and those holding unvested shares of restricted common stock).
The payout will be made on November 19, 2010 to stockholders of record on November 8, 2010. “The aggregate amount of payments to be made in connection with the special dividend will be approximately $24.4 million.”
This is the kind of stuff companies do just to jack with us. Sure, all the big shareholders (Wooly has 2.7 million or so) and the employees who have unvested shares will get a nice little payout. But here’s what we’re thinking: if we get a dollar a share for all the Volcom stock we own (which is, of course, zero). We could buy some shares on November 3 (the ex-dividend date is November 4), hold it until November 8 to qualify for the dividend, and then sell it back on Tuesday. If the share price goes up during the time, even better. The downside, as always, is if the share price goes down during that week then the dividend won’t even pay for itself. Oh, the way they toy with us.
Those interested in all the financial nitty gritty (things were up a bit over last year) from the rest of VeeCo’s announcement today can follow the jump.
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by The Editors on October 28, 2010
According to a report released by the Magazine Publishers of America magazine advertising pages during the third quarter (July to September 2010) were up 3.6 percent over the same period last year. The biggest gains were in the retail category where pages were up 7.2 percent and revenue was up 13.1 percent.
As we do most quarters we’ve checked in with the only action sports magazines followed in the Publisher Information Bureau (Bonnier Corporation’s Transworld Media) and see that things are mostly looking up. In fact Q3 looked great for all the titles aside from Skateboarding and Wakeboarding:
2010 2009 % Change
TRANSWORLD SNOWBOARDING 221.34 173.67 27.45
TRANSWORLD MOTOCROSS 256.26 220.08 16.44
TRANSWORLD SURF 278.42 244.34 13.95
RIDE BMX 152.59 148.36 2.85
TRANSWORLD SKATEBOARDING 296.04 337.05 -12.17
WAKEBOARDING 93.67 116.83 -19.82
Maybe those iPad magazine apps were just digital overkill. To see how the rest of the magazine world stacked up click here.
[Link: Magazine Publisher of America]
by The Editors on October 28, 2010
We’ve always been intrigued by Zumiez founder Tom Campion; not because of the company’s size, or its total sales, or strong stock. What we find amazing about Campion is his ability to communicate the Zumiez brand message to all of his employees. The skill with which Zumiez takes seemingly lost kids off the street and turns them into retail selling machines is legendary, as anyone who has attended the annual Zumiez 100k will tell you.
What is most shocking on meeting Campion is how such a quiet, thoughtful man can engender such enthusiasm in his employees. Transworld Business‘ Mike Lewis interviews Campion. Here’s a little of what Tom said:
I always have had a little problem with authority—authority that’s not justified—“You do this because I’m the founder and I’m going to go out and play golf,” or some bullshit like that. Doesn’t that translate into problems throughout business or society? If you’re going to have vision and you’re going to lead, you got to lead by example not just by words. . . . You can’t do one thing one year, and a new one the next. There has to be consistency over time so [employees] know what’s coming. You have to believe it yourself and you have to be honorable about it. You’ve got to appreciate the fact that they’re working to make the sale. They are the face to your customer all the time. What you tell them has to be consistent.
Much easier said than done. Click the link for the rest of the interview.
[Link: Transworld Business]
by The Editors on October 27, 2010
According to a Form 8-K filed today with the SEC Quiksilver has paid off its $24.5 million dollar debt to the Rhône Group L.L.C. by borrowing $20 million from Bank of America N.A. Nice how that works, huh?
The Term Facility is subject to interim amortization of $1,500,000, payable on June 30 and December 31 of each year, beginning on June 30, 2011, until the principal balance under the Term Facility is reduced to $14 million. The Term Facility bears interest, at the Borrower’s option, at either (x) an adjusted London Inter-Bank Offer rate plus 5.0% per annum, payable quarterly in arrears, or (y) the U.S. prime rate plus 4.0% per annum, payable quarterly in arrears. The Borrower must make prepayments in connection with certain corporate transactions and other circumstances, and may repay the loans under the Term Facility at any time without premium or penalty.
One thing is certain: Joe Scirocco earns his paycheck.
[Link: SEC]
by The Editors on October 27, 2010
At 1:30 PM PST tomorrow (Thursday October 28, 2010) Volcom will discuss its quarter three financial results with analysts. The great part is that we all can listen online at Volcom Investor Relations.
For those who are unable to listen to the live broadcast, the call will be archived for one year on the Volcom Web site. A telephone playback of the conference call will also be available until 11:59 p.m. ET, Friday, November 5, 2010. Listeners should call (800) 642-1687 (domestic) or (706) 645-9291 (international) and use reservation: 15128955.
Hopefully, Volcom has fixed their web audio so even us heathens on Apple computers can listen in as well.
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by The Editors on October 27, 2010
Not really sure why a snowboarder who is most accustom to racing down a fence-lined course would need a two-piece GPS unit with satellite texting capabilities, but that hasn’t stopped snowboardrcross double gold medalist Seth Wescott from stepping up as the new face of the Earthmate PN-60w with SPOT Satellite Communicator from DeLorme.
Among the plans for Wescott include his appearance as part of Team DeLorme at the upcoming 2011 Consumer Electronics Show, where he will discuss the many benefits of leading a healthy and active lifestyle and share his experiences as an outdoors enthusiast who uses a variety of technology. Wescott will also appear in a new DeLorme print advertising campaign scheduled for early 2011.
If you get any strange text messages from Seth this winter you’ll know why. Follow the jump for the complete details.
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by The Editors on October 26, 2010
Vail Resorts announced yesterday that it has purchased Northstar-At-Tahoe from Booth Creek Resort Properties LLC, according to a story in the San Francisco Chronicle.
The Broomfield, Colo.-based ski company acquired the stock of the companies that operate Northstar-at-Tahoe from Booth Creek Resort Properties LLC and other sellers. . . Vail Resorts will lease the land on which the resort operates from CNL Lifestyle Properties Inc. . . Booth Creek CEO George Gillett, Chief Operating Officer Chris Ryman and Chief Financial Officer Betsy Cole will no longer have management positions at Northstar, and Vail Resorts is seeking a new general manager for the resort.
This means snowboarders who have the Vail Epic Pass will also get to ride Heavenly, Northstar-at-Tahoe and Sierra-at-Tahoe in addition to the companies Colorado resorts. . . not a bad deal, actually.
[Link: San Francisco Chronicle]
by The Editors on October 26, 2010
Billabong is forecasting 2010-11 earnings to be “relatively flat” thanks to a stronger Australian dollar causing problems with the company’s bottomline, according to a story in the Sydney Morning Herald.
Billabong chief executive Derek O’Neill said the surfwear maker expected its net profit after tax (NPAT) to rise modestly in the current financial year. . . “Notwithstanding the impact exchange rate movements may have on reported NPAT… the company’s constant currency guidance of 2 per cent to eight per cent NPAT growth for the 2010-11 financial year remains unchanged,” Mr O’Neill said.
For the rest of these compelling insights into Billabong’s financials, click the link.
[Link: Sidney Morning Herald]
by The Editors on October 21, 2010
VF Corp announced their third quarter financials today with a press release and an analysts’ call. Revenues were up to record levels for the quarter ($2.2 billion), gross margins reached a record 46.5%, and earnings per share increased 14% to a record $2.22.
The VF Outdoor & Action sports businesses had record revenues, income, and margins thanks to “exceptional growth” from Vans, North Face, and Lucy. But in all that press release boosterism was not one mention of Reef. None. In fact, the only place Reef was mentioned in the release was in the list of companies that VF owns. Ouch.
[Link: VF Corp]
Following some less the impressive Q4 forecasts Volcom shares dipped below their 50-day moving average this morning with a 15 percent drop, according to Market Intellisearch.
