K2 Inc. is forecasting fiscal year 2004 sales of approximately $920 million and earnings per share in the range of $0.92 to $0.94 based on assumed outstanding shares of 34.4 million as of December 31, 2004. This assumes a modest level of accretion from the recently completed acquisition of Brass Eagle. For the first quarter 2004, the forecast is sales of approximately $250
million and earnings per share of approximately $0.30 based on assumed outstanding shares of 34.4 million as of March 31, 2004.
For fiscal year 2003, K2 reconfirmed its forecast of sales of approximately $690 million and earnings per share of $0.57 before charges associated with the early extinguishment of debt, or $0.41 net of the charges based on assumed outstanding shares of 26.2 million as
of December 31, 2003. For the fourth quarter 2003, guidance is sales of approximately $170 million and earnings per share of $0.05 based on assumed outstanding shares of 29.9 million.
Richard J. Heckmann, Chairman and Chief Executive Officer said, “We are quite pleased with the outlook for 2004, particularly when viewed in the context of our 2002 and 2003 results. We made
several acquisitions in 2003 and the integration steps and increased
operating efficiencies are well underway which will allow us to
convert our 2003 forecast results of $0.41 into 2004 forecast earnings
of $0.92 to $0.94 per share. This has been an exciting year for K2 as
we acquired the #1 brands in baseball, softball, paintball, and
snowshoeing. We are well positioned for 2004 with five major product
groups that are each the leader in their respective categories, and
which provide us with a highly diversified base for future growth.”
