Phoenix Footwear Group, Inc. commented on its recent bid for Antigua Enterprises, Inc. The Company also updated its earnings outlook for 2003.
On January 8, 2003, Phoenix Footwear announced that it had sent a letter to the Board of Directors of Antigua Enterprises, Inc. in which Phoenix Footwear offered to acquire Antigua through a tax-free merger. Following this announcement, Phoenix Footwear engaged in negotiations with Antigua’s management and Board which resulted in improved terms for Antigua’s shareholders. On March 14, 2003 Antigua reported that it entered into an agreement to sell a controlling interest in the company to Ashley NA, LLC, rather than merge with Phoenix Footwear. “We are disappointed that Antigua’s Board rejected our offer,” stated Mr. Riedman. “We believed our bid to be superior both strategically and financially. We are currently exploring all of our options.”
The Company also announced that for the 12 months ended December 31, 2003, it expects to generate earnings, after one-time charges, in a range of $1.10 to $1.20 per fully diluted share. The Company expects to record non-recurring charges of approximately $1 million or $0.30 per fully diluted share during the first half of 2003 associated with the previously announced relocation of the Company’s headquarters, as well as fees and expenses related to the Company’s bid for Antigua Enterprises. Excluding these non-recurring charges, the Company is expected to report fully diluted earnings per share of approximately $1.40 to $1.50 for the full year 2003.
“Despite the difficult economic environment, we continue to forecast growth in revenues and profitability in the current year” stated James Riedman, CEO of Phoenix Footwear. “We expect to generate a 20% to 30% increase in our fully diluted earnings per share, after one-time charges. This is in line with our previous guidance on an operating basis. On the top-line, we are continuing to feel the impact of the retail slowdown in January and February, but we are encouraged with order trends for the second half of 2003 and we still foresee revenue growth for the full year.”
