Sportsmans Guide pulled its planned secondary offering of shares, citing “uncertain market conditions.” The company had filed the S-3 registration papers with the SEC in early May for a proposed public offering of 2,500,000 shares of its common stock for an estimated total of $54.9 million. In a form RW filed Thursday, SGDE requested that the SEC withdraw the registration statement. In addition to the uncertain market conditions, the retailer was receiving criticism in the financial press over their on-going stock buy-back program conflicting with this proposed secondary offering.
SGDE will also change its accounting for Buyers Club membership fees and re-state certain previously issued consolidated financial statements. The restatement will increase net earnings for the quarters ended March 31, 2005 and 2004 by $161,000, or two cents per diluted share, and $141,000, or a penny per diluted share, respectively. The restatement will also increase net earnings by approximately $2,000 and $35,000 for the 2004 and 2003 fiscal year, respectively, with no impact on diluted earnings per share in either period.
The change in the revenue recognition policy related to the Buyers Club membership fees, when compared to the previous policy, will tend to delay the recognition of fee income especially in Q4 with the first three quarters of the following year benefiting from the change.
>>> Buying shares back in one quarter and then selling them off again just doesnt make sense; either SGDE needs the cash or they dont…
