there is a marina somewhere in Ky advertising gas for $1.99 durung the week....
look at the new style dash from Fountain.
I just heard that Ford is down an estimated 50% on F150 truck sales, one of their bread and butters. 50%!!!
I agree that some of the new sales are down, and old upgrades are up. I think a lot of customers rolled into a new boat every few years, yet now they're upgrading what they have, whether its new engines, interior, gauges, whatever, I think that is on the rise. Also, Canada and Europe can now buy a lot of our stuff at much better prices than before, which I've seen a big increase in as of late.
Issue Date: 6/18/2008, Posted On: 6/18/2008
Fountain could be delisted from stock exchange
Fountain Powerboat Industries received notice from the American Stock Exchange that it is not in compliance with one of Amex’s standards for the continued listing of the company’s common stock.
The notice, dated June 11, said the decision was based on Amex's review of the company's quarterly report for the period ended March 31, 2008.
Specifically, the notice states Fountain "... has sustained losses which are so substantial in relation to its overall operations or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of the Exchange, whether such company will be able to continue operations and/or meet its obligations as they mature.”
For the quarter ended March 31, Fountain reported a working capital deficit of about $16.8 million, an operating loss of about $1.7 million and a net loss of nearly $2 million, according to a report filed with the Securities and Exchange Commission.
Amex also noted Fountain is not in compliance with covenants contained in its $14.5 million term loan and Fountain has been operating under a waiver from its lender that expires June 30.
“…if by that time we are not able to comply with the loan covenants or obtain an additional waiver, the lender will have a right to foreclose on our assets,” Fountain noted in documents filed with the SEC.
Fountain must submit a plan to Amex by July 11, addressing how it intends to regain compliance. Amex will evaluate the company's plan and, if it’s accepted, Fountain could perhaps continue its listing during the plan period, subject to periodic reviews.
If Fountain does not submit a plan, or if any plan it submits is not accepted by Amex, the company will be subject to delisting proceedings.
Amex could approve Fountain’s plan, but if the company is not in compliance with all continued listing standards of the company guide by Dec. 11, or if the company does not make progress consistent with the plan during the plan period, Amex could initiate delisting proceedings.
“Until the company's Board of Directors evaluates the recommendations of the company's officers with respect to a plan, the company is unable to make any more definite statement about its intention to submit a plan or its prospects for submitting an acceptable plan,” Fountain said in a statement.
At mid-morning, Fountain was trading at $1.19 per share, up from an opening of $1.11. Yesterday, it hit its 52-week low of $1.
Fountain previously reported it has acquired assets to build Baja boats. The company plans to evaluate how that new line of boats and any new business resulting from it will fit in with any plan it may develop to respond to Amex's notice.
Fountain expects to begin manufacturing the Baja by Fountain boat product line for the 2009 model year.
Fountain paid $4 million for the assets, which it borrowed, according to documents filed with the Securities and Exchange Commission. The company also acquired trademarks and other assets used to sell the acquired models.
“(Fountain) is aware, however, that the Baja boat line was unprofitable when it was operated by Baja Marine Corp. Therefore, (Fountain) will be required to make substantial operational changes to operate profitably,” according to documents filed with the SEC.
Fountain Powerboats, a subsidiary of Fountain Powerboat Industries, has its executive offices and manufacturing facilities in North Carolina. The company designs, manufactures and sells offshore sport boats, sport fishing boats and express cruisers.
I think if you really study the numbers brunswick already owns fountian in a defacto fashion. They don't take true ownership because of FTC (federal trade commission) objections. I.E. Monopoly control of a market. Think about it Mercury was the major debtor in the baja deal by selling it to fountian for .01 it still maintains an illusion of an arms length vendor-customer relationship.
In the mid to late 90's mercury got into legal problem for supposedly selling motors to it's own companies for less then outside companies. Ended out paying out to end buyers.
life is an incredible journey--might as well live it large
I don't think Brunswick would step in even as a limited partner and infuse its capital to bring Fountain in compliance. They would probably use their scope of influence to arrainge some sort of capital infusion plan from an industry lender to bring the balance sheet back in line, but you just have to read the industry news to see that Brunswick is shuttering plants at Sea Ray , etc. in July for a period of time to lower costs while sales continue flat to see that the boating industry as a whole is in serious problems, heck our whole economy is in serious problems.
Hang on its going to be a wild ride!!
Ray @ Raylar
31' center console, base model, 20 year financing + 20% down $768 / month @ 5% interest
I'm guessing you can get a 35 executioner for not much more than that, I think they are pretty close in price.
All I know is from the ad, I'm not in the new boat market and even if I was I doubt I would be in the 30+ foot range. It was nice when you could get a mid 20 footer with twin engines, like the old Formula 252 SR1
Alum Metal Fab
Custom Marine Sales
Dave's Custom Boats
Diamond Performance Parts
Double R Performance
Elton Porter Insurance
Fastboats Marine Group
GGB Exhaust Technologies
Grand Sports Center
Ilmor High Performance Marine
Lake Cumberland Marine
Lake Havasu Boat Show
Marine Technology Inc
McLeod Design Group
Performance Boat Center
Performance Marine Trading
Potter Performance Engines
Ron Sporl Performance
Speed and Custom Marine
Total Dollar Insurance
Teague Custom Marine
Wake Zone Marine Insurance
Young Performance Marine