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How sound is Reggie financially?
http://biz.yahoo.com/e/080617/fpb8-k.html
Reggie is getting de listed from Amex. Taken in part from the above: "Amex noted that, for the quarter ended March 31, 2008, we reported a working capital deficit of approximately $16.8 million, operating loss of approximately $1.7 million, and net loss of approximately $2.0 million. Amex also noted that, as we have previously reported, we are not in compliance with covenants contained in our $14.5 million term loan which sets forth minimum earnings before interest, taxes, depreciation and amortization, that we have been operating under a waiver from our lender which expires on June 30, 2008, and that, 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." I'm not expressing any opinion here one way or the other, just posting some intriguing information. And lots of food for speculation Pesky Varmint |
I'm sure ol' Reg is fine financially.
His company? That's a good question. |
The shares have been moving steadily downward towards $1.00/share for the past year.... Many days were marked by very small transactions from a few hundred to a few thousand shares (total transactions of $600-$700 up to $3500-$5000...not exactly high finance).
The sad thing is that any boat or recreation company today is facing a "Perfect Storm" of reluctant lenders, high fuel prices, and pseudo tree hugging "carbon footprint" drivel. If Fountain or any boat/recreation company can't last until the election, it doesn't look good. Why he is wasting the money on efforts like "Cat Killer" and racing against himself on various circuits is beyond me. If I were him, I would concentrate solely on the P-1 circuit for Worldwide marketing....and up scale fishing boats...where the money is. But, fortunately, I'm not.....:D T2x |
Originally Posted by T2x
(Post 2593520)
As of this AM the stock symbol no longer registers on the Wall street Journal website. The shares have been moving steadily downward towards $1.00/share for the past year...and it appears that they cannot sustain above that number. Each day was marked by very small transactions from a few hundred to a few thousand shares (total transactions of $600-$700 up to $3500-$5000...not exactly high finance).
The sad thing is that any boat or recreation company today is facing a "Perfect Storm" of reluctant lenders, high fuel prices, and pseudo tree hugging "carbon footprint" drivel. If Fountain or any boat/recreation company can't last until the election, it doesn't look good. Why he is wasting the money on efforts like "Cat Killer" and racing against himself on various circuits is beyond me. If I were him, I would concentrate solely on the P-1 circuit for Worldwide marketing....and up scale fishing boats...where the money is. But, fortunately, I'm not.....:D T2x |
Originally Posted by Knot 4 Me
(Post 2593529)
If you were suddenly Reggie you would have to go sweatsuit, gold chain, and wig shopping, thus lowering your net worth as well.
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[QUOTE=T2x;2593520] racing against himself on various circuits is beyond me.
Somebodys gotta WIN !!!!!!!!!!!!!!:D:D |
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Originally Posted by Knot 4 Me
(Post 2593529)
If you were suddenly Reggie you would have to go sweatsuit, gold chain, and wig shopping, thus lowering your net worth as well.
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Like him or Not. If Fountain were to go belly up, it would be a sad day for the performance boating community.
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Reggie is just fine. Fountain Powerboats on the other hand who knows...
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If Fountain bounces then you can rest assured others will become memories as well. Fountain/Baja would be a hit, don't forget Black Thunder. These are old companies that have been through the highs/lows of the boat market before.
Cigarette has been on the ropes several times through the years (as recently as the late 90's) and the list of owners but they have been brought back to life. This style of boating is hard on the wallet so the industry will definitely feel the pinch in an economic downturn. The manufacturers, the parts vendors, the service people, the painters, trailer companies, marinas etc. |
Cig will have no problem. The backing is very strong and their global demand will continue.
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FPB up $0.19 on the news.
Someone once said “as goes Fountain, so goes the hi-per boat industry” Lets see 4,361,000 shares outstanding, at $1.19/share, that’s $5,189,590 in market. Yearly revenue $68,830,000, annual loss of ($5,046,000), sounds like it might be fun to buy out, re-structure, and turn a profit. 100 investors at $50,000 each, and we own FPB, anyone in? |
Originally Posted by T2x
(Post 2593520)
Why he is wasting the money on efforts like "Cat Killer" and racing against himself on various circuits is beyond me.
T2x |
Originally Posted by DollaBill
(Post 2593606)
Reggie is just fine. Fountain Powerboats on the other hand who knows...
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Originally Posted by AppSysCons
(Post 2593636)
100 investors at $50,000 each, and we own FPB, anyone in?
Personally, I'd rather buy Skater. T2x |
Originally Posted by BBB725
(Post 2593648)
Didn't Brunswick buy Fountain? Or get shares of FPB for payment of product?
There has been a milestone that passed about 2 years ago where things changed but I can't remember the specifics. |
Originally Posted by DollaBill
(Post 2593658)
No, Brunswick didn't buy FPB. They gauranteed a line of credit (18MM total I think) for FPB with some stipulations that included meeting specific goals for sales/profits. If they are not met then they can take control of the company and buy reggies majority out for basically nothing (I think $1MM).
There has been a milestone that passed about 2 years ago where things changed but I can't remember the specifics. |
Overseas sales are key to survival right now it seems. That leaves Nor-Tech, Cig, etc. on better footing than some others. Anyone know what percentage of Fountains head across the border or ocean? I agree with focusing on P1 for overseas exposure and dropping the silly Cat Killer antics. Focus on customer service and price here in the States.
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I don't know the numbers, but Fountain Worldwide is the international dealer and they are doing well. It is headed by Craig Wilson (a member here) and last he said they were very busy. He also drives the race boat overseas.
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"According to Reggie Fountain, he has been in negotiations with Brunswick Corp., owner of Baja Marine, for almost a year. “This transaction was not forced on me,” Fountain said in an interview yesterday. “All of my lawyers, bankers, and advisors have said this is a good deal for Fountain Powerboats and I’m very happy with it,” he said. "
:Whatever: |
It may help to read the whole release or 8-K. They haven't been de-listed...yet. They've just received a letter of non-compliance; not that it's not a bad thing. :D
Here's the text out of the 8-K filed yesterday. The press release is pretty much the same thing. Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing We received notice from the American Stock Exchange (“Amex”) on June 11, 2008, that, based on its review of our Quarterly Report on Form 10-Q for the period ended March 31, 2008, we are not in compliance with one of Amex’s standards for the continued listing of our common stock as set forth in Part 10 of the Amex Company Guide (the “Company Guide”). Specifically, the notice states that “…the Company is not in compliance with Section 1003(a)(iv) of the Company Guide in that it 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.” Amex noted that, for the quarter ended March 31, 2008, we reported a working capital deficit of approximately $16.8 million, operating loss of approximately $1.7 million, and net loss of approximately $2.0 million. Amex also noted that, as we have previously reported, we are not in compliance with covenants contained in our $14.5 million term loan which sets forth minimum earnings before interest, taxes, depreciation and amortization, that we have been operating under a waiver from our lender which expires on June 30, 2008, and that, 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. As a result of the circumstances described above, the notice states that we have become subject to Amex’s suspension and delisting procedures set forth in Section 1009 of the Company Guide. The notice provides that we must submit a plan to Amex by July 11, 2008, addressing how we intend to regain compliance with Section 1003(a)(iv) of the Company Guide, including specific milestones, quarterly financial projections, and details related to any strategic initiatives we plan to complete (a “Plan”). Amex’s Listings Qualifications Department will evaluate any Plan we submit and make a determination as to whether we have made a reasonable demonstration of an ability to regain compliance within the specified timeframe. If our Plan is accepted, we may be able to continue our listing during the Plan period, subject to periodic reviews to determine whether we are making progress consistent with the Plan. If we do not submit a Plan, or if any Plan we submit is not accepted by Amex, we will be subject to delisting proceedings. Likewise, even if a Plan we submit is accepted by Amex, but we are not in compliance with all continued listing standards of the Company Guide by December 11, 2008, or if we do not make progress consistent with the Plan during the Plan period, Amex may initiate delisting proceedings. We currently intend to carefully evaluate how we will respond to Amex’s letter, including whether we will be able to submit a Plan with a viable chance of success. This will require us to talk with our lenders and evaluate our expenses and sources of revenues. We previously reported in a Report on Form 8-K that we have acquired assets to build Baja boats. We will evaluate how that new line of boats and any new business resulting from it will fit into any Plan we may develop to respond to Amex’s notice. Until our Board evaluates the recommendations of our officers with respect to a Plan, we are unable to make any more definite statement about our intention to submit a Plan or our prospects for submitting an acceptable Plan. If they can "comply" and make the AMEX happy again, you wonder though, what the future is of the Baja and Fountain names and what the line of boats will look like. Simplified and efficient could be a small line. I've traded FPB in the past but it trades at such low volume and bounces all over the place now. Besides it just gives me the creeps. I've had the honor of writing off worthless stock before. It's not something I write into my financial plan. :D |
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The stock listing has returned to the Wall Street Journal....
Here's the chart for the past 12 months. |
Originally Posted by SeaRay Jim
(Post 2593707)
It may help to read the whole release or 8-K. They haven't been de-listed...yet. They've just received a letter of non-compliance; not that it's not a bad thing. :D
These are tough times and I don't envy any business that is fighting this economy....... T2x |
I know lots of companies who get notices and they're still around. It may not be a bad thing if they stay or go from the AMEX... I know a few companies who have done it over the years...
A bonus is you no longer have to make your financial woes open to the public.. ;) |
Originally Posted by T2x
(Post 2593721)
(at the moment it is at $1.02).....
It's probably 3 people in the market trying to make it look alive. :evilb: |
You better hope they can!
Lets face it there are a lot of performance and non performance boat companies who are not doing so well right now and the future of the whole industry is at risk due to the high costs of fuel and materials coulpled with more stringent laws and reduced consumer demand in our down economy. Lets hope Fountain and the others can pull it together and stay out of the fires of financial woes as well as others in the boating industry so the sport of boating can continue for all of us who enjoy it so much.
God bless all those in the industry who hang their fortunes and futures on this sport!! May their sacrifices be rewarding! Best Regards, Ray @ Raylar |
Originally Posted by AppSysCons
(Post 2593636)
100 investors at $50,000 each, and we own FPB, anyone in?
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Originally Posted by fund razor
(Post 2593904)
Ok, but will you finance that so that I can be a new Fountain owner for payments of $999.00? :D
Stay tuned. This story will get good |
Originally Posted by DollaBill
(Post 2593909)
Sure, but after 36 mos the interest goes to 19.9% and the payments become $3500 :)
Stay tuned. This story will get good |
Buy, Buy, Buy!
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Originally Posted by Wahoo ATV
(Post 2593589)
Like him or Not. If Fountain were to go belly up, it would be a sad day for the performance boating community.
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Originally Posted by DollaBill
(Post 2593624)
Cig will have no problem. The backing is very strong and their global demand will continue.
...and Skip would have a stroke laughing at the idea of taking a high performance boat company public! |
Originally Posted by BLee
(Post 2593978)
...and Skip would have a stroke laughing at the idea of taking a high performance boat company public!
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Originally Posted by Cash Bar
(Post 2593987)
I still say you should buy him out. It would be good reason to move to S. Fla full time. :evilb::party-smiley-004:
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Originally Posted by Cash Bar
(Post 2593987)
I still say you should buy him out. It would be good reason to move to S. Fla full time. :evilb::party-smiley-004:
I can see it now........................"B Lee" in red, white and blue script down the side. Someone please photoshop B next to a plane with the hair and chains |
Originally Posted by Cash Bar
(Post 2593987)
I still say you should buy him out. It would be good reason to move to S. Fla full time. :evilb::party-smiley-004:
For my taste, buying a small, struggling, private performance boat company and fixing the leaks would be much more fun and less stressfull. Having to have an entire film editing crew, and a company ran race organization designed to "create" hype every other week for investors, magazine readers, and of course, the net surfers is not something many would be interested in having to deal with. Contrary to popular OSO beliefs, just because people are "talking", doesn't necessarily mean they're buying. I'm sure they'll be fine. If it goes lower Brunswick probably will execise their option to buy out Mr. Fountain and continue on their merry way....whatever way that is. |
Originally Posted by BLee
(Post 2594065)
HELL, no.....
For my taste, buying a small struggling, private performance boat company and fixing the leaks would be much more fun and less stressfull. Having to have an entire film editing crew, and a company ran race organization to "create" hype every other week for investors, magazine readers, and of course, the net surfers. Contrary to popular OSO beliefs, just because people are "talking", doesn't necessarily mean they're buying. I'm sure they'll be fine. If it goes lower Brunswick probably will execise their option to buy out Mr. Fountain and continue on their merry way. T2x |
Originally Posted by T2x
(Post 2594072)
Obviously you haven't checked Brunswick's stock lately.
T2x Nope. I already own a bowling ball. |
Wow Reggies hype does work.
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Originally Posted by BLee
(Post 2594081)
Nope. I already own a bowling ball.
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