After a day Golfsmith International Holdings, Inc.(NASDAQ:GOLF) agreed to be bought by Golf Town, the company reported its first quarter results. The company said that net loss during the quarter fell to $3.65 million or 22 cents a share from a year ago loss of $3.74 million or 19 cents a share. Revenue during the quarter increased 11.0% to $90.5 million as compared to $81.5 million in the first quarter of fiscal 2011. The increase was driven by a comparable store sales increased 8.5% and five new store openings since the end of the first quarter fiscal 2011, partially offset by a 4.7% decrease in the direct-to-consumer-channel.
Yesterday, Golf Town will buy Golfsmith International Holdings Inc. for about $96.5 million, the Canadian retailer said Monday, more than doubling its store base and significantly expanding its presence in the United States. Under the terms of the agreement, the Toronto company will pay $6.10 per share in cash. The offer represents a 30 percent premium over the Austin, Texas, company's Friday closing stock price of $4.71.
Shares of Golfsmith spiked 30 percent to hit a four-year high of $6.35 Based on Golfsmith's outstanding shares of approximately 15.8 million, the deal is worth about $96.5 million in all. The sale, if approved by regulators, is expected to close in the third quarter.Shares of GOLF are now trading higher by 0.10% to $6.05.Golfsmith sells equipment, clothing and accessories at 85 stores across the United States, as well as through its website and an assortment of catalogues. Golf Town is owned by Omers Private Equity and operates 54 stores across Canada and seven stores around the Boston area.
Golfsmith International Holdings, Inc., the parent company of Golfsmith International, Inc., is a holding company. The Company is a specialty retailer of golf and tennis equipment, apparel, footwear and accessories. The Company operates as an integrated multi-channel retailer, providing its customers the convenience of shopping in the retail stores across United States, through its Internet site, www.golfsmith.com, and from its catalogs. The Company offers a product selection that features national brands, pre-owned clubs and its branded products. It offers a number of customer services and customer care initiatives, including its club trade-in program, 30-day playability guarantee, 115% low-price guarantee, its credit card, in-store golf lessons, and SmartFit, its club-fitting program. As of January 1, 2011, the Company operated 75 stores in 21 states and 33 markets.
No comments:
Post a Comment