Action Performance Announces Plans for Initial Public Offering of goracing.com Subsidiary
PHOENIX--(BUSINESS WIRE)--June 24, 1999--Action Performance Companies, Inc. (Nasdaq:ACTN - news) today announced that its goracing.com, inc. subsidiary plans to file a registration statement with the Securities and Exchange Commission for an initial public offering of its common stock. Our goracing.com network is an online provider of worldwide motorsports-related news and information, a meeting place and community for motorsports fans, and an e-commerce marketplace for motorsports merchandise.
goracing.com, inc. plans to use the proceeds from the offering to promote the goracing network and expand sales and marketing activities; to add online content, community features, and e-commerce opportunities on the goracing network; to hire management and other personnel; to enhance network technology, software, and basic infrastructure; to expand internationally; and to pursue strategic relationships and acquisitions. The Company will continue to own more than 80% of the shares of goracing.com, inc. after the offering. The filing is anticipated in early July. The Company is making this announcement in response to investor inquiries.
The Company made a strategic decision during the current quarter to increase and accelerate the pace of its investment in its Internet operations, including enhancing the goracing network, building its brand awareness, and expanding its business. The Company expects these costs to impact earnings by approximately $1.1 million, or $.06 per share, during the current quarter ending June 30. Apart from the impact of Internet-related expenditures, the Company anticipates its earnings will be in line with expectations.
Fred W. Wagenhals, the Company's Chief Executive Officer, stated, ''We are very pleased with the progress of our Internet business. In addition, we continue to see strong revenue growth across all product lines and in all distribution channels, including mass market sales in association with Hasbro.''
The goracing.com, inc. offering will be made only by means of a prospectus. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
This press release contains forward-looking statements. The Company's actual results could differ materially from those set forth in the forward-looking statements. Factors that might cause such a difference include, among others, competitive pressures, acceptance of the Company's products and services in the marketplace, the Company's ability to implement successfully its Internet strategy, the Company's ability to integrate successfully acquired businesses, and other risks detailed in the Company's Securities and Exchange Commission filings, including the Company's Form 10-K/A dated September 30, 1998.
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Contact:
Action Performance Companies, Inc.
Christopher Besing, 602/337-3703 (CFO)
or
Fred Wagenhals, 602/337-3710 (Chairman, President & CEO)
or
Victoria Welch, 602/337-3702 (Dir. of Communications) |
