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To: Andrew Vance who wrote (12898)	3/23/1998 4:21:00 PM
From: Papillon	Read Replies (1) \| Respond to of 17305

As you said a couple of posts ago, "timing is everything," and mine wasn't so good. I was busy, but I took the bait and went to check the news re: SAMC. I failed, I missed, I blew it, badly. A nice fat '00 ripe for the taking, from AV of all people, and I let it by me...oh woe is me...! Anyway, back to stock stuff: you call the following good news? I'm glad I'm not trying to find the silver lining in this. Best of luck. Samsonite Weighs Restructurings As Earnings, Sales Disappoint Dow Jones Online News, Monday, March 23, 1998 at 13:49 DENVER -(Dow Jones)- Cash-strapped luggage-maker Samsonite Corp. on Monday reported earnings that were far lower than Wall Street expected and said it is considering restructuring alternatives that would include special cash payments to its shareholders. Samsonite (SAMC), which fell on hard times after a fall blizzard pounded its Denver headquarters, disrupting pre-Christmas luggage shipments, reported fiscal fourth-quarter net income of $4.6 million or 22 cents a share. Without a restructuring charge, the company would have earned 33 cents a share, about half the 60 cents a share that analysts had been looking for. The company blamed the disappointing results on costs related to management changes and unfavorable production variances. A year earlier, the company had net income of $2.3 million, or 13 cents a share. Sales deteriorated 6% to $176.7 million from $188.0 million last year, Samsonite also said it will take a pre-tax charge of $2.6 million in the current first quarter, to revamp its soft-side luggage operations in Torhout, Belgium. The move its expected to result in annual cost savings of $2.2 million, Samsonite said. The company said the first-quarter restructuring charge will be the result of the elimination of 111 jobs, or more than 50% of the Torhout plant's work force. Samsonite said its board approved a recapitalization plan that includes the payment of a special $12.50 cash dividend and under which it received commitments for a $600 million credit facility. Samsonite said it will use the credit facility to pay the initial dividend, equal to a total $255 million, to refinance debt and to finance related transaction costs as well as for working capital. Samsonite said the recapitalization plan would be contingent upon closing of the bank facility; declaration of the dividend; and completion of a tender offer and consent solicitation for senior subordinated notes the company plans to launch. At the same time, the company said it is weighing an alternative "sponsored recapitalization" plan, under which it would sell a 50% equity stake in the company to an unspecified third party. Under the alternative plan, the company would make cash payments of $30 a share to shareholders, the company said. The equity sale would be contingent upon shareholder approval and to the obtaining of additional debt financing. At year end, Samsonite had about $182 million in debt, including about $53 million in principal of senior subordinated notes. Wall Street took a dim view of Monday's news. In afternoon trading, Samsonite shares (SAMC) were down $4.25, or 13%, at $28.125. The stock's 52-week low of $25 was set Dec. 10. Samsonite shares hit a high of $53.125 last October, but plummeted after the blizzard in Denver disrupted its holiday sales. In January, Samsonite said it hired Goldman, Sachs & Co., an investment firm, to explore a possible sale or recapitalization of the company. At that time, it said it would eliminate 200 jobs and take a pretax restructuring charge of $3.7 million in the fourth quarter. At one point, there had been speculation that it would be acquired by Sunbeam Corp. Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.