Finance Digest – Sept. 4, 2006
September 4, 2006
Filed under Features
H-D Turns to ‘HOG’ on NYSE
Harley-Davidson, Inc. is getting a new ticker symbol: HOG.
The U.S. producer of heavyweight motorcycles, whose products have long been known as “hogs,” changed its New York Stock Exchange ticker symbol from HDI to HOG, effective with the start of trading on Tuesday, Aug. 15.
Harley-Davidson, Inc. is the parent company for Harley-Davidson Motor Company, Buell Motorcycle Company and Harley-Davidson Financial Services, Inc.
Fairchild Corp. Fields Offer to go Private
Powersports apparel and accessories supplier Fairchild Corporation, McLean, Va., has received a $68 million acquisition offer that would take the company private.
Fairchild, which also operates in the aerospace industry, said the offer came from Delaware-based FA Holdings LLC, a firm led by Philip Sassower, chairman of Phoenix Group International LLC, and Fairchild’s chief executive, Jeffrey Steiner.
FA Holdings proposed to acquire all of Fairchild’s outstanding shares for $2.73 per share, a 20 percent premium to the stock’s Aug. 4 closing price of $2.27.
Fairchild announced the proposal Aug. 7.
While Fairchild’s board of directors had already formed a committee of independent directors to consider any such proposals, company officials say they have not yet decided on a response to the FA Holdings proposal.
“There can be no assurance that any definitive agreement will be executed or that any transaction will be approved or consummated,” said a company prepared statement.
Fairchild’s business consists of three segments: sports and leisure, aerospace, and real estate operations. Fairchild’s sports and leisure segment, known as Fairchild Sports, is comprised of Hein Gericke, PoloExpress and Tustin, Calif.-based Fairchild Sports, formerly known as Intersport Fashions West.
UTI Announces Senior Executive Promotion
Universal Technical Institute, Inc., a provider of technical education training, announced the promotion of Sherrell Smith to senior vice president of operations, responsible for all campus operations and educational services.
UTI offers services as Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI) and NASCAR Technical Institute (NTI).
Smith has been employed with UTI for 20 years serving in a variety of capacities. He previously served as regional vice president of operations, responsible for the oversight of six campuses.
Previous Senior Vice President of Operations Roger Speer will continue to lead the Custom Training Group and Support Services.
Speer has been employed with UTI for more than 18 years in a number of leadership roles. In his new role, he will focus on growing UTI’s custom training business and continue to provide support and leadership in future student services, student services, employment services, real estate and construction. Both Smith and Speer will report to Kim McWaters, president and chief executive officer of UTI.
In other UTI news, the education provider’s net revenues for the third quarter ended June 30 were $84.1 million, a 10.6 percent increase from $76.1 million for the same quarter last year.
Undergraduate enrollment at the end of the third quarter of fiscal 2006 was 14,073 students, up from 13,867 students at the end of the third quarter of fiscal 2005.
Arkona Revenue Up, Income Down
Arkona, Inc., a Salt Lake City-based supplier of business management solutions to powersports dealerships, said revenue for its first quarter ended June 30 was $2.97 million, up from $2.52 million during the same three-month period in 2005.
Gross profit for the recent quarter was $1.46 million, up 26 percent from $1.15 million in the quarter ended June 30, 2005. Net income was $111,000, or $0.003 per share, down from $440,000 posted in the same quarter last year.
Patriot Signs with Textron, Approved by GEICO
Patriot Motor Corporation, parent company of Patriot Motorcycle Corporation, has established a dealer-flooring program with the financial division of Textron, Inc., for its Steed brand of V-twin motorcycles.
In related news, Patriot also announced that GEICO Indemnity Company will arrange immediate coverage via its comprehensive GEICO Motorcycle Insurance Program. psb