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Exhibit 99.1
PRESS RELEASE FOR IMMEDIATE RELEASE
SAUCONY, INC.
13 Centennial Drive
Peabody, MA 01960
Contact: John H. Fisher Phone: (978) 532-9000
President and CEO Fax: (978) 532-4956
SAUCONY, INC. SELLS CYCLING AND WETSUIT DIVISION
PEABODY, MASSACHUSETTS -- June 29, 2000 -- Saucony, Inc. (Nasdaq: SCNYA and
SCNYB) today announced that it has sold substantially all of the assets and
business of its cycling and wetsuit division to QR Merlin Acquisition LLC. QR
Merlin Acquisition LLC is controlled by JHK Investments, LLC, a private
investment fund. JHK is also the principal investor in Litespeed Titanium
Components, Inc.
In commenting on the sale, Saucony's Chief Executive Officer, John H. Fisher,
stated: "While cycling and wetsuit consumers match the target demographics of
our footwear and apparel consumers, we do not see this business meeting our
financial expectations. We sought to improve the performance of this division by
making significant management changes, consolidating certain operations,
outsourcing production and reducing our operating cost structure. Nonetheless,
very competitive conditions in the hardgoods cycling market have continued to
adversely affect this division's operating results. Accordingly, our judgment
was that our shareholders would receive greater value if we divested this
division and increased our focus and investment in our footwear and apparel
businesses."
In the second quarter of fiscal year 2000, Saucony expects to incur an after-tax
loss on the divestiture of substantially all of its cycling division assets and
other related charges in the range of approximately $1.7 to $2.0 million, or
approximately $.27 to $.31 per fully diluted share.
Saucony, Inc. designs, develops, manufactures and markets (i) a broad line of
performance-oriented athletic shoes for adults under the Saucony(R) brand name,
(ii) athletic apparel under the Hind(R) brand name and (iii) athletic shoes
under the Spot-bilt(R) name.
This press release contains forward-looking statements that involve a number of
risks and uncertainties. For this purpose, any statements that are not
statements of historical fact may be deemed to be forward-looking statements.
Without limiting the foregoing, the words "believes," "anticipates," "plans,"
"expects," "intends," and similar expressions are intended to identify
forward-looking statements. Important factors that could cause actual results to
differ materially from those indicated by such forward-looking statements are
set forth in the Company's Annual Report on Form 10-K under "Item 7 -
Management's Discussion and Analysis of Financial Condition and Results of
Operations - Certain Factors that May Affect Future Results" ("Certain Factors")
filed by Saucony, Inc. with the Securities and Exchange Commission on March 29,
2000, which Certain Factors discussion is incorporated herein by this reference.
Without limiting the foregoing, there can be no assurance as to the level of
revenues or net income that will be achieved by the Company because such
revenues and net income are materially dependent upon the condition of the
domestic and world economies, competition from third parties, and consumer
preferences.
