The Colonel's International Announces Major Restructuring
10 October 1997
The Colonel's International Announces Major Restructuring
MILAN, Mich., Oct. 10 -- At a board meeting held today, the
Colonel's International, Inc. (the Company) announced a major
restructuring in its capitalization. Donald and Patsy Williamson, the
Company's majority shareholders, have agreed to have the Company repurchase
20,817,780 of their shares for $5,000,000 to be paid in 1998. This action
will reduce the total Company's outstanding shares from 24,177,805 to
3,360,725. The Williamson's, who currently control over 97% of the Company's
stock, will be reduced to 82% ownership which represents control of 2,750,000
shares. As a result of the stock repurchase, the remaining shareholders will
enjoy an increased ownership position.
The recapitalization will additionally effect the reported earnings per
share. For example, if the stock repurchase had occurred in the second
quarter of 1997, that quarter's earnings per share (as reported in the
Company's June 30, 1997 Form 10-Q) would have reflected an earnings per share
of $0.51 instead of $0.07 per share.
The Company believes that this restructuring will help investors better
understand the Company's valuation. The Company has been concerned by the
over valuation of its stock and hopes that the change in capitalization will
allow investors the opportunity to price the stock at the Company's true
value. In addition, the Company hopes that investors will now trade their
stock because 18% is now available in the public float as opposed to just over
2% before the recapitalization
The Company also announced that the Colonel's Truck Accessories, Inc., a
wholly owned subsidiary of the Company, purchased the assets of Horizon Coach,
Inc. in Riverside, California. The facility manufactures custom pickup truck
caps, custom sport tops, and tonneau covers. The name has been changed to the
Colonel's Truck Accessories, Inc. and will mainly supply product to Truckware,
the Company's truck accessories outlet stores. This continues the overall
Company goal to expand the product line that the Truck Accessories Division
manufactures and distributes. Currently the Division manufactures pickup
truck bedliners and distributes bed mats through a distributor network
throughout the USA, Canada, and Mexico.
Further action taken by the board authorizes the Truck Accessories
Division to rent property and set up a Truck Accessories wholesale/retail
store in Charlotte, North Carolina. The Division operates a similar outlet
store in Baldwin Park, California, under the banner Colonel's Truckware.
Plans call for the company to warehouse and sell bedliners, tonneau covers,
custom truck caps, trailer hitch accessories, tool boxes, running boards, bed
mats, fog and running lights, trim pieces, and a complete line of other truck
accessories products.
The Colonel's International, Inc. is a holding company for three wholly
owned subsidiaries. The Colonel's, Inc., based in Milan, Michigan,
manufactures and distributes plastic bumpers and facias to the aftermarket
industry. The Colonel's Truck Accessories, Inc., based in Owosso, Michigan
manufactures bedliners, and other truck accessory products, and Brainerd
International Raceway, Inc. which owns and operates a multi-purpose motor
sports facility located in Brainerd, Minnesota.
SOURCE The Colonel's International, Inc.