Enesco (NYSE:ENC)
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From Oct 2019 to Oct 2024
Enesco Group, Inc. (NYSE:ENC), a leader in the giftware,
and home and garden decor industries, today announced that the Company
has advised Fleet National Bank as agent under its existing United
States credit facility with Fleet National Bank and LaSalle Bank N.A.
that it was not in compliance with its minimum EBITDA covenant as of
April 30, 2005, which was predominantly due to non-cash accruals
related to the timing of the execution of Enesco's agreement with
Precious Moments, Inc. The Company also advised Fleet of its need to
renegotiate its financial covenants for May and June 2005 and possibly
additional months during the term of it existing credit facility
primarily because of lower projected sales and lower gross margins
during the same period. Enesco anticipates beginning negotiations with
Fleet for a waiver of the April 2005 covenant and revised financial
covenants. There is no assurance that the Company will be successful
in obtaining a waiver or in negotiating revised covenants.
Enesco is seeking an extension of its previously announced
commitment letter which expired on April 30, 2005, with Fleet Capital
Corporation, operating as Bank of America Business Credit ("BABC"),
for BABC to underwrite a new $100 million global senior revolving
credit facility which will replace the Company's current credit
facility. Consistent with its negotiations with BABC since April 30,
2005, Enesco expects that the terms of the prospective commitment
letter will be modified from those of the previously announced
commitment. There is no assurance that Enesco will be successful in
obtaining an extension or that financing will be obtained on the terms
of the commitment letter.
About Enesco Group, Inc.
Enesco Group, Inc. is a world leader in the giftware, and home and
garden decor industries. Serving more than 40,000 customers globally,
Enesco distributes products to a wide variety of specialty card and
gift retailers, home decor boutiques as well as mass-market chains and
direct mail retailers. Internationally, Enesco serves markets
operating in Europe, Canada, Australia, Mexico, Asia and the Pacific
Rim. With subsidiaries located in Europe and Canada, and a business
unit in Hong Kong, Enesco's international distribution network is a
leader in the industry. The Company's product lines include some of
the world's most recognizable brands, including Heartwood Creek by Jim
Shore, Walt Disney Company, Walt Disney Classics Collection, Pooh &
Friends, Nickelodeon, Bratz, Halcyon Days, Lilliput Lane and Border
Fine Arts, among others. Further information is available on the
Company's web site at www.enesco.com.
This press release contains forward-looking statements, which
reflect management's current assumptions and beliefs and are based on
information currently available to management. The Company has tried
to identify such forward-looking statements by use of such words as
"expects," "intends," "anticipates," "could," "estimates," "plans,"
and "believes," and similar expressions, but these words are not the
exclusive means of identifying such statements. Such statements are
subject to various risks, uncertainties and other factors, which could
cause actual results to vary materially from those anticipated,
estimated, expected or projected. Important factors that may cause
actual future events or results to differ materially and adversely
from those described in the forward-looking statements include, but
are not limited to: the Company's success in developing new products
and consumer reaction to the Company's new products; the Company's
ability to secure, maintain and renew popular licenses, particularly
our licenses Cherished Teddies, Heartwood Creek and Disney; the
Company's ability to grow revenues in mass and niche market channels;
the Company's ability to comply with covenants contained in its credit
facility; the Company's ability to effectively transition to the
legacy information system; changes in general economic conditions, as
well as specific market conditions; fluctuations in demand for our
products; manufacturing lead times; the timing of orders and shipments
and our ability to predict customer demands; inventory levels and
purchase commitments exceeding requirements based upon incorrect
forecasts; collection of accounts receivable; changes in the
regulations and procedures affecting the importation of goods into the
United States; changes in foreign exchange rates; price and product
competition in the giftware industry; variations in sales channels,
product costs or mix of products sold; and, possible future terrorist
attacks, epidemics, or acts of war. In addition, the Company operates
in a continually changing business environment and does not intend to
update or revise the forward-looking statements contained herein,
which speak only as of the date hereof. Additional information
regarding forward-looking statement risk factors is contained in the
Company's reports and filings with the Securities and Exchange
Commission. In light of these risks and uncertainties, the
forward-looking statements contained herein may not occur and actual
results could differ materially from those set forth herein.
Accordingly, you should not rely on these forward-looking statements
as a prediction of actual future results.