Enesco (NYSE:ENC)
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Enesco Group, Inc. (NYSE:ENC), a leader in the giftware,
and home and garden decor industries, today announced an eighth
amendment to its current U.S. credit facility, effective July 7, 2005,
and the appointment of an interim Chief Financial Officer.
U.S. Credit Facility Eighth Amendment
The eighth amendment added the accounts receivable and inventory
of N.C. Cameron & Sons Limited, Enesco's Canadian subsidiary, to the
borrowing base under the credit facility. The amendment also increased
the borrowing base on inventory to 50 percent from 33.2 percent until
July 31, 2005, at which date it will revert to 33 percent, and the
amendment imposed certain dollar limitations on the borrowing amounts
for the accounts receivable and inventory. As Enesco does not expect
that the dollar limitations on the borrowing amounts will constrain
its borrowing, the amendment has the effect of increasing Enesco's
borrowing capacity and the funds available to it. The amendment also
added Gregg Manufacturing, Inc. and the Canadian subsidiary as
guarantors under the credit facility.
The fee of $1,750,000 payable on the termination of the commitment
under the credit facility was eliminated. In addition, the obligation
to pay a fee of $700,000 on June 30, 2005 was amended so that $350,000
was payable on June 30, 2005, and the balance is payable on the
earlier of July 29, 2005 and the date that liens are granted on the
assets of Enesco's United Kingdom subsidiaries.
Interim CFO Appointment
The Company also announced that Paula E. Manley, its Chief
Financial Officer, is resigning for health-related reasons, effective
as of July 15, 2005. The Company has appointed David L. Harbert as the
Company's interim Chief Financial Officer, effective as of July 18,
2005. He will report directly to Cynthia Passmore-McLaughlin, Enesco's
president and CEO.
Harbert is a partner with Tatum CFO Partners, LLP, the largest
professional services provider of financial and technology leadership
in the country. He is joining Enesco in an interim role with more than
30 years of financial management experience, including more than 18
years as a CFO for both public and private companies and in an interim
CFO capacity. Harbert has led successful capital raising initiatives,
including bank syndications. His background includes extensive finance
and operations experience in manufacturing and technology industries.
"We thank Paula for her contributions during her time with Enesco
and wish her well in her future endeavors," said Cynthia
Passmore-McLaughlin. "We are pleased to have Dave Harbert take on the
interim CFO role. His financial expertise and prior experience as an
interim CFO will be invaluable as we continue to stabilize our
business for the future. Dave will assist us in defining the role of
our next CFO and identifying a permanent replacement. We plan to name
a new CFO in the months ahead."
Corporate Developments Teleconference
Enesco plans to hold a conference call to discuss recent material
events on Thursday, July 21, 2005. The conference call will be
broadcast live at 3:00 p.m. CT. Central Time (4:00 p.m. Eastern) at
http://www.enesco.com and http://www.streetevents.com. An online
replay also will be available approximately one hour after the call.
To listen to the Webcast, your computer must have RealPlayer
installed. If you do not have RealPlayer, go to
http://www.streetevents.com prior to the call, to download RealPlayer
for free.
For a phone replay, call 1-800-642-1687, Passcode: 7738937. The
replay will be available for one week following the conference call.
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 obtain a new global senior 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.