Originally Posted by troutman
I think I read that the bottom fell out of the paintball market.
Troutman, I'm impressed. Looking at their their 10-Q SEC filing for August - 05
, paintball sales has the potential to significantly affect this company:
|In the Action Sports segment, net sales were $65.1 million in the second quarter of 2005 as compared to $69.2 million in the prior year's second quarter. The overall sales decline was due to lower sales of paintball products of $8.3 million, snowboards of $3.5 million and bikes of $2.2 million, partially offset by net sales from the acquisition of Vlkl and Marker in the third quarter of 2004 of $10.7 million. The decline in sales of paintball products reflects soft consumer demand in the industry. In the event that consumer demand continues to remain soft for paintball products, this could have a significant negative impact on net sales, gross profits and operating income in future periods for the Action Sports segment.
In a July Bizjournals report:
|A series of acquisitions lowered profits for K2 Inc. 76 percent in the second quarter.Profits were $1.45 million or 3 cents a share, compared with $6.17 million, or 18 cents a share, the company said Wednesday. The earnings were below analyst estimates of 4 cents a share. The drop stems from the buyout of Volkl, Marker and Marmot in the third quarter of 2004. K2 said those product lines have large fixed expenses and sales are seasonably slow in the first and second quarters.
In a Motley Fool article "K2 Chokes on Acquisitions
" the question of profitability seems to be up in the air.
wbron, what did the prospectus say? You may be living up to your signature after all