Enesco Group, Inc. Announces Amendment to Credit Facility And Interim CFO Appointment
July 07 2005 - 5:19PM
Business Wire
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.
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