This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Joe’s Jeans Completes Purchase Of Earn-Out; Accretive To Earnings In FY2013 Excluding One-Time Charge

Joe’s Jeans Inc. (the “Company”) (NASDAQ: JOEZ) announced today that it has entered into a new agreement with its founder, Joe Dahan, to remove the contingencies related to the contingent consideration payments that were to be made to him. The new agreement fixes the overall amount to be paid to Mr. Dahan at $9,168,000 over an accelerated time period. Excluding this charge and the expense paid to date prior to entering into this new agreement, the resulting savings in earn out expense is expected to contribute earnings of $0.03 per share for the full year for fiscal 2013.

Marc Crossman, President and CEO, commented, “We are pleased that we were able to enter into this new agreement with Joe Dahan. As a result, going forward, Mr. Dahan’s sole financial incentive comes from stock price appreciation through revenue and earnings growth.” Crossman continued, “Previously, Mr. Dahan received a percentage of the Company’s gross profit. However, as we continue with our retail strategy, we expect our gross profit and gross margin to grow.” Crossman summarized, “Now that we have purchased the earn-out, the Company fully benefits from retail store and other growth going forward.”

The Company expects to record the full amount of the buy-out payment in the first quarter of fiscal 2013. Excluding this charge and the expense paid to date, the Company expects the transaction to be $0.03 accretive to earnings per share for the full year of fiscal 2013 with further accretion in 2014 through 2017, the original period for the earn-out.

The Company originally entered into the earn out in connection with the merger in October 2007 with Mr. Dahan and his company, JD Holdings Inc., for all right, title and interest in the “Joe’s Jeans”, “Joe’s” and “JD” marks. The Company refers the reader to its Current Report on Form 8-K and the preceding description of new agreement is a summary of its material terms, does not purport to be complete, and is qualified in its entirety by the copy of the agreement which is filed as an exhibit thereto.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,837.38 +117.46 0.66%
S&P 500 2,091.65 +11.24 0.54%
NASDAQ 5,131.1370 +22.4710 0.44%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs