Action Performance Trimming Sails
Motorsports merchandiser
Action Performance
(ATN)
put its quarterly dividend on hold and set plans to get out of some businesses.
The restructuring moves came as the Phoenix-based company posted a third-quarter loss on a sharp revenue decline and projected that fourth-quarter revenue would fall from a year ago as well. Action Performance cited lower sales of die-cast products to wholesale customers and mass merchandisers, and lower apparel and memorabilia sales to wholesale channels.
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Shares of the NYSE-listed company were halted in after-hours trading.
For its third quarter ended June 30, Action Performance lost $9.5 million, or 51 cents a share, from continuing operations. That reverses the year-ago continuing operations profit of $4.7 million, or 26 cents a share. Revenue slid to $73 million from $88 million a year earlier.
Action Performance said it expects fourth-quarter revenue to rise sequentially but to fall from the year-ago level as a result of lower sales of die-cast and apparel to wholesale distributors.
Action Performance said it expects to sell its McArthur Towel business next quarter at a $1.7 million loss, and plans to discontinue its Jeff Hamilton apparel business and the Castaway collectible business, leading to a $4.3 million asset writedown.
The company also said it wouldn't declare a nickel-a-share quarterly dividend, citing its restructuring actions.
On Tuesday, Action Performance dropped a nickel to $10.15.
