SBJ/June 18 - 24, 2001/Special Report

Action Performance Companies, Inc.

Action Performance Companies Inc.
4707 East Baseline Road
Phoenix, AZ 85040
Phone: (602) 337-3700
Fax: (602) 337-3750
Nasdaq: ACTN


Introduction:

Action Performance hit the wall last year, as the downturn in the collectibles markets hammered its earnings, and in turn its stock, which fell to as low at $2.25.

Once a high flier that mirrored the booming NASCAR, Action Performance appeared for a while that it might not even walk away from the crash that left it with a $75 million loss last year. But like an engine roaring back to life, the stock has sizzled recently and has climbed into the $20s, in part because of a resurgence in NASCAR collectibles.

In a way, Action's performance can be viewed as a proxy for the privately held NASCAR. When the sport struggles, Action gets a cold. If people aren't watching or attending events, they aren't buying replica race cars. And when the sport booms, as it is again today with sky-high TV ratings, business is good for Action.


CEO: Fred Wagenhals

2000 salary:

$600,000
2000 bonus:
0
2000 other compensation:
$200
Options:
236,000
Common shares owned:
2,099,599
(13%)
1999 salary:
$591,731
1999 bonus:
$250,000

  Price as of June 11: $22.60

  52-week price range: $2.25-$23.45

  IPO date: June 19, 1997

  IPO price: $25.63

  Underwriters: Banc of America Securities; Advest Inc.; Wachovia Securities

  IPO performance: Down 11.8%

  Shares outstanding: 16 million

  Inside ownership: 2,425,034 shares (15.2%)

  No. of employees: 519


Board of directors:

Fred W. Wagenhals — Founded company and is chairman of the board, president and CEO. (Owns 2,099,599 shares, or 13%)

R. David Martin Jr. — Martin has been CFO since August. (Owns 2,414 shares)

Melody L. Volosin — Volosin is executive vice president of sales. (Owns 46,225 shares)

John S. Bickford Sr. — Bickford has been executive vice president of strategic alliances since July 1997. (Owns 62,431 shares)

Paul G. Lang — Lang is managing director of MiniChamps, GmbH. (Owns no shares)

Jack M. Lloyd — Lloyd was president and CEO of Phoenix Restaurant Group Inc. until September. (Owns 40,000 shares)

Robert H. Manschot — Manschot is managing director of Manschot Investment Group LLC and chairman of Silicon Entertainment Inc. (Owns no shares)

Edward J. Bauman — Bauman is the former owner of Richmond International Raceway. (Owns 28,000 shares)


Corporate officers:

Melody L. Volosin, executive vice president, sales (2000 salary: $165,000; bonus: $30,000; other compensation: $3,800; options: 143,726)

John S. Bickford Sr., executive vice president (2000 salary: $194,125; bonus: $10,000; other compensation: $1,407; options: 75,000)

Tod J. Wagenhals (resigned Aug. 1), executive vice president and secretary (2000 salary: $195,250; bonus: $100,000; other compensation: $1,100; options: 144,700)

Christopher S. Besing, vice president, chief financial officer ($146,395; bonus: 0; other compensation: 0; options: 0)


Largest outside shareholder:

Strong Capital Management Inc. — 2,347,089 (14.7%)

Performance Record
In thousands except per-share data;
fiscal years ended June 30
2000
1999
1998
Sales:
  Collectibles
$149,032
$214,429
$142,026
  Apparel and souvenirs
$99,322
$119,922
$106,712
  Other
$6,339
$3,139
$8,094
Net sales
$254,693
$342,445
$251,877
Cost of sales
$205,690
$210,768
$157,079
Gross profit
$49,003
$131,677
$94,798
Operating expenses
$124,695
$78,454
$50,686
Income (loss) from operations
($75,692)
$53,223
$44,112
Earnings per share
($3.52)
$1.69
$1.52
Sources: Action Performance's annual reports, proxies and
IPO filings
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