AVP Hopes Boost From Olympics Will Help Make It Profitable
The AVP Crocs Tour “is struggling to become profitable,” according to the WALL STREET JOURNAL's Matthew Futterman, who reports that AVP Inc. recorded a $4M loss in ‘07, its sixth consecutive unprofitable year. But AVP Chair & CEO Leonard Armato remains optimistic, saying, "Coming off the Olympics, this is going to be a very big year for us. We're going to get a big boost." Futterman reports the Tour had revenue of $24M last year, but “rising expenses have eroded profit prospects,” as “logistics of moving the stadium around the country, providing $4.5M in prize money and buying time on network and cable television are the main culprits.” An offer by Shamrock Holdings to buy the tour for $36.9M last year was rejected by AVP investors, including AmTrust Capital Management President Jan Loeb. Loeb noted AmTrust holds about 15% of AVP's shares. Loeb said that "he has no regrets about rejecting the Shamrock offer,” and that “protracted negotiations last summer distracted the company and now it can focus on building corporate sponsorships.” Loeb: "Exciting things are happening. Near term it doesn't look that way, but we're happy with the asset." Armato said that six new board members were elected in May, "replacing several that had favored the Shamrock deal" (WALL STREET JOURNAL, 8/14).
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