February 28, 2000

Snowfax

New Moves World Industries has moved to Huntington Beach, California. Its new address is: 16571 Gemini Lane, Huntington Beach, CA 92647; phone: (714) 847-0011; fax: (714) 847-0511.

Onboard European Snowboard magazine has moved to France. The new address is: 200 Avenue de l’aiguille du Midi, 74400 Chamonix, France; phone: 011-33-450-53-30-30; fax: 011-33-450-53-34-34; Web site: www.onboardmag.com.

On Board Entertainment has moved its offices. The new address is: One Harbor Drive #200, Sausalito, California, 94965; phone: (415) 331-6100; fax: (415) 331-6201.

Volcom has a new address at: 1740 Monrovia Avenue, Costa Mesa, California, 92627; phone: (949) 646-2175; fax:(949) 646-5247.

Camelbak’s new address is: 1310 Redwood Way, Suite 200, Petaluma, California, 94954; phone: (707) 792-9700; fax: (707) 665-9231; toll free: 1-800-767-8725.

SnoFax

TransWorld Partners With IMG To Produce Board AID 2000

Board AID, the largest and most respected charity event in the board-sports industry, is teaming with IMG for Board AID 2000, a "Festival Of Awareness."

Board AID is the original snowboarding/skateboarding/live-music event, the first-ever benefit of its kind and in seven years the charity has raised almost 700,000 dollars to benefit LIFEbeat. LIFEbeat grants money to organizations that provide prevention, education, and direct services to thousands of HIV and AIDS infected or at-risk young people. This year TransWorld Foundation and IMG are taking Board AID to the next level with two three-day events in Southern California, March 10—12 and Colorado, April 7—9.

To become involved with Board AID 2000, please contact TransWorld Media at: phone: (760) 722-7777; Laurie Bergthold at extension 117 or Steve Luther at extension 192.

K2 Snowboards Steps Ahead With a New Helmet Line K2 Snowboards annnounced the launch of the new Automatic and Semi-Automatic helmets. Each helmet has a configurable liner, removable earflaps and cap, and includes various shim pads for fine-tuning the fit. The Head Lock harness system cinches tightly under the base of the skull for better support and offers variable head sizes. The Automatic helmet features gloves-on adjustability over the active venting, EPP foam lining (Expanded Polypropylene), and Outlast inner lining. The Semi-Automatic is the same design as the Automatic, but with passive rear vents and a basic fleece harness. The helmet comes in a sleek metallic blue, black, or silver.

New Technine Web Site

Technine Binding Company has finished its all-new Web site at: Technine.com. The site is packed with technical info about the product and plenty of photos. The site includes rider profiles, action shots, hot chicks, and crazy party photos on a regular basis. Technine will be offering limited edition softgoods from the site as well.

Clive Is Coming

Who’s Clive? It’s a new company featuring space-age backpacks, travel bags, and accessories for sport and everyday use. The products will include a variety of backpacks, duffel bags, gear bags, shoulder bags, hip packs, and a multitude of other accessories. Clive is currently based in Cardiff-by-the-Sea, California and will be relocating to its new world headquarters in Vista by September 1999. Heading up marketing is Tim Swart, an industry veteran who has done stints at Spy and Airwalk. Assisting Swart with product development is Todd Finey, who most recently worked for Salomon in Boulder, Colorado designing footwear. Clive most recently added Pete McAfee as sales manager. McAfee was previously the national sales manager for DC Shoe Co. For further information regarding Clive, please call: (760) 635-8672.

Zeal Optics Introduces New Styles Zeal Optics is introducing its latest sunglasses called Nectar. Nectar features base polycarbonate lenses that wrap into sculpted temples with silicon tips for secure fit and protection. The Grylamid nylon frames are lightweight, strong, and work great with prescription lenses. Nectar is available in seven different color/lens options. Nectar is but one of three new glasses and two new goggles being introduced this year by Zeal. To find out more about Zeal Optics, see www.zealmaniak.com or call: 1-888-454-9325.

RLX–Polo Sport Introduces The Colorado Jacket Since the advent of technical materials, most active people have frowned on goose down because when it gets wet, it doesn’t retain heat. However, RLX found a signature jacquard wind- and water-resistant shell fabric they call the Colorado Jacket. A bonus from the shell’s element-resistance is avoiding the dreaded "Michelin Man" effect, making the Colorado look and feel more like a shirt than a jacket. Other Colorado Jacket features include a two-way front zip, two-way pit zips, powder skirt, and brushed tricot handwarmer pockets among others. For more information call: 1-800-775-7656.

SIA Questionaire Reveals Retailer Benefits One third of the forms returned from more than 1,000 mailed overwhelmingly emphasized three facts about SIA’s Donate-A-Ski/Donate-A-Board (DAS/B) program. More than two-thirds of the respondents stated they purchased new clothing or equipment as a result of the program. When asked how much they spent, 66 percent replied with 48.5 of those saying they purchased 401 dollars or more; 31.5 percent purchased 201 to 400 dollars; eleven percent purchased 101 to 200 dollars; 6.5 percent purchased 51 to 100 dollars; and 2.5 percent purchased 50 dollars or less.

Next, retailers did an admirable job of informing customers about the program. Sixty-seven percent said the retailer was knowledgeable about the program; 31 percent were somewhat knowledgeable; only two percent were not very knowledgeable. Staff employees were a valuable aid in telling customers about the program as 43.7 percent of the donors indicated staff employees told them about DAS/B.

Finally, donors took advantage of the program because their used gear to be put to good use.

Flux Licenses Burton 3-Hole Pattern Flux Binding Systems recently announced that the company has signed an agreement with Burton Snowboards to legally license its 3-Hole Pattern Technology. All Flux brand bindings for the ’99/00 season will be compatible with the Burton 3-Hole pattern.

ISF Awards Telluride 2000 World Championships, Names New Brand The International Snowboard Federation (ISF) has asked Telluride, Colorado to host the ISF 2000 World Snowboard Championships January 8—15, 2000. The event is expected to feature about 450 male and female riders from 35 countries. The riders will compete in four disciplines–halfpipe, boardercross, giant slalom, and duel slalom–and will vie for a piece of 270,000 dollars in prize money.

Executive Sports International (ESI) has been named the exclusive sales, licensing, marketing and co-management agent for the event. After meeting in Opatija, Croatia for its annual General Assembly, June 8—11, the ISF named a new board of directors, including Jake Burton Carpenter, to steer the federation into finalizing negotiations for a worldwide licensing agreement to market the federation’s logo to snowboarders and people interested in the sport. The new board determined that each of the 40 nations that are members of the federation would now be direct members of ISF. The Professional Snowboarders Association (PSA) also were decreed to be direct members of ISF.

Nike, Inc. Selects Bollé, Inc. For Line Of Nike Goggles Bollé, Inc. announced that it had signed an exclusive design and OEM manufacturing agreement with Nike, Inc. to provide a line of goggles for snow sports under the Nike brand name. The line will debut with the trade in the spring of 2000 and will be rolled-out for retail introduction later that year. Under the terms of the agreement, Bollé will provide for both propriety technology and manufacturing capabilities for the product line. Financial terms of the agreement were not disclosed.

Delaney Camps Expand To Mammoth

Kevin Delaney, president of Delaney, Inc., announced that a partnership between Delaney Snowboarding Camps and Mammoth Mountain Resort had been finalized. For the ’99/00 winter season, the Delaney Snowboarding Camps will be offered at Mammoth Mountain Resort, California, in addition to Copper Mountain Resort, Colorado. For more information call: 1-800-743-3790.

Leedom International And Big Sky Resort to Award Trips Leedom International and Big Sky Ski and Summer Resort has launched a new shop-employee incentive program. Eight grand-prize trips will be awarded to shop employees who sell the most Leedom helmets. To qualify, employees need to keep track of their Leedom helmet sales and send the incentive card to Leedom by February 15, 2000. Each grand prize trip will include four nights of slopeside accommodations at the Huntley Lodge, five-day passes, breakfast and special airfare rates from Big Sky Reservations. Runners up will receive exclusive Leedom products and paraphernalia.

For more information on Leedom or to become an authorized Leedom dealer contact Amy Carey at: (781) 440-0633; or visit their Web site at: www.leedomhelmets.com.

New Mountain High Partners With McElroy Communications

The New Mountain High has named McElroy Communications, Inc. as its new creative ad agency for the ’99/00 season. Founded in 1989 by Thom McElroy, the company offers a unique street-level foundation that is expected to improve the resort’s image and exposure in the Southern California market. By contracting McElroy, the New Mountain High hopes to synergize its marketing efforts (print, radio, Internet, etc.) and increase crossover in ’core sports.

Cold As Ice Builds A Recreation Center

The Cold As Ice Web site is live once again after a summer rest. The vision behind the new Web site was to create activities girls would find interesting. The site’s activities include a product section called Window Shopping and a News Bulletin section about upcoming local store promos, sports events, pre-season tantilizers, and contests. Visit the site at: www.coldasice.com.

Mammoth Mountain To Host The 2000 Winter Gravity Games

Mammoth Mountain has been selected to host the first-annual Winter Gravity Games from January 20—23, 2000, airing on NBC February 2000. The winter version of the new alternative sports, lifestyle, and music festival from NBC Sports and EMAP Petersen, Inc. will feature competitions in snowboarding, freeskiing, snow mountain biking, and skiboarding, among others.

Dyersburg Expands Fabric Offerings On On-Line Store� Dyersburg Corporation has expanded the fabric offerings on its on-line store with a new "Fabric Specials" area. The on-line store, located at www.dyersburg.com, makes delivery of Dyersburg products faster. Customers can view color cards for each fabric, order single rolls or large quantities for immediate delivery. Orders can be made by color and dye lot.

By completing the Personal Shopper Profile questionnaire, customers will receive e-mail notification of special deals and features as soon as they are available. The Fabric Specials area features a variety of knit fabrics, from fleece to jersey to novelties, at special prices. This complements the company’s current on-line product offerings of Dyersburg E.C.O. fleece, E.C.O. wool fleece, and Citifleece. For additional information, contact Dyersburg Corporation at: (212) 703-0564; or e-mail: [email protected].

Cable Pioneer Invests In Resort Sports Network Resort Sports Network, Inc. (RSN), creator of the resort-based cable television network and Web site (www.rsn.com), announced a five-million-dollar strategic partnership with Pilot House Associates LLC, cable pioneer Amos Hostetter’s family investment office. RSN will use the funding to enhance the quality of RSN’s TV/Web content, expand its e-commerce efforts, upgrade digital technology at RSN TV stations, open sales offices in NYC and San Francisco, ramp up the marketing of the RSN brand, and strengthen the RSN team. The network currently produces a variety of original programming and this investment will allow the company to expand its offerings.

New Material From Hot Chillys Hot Chillys stirs up its product offerings for Spring 2000 with all-season performance apparel, available in the line year-round. Hot Chillys all-season products designated for Spring 2000 include pieces in the company’s newest fabric Micro-Elite Suede. The polyester/Lycra performance fabric has been specially treated to feature a soft suede-like finish both inside and out. Zip crew tops and bottoms will be offered as base layers for cool spring days.

THQ and MTV Announce First-Ever MTV Sports Game

THQ, Inc. has signed with MTV to create MTV Sports: Snowboarding. Developed by Radical Entertainment, the game takes enthusiasts to five distinct mountain resorts around the world. Players can choose from one of six unique lifestyle riders and compete in five different events including slopestyle, halfpipe, freeride, mountain-cross, and big-air contests. The game features hundreds of trick combos and players can construct their own mountain course.

Etnies CEO Named Entrepreneur Of The Year In mid May, Sole Technology President and CEO, Pierre Andre Senizergues was named Entrepreur of the Year by Entrepreneur magazine. Previous winners were from financial, high tech, and real estate businesses. This is the first year that a skateboard/snowboard related company has won the prestigious award. Senizergues was a final nominee in the manufacturing/wholesale category. A nominee must be an owner or manager primarily responsible for the recent performance of a company that is at least two years old.

Fusion.com Acquires Kingpin Brand Name Cold Fusion Sports, owner of fusion.com, has finalized the purchase of the Kingpin brand name from Chicago-based Kingpin, Inc. Cold Fusion Sports, based in San Francisco, has already established contracts with OEM Manufacturers to develop products under the Kingpin trademark. The Kingpin line will consist of moderately priced snowboards, bindings, boots, board bags, wakeboards, clothing and accessories. During the Summer X-Games in San Francisco, Cold Fusion Sports expanded its snowboardshop.com into a comprehensive online shopping site, fusion.com, that sells a full range of extreme sporting goods and products for skateboarding, surfing, wakeboarding and snowboarding.

Gotcha Glacier Groundbreaking Event Rescheduled

The Gotcha Glacier groundbreaking event, previously scheduled for August 14, has been rescheduled to October 16 due to conflicts with other events. The ceremony will an action-sports stunt day in addition to a music festival.

New Vermont Ski Areas Association Site The Vermont Ski Areas Association has announced the creation of www.ridevermont.com, a sister site to www.skivermont.com. The new site will provide more detailed snowboarding information on Vermont mountain resorts. Both sites provide a gateway to Vermont’s eighteen resorts, a snow conditions report that’s updates daily, up-to-the-minute regional weather information, a Vermont map, an e-mail newsletter, a calendar of events, daily photos, and many more features.

Oakley Bags Major Counterfeit Operation in Bangkok Working closely with law enforcement agencies in Bangkok, Thailand, Oakley Inc., successfully raided a factory and warehouse operated by South East Optic Co. Ltd. on August 10 and seized a large quantity of counterfeit Oakley products, along with equipment and supplies used in their production. In the raid, the company seized approximately 24,000 glasses and parts necessary for additional counterfeit Oakley products. Equally as important as finished goods, enforcement officials confiscated over 45 specially designed machines and equipment used in the manufacture of counterfeit products including those that injection mold, weld, join parts, cut lenses, emboss, and apply trademarks. Documentation found at the raid also implicated other suppliers in Bangkok and the People’s Republic of China whom Oakley intends to investigate as possible participants in the counterfeiting activities.

Skid Machines Now Sold And Serviced By Wintersteiger

As of August, Wintersteiger had taken over the sales and service of Skid snowboard and ski machines in North America. Wintersteiger purchased the French company earlier this year. Skid USA customers can reach Wintersteiger at: 1-800-227-7440; Canadian customers at: 1-450-663-7800.

Voile Introduces New Board

Voile equipment of Salt Lake City, Utah is introducing the 195 Split-Tail, the first swallowtail tour board in the world. The 195 Split-Tail joins four other models in the Split Decision Line, a 182, 173, 166, and 159. Each Split Decision tour board comes complete with climbing skins. A limited number of 100 Split Tails will be available the ‘99/00 season.

Snowboard Injury Study On Internet

The Johns Hopkins School of Public Health announced the launch of a Web site designed to collect injury data directly from thousands of snowboarders and skiers worldwide who have been injured on the slopes. The first study of its kind, the project is designed to uncover the specific circumstances that increase a person’s risk of injury by comparing harmless falls to falls that cause injury. Participants answer a series of questions about the details of the fall they had and its consequences. A sample of the study’s most pertinent results will be updated weekly and posted on the Web site. Those interested in participating can go to: http://www.injury-study.org, or can e-mail: [email protected]

Financial News

Oakley Posts Record Net Sales for Second Quarter Oakley, Inc. announced record net sales of 72.1-million dollars for its second quarter ended June 30, 1999, an increase of 2.9 percent over net sales of 70-million dollars for the comparable prior-year period. Net income for the second quarter totaled 10.6-million dollars, or $0.15 per diluted share, compared with 11.2-million dollars, or $0.16 per diluted share, for the same period last year.

Second quarter net sales in the United States decreased 2.6 percent to 44-million dollars. This resulted from a 9.8-percent decrease in sales to Sunglass Hut, the company’s largest customer, partially offset by a 3.4-percent increase in sales to the company’s other U.S. retail customers. International net sales in the second quarter grew to a record 28.1-million, a thirteen-percent increase (15.2 percent constant-dollar) over 24.9-million dollars last year. This increase was driven by growth in the company’s direct operations in Europe, Canada, Japan, and South Africa–as well as through independent distributors in most other markets.

Vans, Inc. Reports Fourth Quarter Sales and Earnings Vans, Inc. announced financial results for the fourth quarter and fiscal year ended May 31, 1999. Net sales for the current quarter increased 47.9 percent to 48.5-million dollars, compared to 32.8-million dollars for the fourth quarter of fiscal 1998. Net income was 819,000 dollars, versus a net loss of 11.8-million dollars in the same period last year, which reflected a one-time restructuring charge and writedown of domestic inventory of 11.9-million dollars, after tax, in such period. For the fourth quarter, total U.S. sales, including sales through Vans’ U.S. retail stores, increased 15.4 percent to 30.4-million dollars, versus 26.4-million dollars for the same period a year ago. Total international sales increased 180.1 percent to 18.1-million dollars, versus 6.5-million dollars for the same period last year. Overall sales through the Company’s 111-store retail chain (as of May 31, 1999) increased 23.6 percent to 15.3-million dollars in the fourth quarter of fiscal 1999, from 12.4-million dollars for the same period a year ago.

For the twelve months of fiscal 1999, net sales increased 17.6-percent

to a record 205.1-million dollars, compared to 174.5-million dollars for the same twelve months of fiscal 1998. Net income was 8.7-million dollars for fiscal 1999, versus a loss of 2.7-million dollars for the same period last year, which reflected the one-time charge and write-down discussed above. Diluted earnings per share was $0.64 versus a loss of $0.20 in fiscal 1998.

  Columbia Sportswear Company Reports Second Quarter Results Columbia Sportswear Company announced net sales of 71.4-million dollars for its second quarter ended June 30, 1999, an increase of 6.3 percent over the 67.2-million dollars of net sales for the same period of last year. The company reported a small net loss for the quarter of 238,000 dollars, or one cent per share (diluted) on 25.5-million weighted average shares outstanding for the second quarter, compared to net income of 564,000 dollars, or two cents per share (diluted) on 25.6-million weighted average shares outstanding for the same period of last year.

Second quarter results for 1999 are inclusive of an additional 1.4-million dollars in depreciation expense that primarily resulted from the company’s investment in its U.S. distribution facility during 1998. The second quarter has historically provided the smallest contribution of revenue and earnings as the company concludes the spring merchandise offering and prepares for heavier third quarter fall shipping.

The North Face Sales Up 26 Percent For Second Quarter The North Face, Inc., reported financial results for the second quarter ended June 30, 1999. For the second quarter ended June, 1999, sales increased 26.5 percent to 54.6-million dollars compared to 43.2-million dollars for the second quarter of 1998. Net loss for the quarter, excluding one-time charges of 1.8-million dollars, after tax, or $0.14 per share was 5.8-million dollars or $0.46 per share compared to a loss of 1.7-million dollars or $0.14 per share for the second quarter of 1998.   

For the six months ended June, 1999, sales increased 19.1 percent to 105.9-million dollars compared to 88.9-million dollars for the six months ended June 30, 1998. Net loss for the first six months, excluding one-time charges of 3.6-million dollars, after tax, or $0.28 per share was 9.5-million dollars or $0.75 per share compared to a loss of $2.5 million or $0.21 per share in the first half of 1998.