Kid Brands to Address NYSE Continued Listing Standards
December 20 2012 - 4:30PM
Marketwired
Kid Brands, Inc. (NYSE: KID) announced today that, in accordance
with procedures of the New York Stock Exchange (the "NYSE"), the
Company has notified the NYSE that it intends to submit, no later
than January 28, 2013, a plan that the Company believes will
demonstrate its ability to attain compliance, within 18 months,
with the continued listing standards of the NYSE. Primarily as a
result of the previously disclosed $45.0 million increase in the
Company's non-cash valuation allowance for deferred tax assets
recorded during the quarter ended September 30, 2012, which reduced
the Company's stockholders' equity to $40.5 million, the Company
fell short of meeting a NYSE continued listing standard because its
average market capitalization was less than $50.0 million for a 30
trading-day period and its total stockholders' equity was less than
$50.0 million. The NYSE notified the Company on December 14, 2012
of such shortfall.
If the NYSE accepts the Company's plan, the Company's common
stock will continue to be listed on the NYSE during the 18-month
cure period, subject to the compliance with other NYSE continued
listing standards and quarterly review by the NYSE staff for
compliance with this plan. If the plan is not submitted on a timely
basis, is not accepted by the NYSE, or is accepted by the NYSE but
the Company does not make progress consistent with the plan during
the plan period, the Company will be subject to delisting
proceedings.
Kid Brands, Inc.
Kid Brands, Inc. and its subsidiaries are leaders in the design,
development and distribution of infant and juvenile branded
products. Its design-led products are primarily distributed through
mass market, baby super stores, specialty, food, drug, independent
and e-commerce retailers worldwide.
The Company's current operating subsidiaries consist of: Kids
Line, LLC; LaJobi, Inc; Sassy, Inc.; and CoCaLo, Inc. Through these
wholly-owned subsidiaries, the Company designs, manufactures
(through third parties) and markets branded infant and juvenile
products in a number of complementary categories including, among
others: infant bedding and related nursery accessories and décor,
food preparation and nursery appliances, and diaper bags (Kids
Line® and CoCaLo®); nursery furniture and related products
(LaJobi®); and developmental toys and feeding, bath and baby care
items with features that address the various stages of an infant's
early years (Sassy®). In addition to the Company's branded
products, the Company also markets certain categories of products
under various licenses, including Carter's®, Disney®, Graco® and
Serta®. Additional information about the Company is available at
www.kidbrands.com.
Note: This press release contains certain forward-looking
statements. Additional written and oral forward-looking statements
may be made by the Company from time to time in Securities and
Exchange Commission (SEC) filings and otherwise. The Private
Securities Litigation Reform Act of 1995 provides a safe-harbor for
forward-looking statements. These forward-looking statements
include statements that are predictive in nature and depend upon or
refer to future events or conditions, and include, but are not
limited to, information regarding the status and progress of our
operating activities, the plans and objectives of our management
and assumptions regarding our future performance, operating
expenses, working capital needs, liquidity and capital
requirements, business trends and competitiveness. Forward-looking
statements include, but are not limited to, words such as
"believe", "plan", "anticipate", "estimate", "project", "may",
"planned", "potential", "should", "will", "would", "could",
"might", "possible", "contemplate", "continue", "expect", "intend",
"seek" or the negative of or other variations on these and other
similar expressions. In addition, any statements concerning future
financial performance, ongoing business strategies or prospects,
and possible future actions, are also forward-looking statements.
The Company cautions readers that results predicted by
forward-looking statements, including, without limitation, those
relating to our future business prospects, revenues, working
capital, liquidity, capital needs, interest costs and income are
subject to certain risks and uncertainties that could cause actual
results to differ materially from those indicated in the
forward-looking statements. Specific risks and uncertainties
include, but are not limited to, those set forth under Item 1A,
Risk Factors, of the Company's most recent Annual Report on Form
10-K and any subsequent Quarterly Reports on Form 10-Q, each as
filed with the SEC. Forward-looking statements are also based on
economic and market factors and the industry in which we do
business, among other things. These statements are not guarantees
of future performance. Forward-looking statements speak only as of
the date the statements are made. Except as required under the
federal securities laws and rules and regulations of the SEC, the
Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
AT THE COMPANY Marc S. Goldfarb Senior Vice President
& General Counsel 201-405-2454 AT FTI CONSULTING
Jennifer Milan / Daniel Haykin General Information 212-850-5600
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