- Expects savings in excess of
- Reduced debt by
(Logo: http://www.newscom.com/cgi-bin/prnh/20080625/LAW063)
According to
The Company intends to file the Form 25 Notification of Removal From Listing with the SEC on or about
The Company expects the deregistration with the SEC to become effective 90 days from the date of the filing of the Form 15. The Company's board of directors considered many factors in making this decision, including the following:
-- the market value that the public markets are currently applying to the Company; -- the costs, both direct and indirect, associated with the preparation and filing of the Company's periodic reports with the SEC; -- the costs associated with complying with the Sarbanes-Oxley Act of 2002; -- the fact that the Company's stock price has reached very low levels; -- the nature and extent of the trading in the Company's common stock; -- the fact that many other typical advantages of being a public company are not currently available to the Company, including enhanced access to capital and the ability to use equity securities to acquire other businesses; and -- the current level of analyst coverage and minimal liquidity for the Company's common stock.
In addition to the significant time and cost savings resulting from deregistration, the board believes that this action will allow the Company's management to better focus its attention and resources on implementing the Company's business plan and building longer-term enterprise value.
A notice about the Company's delisting and deregistration will be available on its website at www.deiholdings.com.
DEI Holdings also announced the departure of
The Company also announced that it paid down approximately
Mr. Minarik said, "We are very proud of our ability to meaningfully reduce our long-term debt over the past two years. Our revenue and efficient use of working capital generated the cash flow necessary to pay down a significant portion of our debt and, subject to our annual audit, we expect to remain in compliance with all of our debt covenants as of
About DEI Holdings, Inc.
Headquartered in
Forward-Looking Statements
Certain statements in this news release that are not historical fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically are identified by the use of terms such as "may," "should," "might," "believe," "expect," "anticipate," "estimate" and similar words, although some may be expressed differently. Forward-looking statements in this release include, but are not limited to, statements as to the planned delisting and deregistration of the Company's common stock, the expected cost savings of delisting and deregistration, the ability to enhance long-term shareholder value, the providing of periodic financial statements, the availability of the 2009 financial statements, and compliance with debt covenants. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results of DEI Holdings to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include the number of the Company's shareholders at the time of deregistration, competition in the consumer electronics industry, development of new products and changing demand of customers, reliance on certain key customers, decline in consumer spending, reliance on certain manufacturers and their ability to maintain satisfactory delivery schedules, disruption in supply chain, shortages of components and materials, economic risks associated with changes in social, political, regulatory, and economic conditions in the countries where the company's products are manufactured, quality installation of products by customers, significant product returns or product liability claims, compliance with various state and local regulations, risks with international operations, impairment of goodwill and intangible assets, claims related to intellectual property, ability to service debt obligations, restrictive terms of the company's senior secured credit facility, vulnerability to increases in interest rates, disruption in distribution centers, ability to raise additional capital if needed, dependence on senior management, ability to realize on investments made in the business, and integration of acquired businesses. Certain of these factors, as well as various additional factors, are discussed from time to time in the reports filed by DEI Holdings with the Securities and Exchange Commission, including the Form 10-K for the year ended
SOURCE DEI Holdings, Inc.