NEW BUSINESS Shock Doctor Inc., a Minneapolis-based provider of sports protective products, formed a partnership with snowmobile rider Tucker Hibbert and Monster Energy/Arctic Cat racing team. The partnership will allow Shock Doctor to work with Hibbert on product development. Shock Doctor will also serve as Hibbert's official bag sponsor and protective gear sponsor with their core protection products, impact products and mouth guards.
PERFORMANCE Best Buy Co. Inc., Richfield, said that revenue for the fiscal month ended Jan. 3 rose 4 percent, to $7.5 billion, which was in line with company expectations. The revenue for the five-week period compared with $7.3 billion in revenue for the five-week period last year. Gains from the inclusion of Best Buy Europe's revenue and the net addition of 194 stores in the past 12 months were largely offset by a 6.5-percent decline in comparable-store sales and the unfavorable impact of fluctuations in foreign currency exchange rates.
G&K Services Inc., Minnetonka, reduced its North American workforce by about 340 positions and also eliminated about 120 currently open positions. The steps further adjust the company's cost structure in response to lower customer volumes and the expectation of continued weakness in near-term economic conditions. The company noted that the actions will not affect the company's continued focus on providing excellent service to customers.
Regis Corp., Edina, reported consolidated revenue decreased 4.0 percent in the second fiscal quarter of 2009, to $655 million, compared with $682 million a year ago. Deconsolidation of the European franchise salon operations reduced revenue in the quarter by about $17 million. Absent the effect of the European deconsolidation, consolidated revenue for the quarter would have decreased 1.6 percent. Second-quarter total same-store sales decreased 5.4 percent, falling below the previously issued guidance of minus 1.0 percent to 1.0 percent.
DEBT AND EQUITIES Fitch Ratings assigned an "AAA" rating to about $400 million state of Minnesota general obligation bonds, expected to sell competitively Jan. 13. Fitch also affirmed the "AAA" rating on about $4.3 billion outstanding state general obligation bonds. The rating outlook was revised to "negative" from "stable." The "negative" outlook reflects the magnitude of the state's anticipated budgetary challenges in an environment of a large fiscal 2009 operating imbalance and depletion of reserves, and likely further negative forecast revisions.
ProUroCare Medical Inc., Golden Valley, announced the public offering of 3.05 million units at $1 per unit, each unit consisting of one common share and one redeemable warrant to purchase one common share at an exercise price of $1.30 per share. The company granted the underwriter of the offering a 45-day option to purchase as many as 457,500 additional units to cover overallotments, if any. The offering is expected to close on or about Jan. 12, and is being underwritten on a firm commitment basis by Feltl and Co. Inc.
