Tuesday, April 23, 2013 9:42:38 AM
GAMR.. $0.31 Complete DD Package..
Great American Group, Inc.
21860 Burbank Boulevard
Suite 300 South
Woodland Hills, CA 91367
Phone: 818-884-3737
Fax: 818-884-2976
Website: http://www.greatamerican.com
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Great American Group is a leading provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services for an extensive array of companies. A trusted strategic partner at every stage of the business lifecycle, Great American Group efficiently deploys resources with sector expertise to assist companies, lenders, capital providers, private equity investors and professional service firms in maximizing the value of their assets. The company has in-depth experience within the retail, industrial, real estate, healthcare, energy and technology industries. The corporate headquarters is located in Woodland Hills, Calif. with additional offices in Atlanta, Boston, Charlotte, N.C., Chicago, Dallas, New York, San Francisco and London. For more information, call (818) 884-3737 or visit www.greatamerican.com.
21860 Burbank Boulevard, Suite 300 South Woodland Hills, CA
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Investor Contacts:
Great American Group
Phil Ahn
SVP, Strategy & Corporate Development
818-884-3737
Addo Communications
Patricia Dolmatsky-Nir
310-829-5400
21860 Burbank Boulevard, Suite 300 South Woodland Hills, CA
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Preferred stock, $0.0001 par value; 10,000,000 shares authorized; none issued..
Common stock, $0.0001 par value; 135,000,000 shares authorized; 30,002,975 and 31,001,609 issued and outstanding as of September 30, 2012 and December 31, 2011, respectively
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10K's and other filings..
http://finance.yahoo.com/q/sec?s=GAMR+SEC+Filings
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Insider Transactions..
Date Insider Shares Type Transaction Value*
Nov 19, 2012 MILLER LLOYD I III
Beneficial Owner (10% or more) 250,000 Indirect Purchase at $0.26 per share. 65,000
Nov 15, 2012 MILLER LLOYD I III
Beneficial Owner (10% or more) 8,156 Indirect Purchase at $0.30 per share. 2,446
Nov 14, 2012 MILLER LLOYD I III
Beneficial Owner (10% or more) 1,276,844 Indirect Statement of Ownership N/A
Aug 18, 2011 ERICKSON PAUL
Officer 50,000 Direct Purchase at $0.12 per share. 6,000
Aug 2, 2011 ELLIOTT INTERNATIONAL, L.P.
Beneficial Owner (10% or more) 507,120 Direct Purchase at $0.08 per share. 40,569
Aug 2, 2011 ELLIOTT ASSOCIATES, L.P.
Beneficial Owner (10% or more) 338,080 Direct Purchase at $0.08 per share. 27,046
Aug 1, 2011 ELLIOTT ASSOCIATES, L.P.
Beneficial Owner (10% or more) 300,000 Direct Purchase at $0.07 per share. 21,000
Jul 31, 2011 ELLIOTT ASSOCIATES, L.P.
Beneficial Owner (10% or more) 400,000 Direct Purchase at $0.06 per share. 24,000
Jul 14, 2011 RILEY BRYANT R
Director 17,820 Direct Disposition (Non Open Market) at $0.30 per share. 5,346
Jul 14, 2011 HART MATTHEW J
Director 17,820 Direct Disposition (Non Open Market) at $0.30 per share. 5,346
Jul 14, 2011 LEVITT MICHAEL J
Director 14,000 Direct Disposition (Non Open Market) at $0.30 per share. 4,200
Jul 14, 2011 KLEIN MARK D
Director 14,000 Direct Disposition (Non Open Market) at $0.30 per share. 4,200
Jul 14, 2011 HILTON HUGH G
Director 17,820 Direct Disposition (Non Open Market) at $0.30 per share. 5,346
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Press releases for the past year..
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Great American Group Announces Third Quarter 2012 Financial Results
WOODLAND HILLS, CA -- (Marketwire) -- 11/14/12 -- Great American Group, Inc.® (OTCBB: GAMR) ("Great American Group" or the "Company"), a leading provider of asset disposition, valuation and appraisal services, today announced financial results for its third quarter ended September 30, 2012.
Total revenues of $14.2 million, a decrease from $28.5 million a year ago Net loss of $0.5 million, versus net income of $4.0 million from a year ago.. Diluted loss per share of $0.02, versus a diluted earnings per share of $0.14 from a year ago ..
Third Quarter Results
For the third quarter ended September 30, 2012, the Company reported total revenues of $14.2 million, a decrease from revenues of $28.5 million in the third quarter of 2011. Revenues from services and fees were $11.0 million, compared to $27.6 million in the same period the prior year. Revenues from sale of goods were $3.3 million, compared to $0.9 million in the third quarter of 2011. The decrease in total revenues during the quarter was primarily due to decreases in the auction and liquidation segment of $17.3 million, and a decrease in revenues in the valuation and appraisal services segment of $0.1 million, offset by an increase in revenues of $3.1 million from the UK Retail Stores segment.
"During the third quarter we experienced a slowdown in business activity in our auction and liquidation segment. In the prior year quarter, we generated revenues of $14.7 million from the TJ Hughes retail liquidation engagement in the United Kingdom and the Borders retail liquidation engagement in the United States and there were no similar large retail liquidation engagements in the third quarter of this year," said Andrew Gumaer, Chief Executive Officer of Great American Group. "Revenues from our auction and liquidation segment typically comprise a significant amount of our total revenues and thus can impact our operating results from quarter to quarter. I am happy to report that we are currently participating in the joint venture that is conducting the sale of all inventory for Fashion Bug, a 568 store women's apparel and accessories chain. The 568 Fashion Bug stores are located in 39 states and is part of Ascena's planned divestiture of the Fashion Bug brand and orderly wind down of the Fashion Bug operations. In addition, we were recently engaged to provide consulting services on the store closure for Comet, a 236 store electronics chain in the United Kingdom. We expect our engagement on Comet to be mostly completed by the end of 2012. We continue to be highly focused on the execution of our business initiatives and expanding our business outside the United States."
Direct cost of services was $4.8 million, compared to $7.6 million a year ago. The decrease in direct cost of services was primarily the result of a decrease in the number of fee and commission engagements in the third quarter of 2012, where the Company contractually bills fees, commissions and reimbursable expenses as compared to the third quarter of the prior year. Cost of goods sold was $2.2 million in the third quarter of 2012, compared to $1.0 million in the third quarter of the prior year.
Selling, general and administrative expenses decreased to $7.9 million, compared to $10.9 million in the third quarter of 2011. The decrease in selling, general and administrative expenses was primarily the result of a decrease of $2.0 million in the auction and liquidation segment, a decrease of $0.1 million in the valuation and appraisal segment, and a decrease of $2.6 million in corporate and other, offset by an increase of $1.6 million in the UK Retail Stores segment as a result of the consolidation of Shoon in May 2012.
Loss before the benefit of income taxes was $1.1 million during the third quarter of 2012, compared to income before the provision of income taxes of $6.0 million in the third quarter of 2011. During the third quarter of 2012, the Company recorded a benefit for income taxes of $0.4 million, compared with a provision for income taxes of $2.0 million in the third quarter of 2011. Net loss attributable to the Company was $0.6 million, or $0.02 per diluted share, compared to net income of $4.0 million, or $0.14 per diluted share in the third quarter of 2011.
Nine Month Results
For the first nine months of 2012, the Company reported total revenues of $53.2 million, compared to $52.2 million in the first nine months of 2011. Revenues from services and fees were $41.1 million, compared to $50.1 million a year ago. Sales of goods were $12.1 million compared to $2.0 million in the same period of 2011.
Total operating expenses were $50.7 million, compared to $45.0 million in 2011. Operating income was $2.5 million, compared to $7.1 million in the prior year. Income before provision for income taxes for the first nine months of 2012 was $2.2 million, compared to $3.1 million during the first nine months of 2011. The Company recorded a provision for income taxes of $0.4 million compared to $1.9 million in the same period of 2011. Net income attributable to the Company during the first nine months of 2012 was $1.1 million, or $0.04 per diluted share, compared with $1.3 million, or $0.04 in the same period of 2011.
Financial Position
At September 30, 2012, the Company had $19.0 million in cash and cash equivalents, an increase compared to $15.0 million at December 31, 2011. Working capital was $26.5 million at September 30, 2012.
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GA Keen Realty Advisors Successfully Closes on Sale of Four Brooklyn, NY Apartment Buildings....
-Buildings were formerly owned by Brookdale Hospital-
NEW YORK--(BUSINESS WIRE)-- GA Keen Realty Advisors, LLC, a division of Great American Group, Inc. (OTCBB: GAMR), recently advised Brookdale Hospital and Medical Center on a complex, $22 million sale of a real estate portfolio consisting of four apartment buildings previously owned by the hospital.
GA Keen Realty Advisors brought together a group of Brooklyn multi-family investors, led by apartment owners David Spira and Robert Wolf, who closed on the purchase Nov. 2. According to GA Keen Realty Advisors Co-President Matthew Bordwin, a 12-month “rent hold” needed to be addressed as part of the sale, making the deal more challenging. In addition, the New York State Attorney General’s office needed to approve the transaction, as is policy when selling a property owned by a not-for-profit entity.
“The rents being paid by the tenants are below market, and we expect they’ll stay that way due to rent regulations,” Bordwin said. “Given these constraints, the sales price generated represented an outstanding price for the seller based on the current net operating income being generated by the properties.”
“We were extremely pleased with the expertise provided by GA Keen Realty Advisors and the end result we achieved,” said Steve Korf, a partner with the consulting firm of Grant Thornton and the interim chief operating officer at Brookdale Hospital. “Our firm was hired earlier this year to stabilize the hospital’s financial position and this transaction represents a positive step in that process.”
The properties included a 20-story, 172-unit building at 7 Hegeman Ave.; a 12-story, 113-unit building at 660 E. 98th St.; a six-story, 54-unit property at 505 Rockaway Parkway; and a four-story, 42-unit building at 525 Rockaway Parkway.
GA Keen Realty Advisors representatives involved in the transaction included Bordwin, co-president Harold Bordwin and brokers Christopher Mahoney and Heather Milazzo. Other members of the negotiating team were attorneys Brian Cohen, Chris Rabil and Jeff Thrope with the law firm of Foley & Lardner LLP, and Eric Altman, Jay Gerzog and Daniel Lewis with the law firm of Epstein Becker Green. Other members of the Grant Thornton team working with Korf included Mark Toney, the Chief Executive Officer, James Porter and Chris Jadro.
About GA Keen Realty Advisors, LLC
GA Keen Realty Advisors, located in New York, provides real estate analysis, valuation and strategic planning services, brokerage, M&A, auction services, lease restructuring services and real estate capital market services. For more information, contact GA Keen Realty Advisors at (646) 381-9222 or visit http://www.greatamerican.com/keen
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GA Capital Provides $15 Million Secured Term Loan for Hancock Fabrics
WOODLAND HILLS, Calif.--(BUSINESS WIRE)-- GA Capital, a division of Great American Group, Inc. (OTCBB: GAMR) that provides senior and junior secured loan facilities to help middle market businesses meet their financing needs, has closed on a $15 million term loan facility for Hancock Fabrics.
GA Capital will act as the administrative agent for the term loan.
“We’ve been impressed with the financial expertise shown by our new partner, GA Capital, throughout this process,” said Hancock Fabrics Executive Vice President and Chief Financial Officer Robert Driskell. “With their assistance, along with other recent financing efforts, we’ve been able to enhance our cash and liquidity position and now have more flexibility to execute our operational improvement plans.”
The loan for Hancock Fabrics was completed under the leadership of Stuart Armstrong, who was named president of GA Capital in May. Previously, Armstrong was one of the founders and served as Executive Vice President of Tygris Commercial Finance and as President of Tygris Corporate Finance.
“As an integral component of a larger refinancing effort by Hancock Fabrics, we are excited to provide the company additional working capital so it may continue to execute a successful business strategy,” Armstrong said.
GA Capital Managing Director Robert Louzan and Assistant Vice President Krista Mello were part of the team that put the financing facility in place.
Hancock Fabrics, Inc. (OTC: HKFI), headquartered in Baldwyn, Miss., is a specialty retailer of clothing/home fabrics and sewing accessories that operates 262 retail stores in 37 states along with an internet store at www.hancockfabrics.com.
GA Capital, a division of Great American Group, provides senior and junior secured corporate loans that range from $15 million to $250 million assisting companies in refinancing existing debt, fueling new growth strategies and enhancing their liquidity profiles. For more information, contact (203) 663-5103 or visit http://www.greatamerican.com/services/ga_capital/ga_capital.html.
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Great American Group Subsidiary Engaged to Manage 236-Store UK Electronics Chain
-GA Europe responsible for store management, stock liquidation at Comet as a new buyer is sought-
WOODLAND HILLS, Calif.--(BUSINESS WIRE)-- GA Europe™, a subsidiary of Great American Group, Inc. (OTCBB: GAMR), has been appointed by Administrator Deloitte to manage the Comet chain of electronics stores, which went into Administration on Nov. 2.
In addition to managing the store operations and implementing a stock liquidation program, GA Europe is conducting ROT (retention of title) negotiations with suppliers as well as buying in new stock for the business.
“With 236 stores and in the region of GBP135million ($216 million US) of stock, Comet is the highest profile retail administration in the UK since Woolworths in 2008,” said Gavin George, chief executive officer of GA Europe, “GA Europe’s appointment to manage the business in administration underlines our growing reputation as the UK’s leading retail restructuring firm.”
To date, a total of 40 stores have had to close, with further closures expected over the coming weeks unless a buyer is found for the business. According to representatives from Deloitte, discussions are underway with companies who have expressed interest in parts of the business.
Comet filed for Administration almost a year after private investment firm OpCapita bought the business. It is the latest casualty in a highly active UK retail restructuring market.
“On-going structural changes in the sector, fragile consumer confidence and a very tough lending climate are likely to sustain these levels in 2013,” George said. “We believe UK retail is probably two years into a five-year period of rebalancing which will result in a 15 to 20 percent decline in non-food physical space.”
For more information about asset disposition, valuation and appraisal services available through Great American Group or GA Europe, visit the company’s website at www.greatamerican.com.
About Great American Group, Inc. (OTCBB: GAMR)
Great American Group is a leading provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services for an extensive array of companies. A trusted strategic partner at every stage of the business lifecycle, Great American Group efficiently deploys resources with sector expertise to assist companies, lenders, capital providers, private equity investors and professional service firms in maximizing the value of their assets. The company has in-depth experience within the retail, industrial, real estate, healthcare, energy and technology industries. The corporate headquarters is located in Woodland Hills, Calif. with additional offices in Atlanta, Boston, Charlotte, N.C., Chicago, Dallas, New York, San Francisco and London. For more information, call (818) 884-3737 or visit www.greatamerican.com.
About GA Europe
GA Europe is a wholly owned subsidiary of the publicly listed Great American Group Inc. New to the European market in 2010, it is fast developing a compelling track record in solving challenging retail situations, operating in partnership with retailers, private equity sponsors, financial stakeholders, corporate lenders and their professional advisors. GA Europe’s services focus on valuing retail assets, lending to retailers and ‘working out’ complex distressed situations, often by taking senior investment positions.
Since 2010, GA Europe has completed approximately 15 transactions including:
July 2012: Acquired the debt in value retailer Ashloch (trading as Ethel Austin), subsequently restructuring the business before a large part of the business was sold to trade player Liric.
May 2012: Supported a management buyout of footwear retailer Shoon from Administration by providing funding for working capital and delivering operational support to the business. GA Europe also took a minority equity stake
July 2011: Acquired the debt of TJ Hughes, a 56-strong value department store chain. The business was restructured with a significant part of the chain being sold to trade player Benross Group.
Other recent engagements include advisory deals on Game Group, Fenn Wright Manson, Bonmarché, and Jane Norman, and deals in Germany and Italy with Wehmeyer Lifestyle and Blockbuster Italia, respectively.
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150 Retail Store Leases of Bakers and Wild Pair Shoes are Included in Bankruptcy Sale Process
GA Keen Realty Advisors Running Nationwide Bankruptcy Sales Process
NEW YORK--(BUSINESS WIRE)-- GA Keen Realty Advisors, LLC of New York, a division of Great American Group, Inc. (OTCBB: GAMR), has begun marketing leases for 150 Bakers and Wild Pair shoe store locations across the country.
According to GA Keen Realty Advisors Co-President Harold Bordwin, “For retailers looking to expand, our bankruptcy sales process is the fastest and easiest way to open new stores and new markets. While December 4 is the deadline for submitting bids for the December 11 auction, we expect to have the ability to name a stalking horse prior to the auction. Thus, we are encouraging retailers to talk with us as soon as possible.”
The stores, ranging from 1,254 to more than 4,000 square feet in size, are located in 31 states including Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Louisiana, Maine, Maryland, Michigan, Missouri, North Carolina, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, and Wisconsin.
All transactions are subject to bankruptcy court approval.
For more information about the properties, contact Harold Bordwin or Heather Milazzo at 646-381-9222 or email bakers@greatamerican.com.
About GA Keen Realty Advisors, LLC
GA Keen Realty Advisors, located in New York, provides real estate analysis, valuation and strategic planning services, brokerage, M&A, auction services, lease restructuring services and real estate capital market services. For more information, contact GA Keen Realty Advisors at (646) 381-9222 or visit http://www.greatamerican.com/services/real_estate/real_estate.html.
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Bankruptcy Lease Auction* - GA Keen Realty Advisors Markets DAFFY’S Retail Sites in New York, New Jersey
-Former Daffy’s retail locations offer strategic locations, flagship potential-
NEW YORK--(BUSINESS WIRE)-- GA Keen Realty Advisors, a division of Great American Group, Inc. (OTCBB: GAMR), is marketing several world-class lease opportunities that offer strategic retail locations in New York City and surrounding areas and boroughs, along with three sites in northeastern New Jersey.
GA Keen Realty Advisors has been retained by Jericho Acquisitions I, LLC and Aurora Capital Associates to market the remaining 11 former Daffy’s high-fashion discount stores as part of a bankruptcy lease auction, according to GA Keen Realty Advisors Co-President Harold Bordwin.
“All sites are available at below-market lease rates and are in strategic locations with flagship potential, which make these properties desirable for retailers who want to make inroads into New York City and its adjacent markets,” Bordwin said.
The retail spaces range from 17,000 to 54,000 square feet in size and are at the following locations:
Route 1 and Route 9 North, Elizabeth, New Jersey
165 Route 4 West, Paramus, New Jersey (Paramus Place)
215 Route 46 West, Totowa, New Jersey (Totowa Shopping Center)
2146 Bartow Ave., Bronx, New York (Bay Plaza)
88-01 Queens Blvd., Elmhurst, New York (Queens Place)
1900 Northern Blvd., Manhasset, New York
335 Madison Ave. at 44th St., New York City
135 East 57th St., New York City
1775 Broadway at 57th St., New York City
229 West 43rd St., New York City
3 East 18th St., New York City
The bid deadline is Friday, Dec. 7 and an auction date is currently set for Wednesday, Dec. 12. All transactions are subject to bankruptcy court approval. “We have the ability to transact prior to the bid deadline so we encourage all interested parties to reach out to us immediately.” For more information about the properties, contact Harold Bordwin at 646-381-9222 or email daffys@greatamerican.com.
Daffy’s Inc., founded in 1961 and based in Secaucus, New Jersey, was known for selling national fashion brands at up to 80 percent off list prices. A victim of a fiercely competitive landscape that had already claimed rivals Syms and Filene’s Basement, the company announced it was going out of business in July.
GA Keen Realty Advisors provides real estate analysis, valuation and strategic planning services, brokerage, M&A, auction services, lease restructuring services and real estate capital market services. For more information, contact GA Keen Realty Advisors at (646) 381-9222 or visit http://www.greatamerican.com/services/real_estate/real_estate.html.
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Great American Group Selected to Liquidate Assets Owned by Russell Wasendorf, Sr., Former CEO of Now-Defunct Peregrine Financial Group, Inc.
- Funds collected will be used to help repay company investors -
WOODLAND HILLS, Calif.--(BUSINESS WIRE)-- A 1957 Ford Thunderbird, all-terrain vehicles, a 3,400-bottle wine collection and an extensive collection of sports memorabilia are just some of the more eclectic assets formerly owned by Russell Wasendorf, Sr. that are being prepared for liquidation by Great American Group, Inc. (OTCBB: GAMR).
Great American Group was selected by court-appointed receiver, Chicago-based attorney Michael Eidelman, to sell Wasendorf’s personal assets. Wasendorf, who served as CEO of Peregrine Financial Group (PFG), recently pleaded guilty to embezzling $200 million from investors. PFG filed for Chapter 7 bankruptcy liquidation in July.
According to Peter Wyke, senior vice president for Great American Group’s wholesale and industrial division, proceeds from the liquidation will be used to repay investors for part of their losses.
“Basically, any tangible personal property assets, product inventories or fixed assets either owned by Wasendorf or any Wasendorf entity will be sold as part of the liquidation,” he said. “We’re already receiving interest in many of the assets, including those at the myVerona restaurant, which was owned by Wasendorf, and within the CEO’s former residence.”
Some of Wasendorf's personal possessions for sale include autographed football jerseys from former St. Louis Rams and Arizona Cardinals quarterback Kurt Warner, ex-San Francisco 49ers quarterback Joe Montana and a signed Super Bowl XX jersey from the Chicago Bears' William "Refrigerator" Perry. These and many other items will be sold during a live webcast auction scheduled to begin at 10 a.m. Wednesday, Dec. 5 at the former PFG headquarters building at 1 Peregrine Way.
Auction items may be inspected from 10 a.m. – 4 p.m. (CST) at the following three locations in Cedar Falls, Iowa:
myVerona Restaurant, 419 Main St.
Corporate Offices, 8100 Beaver Hills Dr.
Warehouse, 5729 Westminster Dr.
For more detailed information, visit the Great American Group auction webpage at http://www.greatamerican.com/auctions/AuctionEventDetails.aspx?EventID=680 or contact Peter Wyke at (818) 884-3737 or by email at pwyke@greatamerican.com.
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Great American Group Hosts Solar Equipment Auction on Sept. 18
-Items from three Abound Solar plant locations for sale-
WOODLAND HILLS, Calif.--(BUSINESS WIRE)-- Great American Group, Inc. (OTCBB: GAMR) will conduct the first of two auctions for state-of-the-art solar manufacturing equipment located at four Colorado plants formerly operated by Abound Solar.
The first online auction begins at 8 a.m. (MDT) Tuesday, Sept. 18 and ends at 11 a.m. (MDT) on Wednesday, Sept. 19.
“We have a superb offering of module manufacturing and related facilities equipment along with test chambers, microscopes, machine shop equipment, plant equipment and many other items,” said Paul Brown, Great American Group Vice President of Wholesale & Industrial Services. “This will be a multi-million dollar offering. So far, we’ve received significant global interest from potential bidders from the solar industry, along with the semiconductor industry and related sectors.”
Brown also said there are a large number of completed solar panels, ready to ship on pallets, which may be available through private negotiation.
“The interest in the completed panels has been very high because it presents a unique opportunity for buyers to acquire them at a fraction of their new cost,” he said.
The online auction will involve the sale of assets at former Abound Solar test facilities located in Loveland, Fort Collins and Longmont, Colorado. All items can be inspected between 9 a.m. and 4 p.m. (MDT) on Monday, Sept. 17 and Tuesday, Sept. 18.
Other manufacturing equipment at Abound Solar’s main production facility in Longmont will be auctioned live on site during a two-day webcast auction, Oct. 2-3. For more information, visit http://www.greatamerican.com/auctions/AuctionEventDetails.aspx?EventID=664.
All auctions are managed in conjunction with the Branford Group, which specializes in surplus industrial machinery and equipment auctions and valuations.
About Great American Group, Inc. (OTCBB: GAMR)
Great American Group is a leading provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services for an extensive array of companies. A trusted strategic partner at every stage of the business lifecycle, Great American Group efficiently deploys resources with sector expertise to assist companies, lenders, capital providers, private equity investors and professional service firms in maximizing the value of their assets. The company has in-depth experience within the retail, industrial, real estate, healthcare, energy and technology industries. The corporate headquarters is located in Woodland Hills, Calif. with additional offices in Atlanta, Boston, Charlotte, N.C., Chicago, Dallas, New York, San Francisco and London. For more information, call (818) 884-3737 or visit www.greatamerican.com.
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Casual Male Selects Great American Group to Help with DXL Store Expansion
-National apparel retailer outsources store set-up through store opening program-
WOODLAND HILLS, Calif.--(BUSINESS WIRE)-- When the Casual Male Retail Group (Casual Male) embarked on the nationwide roll-out of its new DestinationXL (DXL) store format, which consolidated its value, mid-range and luxury men’s apparel all within a single location, the company decided to take a new approach with merchandising and store set-ups as well.
Casual Male COO/CFO Dennis Hernreich decided to outsource the store set-up function, and chose the store opening program offered by Great American Group, Inc. (OTCBB: GAMR).
“We opened four stores using our own visual team and district managers, flying large groups of associates in to help set-up the DXL store layout each time,” said Brian Doherty, director of field support with Casual Male. “Although there’s a cost associated with paying for flights and hotels for a four-to-five night stay, we realized that the real cost was pulling these people away from their day-to-day responsibilities and the effect it had on each district’s overall sales performance.”
Casual Male conducted a pilot project pitting Great American Group against another firm, with both companies setting up two DXL stores each, and then assessed the results.
“We were impressed with the level of expertise and precision Great American Group demonstrated in executing the DXL store opening plan, which led us to use their team for all DXL openings,” Doherty said. “Great American Group sent a team to our DXL store in Las Vegas and spent a week there learning our business and meeting with our management and visual team. We quickly realized Great American Group was best equipped to help us with the DXL expansion.”
Great American Group has experienced tremendous success with the program – and is on track to help Casual Male set up the majority of the 50 DXL stores scheduled to open throughout the U.S. by the end of the year.
“We have hundreds of associates around the country with years of retail experience,” said Scott Carpenter, president, GA Retail. “This service gives us an opportunity to put that expertise to work for retailers who are opening new stores, remodeling or are in the process of consolidating store locations.”
Doherty notes that in addition to store layout and merchandising support services, Great American Group also has experience through its liquidation work with Casual Male. Great American Group helped Casual Male “fold in” existing inventory from the smaller, former Casual Male locations into the larger DXL stores which range in size from 7,000 to 10,000 square feet.
“Our Store Opening Program provides clients with a one-stop shop for their global expansion needs,” said Mike Wyse, Great American Group vice president. “Our goal is to simplify the store opening process. Reassigning corporate staff, experienced managers and sales people from existing stores for store openings is disruptive and can have a negative effect on sales and customer service. With our program, retailers avoid those issues.”
Doherty says Casual Male plans to continue using Great American Group’s Store Opening Program during the “rapid expansion” of its new DXL store format.
“I think any retailer who is expanding, introducing a new store concept or consolidating retail operations should look into this service from Great American Group,” Doherty said.
For more information about the Store Opening Program, contact Mike Wyse at 646-381-9217, or via e-mail at mwyse@greatamerican.com.
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Wind-Down Sale Starts Immediately In 568 Fashion Bug Locations
PR Newswire - Sep 04 10:20 EDT
Alert hits:(/G
Company Symbols: NASDAQ-OTCBB:GAMR, ACORN:A.3221249036
Entire $500,000,000 Inventory Will Be Sold
BENSALEM. Pa., Sept. 4, 2012 /PRNewswire/ -- SB Capital Group, LLC, Tiger Capital Group, LLC, and Great American Group, LLC, announced today the formation of a joint venture to conduct a sale of all inventory in the 568 stores of women's retailer Fashion Bug, a unit of Charming Shoppes, Inc., a recently acquired subsidiary of Ascena Retail Group, Inc. The "Total Inventory Blowout Sale" will be conducted in the 568 Fashion Bug stores located in communities across 39 states, and is part of Ascena's planned divestiture of the brand and the orderly wind down of the Fashion Bug operation.
In what will be an epic sale, shoppers will be able to take advantage of the tremendous savings offered at one of the most widely recognized women's stores in the country. Fashion Bug stores are stocked full of fresh new arrivals with the best in fall fashion, and shoppers will find compelling discounts of as much as 50% on everything in Fashion Bug's entire $500,000,000 retail inventory. The "Total Inventory Blowout Sale" will reinforce Fashion Bug's strong, high-value message of "Look Great, Spend Less" and will give women everywhere an unmatched opportunity to build their wardrobes at meaningful discounts off Fashion Bug's already low original prices.
Fashion Bug offers women's apparel in plus, misses and juniors sizes, and includes offerings of intimate apparel, accessories, and footwear. Founded as part of Charming Shoppes, Inc., the first Fashion Bug store was opened in the 1960's in Audubon, New Jersey. The company grew with rapid expansion in the late 1970's, and reached a peak of more than 1,400 stores in the 1990's.
As part of the process, Fashion Bug has retained more than 5,900 store and district personnel to assist the joint venture in operating the stores through the completion of the sale process.
About SB Capital Group, LLC
SB Capital Group, a Schottenstein affiliate, is a leader in the field of asset recovery, rescue finance, restructuring and strategic store closing events. As equity stakeholders in businesses comprising sectors as diversified as retail enterprises, consumer products, franchising, licensing and real property, SB Capital Group leverages resources and depth of experience to provide services with applicability across a wide spectrum of industries. Recognized worldwide as a trusted partner for businesses and professionals, SB Capital Group adds value to high level strategic planning as well as day-to-day operations. Our participation in transactions that span the globe has solidified our reputation as one of the most creative and innovative financial service and asset realization firms in existence today. Discover more at www.sbcapitalgroup.com
About Tiger Capital Group, LLC
Tiger Group provides advisory, restructuring, valuation, disposition and auction services within a broad range of retail, wholesale, and industrial sectors. With over 40 years of experience and substantial financial backing, Tiger offers a uniquely nimble combination of expertise, innovation and financial resources to drive results. Tiger's seasoned professionals help clients identify the underlying value of assets, monitor asset risk factors and, when needed, convert assets to capital in a variety of ways quickly and decisively. Tiger's collaborative and no-nonsense approach is the foundation for its many long-term 'partner' relationships and decades of uninterrupted success. Tiger maintains offices in Boston, Los Angeles, New York and Atlanta. To learn more about Tiger, please visit, www.TigerGroupLLC.com.
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Great American Group(R)* Announces Improved Second Quarter 2012 Financial Results
WOODLAND HILLS, CA -- (Marketwire) -- 08/14/12 -- Great American Group, Inc. (OTCBB: GAMR)
Total revenues of $19.7 million, an increase of 100% from a year ago
Operating income of $0.8 million, versus an operating loss of $2.2 million a year ago
Net income of $0.6 million, versus a net loss of $2.2 million a year ago
Diluted earnings per share of $0.02, versus a diluted loss per share of $0.08 a year ago
Great American Group, Inc. (OTCBB: GAMR) ("Great American Group" or the "Company"), a leading provider of asset disposition, valuation and appraisal services, today announced financial results for its second quarter ended June 30, 2012.
Second Quarter Results
For the second quarter ended June 30, 2012, the Company reported total revenues of $19.7 million, an increase of 100% from revenues of $9.8 million in the second quarter of 2011. Revenues from services and fees were $13.3 million, compared to $9.6 million in the same period the prior year. Revenues from sale of goods were $6.4 million, compared to $0.3 million in the second quarter of 2011. The increase in total revenues during the quarter was primarily due to increases in the auction and liquidation segment of $6.7 million, an increase in revenues in the valuation and appraisal services segment of $0.3 million, and revenues of $2.8 million from the UK retail stores segment, as a result of the Company's investment in Shoon Trading Limited ("Shoon"), a shoe retailer with operations in the United Kingdom. This represents a new reportable segment in our financial statements.
"During the quarter we experienced improvements in our financial results from the previous year," said Andrew Gumaer, Chief Executive Officer of Great American Group. "Our enhanced performance reflects increased activity in our auction and liquidation segment from operations in the United Kingdom and contributions from our GA Keen Realty Advisors division. The new UK retail stores segment operates eleven Shoon retail stores in the United Kingdom and is complementary to our continued expansion in the UK. As we head into the second half of 2012, we remain highly focused on the execution of our business initiatives and achieving our financial objectives to position the business for continued growth and profitability."
Direct cost of services was $5.0 million, compared to $3.5 million a year ago. The increase in direct cost of services was primarily the result of an increase in the number of fee and commission engagements in the second quarter of 2012, where the Company contractually bills fees, commissions and reimbursable expenses, in the auction and liquidation segment as well as an increase in headcount which resulted in an increase in salaries, wages and benefits in the valuation and appraisal segment compared to the same period in 2011. Cost of goods sold was $4.1 million in the second quarter of 2012, compared to $0.4 million in the second quarter of the prior year. The increase in cost of goods sold in the second quarter of 2012 included costs of goods sold of $1.5 million related to retail sales from the Shoon stores located in the United Kingdom.
Selling, general and administrative expenses were $9.8 million, compared to $8.2 million in the second quarter of 2011. The increase in selling, general and administrative expenses was primarily the result of an increase of $0.5 million in the auction and liquidation segment and $1.1 million in the UK retail stores segment which is new in the second quarter as a result of the consolidation of Shoon on May 4, 2012. The increase in selling, general and administrative expenses of $0.1 million related to corporate overhead was offset by the decrease in selling, general and administrative expenses $0.1 million in the valuation and appraisal segment.
On May 4, 2012, the Company invested $0.1 million for a 40% interest in the common stock of Shoon. Shoon purchased the rights to operate the former Shoon internet business and retail stores that were in administration in the United Kingdom. As part of the investment, the Company has also loaned Shoon approximately $1.3 million that is collateralized by retail inventory. The Company, together with its 40% investment in the common stock of Shoon and its control of the majority of the board or directors, is deemed to be the primary beneficiary of Shoon. As such, for generally accepted accounting principles in the United States, the Company is required to consolidate the operations of Shoon. The results of operations of Shoon from May 4, 2012, the date of investment, through June 30, 2012, have been included in the Company's condensed consolidated statements of operations.
In addition, during the second quarter, the Company recorded a gain on bargain purchase of $1.4 million since the fair value of assets acquired in the Shoon transaction exceeded consideration paid. The gain on bargain purchase is record net of tax and is included as a separate component of other income (expense) in the condensed consolidated statements of operations.
Income from operations before provision for income taxes was $1.5 million during the second quarter of 2012, compared to loss from operations before benefit for income taxes of $3.1 million in the second quarter of 2011. Excluding the gain from bargain purchase of $1.4 million included in other income related to the investment and consolidation of Shoon, income from operation before provision for income taxes was $0.2 million during the second quarter of 2012. During the second quarter of 2012, the Company recorded a provision for income taxes of $0.1 million, compared with a benefit for income taxes of $0.9 million in the second quarter of 2011. Overall, in the second quarter of 2012, the Company generated net income of $0.6 million, or $0.02 per diluted share, compared with net loss of $2.2 million, or $0.08 per diluted share, in the second quarter of 2011.
Six Month Results
For the first six months of 2012, the Company reported total revenues of $39.0 million, compared to $23.6 million in the first six months of 2011. Revenues from services and fees were $30.2 million, compared to $22.6 million a year ago. Sales of goods were $8.8 million compared to $1.1 million in the same period of 2011.
Total operating expenses were $35.8 million, compared to $25.6 million in 2011. Operating income was $3.2 million, compared to an operating loss of $1.9 million in the prior year. Earnings from operations before income taxes were $3.3 million, compared to a loss from operations before income taxes of $2.9 million during the first six months of 2011. The Company recorded a provision for income taxes of $0.8 million during the first six months of 2012, compared to a benefit for income taxes of $0.2 million in the same period of 2011. Net income during the first six months of 2012 was $1.7 million, or $0.06 per diluted share, compared with a net loss of $2.8 million, or $(0.10) in the same period of 2011.
Financial Position
At June 30, 2012, the Company had $23.4 million in cash and cash equivalents, an increase of $8.4 million, from $15.0 million at December 31, 2011. Working capital was $29.0 million at June 30, 2012.
Conference Call
The Company will host a conference call at 4:30 p.m. EDT on Tuesday, August 14, 2012, to discuss results for the second quarter ended June 30, 2012. To participate in the event by telephone, please dial (877) 941-1427, 10 minutes prior to the start time (to allow time for registration) and use conference ID #4550214. International callers should dial (480) 629-9664. A digital replay will be available beginning August 14, 2012, at 7:30 p.m. EDT, through August 21, 2012, at 11:59 p.m. EDT. To access the replay, dial (877) 870-5176 (U.S.), and use passcode 4550214. International callers should dial (858) 384-5517 and enter the same passcode. The call will also be broadcast over the Internet and can be accessed on the Investor Relations section of the Company's Web site at www.greatamerican.com. To listen to the webcast, please visit the site at least 15 minutes prior to the start of the call in order to register, download and install any necessary audio software. A replay of the call will also be available for 90 days on the Web site.
About Great American Group, Inc.
Great American Group, Inc. is a leading provider of asset disposition solutions and valuation and appraisal services to a wide range of retail, wholesale and industrial clients, as well as lenders, capital providers, private equity investors and professional service firms. Great American Group has offices in Atlanta, Boston, Charlotte, Chicago, Dallas, London, Los Angeles, New York and San Francisco. For more information, please visit www.greatamerican.com.
*Great American Group and the Eagle Design are trademarks registered in the US Patent and Trademark Office and are exclusive property of Great American Group, Inc.
Forward-Looking Statements
This press release may contain forward-looking statements by Great American Group that are not based on historical fact, including, without limitation, statements containing the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions and statements. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements. Such factors include those risks described from time to time in Great American Group's filings with the SEC, including, without limitation, the risks described in Great American Group's proxy statement/prospectus filed with the SEC on July 19, 2012, and its Annual Report on Form 10-K for the year ended December 31, 2011. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and Great American Group undertakes no duty to update this information.
Note Regarding Use of Non-GAAP Financial Measures
Certain of the information set forth herein, including Adjusted EBITDA, may be considered non-GAAP financial measures. Great American Group believes this information is useful to investors because it provides a basis for measuring Great American Group's performance against the contingent share earnout provisions in the AAMAC transaction. In addition, Great American Group's management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating Great American Group's operating performance, capital resources and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-financial measures as reported by Great American Group may not be comparable to similarly titled amounts reported by other companies. NEED Investment Ideas...?? GO TO:
Great American Group, Inc.
21860 Burbank Boulevard
Suite 300 South
Woodland Hills, CA 91367
Phone: 818-884-3737
Fax: 818-884-2976
Website: http://www.greatamerican.com
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Great American Group is a leading provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services for an extensive array of companies. A trusted strategic partner at every stage of the business lifecycle, Great American Group efficiently deploys resources with sector expertise to assist companies, lenders, capital providers, private equity investors and professional service firms in maximizing the value of their assets. The company has in-depth experience within the retail, industrial, real estate, healthcare, energy and technology industries. The corporate headquarters is located in Woodland Hills, Calif. with additional offices in Atlanta, Boston, Charlotte, N.C., Chicago, Dallas, New York, San Francisco and London. For more information, call (818) 884-3737 or visit www.greatamerican.com.
21860 Burbank Boulevard, Suite 300 South Woodland Hills, CA
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Investor Contacts:
Great American Group
Phil Ahn
SVP, Strategy & Corporate Development
818-884-3737
Addo Communications
Patricia Dolmatsky-Nir
310-829-5400
21860 Burbank Boulevard, Suite 300 South Woodland Hills, CA
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Preferred stock, $0.0001 par value; 10,000,000 shares authorized; none issued..
Common stock, $0.0001 par value; 135,000,000 shares authorized; 30,002,975 and 31,001,609 issued and outstanding as of September 30, 2012 and December 31, 2011, respectively
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10K's and other filings..
http://finance.yahoo.com/q/sec?s=GAMR+SEC+Filings
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Insider Transactions..
Date Insider Shares Type Transaction Value*
Nov 19, 2012 MILLER LLOYD I III
Beneficial Owner (10% or more) 250,000 Indirect Purchase at $0.26 per share. 65,000
Nov 15, 2012 MILLER LLOYD I III
Beneficial Owner (10% or more) 8,156 Indirect Purchase at $0.30 per share. 2,446
Nov 14, 2012 MILLER LLOYD I III
Beneficial Owner (10% or more) 1,276,844 Indirect Statement of Ownership N/A
Aug 18, 2011 ERICKSON PAUL
Officer 50,000 Direct Purchase at $0.12 per share. 6,000
Aug 2, 2011 ELLIOTT INTERNATIONAL, L.P.
Beneficial Owner (10% or more) 507,120 Direct Purchase at $0.08 per share. 40,569
Aug 2, 2011 ELLIOTT ASSOCIATES, L.P.
Beneficial Owner (10% or more) 338,080 Direct Purchase at $0.08 per share. 27,046
Aug 1, 2011 ELLIOTT ASSOCIATES, L.P.
Beneficial Owner (10% or more) 300,000 Direct Purchase at $0.07 per share. 21,000
Jul 31, 2011 ELLIOTT ASSOCIATES, L.P.
Beneficial Owner (10% or more) 400,000 Direct Purchase at $0.06 per share. 24,000
Jul 14, 2011 RILEY BRYANT R
Director 17,820 Direct Disposition (Non Open Market) at $0.30 per share. 5,346
Jul 14, 2011 HART MATTHEW J
Director 17,820 Direct Disposition (Non Open Market) at $0.30 per share. 5,346
Jul 14, 2011 LEVITT MICHAEL J
Director 14,000 Direct Disposition (Non Open Market) at $0.30 per share. 4,200
Jul 14, 2011 KLEIN MARK D
Director 14,000 Direct Disposition (Non Open Market) at $0.30 per share. 4,200
Jul 14, 2011 HILTON HUGH G
Director 17,820 Direct Disposition (Non Open Market) at $0.30 per share. 5,346
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Press releases for the past year..
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Great American Group Announces Third Quarter 2012 Financial Results
WOODLAND HILLS, CA -- (Marketwire) -- 11/14/12 -- Great American Group, Inc.® (OTCBB: GAMR) ("Great American Group" or the "Company"), a leading provider of asset disposition, valuation and appraisal services, today announced financial results for its third quarter ended September 30, 2012.
Total revenues of $14.2 million, a decrease from $28.5 million a year ago Net loss of $0.5 million, versus net income of $4.0 million from a year ago.. Diluted loss per share of $0.02, versus a diluted earnings per share of $0.14 from a year ago ..
Third Quarter Results
For the third quarter ended September 30, 2012, the Company reported total revenues of $14.2 million, a decrease from revenues of $28.5 million in the third quarter of 2011. Revenues from services and fees were $11.0 million, compared to $27.6 million in the same period the prior year. Revenues from sale of goods were $3.3 million, compared to $0.9 million in the third quarter of 2011. The decrease in total revenues during the quarter was primarily due to decreases in the auction and liquidation segment of $17.3 million, and a decrease in revenues in the valuation and appraisal services segment of $0.1 million, offset by an increase in revenues of $3.1 million from the UK Retail Stores segment.
"During the third quarter we experienced a slowdown in business activity in our auction and liquidation segment. In the prior year quarter, we generated revenues of $14.7 million from the TJ Hughes retail liquidation engagement in the United Kingdom and the Borders retail liquidation engagement in the United States and there were no similar large retail liquidation engagements in the third quarter of this year," said Andrew Gumaer, Chief Executive Officer of Great American Group. "Revenues from our auction and liquidation segment typically comprise a significant amount of our total revenues and thus can impact our operating results from quarter to quarter. I am happy to report that we are currently participating in the joint venture that is conducting the sale of all inventory for Fashion Bug, a 568 store women's apparel and accessories chain. The 568 Fashion Bug stores are located in 39 states and is part of Ascena's planned divestiture of the Fashion Bug brand and orderly wind down of the Fashion Bug operations. In addition, we were recently engaged to provide consulting services on the store closure for Comet, a 236 store electronics chain in the United Kingdom. We expect our engagement on Comet to be mostly completed by the end of 2012. We continue to be highly focused on the execution of our business initiatives and expanding our business outside the United States."
Direct cost of services was $4.8 million, compared to $7.6 million a year ago. The decrease in direct cost of services was primarily the result of a decrease in the number of fee and commission engagements in the third quarter of 2012, where the Company contractually bills fees, commissions and reimbursable expenses as compared to the third quarter of the prior year. Cost of goods sold was $2.2 million in the third quarter of 2012, compared to $1.0 million in the third quarter of the prior year.
Selling, general and administrative expenses decreased to $7.9 million, compared to $10.9 million in the third quarter of 2011. The decrease in selling, general and administrative expenses was primarily the result of a decrease of $2.0 million in the auction and liquidation segment, a decrease of $0.1 million in the valuation and appraisal segment, and a decrease of $2.6 million in corporate and other, offset by an increase of $1.6 million in the UK Retail Stores segment as a result of the consolidation of Shoon in May 2012.
Loss before the benefit of income taxes was $1.1 million during the third quarter of 2012, compared to income before the provision of income taxes of $6.0 million in the third quarter of 2011. During the third quarter of 2012, the Company recorded a benefit for income taxes of $0.4 million, compared with a provision for income taxes of $2.0 million in the third quarter of 2011. Net loss attributable to the Company was $0.6 million, or $0.02 per diluted share, compared to net income of $4.0 million, or $0.14 per diluted share in the third quarter of 2011.
Nine Month Results
For the first nine months of 2012, the Company reported total revenues of $53.2 million, compared to $52.2 million in the first nine months of 2011. Revenues from services and fees were $41.1 million, compared to $50.1 million a year ago. Sales of goods were $12.1 million compared to $2.0 million in the same period of 2011.
Total operating expenses were $50.7 million, compared to $45.0 million in 2011. Operating income was $2.5 million, compared to $7.1 million in the prior year. Income before provision for income taxes for the first nine months of 2012 was $2.2 million, compared to $3.1 million during the first nine months of 2011. The Company recorded a provision for income taxes of $0.4 million compared to $1.9 million in the same period of 2011. Net income attributable to the Company during the first nine months of 2012 was $1.1 million, or $0.04 per diluted share, compared with $1.3 million, or $0.04 in the same period of 2011.
Financial Position
At September 30, 2012, the Company had $19.0 million in cash and cash equivalents, an increase compared to $15.0 million at December 31, 2011. Working capital was $26.5 million at September 30, 2012.
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GA Keen Realty Advisors Successfully Closes on Sale of Four Brooklyn, NY Apartment Buildings....
-Buildings were formerly owned by Brookdale Hospital-
NEW YORK--(BUSINESS WIRE)-- GA Keen Realty Advisors, LLC, a division of Great American Group, Inc. (OTCBB: GAMR), recently advised Brookdale Hospital and Medical Center on a complex, $22 million sale of a real estate portfolio consisting of four apartment buildings previously owned by the hospital.
GA Keen Realty Advisors brought together a group of Brooklyn multi-family investors, led by apartment owners David Spira and Robert Wolf, who closed on the purchase Nov. 2. According to GA Keen Realty Advisors Co-President Matthew Bordwin, a 12-month “rent hold” needed to be addressed as part of the sale, making the deal more challenging. In addition, the New York State Attorney General’s office needed to approve the transaction, as is policy when selling a property owned by a not-for-profit entity.
“The rents being paid by the tenants are below market, and we expect they’ll stay that way due to rent regulations,” Bordwin said. “Given these constraints, the sales price generated represented an outstanding price for the seller based on the current net operating income being generated by the properties.”
“We were extremely pleased with the expertise provided by GA Keen Realty Advisors and the end result we achieved,” said Steve Korf, a partner with the consulting firm of Grant Thornton and the interim chief operating officer at Brookdale Hospital. “Our firm was hired earlier this year to stabilize the hospital’s financial position and this transaction represents a positive step in that process.”
The properties included a 20-story, 172-unit building at 7 Hegeman Ave.; a 12-story, 113-unit building at 660 E. 98th St.; a six-story, 54-unit property at 505 Rockaway Parkway; and a four-story, 42-unit building at 525 Rockaway Parkway.
GA Keen Realty Advisors representatives involved in the transaction included Bordwin, co-president Harold Bordwin and brokers Christopher Mahoney and Heather Milazzo. Other members of the negotiating team were attorneys Brian Cohen, Chris Rabil and Jeff Thrope with the law firm of Foley & Lardner LLP, and Eric Altman, Jay Gerzog and Daniel Lewis with the law firm of Epstein Becker Green. Other members of the Grant Thornton team working with Korf included Mark Toney, the Chief Executive Officer, James Porter and Chris Jadro.
About GA Keen Realty Advisors, LLC
GA Keen Realty Advisors, located in New York, provides real estate analysis, valuation and strategic planning services, brokerage, M&A, auction services, lease restructuring services and real estate capital market services. For more information, contact GA Keen Realty Advisors at (646) 381-9222 or visit http://www.greatamerican.com/keen
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GA Capital Provides $15 Million Secured Term Loan for Hancock Fabrics
WOODLAND HILLS, Calif.--(BUSINESS WIRE)-- GA Capital, a division of Great American Group, Inc. (OTCBB: GAMR) that provides senior and junior secured loan facilities to help middle market businesses meet their financing needs, has closed on a $15 million term loan facility for Hancock Fabrics.
GA Capital will act as the administrative agent for the term loan.
“We’ve been impressed with the financial expertise shown by our new partner, GA Capital, throughout this process,” said Hancock Fabrics Executive Vice President and Chief Financial Officer Robert Driskell. “With their assistance, along with other recent financing efforts, we’ve been able to enhance our cash and liquidity position and now have more flexibility to execute our operational improvement plans.”
The loan for Hancock Fabrics was completed under the leadership of Stuart Armstrong, who was named president of GA Capital in May. Previously, Armstrong was one of the founders and served as Executive Vice President of Tygris Commercial Finance and as President of Tygris Corporate Finance.
“As an integral component of a larger refinancing effort by Hancock Fabrics, we are excited to provide the company additional working capital so it may continue to execute a successful business strategy,” Armstrong said.
GA Capital Managing Director Robert Louzan and Assistant Vice President Krista Mello were part of the team that put the financing facility in place.
Hancock Fabrics, Inc. (OTC: HKFI), headquartered in Baldwyn, Miss., is a specialty retailer of clothing/home fabrics and sewing accessories that operates 262 retail stores in 37 states along with an internet store at www.hancockfabrics.com.
GA Capital, a division of Great American Group, provides senior and junior secured corporate loans that range from $15 million to $250 million assisting companies in refinancing existing debt, fueling new growth strategies and enhancing their liquidity profiles. For more information, contact (203) 663-5103 or visit http://www.greatamerican.com/services/ga_capital/ga_capital.html.
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Great American Group Subsidiary Engaged to Manage 236-Store UK Electronics Chain
-GA Europe responsible for store management, stock liquidation at Comet as a new buyer is sought-
WOODLAND HILLS, Calif.--(BUSINESS WIRE)-- GA Europe™, a subsidiary of Great American Group, Inc. (OTCBB: GAMR), has been appointed by Administrator Deloitte to manage the Comet chain of electronics stores, which went into Administration on Nov. 2.
In addition to managing the store operations and implementing a stock liquidation program, GA Europe is conducting ROT (retention of title) negotiations with suppliers as well as buying in new stock for the business.
“With 236 stores and in the region of GBP135million ($216 million US) of stock, Comet is the highest profile retail administration in the UK since Woolworths in 2008,” said Gavin George, chief executive officer of GA Europe, “GA Europe’s appointment to manage the business in administration underlines our growing reputation as the UK’s leading retail restructuring firm.”
To date, a total of 40 stores have had to close, with further closures expected over the coming weeks unless a buyer is found for the business. According to representatives from Deloitte, discussions are underway with companies who have expressed interest in parts of the business.
Comet filed for Administration almost a year after private investment firm OpCapita bought the business. It is the latest casualty in a highly active UK retail restructuring market.
“On-going structural changes in the sector, fragile consumer confidence and a very tough lending climate are likely to sustain these levels in 2013,” George said. “We believe UK retail is probably two years into a five-year period of rebalancing which will result in a 15 to 20 percent decline in non-food physical space.”
For more information about asset disposition, valuation and appraisal services available through Great American Group or GA Europe, visit the company’s website at www.greatamerican.com.
About Great American Group, Inc. (OTCBB: GAMR)
Great American Group is a leading provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services for an extensive array of companies. A trusted strategic partner at every stage of the business lifecycle, Great American Group efficiently deploys resources with sector expertise to assist companies, lenders, capital providers, private equity investors and professional service firms in maximizing the value of their assets. The company has in-depth experience within the retail, industrial, real estate, healthcare, energy and technology industries. The corporate headquarters is located in Woodland Hills, Calif. with additional offices in Atlanta, Boston, Charlotte, N.C., Chicago, Dallas, New York, San Francisco and London. For more information, call (818) 884-3737 or visit www.greatamerican.com.
About GA Europe
GA Europe is a wholly owned subsidiary of the publicly listed Great American Group Inc. New to the European market in 2010, it is fast developing a compelling track record in solving challenging retail situations, operating in partnership with retailers, private equity sponsors, financial stakeholders, corporate lenders and their professional advisors. GA Europe’s services focus on valuing retail assets, lending to retailers and ‘working out’ complex distressed situations, often by taking senior investment positions.
Since 2010, GA Europe has completed approximately 15 transactions including:
July 2012: Acquired the debt in value retailer Ashloch (trading as Ethel Austin), subsequently restructuring the business before a large part of the business was sold to trade player Liric.
May 2012: Supported a management buyout of footwear retailer Shoon from Administration by providing funding for working capital and delivering operational support to the business. GA Europe also took a minority equity stake
July 2011: Acquired the debt of TJ Hughes, a 56-strong value department store chain. The business was restructured with a significant part of the chain being sold to trade player Benross Group.
Other recent engagements include advisory deals on Game Group, Fenn Wright Manson, Bonmarché, and Jane Norman, and deals in Germany and Italy with Wehmeyer Lifestyle and Blockbuster Italia, respectively.
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150 Retail Store Leases of Bakers and Wild Pair Shoes are Included in Bankruptcy Sale Process
GA Keen Realty Advisors Running Nationwide Bankruptcy Sales Process
NEW YORK--(BUSINESS WIRE)-- GA Keen Realty Advisors, LLC of New York, a division of Great American Group, Inc. (OTCBB: GAMR), has begun marketing leases for 150 Bakers and Wild Pair shoe store locations across the country.
According to GA Keen Realty Advisors Co-President Harold Bordwin, “For retailers looking to expand, our bankruptcy sales process is the fastest and easiest way to open new stores and new markets. While December 4 is the deadline for submitting bids for the December 11 auction, we expect to have the ability to name a stalking horse prior to the auction. Thus, we are encouraging retailers to talk with us as soon as possible.”
The stores, ranging from 1,254 to more than 4,000 square feet in size, are located in 31 states including Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Louisiana, Maine, Maryland, Michigan, Missouri, North Carolina, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, and Wisconsin.
All transactions are subject to bankruptcy court approval.
For more information about the properties, contact Harold Bordwin or Heather Milazzo at 646-381-9222 or email bakers@greatamerican.com.
About GA Keen Realty Advisors, LLC
GA Keen Realty Advisors, located in New York, provides real estate analysis, valuation and strategic planning services, brokerage, M&A, auction services, lease restructuring services and real estate capital market services. For more information, contact GA Keen Realty Advisors at (646) 381-9222 or visit http://www.greatamerican.com/services/real_estate/real_estate.html.
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Bankruptcy Lease Auction* - GA Keen Realty Advisors Markets DAFFY’S Retail Sites in New York, New Jersey
-Former Daffy’s retail locations offer strategic locations, flagship potential-
NEW YORK--(BUSINESS WIRE)-- GA Keen Realty Advisors, a division of Great American Group, Inc. (OTCBB: GAMR), is marketing several world-class lease opportunities that offer strategic retail locations in New York City and surrounding areas and boroughs, along with three sites in northeastern New Jersey.
GA Keen Realty Advisors has been retained by Jericho Acquisitions I, LLC and Aurora Capital Associates to market the remaining 11 former Daffy’s high-fashion discount stores as part of a bankruptcy lease auction, according to GA Keen Realty Advisors Co-President Harold Bordwin.
“All sites are available at below-market lease rates and are in strategic locations with flagship potential, which make these properties desirable for retailers who want to make inroads into New York City and its adjacent markets,” Bordwin said.
The retail spaces range from 17,000 to 54,000 square feet in size and are at the following locations:
Route 1 and Route 9 North, Elizabeth, New Jersey
165 Route 4 West, Paramus, New Jersey (Paramus Place)
215 Route 46 West, Totowa, New Jersey (Totowa Shopping Center)
2146 Bartow Ave., Bronx, New York (Bay Plaza)
88-01 Queens Blvd., Elmhurst, New York (Queens Place)
1900 Northern Blvd., Manhasset, New York
335 Madison Ave. at 44th St., New York City
135 East 57th St., New York City
1775 Broadway at 57th St., New York City
229 West 43rd St., New York City
3 East 18th St., New York City
The bid deadline is Friday, Dec. 7 and an auction date is currently set for Wednesday, Dec. 12. All transactions are subject to bankruptcy court approval. “We have the ability to transact prior to the bid deadline so we encourage all interested parties to reach out to us immediately.” For more information about the properties, contact Harold Bordwin at 646-381-9222 or email daffys@greatamerican.com.
Daffy’s Inc., founded in 1961 and based in Secaucus, New Jersey, was known for selling national fashion brands at up to 80 percent off list prices. A victim of a fiercely competitive landscape that had already claimed rivals Syms and Filene’s Basement, the company announced it was going out of business in July.
GA Keen Realty Advisors provides real estate analysis, valuation and strategic planning services, brokerage, M&A, auction services, lease restructuring services and real estate capital market services. For more information, contact GA Keen Realty Advisors at (646) 381-9222 or visit http://www.greatamerican.com/services/real_estate/real_estate.html.
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Great American Group Selected to Liquidate Assets Owned by Russell Wasendorf, Sr., Former CEO of Now-Defunct Peregrine Financial Group, Inc.
- Funds collected will be used to help repay company investors -
WOODLAND HILLS, Calif.--(BUSINESS WIRE)-- A 1957 Ford Thunderbird, all-terrain vehicles, a 3,400-bottle wine collection and an extensive collection of sports memorabilia are just some of the more eclectic assets formerly owned by Russell Wasendorf, Sr. that are being prepared for liquidation by Great American Group, Inc. (OTCBB: GAMR).
Great American Group was selected by court-appointed receiver, Chicago-based attorney Michael Eidelman, to sell Wasendorf’s personal assets. Wasendorf, who served as CEO of Peregrine Financial Group (PFG), recently pleaded guilty to embezzling $200 million from investors. PFG filed for Chapter 7 bankruptcy liquidation in July.
According to Peter Wyke, senior vice president for Great American Group’s wholesale and industrial division, proceeds from the liquidation will be used to repay investors for part of their losses.
“Basically, any tangible personal property assets, product inventories or fixed assets either owned by Wasendorf or any Wasendorf entity will be sold as part of the liquidation,” he said. “We’re already receiving interest in many of the assets, including those at the myVerona restaurant, which was owned by Wasendorf, and within the CEO’s former residence.”
Some of Wasendorf's personal possessions for sale include autographed football jerseys from former St. Louis Rams and Arizona Cardinals quarterback Kurt Warner, ex-San Francisco 49ers quarterback Joe Montana and a signed Super Bowl XX jersey from the Chicago Bears' William "Refrigerator" Perry. These and many other items will be sold during a live webcast auction scheduled to begin at 10 a.m. Wednesday, Dec. 5 at the former PFG headquarters building at 1 Peregrine Way.
Auction items may be inspected from 10 a.m. – 4 p.m. (CST) at the following three locations in Cedar Falls, Iowa:
myVerona Restaurant, 419 Main St.
Corporate Offices, 8100 Beaver Hills Dr.
Warehouse, 5729 Westminster Dr.
For more detailed information, visit the Great American Group auction webpage at http://www.greatamerican.com/auctions/AuctionEventDetails.aspx?EventID=680 or contact Peter Wyke at (818) 884-3737 or by email at pwyke@greatamerican.com.
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Great American Group Hosts Solar Equipment Auction on Sept. 18
-Items from three Abound Solar plant locations for sale-
WOODLAND HILLS, Calif.--(BUSINESS WIRE)-- Great American Group, Inc. (OTCBB: GAMR) will conduct the first of two auctions for state-of-the-art solar manufacturing equipment located at four Colorado plants formerly operated by Abound Solar.
The first online auction begins at 8 a.m. (MDT) Tuesday, Sept. 18 and ends at 11 a.m. (MDT) on Wednesday, Sept. 19.
“We have a superb offering of module manufacturing and related facilities equipment along with test chambers, microscopes, machine shop equipment, plant equipment and many other items,” said Paul Brown, Great American Group Vice President of Wholesale & Industrial Services. “This will be a multi-million dollar offering. So far, we’ve received significant global interest from potential bidders from the solar industry, along with the semiconductor industry and related sectors.”
Brown also said there are a large number of completed solar panels, ready to ship on pallets, which may be available through private negotiation.
“The interest in the completed panels has been very high because it presents a unique opportunity for buyers to acquire them at a fraction of their new cost,” he said.
The online auction will involve the sale of assets at former Abound Solar test facilities located in Loveland, Fort Collins and Longmont, Colorado. All items can be inspected between 9 a.m. and 4 p.m. (MDT) on Monday, Sept. 17 and Tuesday, Sept. 18.
Other manufacturing equipment at Abound Solar’s main production facility in Longmont will be auctioned live on site during a two-day webcast auction, Oct. 2-3. For more information, visit http://www.greatamerican.com/auctions/AuctionEventDetails.aspx?EventID=664.
All auctions are managed in conjunction with the Branford Group, which specializes in surplus industrial machinery and equipment auctions and valuations.
About Great American Group, Inc. (OTCBB: GAMR)
Great American Group is a leading provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services for an extensive array of companies. A trusted strategic partner at every stage of the business lifecycle, Great American Group efficiently deploys resources with sector expertise to assist companies, lenders, capital providers, private equity investors and professional service firms in maximizing the value of their assets. The company has in-depth experience within the retail, industrial, real estate, healthcare, energy and technology industries. The corporate headquarters is located in Woodland Hills, Calif. with additional offices in Atlanta, Boston, Charlotte, N.C., Chicago, Dallas, New York, San Francisco and London. For more information, call (818) 884-3737 or visit www.greatamerican.com.
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Casual Male Selects Great American Group to Help with DXL Store Expansion
-National apparel retailer outsources store set-up through store opening program-
WOODLAND HILLS, Calif.--(BUSINESS WIRE)-- When the Casual Male Retail Group (Casual Male) embarked on the nationwide roll-out of its new DestinationXL (DXL) store format, which consolidated its value, mid-range and luxury men’s apparel all within a single location, the company decided to take a new approach with merchandising and store set-ups as well.
Casual Male COO/CFO Dennis Hernreich decided to outsource the store set-up function, and chose the store opening program offered by Great American Group, Inc. (OTCBB: GAMR).
“We opened four stores using our own visual team and district managers, flying large groups of associates in to help set-up the DXL store layout each time,” said Brian Doherty, director of field support with Casual Male. “Although there’s a cost associated with paying for flights and hotels for a four-to-five night stay, we realized that the real cost was pulling these people away from their day-to-day responsibilities and the effect it had on each district’s overall sales performance.”
Casual Male conducted a pilot project pitting Great American Group against another firm, with both companies setting up two DXL stores each, and then assessed the results.
“We were impressed with the level of expertise and precision Great American Group demonstrated in executing the DXL store opening plan, which led us to use their team for all DXL openings,” Doherty said. “Great American Group sent a team to our DXL store in Las Vegas and spent a week there learning our business and meeting with our management and visual team. We quickly realized Great American Group was best equipped to help us with the DXL expansion.”
Great American Group has experienced tremendous success with the program – and is on track to help Casual Male set up the majority of the 50 DXL stores scheduled to open throughout the U.S. by the end of the year.
“We have hundreds of associates around the country with years of retail experience,” said Scott Carpenter, president, GA Retail. “This service gives us an opportunity to put that expertise to work for retailers who are opening new stores, remodeling or are in the process of consolidating store locations.”
Doherty notes that in addition to store layout and merchandising support services, Great American Group also has experience through its liquidation work with Casual Male. Great American Group helped Casual Male “fold in” existing inventory from the smaller, former Casual Male locations into the larger DXL stores which range in size from 7,000 to 10,000 square feet.
“Our Store Opening Program provides clients with a one-stop shop for their global expansion needs,” said Mike Wyse, Great American Group vice president. “Our goal is to simplify the store opening process. Reassigning corporate staff, experienced managers and sales people from existing stores for store openings is disruptive and can have a negative effect on sales and customer service. With our program, retailers avoid those issues.”
Doherty says Casual Male plans to continue using Great American Group’s Store Opening Program during the “rapid expansion” of its new DXL store format.
“I think any retailer who is expanding, introducing a new store concept or consolidating retail operations should look into this service from Great American Group,” Doherty said.
For more information about the Store Opening Program, contact Mike Wyse at 646-381-9217, or via e-mail at mwyse@greatamerican.com.
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Wind-Down Sale Starts Immediately In 568 Fashion Bug Locations
PR Newswire - Sep 04 10:20 EDT
Alert hits:(/G
Company Symbols: NASDAQ-OTCBB:GAMR, ACORN:A.3221249036
Entire $500,000,000 Inventory Will Be Sold
BENSALEM. Pa., Sept. 4, 2012 /PRNewswire/ -- SB Capital Group, LLC, Tiger Capital Group, LLC, and Great American Group, LLC, announced today the formation of a joint venture to conduct a sale of all inventory in the 568 stores of women's retailer Fashion Bug, a unit of Charming Shoppes, Inc., a recently acquired subsidiary of Ascena Retail Group, Inc. The "Total Inventory Blowout Sale" will be conducted in the 568 Fashion Bug stores located in communities across 39 states, and is part of Ascena's planned divestiture of the brand and the orderly wind down of the Fashion Bug operation.
In what will be an epic sale, shoppers will be able to take advantage of the tremendous savings offered at one of the most widely recognized women's stores in the country. Fashion Bug stores are stocked full of fresh new arrivals with the best in fall fashion, and shoppers will find compelling discounts of as much as 50% on everything in Fashion Bug's entire $500,000,000 retail inventory. The "Total Inventory Blowout Sale" will reinforce Fashion Bug's strong, high-value message of "Look Great, Spend Less" and will give women everywhere an unmatched opportunity to build their wardrobes at meaningful discounts off Fashion Bug's already low original prices.
Fashion Bug offers women's apparel in plus, misses and juniors sizes, and includes offerings of intimate apparel, accessories, and footwear. Founded as part of Charming Shoppes, Inc., the first Fashion Bug store was opened in the 1960's in Audubon, New Jersey. The company grew with rapid expansion in the late 1970's, and reached a peak of more than 1,400 stores in the 1990's.
As part of the process, Fashion Bug has retained more than 5,900 store and district personnel to assist the joint venture in operating the stores through the completion of the sale process.
About SB Capital Group, LLC
SB Capital Group, a Schottenstein affiliate, is a leader in the field of asset recovery, rescue finance, restructuring and strategic store closing events. As equity stakeholders in businesses comprising sectors as diversified as retail enterprises, consumer products, franchising, licensing and real property, SB Capital Group leverages resources and depth of experience to provide services with applicability across a wide spectrum of industries. Recognized worldwide as a trusted partner for businesses and professionals, SB Capital Group adds value to high level strategic planning as well as day-to-day operations. Our participation in transactions that span the globe has solidified our reputation as one of the most creative and innovative financial service and asset realization firms in existence today. Discover more at www.sbcapitalgroup.com
About Tiger Capital Group, LLC
Tiger Group provides advisory, restructuring, valuation, disposition and auction services within a broad range of retail, wholesale, and industrial sectors. With over 40 years of experience and substantial financial backing, Tiger offers a uniquely nimble combination of expertise, innovation and financial resources to drive results. Tiger's seasoned professionals help clients identify the underlying value of assets, monitor asset risk factors and, when needed, convert assets to capital in a variety of ways quickly and decisively. Tiger's collaborative and no-nonsense approach is the foundation for its many long-term 'partner' relationships and decades of uninterrupted success. Tiger maintains offices in Boston, Los Angeles, New York and Atlanta. To learn more about Tiger, please visit, www.TigerGroupLLC.com.
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Great American Group(R)* Announces Improved Second Quarter 2012 Financial Results
WOODLAND HILLS, CA -- (Marketwire) -- 08/14/12 -- Great American Group, Inc. (OTCBB: GAMR)
Total revenues of $19.7 million, an increase of 100% from a year ago
Operating income of $0.8 million, versus an operating loss of $2.2 million a year ago
Net income of $0.6 million, versus a net loss of $2.2 million a year ago
Diluted earnings per share of $0.02, versus a diluted loss per share of $0.08 a year ago
Great American Group, Inc. (OTCBB: GAMR) ("Great American Group" or the "Company"), a leading provider of asset disposition, valuation and appraisal services, today announced financial results for its second quarter ended June 30, 2012.
Second Quarter Results
For the second quarter ended June 30, 2012, the Company reported total revenues of $19.7 million, an increase of 100% from revenues of $9.8 million in the second quarter of 2011. Revenues from services and fees were $13.3 million, compared to $9.6 million in the same period the prior year. Revenues from sale of goods were $6.4 million, compared to $0.3 million in the second quarter of 2011. The increase in total revenues during the quarter was primarily due to increases in the auction and liquidation segment of $6.7 million, an increase in revenues in the valuation and appraisal services segment of $0.3 million, and revenues of $2.8 million from the UK retail stores segment, as a result of the Company's investment in Shoon Trading Limited ("Shoon"), a shoe retailer with operations in the United Kingdom. This represents a new reportable segment in our financial statements.
"During the quarter we experienced improvements in our financial results from the previous year," said Andrew Gumaer, Chief Executive Officer of Great American Group. "Our enhanced performance reflects increased activity in our auction and liquidation segment from operations in the United Kingdom and contributions from our GA Keen Realty Advisors division. The new UK retail stores segment operates eleven Shoon retail stores in the United Kingdom and is complementary to our continued expansion in the UK. As we head into the second half of 2012, we remain highly focused on the execution of our business initiatives and achieving our financial objectives to position the business for continued growth and profitability."
Direct cost of services was $5.0 million, compared to $3.5 million a year ago. The increase in direct cost of services was primarily the result of an increase in the number of fee and commission engagements in the second quarter of 2012, where the Company contractually bills fees, commissions and reimbursable expenses, in the auction and liquidation segment as well as an increase in headcount which resulted in an increase in salaries, wages and benefits in the valuation and appraisal segment compared to the same period in 2011. Cost of goods sold was $4.1 million in the second quarter of 2012, compared to $0.4 million in the second quarter of the prior year. The increase in cost of goods sold in the second quarter of 2012 included costs of goods sold of $1.5 million related to retail sales from the Shoon stores located in the United Kingdom.
Selling, general and administrative expenses were $9.8 million, compared to $8.2 million in the second quarter of 2011. The increase in selling, general and administrative expenses was primarily the result of an increase of $0.5 million in the auction and liquidation segment and $1.1 million in the UK retail stores segment which is new in the second quarter as a result of the consolidation of Shoon on May 4, 2012. The increase in selling, general and administrative expenses of $0.1 million related to corporate overhead was offset by the decrease in selling, general and administrative expenses $0.1 million in the valuation and appraisal segment.
On May 4, 2012, the Company invested $0.1 million for a 40% interest in the common stock of Shoon. Shoon purchased the rights to operate the former Shoon internet business and retail stores that were in administration in the United Kingdom. As part of the investment, the Company has also loaned Shoon approximately $1.3 million that is collateralized by retail inventory. The Company, together with its 40% investment in the common stock of Shoon and its control of the majority of the board or directors, is deemed to be the primary beneficiary of Shoon. As such, for generally accepted accounting principles in the United States, the Company is required to consolidate the operations of Shoon. The results of operations of Shoon from May 4, 2012, the date of investment, through June 30, 2012, have been included in the Company's condensed consolidated statements of operations.
In addition, during the second quarter, the Company recorded a gain on bargain purchase of $1.4 million since the fair value of assets acquired in the Shoon transaction exceeded consideration paid. The gain on bargain purchase is record net of tax and is included as a separate component of other income (expense) in the condensed consolidated statements of operations.
Income from operations before provision for income taxes was $1.5 million during the second quarter of 2012, compared to loss from operations before benefit for income taxes of $3.1 million in the second quarter of 2011. Excluding the gain from bargain purchase of $1.4 million included in other income related to the investment and consolidation of Shoon, income from operation before provision for income taxes was $0.2 million during the second quarter of 2012. During the second quarter of 2012, the Company recorded a provision for income taxes of $0.1 million, compared with a benefit for income taxes of $0.9 million in the second quarter of 2011. Overall, in the second quarter of 2012, the Company generated net income of $0.6 million, or $0.02 per diluted share, compared with net loss of $2.2 million, or $0.08 per diluted share, in the second quarter of 2011.
Six Month Results
For the first six months of 2012, the Company reported total revenues of $39.0 million, compared to $23.6 million in the first six months of 2011. Revenues from services and fees were $30.2 million, compared to $22.6 million a year ago. Sales of goods were $8.8 million compared to $1.1 million in the same period of 2011.
Total operating expenses were $35.8 million, compared to $25.6 million in 2011. Operating income was $3.2 million, compared to an operating loss of $1.9 million in the prior year. Earnings from operations before income taxes were $3.3 million, compared to a loss from operations before income taxes of $2.9 million during the first six months of 2011. The Company recorded a provision for income taxes of $0.8 million during the first six months of 2012, compared to a benefit for income taxes of $0.2 million in the same period of 2011. Net income during the first six months of 2012 was $1.7 million, or $0.06 per diluted share, compared with a net loss of $2.8 million, or $(0.10) in the same period of 2011.
Financial Position
At June 30, 2012, the Company had $23.4 million in cash and cash equivalents, an increase of $8.4 million, from $15.0 million at December 31, 2011. Working capital was $29.0 million at June 30, 2012.
Conference Call
The Company will host a conference call at 4:30 p.m. EDT on Tuesday, August 14, 2012, to discuss results for the second quarter ended June 30, 2012. To participate in the event by telephone, please dial (877) 941-1427, 10 minutes prior to the start time (to allow time for registration) and use conference ID #4550214. International callers should dial (480) 629-9664. A digital replay will be available beginning August 14, 2012, at 7:30 p.m. EDT, through August 21, 2012, at 11:59 p.m. EDT. To access the replay, dial (877) 870-5176 (U.S.), and use passcode 4550214. International callers should dial (858) 384-5517 and enter the same passcode. The call will also be broadcast over the Internet and can be accessed on the Investor Relations section of the Company's Web site at www.greatamerican.com. To listen to the webcast, please visit the site at least 15 minutes prior to the start of the call in order to register, download and install any necessary audio software. A replay of the call will also be available for 90 days on the Web site.
About Great American Group, Inc.
Great American Group, Inc. is a leading provider of asset disposition solutions and valuation and appraisal services to a wide range of retail, wholesale and industrial clients, as well as lenders, capital providers, private equity investors and professional service firms. Great American Group has offices in Atlanta, Boston, Charlotte, Chicago, Dallas, London, Los Angeles, New York and San Francisco. For more information, please visit www.greatamerican.com.
*Great American Group and the Eagle Design are trademarks registered in the US Patent and Trademark Office and are exclusive property of Great American Group, Inc.
Forward-Looking Statements
This press release may contain forward-looking statements by Great American Group that are not based on historical fact, including, without limitation, statements containing the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions and statements. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements. Such factors include those risks described from time to time in Great American Group's filings with the SEC, including, without limitation, the risks described in Great American Group's proxy statement/prospectus filed with the SEC on July 19, 2012, and its Annual Report on Form 10-K for the year ended December 31, 2011. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and Great American Group undertakes no duty to update this information.
Note Regarding Use of Non-GAAP Financial Measures
Certain of the information set forth herein, including Adjusted EBITDA, may be considered non-GAAP financial measures. Great American Group believes this information is useful to investors because it provides a basis for measuring Great American Group's performance against the contingent share earnout provisions in the AAMAC transaction. In addition, Great American Group's management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating Great American Group's operating performance, capital resources and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-financial measures as reported by Great American Group may not be comparable to similarly titled amounts reported by other companies. NEED Investment Ideas...?? GO TO:
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