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Stock Market & Financial Investment News

News Breaks
December 5, 2012
09:28 EDTMFRMMattress Firm gaps down sharply on guidance cut, levels to watch
The stock is down over 19% at time of writing, trading last at $24.39. Last night after the bell, the company announced earnings and reduced its fiscal year 2012 EPS view to $1.49 to $1.52 per share against previous guidance of $1.67 to $1.73. At current levels, next support is at $22.82, a pivot low. Resistance is at $25.51.
News For MFRM From The Last 14 Days
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February 9, 2016
17:26 EDTMFRMBerkshire Partners reports 10.4% stake in Mattress Firm
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February 8, 2016
09:07 EDTMFRM40 North sends letter to board of Mattress Firm, urges board changes
40 North Management, which holds a 8.5% stake in Mattress Firm, disclosed a letter it sent to the board of directors of the company, in which the investor stated in part: "[We] are compelled to write now given our recent dialogue with the Board and the Board's decision to amend the terms of the Sleepy's acquisition on February 3rd and issue over half a million shares of Company common stock to Company insiders including J.W. Childs affiliates at a near two-year low, a transaction which can only be described as an egregious insider deal. We recognize the current volatility in the credit markets, which pushed the Board to consider various financing alternatives including further equitizing the Company. But rather than provide all shareholders the opportunity to participate in the contemplated dilutive share offering, the Board deplorably issued equity solely to its insiders when the Company's stock was trading at what a J.W. Childs representative described as a significantly undervalued price...40 North would gladly have participated in the February 3rd share issuance had it been offered the opportunity to do so, and we believe the Company would have been far better served by issuing the stock to its truly long-term shareholders rather than J.W. Childs who has been a consistent seller of the stock for years. In recent conversations with members of the Board affiliated with J.W. Childs, we discussed changes to the makeup of the current Board to address our governance concerns, including a proposal made by members of the Board to add two 40 North representatives to the Board. While we are clearly willing to serve on the Board, we ultimately concluded that the appointment of 40 North representatives alone was inadequate and a broader transformation to the composition of the Board was required to ameliorate the Company's significant corporate governance issues and shareholder misalignment. In particular, J.W. Childs must commit to taking a minority position, commensurate with its economic ownership, and to the appointment of new unaffiliated independent directors to serve as the majority."
February 5, 2016
16:08 EDTMFRMMattress Firm sees annual synergies of $40M by FY18 from Sleepy's acquisition
Mattress Firm announced the completion of its acquisition of all of the outstanding equity interests in HMK Mattress Holdings, the holding company of Sleepy's and related entities, for an aggregate purchase price of $780M, subject to working capital and other customary adjustments. The Company expects to generate annual synergies of approximately $40M by Fiscal 2018. In addition, the Company expects to receive future cash income tax benefits totaling over $11M annually for more than 10 years from the deductible tax basis goodwill generated from the transaction and from the carryover tax basis of other assets, both subject to the Company's ability to generate future taxable income. Mattress Firm expects mid-single digit EPS dilution in FY16, becoming EPS accretive in FY17 and growing to high-single digit EPS accretion by FY18, excluding one-time costs. The combined company anticipates it can generate significant free cash flow, which can be used primarily to pay down debt and/or undertake future organic growth or potential acquisitions.
February 3, 2016
14:00 EDTMFRMMattress Firm agrees to issue 1.76M shares of common stock
On February 3, 2016, the company agreed to issue an aggregate of 1,762,236 shares of common stock. The Company expects to complete the issuance of the shares of common stock, which issuance will be equivalent to approximately 4.9% of the currently issued and outstanding shares of common stock, on February 5. The Company will receive cash in exchange for 699,300 shares and the remaining 1,062,936 shares will be issued as partial purchase price consideration in exchange for equity interests in Sleepy's. The Board of Directors of the Company approved the issuance after the close of trading on February 2 at a price per share of $35.75.
13:53 EDTMFRMMattress Firm sees Sleepy transaction mid-single digit dilutive in FY16
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