DEI Holdings De-lists Stock
DEI Holdings, the parent company of Directed Electronics, Definitive Technology, Polk Audio, and Directed Canada, announced Friday that it is voluntarily de-listing its stock from the NASDAQ.
The move is coming for several reasons, the company said, including the low level of the stock, compliance costs related to both SEC filings and the Sarbanes-Oxley Act, and the lack of advantage that comes with being a public company in the current climate.
"Our Company continues to generate strong gross margins, cash flow, and EBITDA as exhibited by our significant paydown of $49 million in debt, an 18% reduction, in 2008," company CEO James Minarik said in a statement.
""Without the annual accounting expenses, legal costs, and administrative burden relating to SEC reporting obligations and compliance with the Sarbanes-Oxley Act, we will be able to further significantly reduce our costs while still maintaining a strong financial control environment, and better focus on the day-to-day operations of our business, thereby delivering long-term shareholder value."
DEI's predecessor, Directed Electronics, was founded in 1982 by Darrell Issa, who is now a Republican Congressman from California. The parent company's name was changed to DEI Holdings last June.