Columbia Sportswear 2001 Annual Report Download - page 28

Our Common Stock Price May Be Volatile
The price of our common stock has Öuctuated substantially since our initial public oÅering. Our common
stock is traded on the Nasdaq National Market, which has experienced and is likely to experience signiÑcant
price and volume Öuctuations that could adversely aÅect the market price of our common stock without regard
to our operating performance. We also believe factors such as Öuctuations in Ñnancial results, variances from
Ñnancial market expectations, changes in earnings estimates by analysts, or announcements by us or
competitors may cause the market price of the common stock to Öuctuate, perhaps substantially.
Insiders Control a Majority of Our Common Stock and Could Sell Shares
Timothy Boyle, Gert Boyle and Sarah Bany (Gert Boyle's daughter and member of our Board of
Directors), beneÑcially own a majority of our Common Stock (approximately 65 percent as of December 31,
2001). As a result, if acting together, they will be able to eÅectively control matters requiring shareholder
approval without the cooperation of outside shareholders. Shares held by these three insiders are available for
resale, subject to the limitations of Rule 144 under the Securities Act of 1933. The sale or prospect of the sale
of a substantial number of these shares could have an adverse aÅect on the market price of our Common
Stock.
Item 7(a). Quantitative and Qualitative Disclosures about Market Risk
The information required by this item is included in Management's Discussion and Analysis of Financial
Condition and Results of Operations and is incorporated herein by this reference.
Item 8. Financial Statements and Supplemental Data
Our management is responsible for the information and representations contained in this report. The
Ñnancial statements have been prepared in conformity with accounting principles generally accepted in the
United States of America, which we considered appropriate in the circumstances and include some amounts
based on our best estimates and judgments. Other Ñnancial information in this report is consistent with these
Ñnancial statements.
Our accounting systems include controls designed to reasonably assure that assets are safeguarded from
unauthorized use or disposition and which provide for the preparation of Ñnancial statements in conformity
with accounting principles generally accepted in the United States of America. These systems are supple-
mented by the selection and training of qualiÑed Ñnancial personnel and an organizational structure providing
for appropriate segregation of duties.
The Audit Committee is responsible for recommending to the Board of Directors the appointment of the
independent accountants and reviews with the independent accountants and management the scope and the
results of the annual examination, the eÅectiveness of the accounting control system and other matters relating
to our Ñnancial aÅairs as they deem appropriate.
22