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8-K - FORM 8-K - EMERSON RADIO CORP | y89688e8vk.htm |
Exhibit 99.1
NEWS & INFORMATION
FOR:
|
EMERSON RADIO CORP. | |
85 Oxford Drive | ||
Moonachie, NJ 07074 | ||
CONTACT:
|
Investor Relations: | |
Robert Maffei | ||
Investor Relations Manager | ||
(973) 428-2098 |
Monday, February 14, 2011
EMERSON RADIO CORP. REPORTS FISCAL 2011 THIRD QUARTER RESULTS
MOONACHIE, N.J.
February 14, 2011 Emerson Radio Corp. (NYSE AMEX: MSN) today reported
financial results for its third quarter and nine months ended December 31, 2010.
Net income from continuing operations for
the third quarter of fiscal 2011, aided by a $1.0 million
realized gain on the sale of a trading security, was $4.2 million versus $3.4 million for the third
quarter of fiscal 2010, an increase of $0.8 million, or 22.6%. Diluted earnings per share for the
third quarter of fiscal 2011 was $0.15 as compared to $0.13 for the third quarter of fiscal 2010,
an increase of $0.02, or 15.4%. Net income from continuing operations for the nine month period of
fiscal 2011 was $13.3 million versus $7.8 million for the nine month period of fiscal 2010, an
increase of $5.5 million, or 70.4%. Diluted earnings per share for the nine month period of fiscal
2011 was $0.49 as compared to $.29 for the nine month period of fiscal 2010, an increase of $0.20
per diluted share, or 69%.
Operating income for the third quarter of fiscal 2011 was $5.0 million as compared to operating
income in the third quarter of fiscal 2010 of $4.6 million, an increase of $0.4 million, or 7.5%.
The increase in third quarter fiscal 2011 operating income over the prior year was driven by lower
SG&A expenses and other operating costs, partially offset by lower net revenues. Operating income
for the nine month period of fiscal 2011 was $15.7 million, an increase of $6.3 million, or 66.8%,
over operating income of $9.4 million for the
nine month period of fiscal 2010. The increase in operating income for the nine month period of
fiscal 2011 versus the prior year period was due to lower SG&A expenses and other operating costs,
as well higher net revenues.
Net revenues for the third quarter of fiscal 2011 decreased by $7.4 million, or 15.5%, to $40.6
million as compared to net revenues in the third quarter of fiscal 2010 of $48.0. Our third
quarter fiscal 2011 net sales of houseware products, driven by decreases in microwave ovens,
toaster ovens and coffee makers, which were partially offset by increases in compact refrigerators
and wine coolers, decreased by $4.0 million, or 11.0%, versus the third quarter of fiscal 2010.
Our third quarter fiscal 2011 net sales of audio products declined by $2.7 million, or 31.3%,
versus the third quarter of fiscal 2010. The third quarter of fiscal 2011 net sales comparative to
prior year was also adversely affected by $1.2 million due to the absence of themed products sales
in the current quarter, partially offset by a $0.5 million increase in year-over-year licensing
revenues. Net revenues for the nine month period of fiscal 2011 were $159.7 million, an increase
of $4.3 million, or 2.8%, over the nine month period of fiscal 2010 net revenues of $155.4. Our
net sales during the nine month period of fiscal 2011 of houseware products, driven by increases in
compact refrigerators, microwave ovens, and wine coolers, partially offset by decreases in toaster
ovens and coffee makers, increased by $21.8 million, or 18.0% over the nine month period of fiscal
2010, and were partially offset by lower year-over-year net sales of audio products and the absence
during the nine month period of fiscal 2011 of themed products sales. Our licensing revenues for
the nine months of fiscal 2011 were up 8.2%, or $0.4 million.
Adrian Ma, Chief Executive Officer of Emerson Radio, commented Despite a challenging quarter, our
operating income, net income and earnings per share for both the third fiscal quarter and the
fiscal year-to-date period were all higher than the prior year levels, due to our lower
year-over-year level of SG&A and operating costs, a realized gain on the par value sale during the
quarter of an auction rate security, as well as the higher year-to-date net revenues achieved.
About Emerson Radio Corp.
Emerson Radio Corporation (NYSE AMEX: MSN), founded in 1948, is headquartered in Moonachie, N.J.
The Company designs, sources, imports and markets a variety of houseware and consumer electronic
products, and licenses its trademarks to others on a worldwide basis for a variety of products. For
more information, please visit Emerson Radios Web site at www.emersonradio.com.
Forward Looking Statements
This release contains forward-looking statements made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect
managements current knowledge, assumptions, judgment and expectations regarding future performance
or events. Although management believes that the expectations reflected in such statements are
reasonable, they give no assurance that such expectations will prove to be correct and you should
be aware that actual results could differ materially from those contained in the forward-looking
statements. Forward-looking statements are subject to a number of risks and uncertainties,
including the risk factors detailed in the Companys reports as filed with the Securities and
Exchange Commission. The Company assumes no obligation to update the information contained in this
news release.
EMERSON RADIO CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except earnings per share data)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except earnings per share data)
Three Months Ended | Nine Months Ended | |||||||||||||||
31-Dec | 31-Dec | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net revenues |
40,571 | 48,038 | 159,692 | 155,411 | ||||||||||||
Costs and expenses: |
||||||||||||||||
Cost of sales |
33,077 | 39,298 | 136,492 | 132,602 | ||||||||||||
Other operating costs and expenses |
567 | 708 | 1,578 | 2,563 | ||||||||||||
Selling, general and administrative expenses |
1,945 | 3,397 | 5,919 | 10,829 | ||||||||||||
35,589 | 43,403 | 143,989 | 145,994 | |||||||||||||
Operating income |
4,982 | 4,635 | 15,703 | 9,417 | ||||||||||||
Interest income, net |
10 | (1 | ) | 24 | 21 | |||||||||||
Realized gains on trading securities |
966 | | 966 | | ||||||||||||
Income from continuing operations before income taxes |
5,958 | 4,634 | 16,693 | 9,438 | ||||||||||||
Provision for income taxes |
1,774 | 1,221 | 3,407 | 1,643 | ||||||||||||
Income from continuing operations |
4,184 | 3,413 | 13,286 | 7,795 | ||||||||||||
Loss from discontinued operations, net of tax benefit |
| | | (55 | ) | |||||||||||
Net income |
4,184 | 3,413 | 13,286 | 7,740 | ||||||||||||
Basic net income per share |
||||||||||||||||
Continuing operations |
$ | 0.15 | $ | 0.13 | $ | 0.49 | $ | 0.29 | ||||||||
Discontinued operations |
| | | | ||||||||||||
Net |
$ | 0.15 | $ | 0.13 | $ | 0.49 | $ | 0.29 | ||||||||
Diluted net income (loss) per share |
||||||||||||||||
Continuing operations |
$ | 0.15 | $ | 0.13 | $ | 0.49 | $ | 0.29 | ||||||||
Discontinued operations |
| | | | ||||||||||||
Net |
$ | 0.15 | $ | 0.13 | $ | 0.49 | $ | 0.29 | ||||||||
Weighted average shares outstanding: |
||||||||||||||||
Basic |
27,130 | 27,130 | 27,130 | 27,130 | ||||||||||||
Diluted |
27,131 | 27,133 | 27,131 | 27,131 |
EMERSON RADIO CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands except share data)
CONSOLIDATED BALANCE SHEETS
(In thousands except share data)
31-Dec-10 | 31-Mar-10 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 18,727 | $ | 9,969 | ||||
Restricted cash |
591 | 5,083 | ||||||
Accounts receivable, net |
8,197 | 20,350 | ||||||
Other receivables |
1,001 | 1,037 | ||||||
Due from affiliates |
70 | | ||||||
Inventory, net |
24,240 | 10,952 | ||||||
Prepaid expenses and other current assets |
457 | 736 | ||||||
Deferred tax assets |
3,300 | 3,383 | ||||||
Total current assets |
56,583 | 51,510 | ||||||
Property, plant and equipment, net |
2,857 | 3,131 | ||||||
Trademarks and other intangible assets, net |
1,545 | 1,606 | ||||||
Due from affiliates |
0 | 185 | ||||||
Investments in marketable securities |
3,897 | 6,031 | ||||||
Deferred tax assets |
4,185 | 6,588 | ||||||
Other assets |
864 | 205 | ||||||
Total assets |
$ | 69,931 | $ | 69,256 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Short-term borrowings |
$ | 2,478 | $ | 5,629 | ||||
Current maturities of long-term borrowings |
10 | 30 | ||||||
Accounts payable and other current liabilities |
11,315 | 20,776 | ||||||
Due to affiliates |
3 | 28 | ||||||
Accrued sales returns |
893 | 957 | ||||||
Income taxes payable |
393 | 174 | ||||||
Total current liabilities |
15,092 | 27,594 | ||||||
Long-term borrowings |
65 | 201 | ||||||
Deferred tax liabilities |
144 | 119 | ||||||
Total liabilities |
15,301 | 27,914 | ||||||
Shareholders equity: |
||||||||
Preferred shares - 10,000,000 shares
authorized; 3,677 shares issued and
outstanding; liquidation preference of $3,677,000 |
3,310 | 3,310 | ||||||
Common shares $.01 par value, 75,000,000
shares authorized; 52,965,797 shares issued
and 27,129,832 shares outstanding |
529 | 529 | ||||||
Capital in excess of par value |
98,785 | 98,785 | ||||||
Accumulated other comprehensive losses |
(82 | ) | (82 | ) | ||||
Accumulated deficit |
(23,688 | ) | (36,976 | ) | ||||
Treasury stock 25,835,965 shares, at cost |
(24,224 | ) | (24,224 | ) | ||||
Total shareholders equity |
54,630 | 41,342 | ||||||
Total liabilities and shareholders
equity |
$ | 69,931 | $ | 69,256 | ||||