Attached files
| file | filename |
|---|---|
| 10-Q - FORM 10-Q - MERISEL INC /DE/ | merisel_10q-033110.htm |
| EX-32 - EXHIBIT 32 - MERISEL INC /DE/ | ex32.htm |
| EX-31.1 - EXHIBIT 31.1 - MERISEL INC /DE/ | ex31-1.htm |
| EX-31.2 - EXHIBIT 31.2 - MERISEL INC /DE/ | ex31-2.htm |
| EX-10.30 - MERISEL INC /DE/ | ex10-30.htm |
Exhibit
99.1
News
Merisel,
Inc. Announces First Quarter 2010 Results
Adjusted
net loss improved by 25% for the period and the Company reported significantly
reduced operating expenses compared to a year ago.
(In
thousands except for per share amounts)
New York, New York –
May 14, 2010 – Merisel, Inc. (OTC: MSEL.pk), a leading provider of visual
communications and brand imaging solutions to the consumer products, retail,
advertising and entertainment industries, today reported financial results for
the first quarter ended March 31, 2010.
Merisel
reported a net loss available to common stockholders of ($1,761) or ($0.24) per
share for the first quarter of 2010 compared to ($492) or ($0.07) per share for
the first quarter of 2009. The 2009 period included a $1,927 gain
(net of $73 of expenses) related to the settlement of litigation with American
Capital Strategies, Ltd. Net Sales were $15,006 and $17,102 for the
quarters ended March 31, 2010 and 2009, respectively.
Highlights
for the period included:
|
|
·
|
Gross
Profit improved to 38.0% in the 2010 period compared to 37.2% in the 2009
period;
|
|
|
·
|
Excluding
the net settlement gain recorded during the 2009 period, selling, general
and administrative expenses were reduced by $1,392 or 17% during the 2010
period compared to the 2009 period;
|
|
|
·
|
Excluding
the net settlement gain and taxes recorded during the 2009 period, the net
loss available to common stockholders improved by $583 in the 2010 period
compared to the 2009 period - an improvement of
25%;
|
|
|
·
|
Revenues
in February and March exceeded year ago
levels.
|
Donald R.
Uzzi, Chairman and CEO, noted that Merisel’s net loss available to common
stockholders in the first quarter of 2010 of ($1,761) improved compared to the
2009 first quarter when adjusted for the net settlement gain and taxes, which
resulted in an adjusted net loss available to common stockholders of ($2,344)
for the 2009 period. “Our cost management during the recession,
coupled with improved operational efficiencies in all of our facilities, is
reflected in this improvement. This is the second consecutive quarter
that the adjusted net loss improved over the prior year despite revenue declines
reported in each of those periods.”
Mr. Uzzi
further noted that the industry continues to experience weak demand which began
in 2008; however, the operational efficiencies and reduced cost structure of
Merisel today positions Merisel as a leader in the industry. “We are
seeing increased spending from a variety of customers, but remain cautious
overall as we look ahead. Merisel has been able to maintain a strong
balance sheet while others in our industry have not. Managing our
business in today’s still weak economic environment continues to be a challenge;
however we continue to focus our efforts for the long term benefit of our
stockholders and customers both now and in the future.”
About
Merisel
Merisel,
headquartered in New York, N.Y., is a leading visual communications and brand
imaging solutions provider to its clients. Merisel provides a broad portfolio of
digital and graphic services to clients in the retail, manufacturing, beverage,
cosmetic, advertising, entertainment and consumer packaged goods industries.
These solutions are delivered to clients through its portfolio companies:
ColorEdge, Crush Creative, Comp 24, and Fuel Digital. In March 2010, Crush
Creative and Fuel Digital were consolidated under the ColorEdge brand. Merisel
has sales offices in New York City, Atlanta, Los Angeles, Chicago and Portland,
Oregon, and production facilities in New York, New Jersey, Atlanta and Los
Angeles to ensure the highest quality solutions and services to its clients.
Learn more at www.merisel.com.
Contact:
Victor
Cisario
(212)
502-6545
victor.cisario@merisel.com
Cautionary
Statement
This
press release contains forward-looking statements that involve risks and
uncertainties concerning Merisel's expectations for future performance
(including without limitation the quotations from management in this press
release). In this context, forward-looking statements often address Merisel’s
expected future business and financial performance and financial condition, and
often contain words such as "expect," "anticipate," "intend," "plan," "believe,"
"seek," "see," or "will." Any such forward-looking statements are inherently
speculative and are based on currently available information, operating plans
and projections about future events and trends. As such, these statements are
subject to numerous risks and uncertainties that include, among others, the
impact of management and organizational changes, the implementation of ongoing
strategic and cost initiatives, changes in and a dependence on key personnel,
the outcome of pending legal proceedings, the severity and duration of the
current economic conditions and changes in economic conditions. These
uncertainties may cause Merisel’s actual future results to be materially
different than those expressed in such forward-looking statements. All
information set forth in this press release is as of May 13, 2010. These
forward-looking statements should not be relied upon as representing the
Company’s views as of any date subsequent to the date of the press release. The
Company undertakes no obligation to update any such forward-looking statements.
More information about the potential factors that could affect Merisel’s
business and financial results is included in the Company's Annual Report on
Form 10-K for the year ended December 31, 2009, which is on file with the SEC
and available on the SEC’s website at www.sec.gov.
MERISEL,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In
thousands, except per share data)
(Unaudited)
|
Three
Months Ended March 31,
|
||||||||
|
2010
|
2009
|
|||||||
|
Net
sales
|
$ | 15,006 | $ | 17,102 | ||||
|
Cost
of sales
|
9,311 | 10,736 | ||||||
|
Gross
profit
|
5,695 | 6,336 | ||||||
|
Selling,
general & administrative expenses
|
6,685 | 6,150 | ||||||
|
Operating
income (loss)
|
(990 | ) | 216 | |||||
|
Interest
expense, net
|
131 | 41 | ||||||
|
(Loss)
income before provision for income tax
|
$ | ( 1,121 | ) | 175 | ||||
|
Income
tax provision
|
- | 75 | ||||||
|
Net
(loss) income
|
$ | ( 1,121 | ) | 100 | ||||
|
Preferred
stock dividends
|
640 | 592 | ||||||
|
Net
loss available to common stockholders
|
$ | ( 1,761 | ) | $ | ( 492 | ) | ||
|
Loss
per share (basic and diluted):
|
||||||||
|
Net
loss available to common stockholders
|
$ | ( 0.24 | ) | $ | ( 0.07 | ) | ||
|
Weighted
average number of shares:
|
||||||||
|
Basic
|
7,213 | 7,241 | ||||||
|
Diluted
|
7,213 | 7,241 | ||||||
MERISEL, INC. AND
SUBSIDIARIES
Reconciliation
of Non-GAAP Financial Information to GAAP
(In
Thousands)
Unaudited
Supplemental Data:
The
following information is not a financial measure under generally accepted
accounting principles (GAAP). In addition, it should not be construed as an
alternative to any other measures of performance determined in accordance with
GAAP, or as an indicator of our operating performance, liquidity or cash flows
generated by operating, investing and financing activities as there may be
significant factors or trends that it fails to address. We present this
financial information because we believe that it is helpful to some investors as
one measure of our operations. We caution investors that non-GAAP financial
information, by its nature, departs from traditional accounting conventions;
accordingly, its use can make it difficult to compare our results with our
results from other reporting periods and with the results of other
companies.
|
Three
Months Ended March 31,
|
||||||||
|
2010
|
2009
|
|||||||
|
Net
loss available to common stockholders
|
$ | ( 1,761 | ) | $ | ( 492 | ) | ||
|
Add
(subtract):
|
||||||||
|
Net
settlement gain
|
- | $ | ( 1,927 | ) | ||||
|
Taxes
|
- | 75 | ||||||
|
Adjusted
net loss available to common stockholders (non-GAAP)
|
$ | ( 1,761 | ) | $ | ( 2,344 | ) | ||
|
Selling,
general & administrative expenses
|
$ | 6,685 | $ | 6,150 | ||||
|
Add:
|
||||||||
|
Net
settlement gain
|
- | 1,927 | ||||||
|
Adjusted
selling, general & administrative expenses (non-GAAP)
|
$ | 6,685 | $ | 8,077 |