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8-K - FORM 8-K - EMERSON RADIO CORP | c24731e8vk.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, November 14, 2011
EMERSON RADIO CORP. REPORTS FISCAL 2012 SECOND QUARTER RESULTS
MOONACHIE, N.J. November 14, 2011 Emerson Radio Corp. (NYSE AMEX: MSN) today reported
financial results for its second quarter and six month period ended September 30, 2011.
Net revenues for the second quarter of fiscal 2012 were $41.4 million, a decrease of $10.6 million,
or 20.4%, from the second quarter of fiscal 2011 net revenues of $52.0 million, principally driven
by a decrease in sales of microwave ovens, audio products, toaster ovens and coffee makers,
partially offset by increases in sales of compact refrigerators and wine coolers. Net revenues for
the six month period of fiscal 2012 were $92.9 million, a decrease of $26.2 million, or 22.0%, from
the six month period of fiscal 2011 net revenues of $119.1 million, principally driven by a
decrease in sales of microwave ovens, audio products, toaster ovens and wine coolers, partially
offset by increases in sales of compact refrigerators.
Operating income for the second quarter of fiscal 2012 was $1.7 million, a decrease of $1.6
million, or 49.0%, from the second quarter of fiscal 2011 operating income of $3.3 million.
Operating income for the six month period of fiscal 2012 was $5.5 million, a decrease of $5.2
million, or 48.3%, from the six month period of fiscal 2011 operating income of $10.7 million. The
decline in year-over-year operating income for both the second quarter and six month period of
fiscal 2012 was driven by the lower year-over-year net sales, higher year-over-year landed product
costs as a percent of selling price, and higher year-over-year selling, general and administrative
expenses due primarily to an increase in legal fees.
Net income for the second quarter of fiscal 2012 was $1.8 million, a decrease of $1.4 million, or
45.3%, from the second quarter of fiscal 2011 net income of $3.2 million. Net income for the six
month period of fiscal 2012 was $5.1 million, a decrease of $4.0 million, or 44.0%, from the six
month period of fiscal 2011 net income of $9.1 million, and was aided by a realized gain of $0.8
million recorded in the first quarter of fiscal 2012 on the sale of a marketable security. Diluted
earnings per share for the second quarter of fiscal 2012 were $0.06 as compared to $0.12 for the
second quarter of fiscal 2011, a
decrease of $0.06, or 50.0%. Diluted earnings per share for the six month period of fiscal 2012
were $0.19 as compared to $0.34 for the six month period of fiscal 2011, a decrease of $0.15, or
44.1%.
Duncan Hon, Chief Executive Officer of Emerson Radio, commented As expected, in the second quarter
of fiscal 2012, we saw the continuation of the challenging and highly competitive sales environment
that we faced in the first quarter, as well as higher product costs due to the continuing
appreciation of the renminbi and increases in costs of production in China. These factors led to
the year-over-year declines in net revenues and net income for the second quarter and six month
periods. Looking forward, we continue to anticipate that these factors will persist throughout the
remainder of the fiscal year. As always, we will remain focused on keeping our costs as low as
possible and providing the consumer with the highest level of value in the marketplace on the
products we offer.
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)
Three Months Ended | Six Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net revenues: |
||||||||||||||||
Net revenues |
$ | 41,380 | $ | 51,966 | $ | 92,904 | $ | 119,121 | ||||||||
Costs and expenses: |
||||||||||||||||
Cost of sales |
37,005 | 45,892 | 82,600 | 103,415 | ||||||||||||
Other operating costs and expenses |
302 | 712 | 689 | 1,011 | ||||||||||||
Selling, general and administrative expenses |
2,380 | 2,045 | 4,069 | 3,974 | ||||||||||||
39,687 | 48,649 | 87,358 | 108,400 | |||||||||||||
Operating income |
1,693 | 3,317 | 5,546 | 10,721 | ||||||||||||
Other income (expense): |
||||||||||||||||
Interest (expense) income, net |
(1 | ) | 4 | 30 | 14 | |||||||||||
Realized gain on sale of marketable security |
| | 828 | | ||||||||||||
Income before income taxes |
1,692 | 3,321 | 6,404 | 10,735 | ||||||||||||
(Benefit) provision for income taxes |
(71 | ) | 98 | 1,304 | 1,633 | |||||||||||
Net income |
1,763 | 3,223 | 5,100 | 9,102 | ||||||||||||
Net income per share: |
||||||||||||||||
Basic |
0.06 | 0.12 | 0.19 | 0.34 | ||||||||||||
Diluted |
0.06 | 0.12 | 0.19 | 0.34 | ||||||||||||
Weighted average shares outstanding: |
||||||||||||||||
Basic |
27,130 | 27,130 | 27,130 | 27,130 | ||||||||||||
Diluted |
27,130 | 27,131 | 27,130 | 27,131 |
EMERSON RADIO CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands except share data)
CONSOLIDATED BALANCE SHEETS
(In thousands except share data)
09/30/11 | ||||||||
(Unaudited) | 3/31/2011 (A) | |||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash and cash equivalents |
$ | 31,938 | $ | 39,796 | ||||
Restricted cash |
667 | 600 | ||||||
Investment in marketable security |
| 4,725 | ||||||
Accounts receivable, net |
16,264 | 10,929 | ||||||
Other receivables |
1,012 | 1,413 | ||||||
Due from affiliates |
9 | | ||||||
Inventory, net |
25,312 | 8,515 | ||||||
Prepaid expenses and other current assets |
964 | 549 | ||||||
Deferred tax assets |
2,193 | 2,825 | ||||||
Total current assets |
78,359 | 69,352 | ||||||
Property, plant, and equipment, net |
2,754 | 2,921 | ||||||
Trademarks, net |
1,545 | 1,545 | ||||||
Deferred tax assets |
2,080 | 2,540 | ||||||
Other assets |
330 | 358 | ||||||
Total assets |
$ | 85,068 | $ | 76,716 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current Liabilities: |
||||||||
Short-term borrowings |
| $ | 2,466 | |||||
Current maturities of long-term borrowings |
44 | 46 | ||||||
Accounts payable and other current liabilities |
20,676 | 14,408 | ||||||
Due to affiliates |
1 | 2 | ||||||
Accrued sales returns |
1,586 | 1,199 | ||||||
Income taxes payable |
117 | 196 | ||||||
Total current liabilities |
22,424 | 18,317 | ||||||
Long-term borrowings |
117 | 150 | ||||||
Deferred tax liabilities |
162 | 158 | ||||||
Total liabilities |
22,703 | 18,625 | ||||||
Shareholders Equity: |
||||||||
Preferred shares $.01 par value, 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) income |
(82 | ) | 746 | |||||
Accumulated deficit |
(15,953 | ) | (21,055 | ) | ||||
Treasury stock, at cost, 25,835,965 shares |
(24,224 | ) | (24,224 | ) | ||||
Total shareholders equity |
62,365 | 58,091 | ||||||
Total liabilities and shareholders equity |
$ | 85,068 | $ | 76,716 | ||||
(A) | Reference is made to the Companys Annual Report on Form 10-K for the fiscal year ended
March 31 2011 filed with the Securities and Exchange Commission on July 14, 2011. |