Exhibit 99.1
NEWS & INFORMATION
FOR: | EMERSON RADIO CORP. | |||
610 Fifth Ave | ||||
New York, NY 10020 | ||||
CONTACT: | Emerson Radio Corp. or: | Investor Relations: | ||
Greenfield Pitts | Robert Maffei | |||
Chief Financial Officer | Investor Relations Manager | |||
(212) 897-5441 | (973) 428-2098 | |||
Brainerd Communicators | ||||
Denise Roche | ||||
(212) 986-6667 | ||||
Media Relations: | ||||
Brainerd Communicators, Inc. | ||||
Scott Cianciulli | ||||
(212) 986-6667 |
Friday, February 13, 2009
EMERSON RADIO CORP. REPORTS FISCAL 2009 THIRD QUARTER RESULTS
PARSIPPANY, N.J. — February 13, 2009 — Emerson Radio Corp. (NYSE Alternext US, LLC: MSN) today reported financial results for its third quarter ended December 31, 2008.
Net revenues for the third quarter of fiscal 2009 were $60.3 million, a decrease of $15.5 million compared to net revenues in the third quarter of fiscal 2008. The decrease in net revenues during the third quarter of fiscal 2009 was primarily due to lower sales of the Company’s traditional audio products and iPod ® accessories, and Mattel ® licensed themed products.
Operating loss for the third quarter of fiscal 2009 was $2.4 million compared to an operating loss of $1.7 million during the third quarter of fiscal 2008. Operating loss for the third quarter increased compared to the
prior year primarily as a result of the lower revenue, coupled with softer margins in the fiscal 2009 third quarter, partially offset by lower SG&A expenses.
Net loss for the third quarter of fiscal 2009 was $2.1 million, or $0.08 per diluted share, compared to a net income of $1.1 million, or $0.04 per diluted share, for the third quarter of fiscal 2008.
“Emerson’s fiscal third quarter results were negatively impacted by the continuing economic downturn and the resulting effect it had on our retail partners who tightened inventory levels to cope with slower sales. Management is mindful that the current economic slowdown may persist for several quarters, and we have taken steps to reduce costs and expenses of our operations, as evidenced by a 24% decline in SG&A and other operating costs in the third quarter of fiscal 2009 as compared to the third quarter of fiscal 2008. In addition, our balance sheet remains strong with almost $16 million in cash and no long-term debt,” said John Spielberger, President of North American Operations. “Looking ahead, we will continue to look at all strategic options to improve efficiencies throughout the organization and further improve operations to better position the Company to drive sales. This includes continuing to redesign products and working with our retail partners to gain shelf space for products with the Emerson brand — a respected name which consumers associate with value and reliability.”
About Emerson Radio Corp.
Emerson Radio Corporation (NYSE Alternext US, LLC: MSN), founded in 1948, is headquartered in Parsippany, N.J. The Company designs, markets and licenses, worldwide, a variety of consumer electronics and home appliances including microwaves and wine coolers, clock radios, full lines of televisions and other video products, and audio and home theater products. For more information, please visit Emerson Radio’s 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 management’s 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 Company’s 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 | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Net revenues | ||||||||||||||||
Net revenues | $ | 60,247 | $ | 75,543 | $ | 158,434 | $ | 185,969 | ||||||||
Net revenues-related party | — | 246 | 15 | 370 | ||||||||||||
60,247 | 75,789 | 158,449 | 186,339 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of sales | 55,724 | 68,191 | 141,106 | 164,832 | ||||||||||||
Cost of sales-related party | — | 232 | — | 232 | ||||||||||||
Other operating costs and expenses | 2,063 | 1,434 | 4,787 | 4,778 | ||||||||||||
Selling, general and administrative expenses (exclusive of reimbursement claim-related party) | 4,851 | 7,651 | 14,475 | 17,748 | ||||||||||||
Reimbursement claim-related party | — | — | 313 | — | ||||||||||||
62,638 | 77,508 | 160,681 | 187,590 | |||||||||||||
Operating (loss) | (2,391 | ) | (1,719 | ) | (2,232 | ) | (1,251 | ) | ||||||||
Gain on sale of building | — | — | — | 854 | ||||||||||||
Gains on foreign exchange forward contracts | — | 515 | — | 515 | ||||||||||||
Interest income (expense), net | 5 | (76 | ) | 186 | (72 | ) | ||||||||||
Interest income-related party | — | — | — | 163 | ||||||||||||
Unrealized holding (losses) on trading securities | (410 | ) | — | (431 | ) | — | ||||||||||
Realized gains on trading securities | 91 | — | 623 | — | ||||||||||||
(Loss) income before income taxes and minority interest | (2,705 | ) | (1,280 | ) | (1,854 | ) | 209 | |||||||||
Provision (benefit) for income taxes | (616 | ) | (2,394 | ) | 610 | 1,937 | ||||||||||
Minority interest in loss of consolidated subsidiary | — | — | (133 | ) | — | |||||||||||
Net (loss) income | ($2,089 | ) | $ | 1,114 | ($2,331 | ) | ($1,728 | ) | ||||||||
Net (loss) income per share: | ||||||||||||||||
Basic | ($0.08 | ) | $ | 0.04 | ($0.09 | ) | ($0.06 | ) | ||||||||
Diluted | ($0.08 | ) | $ | 0.04 | ($0.09 | ) | ($0.06 | ) | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 27,130 | 27,130 | 27,130 | 27,125 | ||||||||||||
Diluted | 27,130 | 27,136 | 27,130 | 27,125 |
EMERSON RADIO CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(In thousands)
December 31, 2008 | March 31, 2008(A) | |||||||
(Unaudited) | ||||||||
Cash and cash equivalents | $ | 15,681 | $ | 14,444 | ||||
Restricted cash | 96 | 0 | ||||||
Foreign exchange forward contracts | — | 134 | ||||||
Accounts receivable (less allowances of $4,325 and $4,148, respectively) | 17,031 | 17,289 | ||||||
Due from affiliates | 78 | 765 | ||||||
Inventory, net | 30,363 | 24,854 | ||||||
Deferred tax assets | 4,654 | 5,412 | ||||||
Other current assets | 3,982 | 4,377 | ||||||
Total current assets | 71,885 | 67,275 | ||||||
Property, plant and equipment, net | 1,633 | 1,902 | ||||||
Investments in marketable securities | 7,090 | 11,948 | ||||||
Other assets | 6,948 | 6,804 | ||||||
Total assets | $ | 87,556 | $ | 87,929 | ||||
Current liabilities | 25,112 | 22,978 | ||||||
Long-term borrowings | 81 | 142 | ||||||
Other long term debt | 81 | 57 | ||||||
Minority interest | — | 133 | ||||||
Shareholders’ equity | 62,282 | 64,619 | ||||||
Total liabilities and equity | $ | 87,556 | $ | 87,929 | ||||
(A) | Reference is made to the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2008 filed with the Securities and Exchange Commission in July 2008. The Company filed a 10-K/A in July 2008. |