Exhibit 99.1
SOURCE: Emerson Radio Corp.
Emerson Radio Corp. Reports Fiscal 2010 Third Quarter Results
MOONACHIE, NJ—(Marketwire — February 12, 2010) — Emerson Radio Corp. (NYSE Amex:MSN) today reported financial results for its third quarter and nine months ended December 31, 2009.
Net revenues for the third quarter of fiscal 2010 decreased $12.1 million, or 20.1%, to $48.0 million as compared to net revenues in the third quarter of fiscal 2009 of $60.1 million, and net revenues for fiscal year 2010 to date decreased $2.0 million, or 1.2%, to $155.4 million as compared to net revenues of $157.4 million in the same period of fiscal 2009. The decrease in net revenues for the third quarter of fiscal 2010 as compared to the prior year was due to lower sales across all categories and is reflective of a lower level of cyclicality in the current fiscal year’s revenue stream as compared to the prior year, when a majority of the Company’s annual sales were recorded in the third fiscal quarter. The decrease in net revenues for the fiscal year 2010 to date versus the prior year was due to lower sales of audio and themed products, partially offset by higher sales of housewares products, which were up 13% versus prior year.
Operating income for the third quarter of fiscal 2010 was $4.6 million compared to an operating loss of $2.1 million for the third quarter of fiscal 2009 an improvement of $6.7 million. Operating income for the fiscal year 2010 to date was $9.4 million compared to an operating loss of $1.5 million for the same period of fiscal 2009, an improvement of $10.9 million. The increase in the third quarter and fiscal year to date operating income was driven by the Company’s efforts to manage costs, as reflected in a nearly 25% year-over-year reduction in SG&A expenses for the third quarter and a 21.4% year-over-year reduction for the fiscal 2010 period to date.
Net income from continuing operations for the third quarter of fiscal 2010 was $3.4 million or $0.13 per diluted share compared to a net loss from continuing operations of $1.9 million, or $0.07 per diluted share, for the third quarter of fiscal 2009. Net income from continuing operations for fiscal year 2010 to date was $7.8 million or $0.29 per diluted share compared to a net loss from continuing operations of $2.0 million, or $0.07 per diluted share, for the same period in fiscal 2009.
Greenfield Pitts, Executive Vice President and Chief Financial Officer of Emerson Radio, commented, “We are pleased that fiscal 2010’s financial results through the third quarter are reflective of our ongoing efforts to right size the Company’s cost structure, while focusing on growing the home appliance category and brand licensing portfolio. Moving
forward, we are continuing to focus on strategic and profitable revenue generation, realization of operating efficiencies and our cost containment efforts.”
About Emerson Radio Corp.
Emerson Radio Corporation (NYSE Amex:MSN), founded in 1948, is headquartered in Parsippany, N.J. The Company designs, sources, imports and markets a variety of home appliance 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 Radio’s Web site atwww.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 Statement of Operations
(Unaudited)
(in thousands, except per share data)
Consolidated Statement of Operations
(Unaudited)
(in thousands, except per share data)
Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Net revenues: | ||||||||||||||||
Net revenues | $ | 48,038 | $ | 60,068 | $ | 155,411 | $ | 157,424 | ||||||||
Net revenues-related party | — | — | — | 15 | ||||||||||||
48,038 | 60,068 | 155,411 | 157,439 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of sales | 39,298 | 55,612 | 132,602 | 140,434 | ||||||||||||
Other operating costs and expenses | 708 | 2,058 | 2,563 | 4,769 | ||||||||||||
Selling, general & administrative expenses | 3,397 | 4,519 | 10,829 | 13,781 | ||||||||||||
43,403 | 62,189 | 145,994 | 158,984 | |||||||||||||
Operating income (loss) | 4,635 | (2,121 | ) | 9,417 | (1,545 | ) | ||||||||||
Interest (expense) income, net | (1 | ) | 21 | 21 | 227 | |||||||||||
Unrealized holding (losses) on trading securities | — | (410 | ) | — | (431 | ) | ||||||||||
Realized gains on trading securities | — | 91 | — | 623 | ||||||||||||
Income (loss) from continuing operations before income taxes | 4,634 | (2,419 | ) | 9,438 | (1,126 | ) | ||||||||||
Provision (benefit) for income taxes | 1,221 | (506 | ) | 1,643 | 848 | |||||||||||
Income (loss) from continuing operations | 3,413 | (1,913 | ) | 7,795 | (1,974 | ) | ||||||||||
Loss from discontinued operations, net of tax benefit | — | 176 | 55 | 357 | ||||||||||||
Net income (loss) | $ | 3,413 | $ | (2,089 | ) | $ | 7,740 | $ | (2,331 | ) | ||||||
Basic net income (loss) per share | ||||||||||||||||
Continuing operations | $ | 0.13 | $ | (0.07 | ) | $ | 0.29 | $ | (0.07 | ) | ||||||
Discontinued operations | — | (0.01 | ) | — | (0.02 | ) | ||||||||||
$ | 0.13 | $ | (0.08 | ) | $ | 0.29 | $ | (0.09 | ) | |||||||
Diluted net income (loss) per share | ||||||||||||||||
Continuing operations | $ | 0.13 | $ | (0.07 | ) | $ | 0.29 | $ | (0.07 | ) | ||||||
Discontinued operations | — | (0.01 | ) | — | (0.02 | ) | ||||||||||
$ | 0.13 | $ | (0.08 | ) | $ | 0.29 | $ | (0.09 | ) | |||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 27,130 | 27,130 | 27,130 | 27,130 | ||||||||||||
Diluted | 27,133 | 27,130 | 27,131 | 27,130 |
Emerson Radio Corp. and Subsidiaries
Consolidated Balance Sheet
(in thousands)
Consolidated Balance Sheet
(in thousands)
December 31, | March 31, | |||||||
2009 | 2009 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 38,843 | $ | 22,518 | ||||
Restricted cash | 3 | 3,025 | ||||||
Accounts receivable, net | 14,838 | 15,970 | ||||||
Other receivables | 1,263 | 1,587 | ||||||
Due from affiliates | 52 | 78 | ||||||
Inventory, net | 16,748 | 20,691 | ||||||
Prepaid expenses and other current assets | 2,738 | 2,190 | ||||||
Deferred tax assets | 3,936 | 4,872 | ||||||
Total current assets | 78,421 | 70,931 | ||||||
Property, plant, and equipment, net | 3,585 | 1,139 | ||||||
Trademarks and other intangible assets, net | 1,683 | 255 | ||||||
Due from affiliates | 185 | 114 | ||||||
Investments in marketable securities | 6,031 | 6,031 | ||||||
Deferred tax assets | 6,715 | 7,102 | ||||||
Other assets | 235 | 472 | ||||||
Total assets | 96,855 | 86,044 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Short term borrowings | 5,655 | 5,733 | ||||||
Current maturities of long-term borrowings | 56 | 85 | ||||||
Accts payable and other current liabilities | 21,899 | 18,929 | ||||||
Due to affiliates | 25 | 66 | ||||||
Accrued sales returns | 1,313 | 1,130 | ||||||
Income taxes payable | 159 | 155 | ||||||
Total current liabilities | 29,107 | 26,098 | ||||||
Long-term borrowings | 35 | 59 | ||||||
Deferred tax liabilities | 103 | 87 | ||||||
Shareholders equity | 67,610 | 59,800 | ||||||
Total liabilities and shareholders’ equity | $ | 96,855 | $ | 86,044 | ||||
CONTACT:
Emerson Radio Corp.
Greenfield Pitts
Chief Financial Officer
(212) 897-5441
Emerson Radio Corp.
Greenfield Pitts
Chief Financial Officer
(212) 897-5441
Investor Relations:
Robert Maffei
Investor Relations Manager
(973) 428-2098
Robert Maffei
Investor Relations Manager
(973) 428-2098