Exhibit 99.1
[LOGO APPEARS HERE]
FOR IMMEDIATE RELEASE
Contact: Boston Acoustics, Inc.
978-538-5000
Moses Gabbay Moses@bostona.com
Debby Ricker DRicker@bostona.com |
Boston Acoustics Announces Fourth Quarter Results and for the Fiscal Year
Peabody, Massachusetts, June 10, 2005 — Boston Acoustics, Inc. (NASDAQ-BOSA) today announced its financial results for the fourth quarter of the 2005 fiscal year and for the fiscal year which ended March 26, 2005.
Net sales for the quarter increased approximately 41%, to $16.3 million from $11.5 million for the same period a year ago. Net income increased 47% to approximately $.7 million from approximately $.5 million, and diluted earnings per share increased to $.17 per share compared to $.12 per share for the same period a year ago.
For the twelve months ended March 26, 2005, net sales increased approximately 12% to $59.1 million from $52.6 million in the same period a year ago. Net income increased to approximately $3.2 million compared to $1.9 million and diluted earnings per share were $.76 per share compared to $.43 per share for the twelve months ended March 27, 2004.
The Company also announced that, in compliance with the Agreement and Plan of Merger dated June 8, 2005 among the Company, D&M Holdings US,Inc. and Allegro Acquisition Corp., the Company’s regular quarterly dividend will not be paid in July.
Founded in 1979, Boston Acoustics, Inc. (NASDAQ:BOSA) designs, manufactures, and markets high performance audio systems for use in home music and home theater systems, after-market and OEM automotive systems, and custom built-in audio systems. Highly regarded for creating The Boston Sound™, the company is renowned for delivering superior, competitively priced products emphasizing performance and value. For further information, visit the company’s web site at www.bostonacoustics.com.
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Boston Acoustics Announces Fourth Quarter Results – Page 2
Three Months Ended | ||||||
March 26, 2005 | March 27, 2004 | |||||
Net Sales | $ | 16,288,389 | $ | 11,542,522 | ||
Cost of Goods Sold | 9,341,748 | 6,321,540 | ||||
Gross Profit | 6,946,641 | 5,220,982 | ||||
Selling and Marketing Expenses | 3,516,514 | 2,811,392 | ||||
General and Administrative Expenses | 1,151,738 | 962,919 | ||||
Engineering and Development Expenses | 1,031,122 | 1,060,029 | ||||
Total Operating Expenses | 5,699,374 | 4,834,340 | ||||
Income from Operations | 1,247,267 | 386,642 | ||||
Interest Income, net | 16,203 | 9,004 | ||||
Other Income (Expense) | 11,683 | 275,797 | ||||
Income before provision for income taxes | 1,275,153 | 671,443 | ||||
Provision for Income Taxes | 558,000 | 183,000 | ||||
Net Income | $ | 717,153 | $ | 488,443 | ||
Basic Earnings per Share | $ | .17 | $ | .12 | ||
Diluted Earnings per Share | $ | .17 | $ | .12 | ||
Weighted Average Shares Outstanding | ||||||
Basic | 4,178,512 | 4,121,047 | ||||
Diluted | 4,276,792 | 4,215,602 |
Twelve Months Ended | ||||||
March 26, 2005 | March 27, 2004 | |||||
Net Sales | $ | 59,058,361 | $ | 52,627,938 | ||
Cost of Goods Sold | 33,844,597 | 31,437,264 | ||||
Gross Profit | 25,213,764 | 21,190,674 | ||||
Selling and Marketing Expenses | 11,661,073 | 10,057,112 | ||||
General and Administrative Expenses | 4,474,010 | 4,557,078 | ||||
Engineering and Development Expenses | 4,488,741 | 4,460,341 | ||||
Total Operating Expenses | 20,623,824 | 19,074,531 | ||||
Income from Operations | 4,589,940 | 2,116,143 | ||||
Interest Income, net | 39,999 | 101,655 | ||||
Other Income (Expense) | 250,524 | 483,335 | ||||
Income before provision for income taxes | 4,880,463 | 2,701,133 | ||||
Provision for Income Taxes | 1,644,000 | 844,000 | ||||
Net Income | $ | 3,236,463 | $ | 1,857,133 | ||
Basic Earnings per Share | $ | .78 | $ | .44 | ||
Diluted Earnings per Share | $ | .76 | $ | .43 | ||
Weighted Average Shares Outstanding | ||||||
Basic | 4,171,662 | 4,238,796 | ||||
Diluted | 4,235,403 | 4,277,397 |
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Boston Acoustics Announces Fourth Quarter Results – Page 3
Consolidated Balance Sheets
March 26, 2005 | March 27, 2004 | |||||
Assets | ||||||
Current Assets | ||||||
Cash and cash equivalents | $ | 6,784,588 | $ | 7,552,054 | ||
Accounts receivable, net | 11,234,090 | 8,202,044 | ||||
Inventories | 12,243,617 | 12,240,838 | ||||
Deferred income taxes | 2,099,000 | 2,492,000 | ||||
Prepaid income taxes | 858,000 | 480,000 | ||||
Prepaid expenses and other current assets | 1,028,474 | 956,142 | ||||
Total current assets | 34,247,769 | 31,923,078 | ||||
Property and Equipment, net | 10,232,741 | 10,874,343 | ||||
Other Assets, net | 1,274,825 | 1,160,710 | ||||
Total assets | $ | 45,755,335 | $ | 43,958,131 | ||
Liabilities and Stockholders’ Equity | ||||||
Current Liabilities | ||||||
Accounts payable | $ | 7,454,464 | $ | 7,322,535 | ||
Accrued payroll & related expenses | 701,931 | 523,234 | ||||
Dividends payable | 355,174 | 354,182 | ||||
Current maturity of line of credit | 9,432 | 309,394 | ||||
Other accrued expenses | 1,552,475 | 1,730,873 | ||||
Total current liabilities | 10,073,476 | 10,240,218 | ||||
Stockholders’ Equity | 35,681,859 | 33,717,913 | ||||
Total liabilities and stockholders’ equity | $ | 45,755,335 | $ | 43,958,131 | ||
Certain statements in this press release contain certain forward-looking statements concerning Boston Acoustics’ operations, economic performance and financial condition. Such forward-looking statements are based on a number of assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Boston Acoustics to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause such differences include, but are not limited to; those discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 27, 2004. The words “believe,” “expect,” “anticipate,” “intend,” and “plan” and similar expressions identify forward-looking statements, which speak only as of the date the statement was made.
Boston Acoustics intends to file a proxy statement with the Securities and Exchange Commission in connection with the merger transaction referenced above.Investors and security holders are urged to read this filing when it becomes available because it will contain important information about the merger transaction. Investors and security holders may obtain a free copy of the proxy statement (when it is available) and other documents filed with the SEC by Boston Acoustics at the SEC’s Internet site (http://www.sec.gov). Copies of the proxy statement and the filings with the SEC incorporated by reference in the proxy statement can also be obtained, without charge, by directing a request to Boston Acoustics, 300 Jubilee Drive, Peabody, Massachusetts, 01960, Attention: Investor Relations.
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Boston Acoustics Announces Fourth Quarter Results – Page 4
The directors and executive officers of Boston Acoustics and D&M Holdings may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding the special interests of these directors and executive officers in the merger transaction will be included in the proxy statement. Additional information regarding the directors and executive officers of Boston Acoustics is also included in Boston Acoustics’ proxy statement for its 2004 Annual Meeting of Stockholders, which was filed with the SEC on July 26, 2004. This proxy statement is available free of charge at the SEC’s Internet site and Investor Relations at Boston Acoustics as described above.
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