Exhibit 99.1
[CONCORD LOGO]
CONTACT: OR LENS INVESTOR RELATIONS COUNSEL:
CONCORD CAMERA CORP. THE EQUITY GROUP INC.
HARLAN PRESS ROBERT GOLDSTEIN (212) 371-8660
VICE PRESIDENT AND TREASURER DEVIN SULLIVAN (212) 836-9608
(954) 331-4200
CONCORD CAMERA CORP. ANNOUNCES THE FILING OF ITS ANNUAL REPORT ON
FORM 10-K FOR THE FISCAL YEAR ENDED JULY 2, 2005
HOLLYWOOD, FLORIDA - October 3, 2005 - Concord Camera Corp. ("Concord" or
"Company") (NASDAQ: LENS) today reported financial results for the fourth
quarter and fiscal year ended July 2, 2005 and announced that it filed its
Annual Report on Form 10-K for Fiscal 2005 with the Securities and Exchange
Commission (see attached tables).
ABOUT CONCORD CAMERA CORP.
Concord Camera Corp., through its subsidiaries, is a global producer of
popularly priced, single-use, digital and 35mm traditional cameras. Concord
markets its cameras under the trademarks POLAROID, CONCORD, CONCORD EYE Q and
JENOPTIK. Concord sells and markets its camera products worldwide through direct
sales offices in the United States, Canada, Germany, Hong Kong, the Peoples
Republic of China, the United Kingdom, Japan and France and through independent
sales agents. The Polaroid trademark is owned by Polaroid Corporation and is
used by Concord under license from Polaroid. CONCORD and CONCORD EYE Q are
trademarks and/or registered trademarks of Concord Camera Corp. in the United
States and/or other countries. The JENOPTIK trademark is owned by Jenoptik AG
and is used by Concord under license from Jenoptik AG. Learn more about Concord
Camera Corp. at www.concord-camera.com.
Except for the historical information contained herein, statements in this press
release are forward-looking and are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Investors are cautioned
that forward-looking statements, including the statements regarding our ability
to meet expected filing dates for our periodic reports, our ability to meet
customer demands and fulfill customer service obligations, anticipated or
expected results of the implementation of our strategic plan, including the
restructuring plan, additional cost-reduction initiatives and anticipated
financial benefits of eliminating our reliance on internally designed and
manufactured digital cameras and increasing the design, co-development and
purchase of digital cameras from contract manufacturers, involve risks and
uncertainties which may affect the Company's business and prospects, including
the risks discussed under "Risk Factors" and disclosures in the Company's Annual
Report on Form 10-K for the fiscal year ended July 2, 2005 and subsequently
filed reports. Any forward-looking statements contained in this press release
represent our estimates only as of the date hereof, or as of such earlier dates
as are indicated, and should not be relied upon as representing our estimates as
of any subsequent date. The registrant disclaims any intent or obligation to
update or revise any forward looking statements.
### #### ###
CONCORD CAMERA CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
JULY 2, JULY 3,
2005 2004
--------- ---------
ASSETS
Current Assets:
Cash and cash equivalents $ 8,016 $ 18,323
Short-term investments 35,200 39,600
Accounts receivable, net 31,860 29,367
Inventories 36,382 52,418
Deferred compensation assets 8,711 --
Prepaid expenses and other current assets 2,708 11,563
--------- ---------
Total current assets 122,877 151,271
Property, plant and equipment, net 16,672 20,597
Other assets 7,207 17,649
--------- ---------
Total assets $ 146,756 $ 189,517
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Short-term borrowings under credit facilities $ 2,936 $ 9,170
Accounts payable 32,257 18,783
Accrued expenses 14,108 16,395
Deferred compensation liabilities 8,688 --
Other current liabilities 3,127 6,320
--------- ---------
Total current liabilities 61,116 50,668
Other long-term liabilities 3,337 11,724
--------- ---------
Total liabilities 64,453 62,392
Commitments and contingencies
Stockholders' Equity:
Blank check preferred stock, no par value,
1,000 shares authorized, none issued - -
Common stock, no par value, 100,000 shares
authorized; 30,925 and 30,572 shares issued
as of July 2, 2005 and July 3, 2004, respectively 143,518 143,073
Additional paid-in capital 4,853 4,853
Deferred stock-based compensation -- (29)
Deferred share arrangement 624 413
Accumulated deficit (61,075) (16,152)
--------- ---------
87,920 132,158
Less: treasury stock, at cost, 1,735 and 1,599 shares as
of July 2, 2005 and July 3, 2004, respectively (4,993) (4,620)
Less: common stock held in trust, 509 and 331 shares as
of July 2, 2005 and July 3, 2004, respectively (624) (413)
--------- ---------
Total stockholders' equity 82,303 127,125
--------- ---------
Total liabilities and stockholders' equity $ 146,756 $ 189,517
========= =========
CONCORD CAMERA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
FOR THE QUARTER ENDED FOR THE FISCAL YEAR ENDED
(UNAUDITED)
JULY 2, JULY 3, JULY 2, JULY 3,
2005 2004 2005 2004
--------------- --------------- --------------- ---------------
Net sales $ 50,851 $ 52,388 $ 174,348 $ 203,132
Cost of products sold 47,993 49,739 180,130 188,954
--------------- --------------- --------------- ---------------
Gross (deficit) profit 2,858 2,649 (5,782) 14,178
Selling expenses 4,170 4,200 16,846 13,522
General and
administrative expenses 5,398 8,106 22,948 26,842
Goodwill impairment - 3,721 - 3,721
Variable stock-based
compensation income - (58) - (659)
--------------- --------------- --------------- ---------------
Operating loss (6,710) (13,320) (45,576) (29,248)
Interest expense 164 221 931 715
Other (income)
expense, net 911 40 (1,770) (500)
--------------- --------------- --------------- ---------------
Loss before income taxes (7,785) (13,581) (44,737) (29,463)
Provision (benefit) for
income taxes (64) 2,298 186 7,537
--------------- --------------- --------------- ---------------
Loss before
extraordinary item (7,721) (15,879) (44,923) (37,000)
Extraordinary gain -
acquired net assets in
excess of cost - 5,778 - 5,778
--------------- --------------- --------------- ---------------
Net loss $ (7,721) $ (10,101) $ (44,923) $ (31,222)
=============== =============== =============== ===============
Net loss per common share:
Basic:
Loss before
extraordinary item $ (0.26) $ (0.56) $ (1.54) $ (1.29)
Extraordinary gain - 0.20 - 0.20
--------------- --------------- --------------- ---------------
Loss per common share $ (0.26) $ (0.36) $ (1.54) $ (1.09)
=============== =============== =============== ===============
Diluted:
Loss before
extraordinary item $ (0.26) $ (0.56) $ (1.54) $ (1.29)
Extraordinary gain - 0.20 - 0.20
--------------- --------------- --------------- ---------------
Loss per common share $ (0.26) $ (0.36) $ (1.54) $ (1.09)
=============== =============== =============== ===============
Weighted average
common shares
outstanding - basic 29,190 28,921 29,157 28,716
Dilutive effect of common
stock options - - - -
--------------- --------------- --------------- ---------------
Weighted average
common shares
outstanding - diluted 29,190 28,921 29,157 28,716
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