EXHIBIT 99.1
[CONCORD CAMERA LOGO]
CONTACT:
CONCORD CAMERA CORP.
BLAINE ROBINSON
VICE PRESIDENT FINANCE AND TREASURER
(954) 331-4238
CONCORD CAMERA CORP. ANNOUNCES THE FILING OF ITS ANNUAL REPORT ON
FORM 10-K FOR THE FISCAL YEAR ENDED JULY 1, 2006
HOLLYWOOD, FLORIDA - September 14, 2006 - Concord Camera Corp. ("Concord" or
"Company") (NASDAQ: LENS) today reported financial results for the fourth
quarter and fiscal year ended July 1, 2006 ("Fiscal 2006") and announced that it
filed its Annual Report on Form 10-K for Fiscal 2006 with the Securities and
Exchange Commission (see attached tables).
ABOUT CONCORD CAMERA CORP.
Concord Camera Corp., through its subsidiaries, is a global provider of
popularly priced, single-use, digital and 35mm traditional film cameras. Concord
markets and sells its cameras under the trademarks POLAROID, CONCORD, CONCORD
EYE Q and JENOPTIK through in-house sales and marketing personnel who make the
majority of the direct sales to its customers and by use of independent sales
representatives to serve specific geographic areas worldwide. 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 involve risks and uncertainties that 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 1, 2006 and subsequently filed reports. Such
forward-looking statements include, without limitation, statements regarding
expected cost reductions, anticipated or expected results of the implementation
of the Company's restructuring initiatives, cost-reduction initiatives, and new
business initiatives, anticipated financial benefits of de-emphasizing the sale
of digital cameras and eliminating its reliance on internally designed and
manufactured digital cameras and increasing the design, co-development and
purchase of digital cameras from outsourced manufacturers, the viability of
marketing and selling digital cameras and competing in the digital camera
market, the cost structure requirements needed to maintain a presence in the
digital camera market and to market and sell digital cameras, the development of
its business, anticipated revenues or capital expenditures, its ability to
improve gross margin percentages on the sale of its products and projected
profits or losses. 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. While we may elect to update
forward-looking statements in the future, we disclaim any intent or obligation
to do so, even if our estimates change.
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CONCORD CAMERA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
JULY 1, JULY 2,
2006 2005
--------- ---------
Assets
Current Assets:
Cash and cash equivalents $ 6,795 $ 8,016
Restricted cash 8,264 -
Short-term investments 23,550 35,200
Accounts receivable, net 16,648 31,860
Inventories 28,260 36,382
Deferred compensation assets 372 8,711
Prepaid expenses and other current assets 2,905 2,708
--------- ---------
Total current assets 89,794 122,877
Property, plant and equipment, net 13,778 16,672
Other assets 4,170 7,207
--------- ---------
Total assets $ 104,742 $ 146,756
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Liabilities and Stockholders' Equity
Current Liabilities:
Short-term borrowings under financing facilities $ - $ 2,936
Accounts payable 23,366 32,257
Accrued expenses 14,711 14,108
Deferred compensation liabilities 315 8,688
Other current liabilities 1,559 3,127
--------- ---------
Total current liabilities 39,951 61,116
Other long-term liabilities 1,824 3,337
--------- ---------
Total liabilities 41,775 64,453
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 shares issued
as of July 1, 2006 and July 2, 2005 143,518 143,518
Additional paid-in capital 5,128 4,853
Deferred share arrangement 624 624
Accumulated deficit (80,686) (61,075)
--------- ---------
68,584 87,920
Less: treasury stock, at cost, 1,735
shares as of July 1, 2006 and July 2, 2005 (4,993) (4,993)
Less: common stock held in trust, 509
shares as of July 1, 2006 and July 2, 2005 (624) (624)
--------- ---------
Total stockholders' equity 62,967 82,303
--------- ---------
Total liabilities and stockholders' equity $ 104,742 $ 146,756
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CONCORD CAMERA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
FOR THE QUARTER ENDED
(UNAUDITED) FOR THE FISCAL YEAR ENDED
---------------------------- ----------------------------
JULY 1, JULY 2, JULY 1, JULY 2,
2006 2005 2006 2005
--------- --------- --------- ---------
Net sales $ 32,964 $ 50,851 $ 137,529 $ 174,348
Cost of products sold 28,310 47,993 122,928 180,130
--------- --------- --------- ---------
Gross profit (deficit) 4,654 2,858 14,601 (5,782)
Selling expenses 3,701 4,170 13,895 16,846
General and
administrative expenses 5,006 5,398 20,978 22,948
--------- --------- --------- ---------
Operating loss (4,053) (6,710) (20,272) (45,576)
Interest expense 60 164 374 931
Other (income)
expense, net (659) 911 (1,142) (1,770)
--------- --------- --------- ---------
Loss before income taxes (3,454) (7,785) (19,504) (44,737)
Provision (benefit) for
income taxes (121) (64) 107 186
--------- --------- --------- ---------
Net loss $ (3,333) $ (7,721) $ (19,611) $ (44,923)
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Basic and diluted loss per
common share $ (0.11) $ (0.26) $ (0.67) $ (1.54)
========= ========= ========= =========
Weighted average
common shares
outstanding -basic and
diluted 29,190 29,190 29,190 29,157
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