EX-99.1 2 y74672aexv99w1.htm EX-99.1: PRESS RELEASE EX-99.1
Exhibit 99.1
(EMERSON LOGO)
 
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)
                                 
    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)
                 
    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.