EX-99.1 2 y86171exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(LOGO)
 
NEWS & INFORMATION
 
         
FOR:
  EMERSON RADIO CORP.    
 
  85 Oxford Drive    
 
  Moonachie, NJ 07074    
 
        
CONTACT:
  Emerson Radio Corp.          or:   Investor Relations:
 
  Greenfield Pitts   Robert Maffei
 
  Chief Financial Officer   Investor Relations Manager
 
  (212) 897-5441   (973) 428-2098
Monday, August 16, 2010
EMERSON RADIO CORP. REPORTS FISCAL 2011 FIRST QUARTER RESULTS
MOONACHIE, N.J. — August 16, 2010 — Emerson Radio Corp. (NYSE AMEX: MSN) today reported financial results for its first quarter ended June 30, 2010.
Net revenues for the first quarter of fiscal 2011 increased $11.6 million, or 20.8%, to $67.2 million as compared to net revenues in the first quarter of fiscal 2010 of $55.6 million. The increase in net revenues for the first quarter of fiscal 2011 as compared to the prior year was due to higher houseware product sales, primarily microwave ovens and compact refrigerators, partially offset by decreased sales of audio products.
Operating income for the first quarter of fiscal 2011 was $7.4 million as compared to operating income in the first quarter of fiscal 2010 of $1.4 million, an increase of $6.0 million, or 418%. The increase in first quarter fiscal 2011 operating income over the prior year was driven by the increase in net revenues and lower selling, general and administrative expenses.
Net income from continuing operations for the first quarter of fiscal 2011 was $5.9 million as compared to $1.2 million for the first quarter of fiscal 2010, an increase of $4.7 million, or 406%. Diluted earnings per share for the first quarter of fiscal 2011 were $0.22 as compared to $.04 for the first quarter of fiscal 2010, an increase of $0.18 per diluted share, or 450%.

 

 

Greenfield Pitts, Executive Vice President and Chief Financial Officer of Emerson Radio, commented “We are pleased to begin fiscal 2011 with a strong first quarter financial result, which built upon the successes we achieved in fiscal 2010 and reflected higher houseware product sales, primarily microwave ovens and compact refrigerators, coupled with lower SG&A expenses; however, looking forward, we anticipate a much more challenging operating environment during the remainder of the fiscal year due to factory price increases on the products we import from China, higher freight rates to ship these products and a strengthening Chinese Renminbi, all of which could negatively impact our bottom line. We are managing these issues accordingly, and as we do so, will remain focused on generating profitable revenue streams, maintaining our strong customer and supplier relationships and keeping a tight control over expenses.”
About Emerson Radio Corp.
Emerson Radio Corporation (NYSE AMEX: MSN), founded in 1948, is headquartered in Moonachie, N.J. The Company designs, sources, imports and markets a variety of houseware 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 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  
    June 30  
    2010     2009  
Net revenues
   $ 67,155     $ 55,599  
Costs and expenses:
                
Cost of sales
     57,523       49,603  
Other operating costs and expenses
     299       778  
Selling, general and administrative expenses
     1,929       3,789  
 
            
 
     59,751       54,170  
 
            
Operating income
     7,404       1,429  
Interest income, net
     10       10  
 
            
Income from continuing operations before income taxes
     7,414       1,439  
Provision for income taxes
     1,535       278  
 
            
Income from continuing operations
     5,879       1,161  
Loss from discontinued operations, net of tax benefit
     —       55  
 
            
Net income
   $ 5,879     $ 1,106  
 
            
 
                
Basic net income per share
                
Continuing operations
   $ 0.22     $ 0.04  
Discontinued operations
     —       —  
 
            
Net
   $ 0.22     $ 0.04  
 
            
 
                
Diluted net income (loss) per share
                
Continuing operations
   $ 0.22     $ 0.04  
Discontinued operations
     —       —  
 
            
Net
   $ 0.22     $ 0.04  
 
            
 
                
Weighted average shares outstanding:
                
Basic
     27,130       27,130  
Diluted
     27,131       27,130  

 

 

EMERSON RADIO CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands except share data)
                 
    June 30, 2010     March 31, 2010  
    (Unaudited)          
ASSETS
                
Current assets:
                
Cash and cash equivalents
   $ 7,314     $ 9,969  
Restricted cash
     2,496       5,083  
Accounts receivable, net
     35,626       20,350  
Other receivables
     1,120       1,037  
Due from affiliates
     75       —  
Inventory, net
     29,055       10,952  
Prepaid expenses and other current assets
     534       736  
Deferred tax assets
     3,500       3,383  
 
            
Total current assets
     79,720       51,510  
Property, plant and equipment, net
     3,047       3,131  
Trademarks and other intangible assets, net
     1,576       1,606  
Due from affiliates
     144       185  
Investments in marketable securities
     6,031       6,031  
Deferred tax assets
     5,289       6,588  
Other assets
     203       205  
 
            
Total assets
   $ 96,010     $ 69,256  
 
            
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
Current liabilities:
                
Short-term borrowings
   $ 5,625     $ 5,629  
Current maturities of long-term borrowings
     25       30  
Accounts payable and other current liabilities
     41,476       20,776  
Due to affiliates
     36       28  
Accrued sales returns
     1,118       957  
Income taxes payable
     250       174  
 
            
Total current liabilities
     48,530       27,594  
Long-term borrowings
     128       201  
Deferred tax liabilities
     128       119  
Shareholders’ equity:
                
Preferred shares - 10,000,000 shares authorized; 3,677 shares issued and outstanding; liquidation preference of
                
$3,677,000
     3,310       3,310  
Common shares — $.01 par value, 75,000,000 shares authorized; 52,965,797 shares issued and 27,129,832 shares outstanding
     529       529  
Capital in excess of par value
     98,785       98,785  
Accumulated other comprehensive losses
     (82 )     (82 )
Accumulated deficit
     (31,094 )     (36,976 )
Treasury stock - 25,835,965 shares, at cost
     (24,224 )     (24,224 )
 
            
Total shareholders’ equity
     47,224       41,342  
 
            
Total liabilities and shareholders’ equity
   $ 96,010     $ 69,256