EX-99.1 2 dex991.htm PRESS RELEASE ISSUED BY BOSTON ACOUSTICS, INC. DATED JUNE 10, 2005 Press Release issued by Boston Acoustics, Inc. dated June 10, 2005

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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