MOONACHIE, NJ, Feb. 12, 2010 (Marketwire) --
MOONACHIE, NJ -- (Marketwire) -- 02/12/10 -- Emerson Radio Corp. (NYSE Amex: MSN) today reported financial results for its third quarter and nine months ended December 31, 2009.
Net revenues for the third quarter of fiscal 2010 decreased $12.1 million, or 20.1%, to $48.0 million as compared to net revenues in the third quarter of fiscal 2009 of $60.1 million, and net revenues for fiscal year 2010 to date decreased $2.0 million, or 1.2%, to $155.4 million as compared to net revenues of $157.4 million in the same period of fiscal 2009. The decrease in net revenues for the third quarter of fiscal 2010 as compared to the prior year was due to lower sales across all categories and is reflective of a lower level of cyclicality in the current fiscal year's revenue stream as compared to the prior year, when a majority of the Company's annual sales were recorded in the third fiscal quarter. The decrease in net revenues for the fiscal year 2010 to date versus the prior year was due to lower sales of audio and themed products, partially offset by higher sales of housewares products, which were up 13% versus prior year.
Operating income for the third quarter of fiscal 2010 was $4.6 million compared to an operating loss of $2.1 million for the third quarter of fiscal 2009 an improvement of $6.7 million. Operating income for the fiscal year 2010 to date was $9.4 million compared to an operating loss of $1.5 million for the same period of fiscal 2009, an improvement of $10.9 million. The increase in the third quarter and fiscal year to date operating income was driven by the Company's efforts to manage costs, as reflected in a nearly 25% year-over-year reduction in SG&A expenses for the third quarter and a 21.4% year-over-year reduction for the fiscal 2010 period to date.
Net income from continuing operations for the third quarter of fiscal 2010 was $3.4 million or $0.13 per diluted share compared to a net loss from continuing operations of $1.9 million, or $0.07 per diluted share, for the third quarter of fiscal 2009. Net income from continuing operations for fiscal year 2010 to date was $7.8 million or $0.29 per diluted share compared to a net loss from continuing operations of $2.0 million, or $0.07 per diluted share, for the same period in fiscal 2009.
Greenfield Pitts, Executive Vice President and Chief Financial Officer of Emerson Radio, commented, "We are pleased that fiscal 2010's financial results through the third quarter are reflective of our ongoing efforts to right size the Company's cost structure, while focusing on growing the home appliance category and brand licensing portfolio. Moving forward, we are continuing to focus on strategic and profitable revenue generation, realization of operating efficiencies and our cost containment efforts."
About Emerson Radio Corp.
Emerson Radio Corporation (NYSE Amex: MSN), founded in 1948, is headquartered in Parsippany, N.J. The Company designs, sources, imports and markets a variety of home appliance 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 Statement of Operations
(Unaudited)
(in thousands, except per share data)
Three months ended Nine months ended
December 31, December 31,
2009 2008 2009 2008
--------- --------- --------- ---------
Net revenues:
Net revenues $ 48,038 $ 60,068 $ 155,411 $ 157,424
Net revenues-related party - - - 15
--------- --------- --------- ---------
48,038 60,068 155,411 157,439
--------- --------- --------- ---------
Costs and expenses:
Cost of sales 39,298 55,612 132,602 140,434
Other operating costs and
expenses 708 2,058 2,563 4,769
Selling, general &
administrative expenses 3,397 4,519 10,829 13,781
--------- --------- --------- ---------
43,403 62,189 145,994 158,984
--------- --------- --------- ---------
--------- --------- --------- ---------
Operating income (loss) 4,635 (2,121) 9,417 (1,545)
Interest (expense) income, net (1) 21 21 227
Unrealized holding (losses) on
trading securities - (410) - (431)
Realized gains on trading
securities - 91 - 623
--------- --------- --------- ---------
Income (loss) from continuing
operations before income taxes 4,634 (2,419) 9,438 (1,126)
Provision (benefit) for income
taxes 1,221 (506) 1,643 848
--------- --------- --------- ---------
Income (loss) from continuing
operations 3,413 (1,913) 7,795 (1,974)
Loss from discontinued
operations, net of tax benefit - 176 55 357
--------- --------- --------- ---------
Net income (loss) $ 3,413 $ (2,089) $ 7,740 $ (2,331)
--------- --------- --------- ---------
Basic net income (loss) per
share
Continuing operations $ 0.13 $ (0.07) $ 0.29 $ (0.07)
Discontinued operations - (0.01) - (0.02)
--------- --------- --------- ---------
$ 0.13 $ (0.08) $ 0.29 $ (0.09)
--------- --------- --------- ---------
Diluted net income (loss) per
share
Continuing operations $ 0.13 $ (0.07) $ 0.29 $ (0.07)
Discontinued operations - (0.01) - (0.02)
--------- --------- --------- ---------
$ 0.13 $ (0.08) $ 0.29 $ (0.09)
--------- --------- --------- ---------
Weighted average shares
outstanding:
Basic 27,130 27,130 27,130 27,130
Diluted 27,133 27,130 27,131 27,130
Emerson Radio Corp. and Subsidiaries
Consolidated Balance Sheet
(in thousands)
December 31, March 31,
2009 2009
------------ ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 38,843 $ 22,518
Restricted cash 3 3,025
Accounts receivable, net 14,838 15,970
Other receivables 1,263 1,587
Due from affiliates 52 78
Inventory, net 16,748 20,691
Prepaid expenses and other current assets 2,738 2,190
Deferred tax assets 3,936 4,872
------------ ------------
Total current assets 78,421 70,931
Property, plant, and equipment, net 3,585 1,139
Trademarks and other intangible assets, net 1,683 255
Due from affiliates 185 114
Investments in marketable securities 6,031 6,031
Deferred tax assets 6,715 7,102
Other assets 235 472
------------ ------------
Total assets 96,855 86,044
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short term borrowings 5,655 5,733
Current maturities of long-term borrowings 56 85
Accts payable and other current liabilities 21,899 18,929
Due to affiliates 25 66
Accrued sales returns 1,313 1,130
Income taxes payable 159 155
------------ ------------
Total current liabilities 29,107 26,098
Long-term borrowings 35 59
Deferred tax liabilities 103 87
Shareholders equity 67,610 59,800
------------ ------------
Total liabilities and shareholders' equity $ 96,855 $ 86,044
============ ============
CONTACT:
Emerson Radio Corp.
Greenfield Pitts
Chief Financial Officer
(212) 897-5441
Investor Relations:
Robert Maffei
Investor Relations Manager
(973) 428-2098
