EX-99.1 2 y78952exv99w1.htm EX-99.1 exv99w1
(EMERSON LOGO)
NEWS & INFORMATION
             
FOR:
  EMERSON RADIO CORP.
610 Fifth Ave
New York, NY 10020		        
 
            
CONTACT:   
  Emerson Radio Corp.
Greenfield Pitts
Chief Financial Officer
(212) 897-5441 		  or:   Investor Relations:
Robert Maffei
Investor Relations Manager
(973) 428-2098
Wednesday, August 19, 2009
EMERSON RADIO CORP. REPORTS FISCAL 2010 FIRST QUARTER RESULTS
PARSIPPANY, N.J. — August 19, 2009 — Emerson Radio Corp. (NYSE Alternext US, LLC: MSN) today reported financial results for its first quarter ended June 30, 2009.
Net revenues for the first quarter of fiscal 2010 were $55.6 million, an increase of $11.8 million, or 26.8%, compared to net revenues in the first quarter of fiscal 2009 of $43.8 million. The increase in net revenues during the first quarter of fiscal 2010 was due to higher sales in the home appliances category, partially offset by lower sales in the Company’s audio and themed categories, and lower revenue earned from licensing activities.
Operating income for the first quarter of fiscal 2010 was $1.4 million compared to $0.4 million for the first quarter of fiscal 2009, an increase of $1.0 million. The increase in operating income was due primarily to the higher revenue coupled with lower SG&A expenses, which were down $0.7 million, or 16.3%, from last year’s first fiscal quarter, resulting primarily from lower legal, advertising, and travel related costs.
Net income from continuing operations for the first quarter of fiscal 2010 was $1.2 million or $0.04 per diluted share compared to a first quarter fiscal 2009 net loss from continuing operations of $0.2 million or $0.01.

 

 

After considering the impact of discontinued operations, which resulted from the April 2009 sale by the Company of its membership interest in the ASI joint venture, net income for the first quarter of fiscal 2009 was $1.1 million, or $0.04 per diluted share, compared to a net loss of $0.3 million, or $0.01 per diluted share, for the first quarter of fiscal 2009.
“The Company returned to profitability in the quarter on strong sales of its home appliance products and lower operating expenses resulting from its expense reduction programs,” said Greenfield Pitts, Executive Vice President and Chief Financial Officer of Emerson Radio. “In addition, the Company will continue to explore opportunities to leverage its portfolio of well known consumer brands, including the recently acquired Olevia brand, through strategic licensing agreements in a variety of consumer product categories.”
About Emerson Radio Corp.
Emerson Radio Corporation (NYSE Alternext US, LLC: 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 STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except earnings per share data)
                 
    Three months ended June 30,
            2008
    2009 *   RESTATED *
 
                
Net revenues
   $ 55,599     $ 43,827  
Net revenues-related party
     —       13  
     
 
     55,599       43,840  
     
 
                
Cost of sales
     49,603       37,797  
Other operating costs and expenses
     778       1,125  
Selling, general & administrative expenses
     3,789       4,529  
     
 
     54,170       43,451  
 
                
     
Operating income
     1,429       389  
 
                
Interest income, net
     10       142  
Realized/unrealized holding gains on trading securities
     —       262  
 
                
     
Income from continuing operations before income taxes
     1,439       793  
 
                
Provision for income taxes
     278       1,005  
 
                
     
Income (loss) from continuing operations
     1,161       (212 )
 
                
Loss from discontinued operations, net of tax benefit
     55       56  
 
                
     
Net income (loss)
   $ 1,106     $ (268 )
     
 
                
Basic net income (loss) per share
                
Continuing operations
   $ 0.04     $ (0.01 )
Discontinued operations
     —       —  
     
 
   $ 0.04     $ (0.01 )
     
 
                
Diluted net income (loss) per share
                
Continuing operations
   $ 0.04     $ (0.01 )
Discontinued operations
     —       —  
     
 
   $ 0.04     $ (0.01 )
     
 
                
Weighted average shares outstanding:
                
Basic
     27,130       27,130  
Diluted
     27,130       27,130  
 
*   The results of operations for three months ended June 30, 2008 have been restated as set forth in the Company’s amended quarterly report on Form 10-Q/A for the same period on file with the Securities and Exchange Commission. Additionally, as a result of the Company’s sale of its membership in the ASI joint venture in April 2009, the results of operations of the Company’s membership interest in the ASI joint venture have been presented as discontinued operations for all periods presented.

 

 

EMERSON RADIO CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
                 
    June 30, 2009     March 31, 2009  
ASSETS
                
Cash and cash equivalents
   $ 23,619     $ 22,518  
Restricted cash
     3,067       3,025  
Net Accounts receivable
     26,668       15,970  
Other receivables
     1,382       1,587  
Due from affiliates
     76       78  
Net Inventory
     17,913       20,691  
Prepaid expenses and other current assets
     1,288       2,190  
Deferred tax assets
     5,264       4,872  
 
            
CURRENT ASSETS
     79,277       70,931  
 
                
Property, plant, and equipment, net
     1,212       1,139  
Trademarks and other intangible assets, net
     1,686       255  
Due from Affiliates
     185       114  
Investments in marketable securities
     6,031       6,031  
Deferred tax assets
     6,441       7,102  
Other assets
     435       472  
 
                
 
            
TOTAL ASSETS
     95,267       86,044  
 
            
 
                
Short term borrowings
     5,752       5,733  
Current maturities of long-term borrowings
     79       85  
Accts payable & other current liabilities
     26,945       18,929  
Due to affiliates
     20       66  
Accrued Sales Returns
     1,217       1,130  
Income taxes payable
     143       155  
 
            
CURRENT LIABILITIES
     34,156       26,098  
 
                
Long-term borrowings
     48       59  
Deferred tax liabilities
     95       87  
Shareholders equity
     60,968       59,800  
 
                
 
            
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
   $ 95,267     $ 86,044