TO ALL==Didn't read it all yet ,but here it is.
Emerson Radio Corp. Reports Earnings for the Quarter Ended January 1, 1999
PARSIPPANY, N.J.--(BUSINESS WIRE)--Feb. 16, 1999--
For the Nine Month Period Revenues Increase by 11% and EPS
Increases to $.02 Versus a Loss of $.01
Emerson Radio Corp. (AMEX:MSN) reported results for the quarter
ended January 1, 1999. The Company reported net revenues of
$31,588,000 compared to net revenues of $48,295,000 for the same
period a year ago. As a result of the Company having previously
elected to change its fiscal year to a 52/53 week year-end, the third
quarter of fiscal 1999 ended on January 1, 1999 as compared to
December 31, 1997 for fiscal 1998.
The decreased revenues reported for the three months ended
January 1, 1999 reflect a decrease in the Company's unit sales in the
U.S. in certain audio product categories, which were partially offset
by a reduction in customer returns.
The Company reported net income for the three months ended
January 1, 1999 of $310,000 as compared to $493,000 for the quarter
ended December 31, 1997. On a year to date basis, the Company reported
an 11% increase in revenues and earned $1,657,000 or $.02 per share
for the nine months ended January 1, 1999 as compared to a net loss of
($210,000) or ($.01) for the same period last year.
Gross margins in the current quarter were higher due to higher
margins in audio and microwave oven products. Selling, general and
administrative expenses for the quarter ended January 1, 1999 declined
to $2,527,000 from $4,184,000, or 8.0% and 8.6% of sales respectively,
for the three months ended January 1, 1999 as compared to the same
period last year. Selling, general and administrative expenses also
decreased to $10,024,000 and $11,338,000, or 7.3% and 9.2% of sales
respectively, for the nine months as compared to the same period last
year. The decrease was primarily attributable to reduced co-op
advertising, reduced charges related to bad debts and a reduction in
professional fees. Other operating costs and expenses increased to
$990,000 from $799,000 for the same period a year ago due primarily to
inventory servicing costs.
In announcing the results, Geoffrey P. Jurick, Chairman and Chief
Executive Officer of Emerson said, "This is the third consecutive
quarter that the Company has reported positive earnings. Based on year
to date results, our revenues have increased and the Company has
returned to profitability as compared to the same period last year.
Our focus has been and continues to be on product innovation and the
successful management and containment of expenses.
Our investment in Sport Supply Group, Inc. (NYSE:GYM), reported
under the Equity Method of accounting, while not contributing to
Emerson's earnings this quarter due to the "out-of-season" quarter for
sporting equipment sales continues to make major strides in being a
major consolidator in the institutional sporting equipment industry.
We expect our investment to improve in value through Sport Supply
Group's ongoing efforts.
We continue to focus our efforts on programs designed to leverage
the strength of the Emerson trademark in domestic distribution
channels and by further developing the Company's existing product
lines, as well as our H.H. Scott division.
Additionally, our efforts in the international market, through
licensing and distributorship agreements, continue to contribute to
our strategic goal.
We have also been executing the Company's previously announced
stock repurchase program and to date have repurchased over 3 million
shares of common stock. The earnings growth combined with the stock
repurchase program should provide Emerson shareholders with improved
value."
This press release contains forward looking statements with
respect to the results of operations and business of the Company that
involve risks and uncertainties detailed from time to time in the
Company's filings with the Securities and Exchange Commission
including the Company's reports on Form 10-K and Form 10-Q. Actual
results may differ materially from those stated depending upon a
number of factors, including but not limited to, product supply and
demand, retail consumer electronics market, price competition, success
of licensing arrangements, and the Company's ability to develop new
products and competition from companies with greater resources.
EMERSON RADIO CORP., founded in 1948, is headquartered in
Parsippany, N.J. The Company designs, markets and licenses, throughout
the world, full lines of televisions and other video products,
microwave ovens, clocks, clock radios, audio, and home theater
products.
EMERSON RADIO CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
Jan. 1, Dec. 31, Jan. 1, Dec. 31,
1999 1997 1999 1997
Net Revenues $ 31,588 $ 48,295 $137,476 $123,838
Costs and expenses:
Costs of Sales 26,949 42,157 121,110 109,343
Other operating costs
and expenses 990 799 3,153 2,302
Selling, general and
administrative expenses 2,527 4,184 10,024 11,338
30,466 47,140 134,287 122,983
Operating Income 1,122 1,155 3,189 855
Equity in earnings of
Affiliate (196) (31) 595 1,006
Write-down of Investment
in Joint Venture -- -- (370) --
Interest expense, net (620) (619) (1,740) (2,018)
Income (Loss) before income
taxes 306 505 1,674 (157)
Provision (benefit) for
income taxes (4) 12 17 53
Net income (loss) $ 310 $ 493 $ 1,657 $ (210)
Net income (loss) per
common share
Basic $ 0.01 $ 0.01 $ 0.02 $ (0.01)
Diluted $ 0.01 $ 0.01 $ 0.02 $ (0.01)
Weighted average number of
common shares outstanding
Basic 48,601 47,394 49,935 43,463
Diluted 59,010 65,869 62,157 43,463
CONTACT:
Emerson Radio Corp.
Ken A. Corby
973/884-5800
972/884-2301
KEYWORD: NEW JERSEY
BW2070 FEB 16,1999
15:55 PACIFIC
18:55 EASTERN |
