Published: July 14, 2010
Emerson Radio Corp. Reports Fiscal 2010 Fourth Quarter and Full Year Results
Emerson Radio Corp. (NYSE Amex: MSN) today reported financial results for its fourth quarter and full year ended March 31, 2010.
Net revenues for the fourth quarter of fiscal 2010 increased $8.4 million, or 19.5%, to $51.5 million as compared to net revenues in the fourth quarter of fiscal 2009 of $43.2 million, and net revenues for fiscal year 2010 increased $6.4 million, or 3.2%, to $207.0 million as compared to net revenues of $200.6 million during fiscal 2009. The increase in net revenues for both the fourth quarter of fiscal 2010 as compared to the prior year and the fiscal year 2010 versus fiscal year 2009 was primarily due to increased sales of microwave ovens, partially offset by decreased sales of audio and themed products
Operating income for the fourth quarter of fiscal 2010 was $4.3 million compared to an operating loss of $2.9 million for the fourth quarter of fiscal 2009 an improvement of $7.2 million. Operating income for fiscal year 2010 was $13.8 million compared to an operating loss of $4.4 million for fiscal 2009, an improvement of $18.2 million. The increase in the fourth quarter year-over-year operating income was primarily due to the higher net revenues, partially offset by higher costs. The increase in the fiscal year 2010 year-over-year operating income was primarily due to lower costs coupled with the higher net revenues.
Net income from continuing operations for the fourth quarter of fiscal 2010 was $3.6 million or $0.13 per diluted share compared to a net loss from continuing operations of $2.2 million, or $0.08 per diluted share, for the fourth quarter of fiscal 2009, an improvement of $5.8 million or $0.21 per diluted share. Net income from continuing operations for fiscal year 2010 was $11.4 million or $0.42 per diluted share compared to a net loss from continuing operations of $4.2 million, or $0.16 per diluted share, for the same period in fiscal 2009, an improvement of $15.6 million, or $0.58 per diluted share.
Greenfield Pitts, Executive Vice President and Chief Financial Officer of Emerson Radio, stated, "We are pleased that fiscal 2010's financial results reflect our efforts during the year to restructure the Company's operations and reduce its cost structure, to expand the housewares product category and to explore new licensing opportunities. Moving forward, we will continue focusing on strategic and profitable revenue generation, as well as continually monitoring costs and identifying further operating efficiencies."
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 STATEMENTS OF OPERATIONS
(In thousands, except earnings per share data)
Three Months Ended Twelve Months Ended
March 31, March 31,
2010 2009 2010 2009
---------- ---------- ---------- ----------
Net revenues
Net revenues $ 51,549 $ 43,157 $ 206,960 $ 200,581
Net revenues-related party - - - 15
---------- ---------- ---------- ----------
51,549 43,157 206,960 200,596
---------- ---------- ---------- ----------
Costs and expenses:
Cost of sales 42,861 41,912 175,463 182,346
Other operating costs and
expenses 571 993 3,134 5,762
Selling, general and
administrative expenses 3,769 3,108 14,598 16,889
---------- ---------- ---------- ----------
47,201 46,013 193,195 204,997
---------- ---------- ---------- ----------
Operating income (loss) 4,348 (2,856) 13,765 (4,401)
---------- ---------- ---------- ----------
Other (expense) income:
Interest income (expense),
net (45) 18 (24) 245
Unrealized holding (loss) on
trading securities - (356) - (787)
Realized gains on trading
securities - 47 - 670
---------- ---------- ---------- -----------
Income (loss) before income
taxes 4,303 (3,147) 13,741 (4,273)
Provision (benefit) for
income taxes 728 (938) 2,371 (90)
---------- ---------- ---------- ----------
Income (loss) from continuing
operations 3,575 (2,209) 11,370 (4,183)
Loss from discontinued
operations, net of tax
benefit - (277) (55) (634)
---------- ---------- ---------- ----------
Net income (loss) $ 3,575 ($2,486) $ 11,315 ($4,817)
========== ========== ========== ==========
Basic net income (loss) per
share:
Continuing operations 0.13 (0.08) 0.42 (0.16)
Discontinued operations - (0.01) - (0.02)
---------- ---------- ---------- ----------
0.13 (0.09) 0.42 (0.18)
Diluted net income (loss) per
share:
Continuing operations 0.13 (0.08) 0.42 (0.16)
Discontinued operations - (0.01) - (0.02)
---------- ---------- ---------- ----------
0.13 (0.09) 0.42 (0.18)
Weighted average shares
outstanding:
Basic 27,130 27,130 27,130 27,130
Diluted 27,132 27,130 27,131 27,130
EMERSON RADIO CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, March 31,
2010 2009
------------ ------------
Cash and cash equivalents $ 15,051 $ 22,518
Restricted cash 1 3,025
Accounts receivable, net 20,350 15,970
Due from affiliates - 78
Inventory, net 10,952 20,691
Deferred tax assets 3,383 4,872
Other current assets 1,773 3,777
------------ ------------
Total current assets 51,510 70,931
Property, plant and equipment, net 3,131 1,139
Investments in marketable securities 6,031 6,031
Other assets 8,584 7,943
------------ ------------
Total assets $ 69,256 $ 86,044
============ ============
Current liabilities 27,594 26,098
Long-term borrowings 201 59
Other long term debt 119 87
Shareholders' equity 41,342 59,800
------------ ------------
Total liabilities and equity $ 69,256 $ 86,044
============ ============
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