SOURCE: CHDT Corporation

CHDT Corporation

April 01, 2010 12:17 ET

CHDT Corporation Reports 2009 Gross Revenues of $6,161,000

DEERFIELD BEACH, FL--(Marketwire - April 1, 2010) - CHDT Corporation (OTCBB: CHDO), a Florida-based company with operating subsidiaries focused on designing and manufacturing consumer products for the North American retail market, reports the following:

Total Net Revenues: For the year ended December 31, 2009 and 2008, the Company had net revenues of approximately $6,161,000 and $6,616,000, respectively, for a decrease of $455,000 which represents a 6.8% decrease over 2008 revenue.

Results of Operations: For the year ended December 31, 2009, the Company had a net loss from continuing operations of approximately $1,099,000 versus $1,338,000 for the year ended December 31, 2008. That is a net loss decrease of $239,000 over 2008 results or 17.8%. The economic downturn had a major impact on our overall financial results particularly in the Hardware and Automotive categories. Some major retailers delayed their programs until 2010 which also impacted our revenue growth in 2009. The poor performance of our STP® tools category with a $1.5 million revenue shortfall compared to 2008 has over shadowed the positive revenue growth in our Eco-i-Lite and PATHWAY LIGHTS® programs. We have been successful in reducing expenses to offset revenue shortfalls but at the same time we have continued to invest in new product concepts and moulds as investments for possible future growth.

Cost of Sales: For the year ended December 31, 2009 and 2008, we had cost of sales of approximately $4,350,000 and $4,589,000, respectively. This cost represents 70.4% and 69.4% respectively of Net Revenue. Overall material costs have remained steady during the year, but we have provided additional sales allowances to promote our new items that have increased overall cost of sales. As a percentage of Total Net Revenue costs have increased by 1%.

Gross Profit: For 2009, gross profit was $1,811,000, a reduction by approximately $215,000 or 10.6% from 2008. For 2008, gross profit was $2,026,000. Gross profit as a percentage of sales was 29.4% for the year as compared to 30.6% for 2008. The gross profit decrease is the result of the added sales allowance offered to promote the new product launches and fewer sales.

Our larger customers are continuing to buy on a direct import basis. The gross margin percentages are lower in this selling scenario but the Company's expenses are also reduced as the customer is responsible for related expenses such as freight, duties and handling costs.

Operating expenses were $2,644,000 in 2009 as compared to $3,075,000, a net reduction of $431,000 or 14%. This reduction can be attributed to various factors. Sales and Marketing expenses were $355,000, a reduction of $202,000 or 36% over the $557,000 expensed in 2008.

Compensation for 2009 was $1,283,000, a reduction of $310,000 or 19.4% from $1,593,000 in 2008.

Management believes that revenues for 2010 will escalate as the retail environment continues to mend from the severe downturn experienced in 2009. Capstone Industries recently returned from the 2010 International Home and Housewares exhibition with numerous product awards as well as strong demand from retailers for its products. Retailers' response to the company's expanded Pathway lighting® and Eco-i-Lite products was overwhelmingly positive. The launch of the C-Lite Motion Sensor Light program and the Light Ringers Lamps at the Housewares exhibition was also a major success with a lot of interest from many new retail channels. Over the next several weeks follow up will take place with prospective buyers.

"2009 was a setback for CHDT's historical 100%+ revenue growth year over year, since 2007 as the severe downturn in the economy shut off or delayed purchasing of new and many existing products. In particular the Hardware and Automotive categories were severely depressed. However the investment in new concepts and products in 2009 helped us offset part of the revenue shortfall. Looking forward in 2010 thus far we see increased demand for our new and existing products and we have continued to invest in new product development which should get the company back on track to increase revenues in 2010," said Chairman Howard Ullman.

The following summary is qualified by reference to the Form 10K report for fiscal year 2009 and the risk factors therein.

 
                    CHDT CORPORATION AND SUBSIDIARIES

                       CONSOLIDATED BALANCE SHEETS

                                                       December 31,

                                                --------------------------
                                                    2009          2008

                                                ------------  ------------

Assets:

Current assets:
  Cash                                          $    266,867  $    156,371
  Accounts receivable - net                        1,341,883     2,399,859
  Inventory                                          397,908       387,749
  Prepaid expense                                     57,076        83,846

                                                ------------  ------------

    Total Current Assets                           2,063,734     3,027,825

                                                ------------  ------------

Fixed assets:
  Computer equipment & software                       63,448        60,648
  Machinery and equipment                            461,146       408,429
  Furniture and fixtures                               5,665         5,665
  Less: Accumulated Depreciation                    (353,854)     (219,894)

                                                ------------  ------------

    Total Fixed Assets                               176,405       254,848

                                                ------------  ------------

Other non-current assets:
  Product development costs, net                      44,756       103,700
  Goodwill                                         1,936,020     1,936,020
  Deposits                                            15,000        15,000

                                                ------------  ------------

    Total other non-current assets                 1,995,776     2,054,720

                                                ------------  ------------

      Total assets                              $  4,235,915  $  5,337,393



                                                       December 31,

                                                --------------------------
                                                    2009          2008

                                                ------------  ------------

Liabilities and Stockholders' Deficit:
Current liabilities:
  Accounts payable and accrued expenses         $    306,196  $  1,824,295
  Note payable - Sterling Bank                     1,277,151       722,547
  Notes and loans payable to related parties -
   current maturities                              1,198,288     1,185,407

                                                ------------  ------------

    Total current liabilities                      2,781,635     3,732,249

                                                ------------  ------------

    Total Liabilities                              2,781,635     3,732,249

                                                ------------  ------------

Stockholders' Equity:
  Preferred Stock, Series A, par value $.001
   per share Authorized 100,000,000 shares,
   Issued -0- shares at December 31, 2009
   and 60 shares at December 31, 2008                      -             1
  Preferred Stock, Series B, par value $.10
   per share Authorized 100,000,000 shares,
   Issued -0- shares at December 31, 2009
   and 2,108,813 at December 31, 2008                      -       210,882
  Preferred Stock, Series B-1, par value $.0001
   per share Authorized 50,000,000 shares,
   Issued -0- shares at December 31,
   2009 and 2008                                           -             -
  Preferred Stock, Series C, par value $1.00
   per share Authorized 1,000 shares, issued 
   1,000 shares at December 31, 2009 and -0- 
   at December 31, 2008                                1,000             -
  Common Stock, par value $.0001 per share
    Authorized 850,000,000 shares,
    Issued 648,632,786 shares at December 31,
    2009 and 557,941,646 shares at December 31,
    2008                                              64,863        55,794
  Related party receivable                           (40,441)      (40,441)
  Additional paid-in capital                       6,734,720     5,585,702
  Accumulated deficit                             (5,305,862)   (4,206,794)

                                                ------------  ------------

  Total Stockholders' Equity                       1,454,280     1,605,144


  Total Liabilities and Stockholders' Equity    $  4,235,915  $  5,337,393

                                                ============  ============


                    CHDT CORPORATION AND SUBSIDIARIES

                  CONSOLIDATED STATEMENTS OF OPERATIONS
         
                                                    For the Years Ended

                                                       December 31,

                                                --------------------------
                                                    2009          2008

                                                ------------  ------------
Revenues                                        $  6,161,367  $  6,616,330
Cost of Sales                                     (4,350,019)   (4,589,636)

                                                ------------  ------------

    Gross Profit                                   1,811,348     2,026,694

                                                ------------  ------------

Operating Expenses:
  Sales and marketing                                355,480       557,027
  Product development                                198,134        19,908
  Compensation                                     1,283,262     1,593,349
  Professional fees                                  265,434       221,831
  Depreciation and amortization                      230,048       177,186
  Other General and administrative                   312,162       506,405

                                                ------------  ------------
    Total Operating Expenses                       2,644,520     3,075,706

                                                ------------  ------------


Net Operating Income (Loss)                         (833,172)   (1,049,012)

                                                ------------  ------------


Other Income (Expense):
  Interest expense                                  (266,132)     (291,133)
  Interest income                                        179         1,409
  Miscellaneous income                                    57             -

                                                ------------  ------------

    Total Other Income (Expense)                    (265,896)     (289,724)

                                                ------------  ------------

Net Income (Loss)                               $ (1,099,068) $ (1,338,736)


Income (Loss) per Common Share                  $          -  $          -


Weighted average shares outstanding              563,178,018   559,844,813

About CHDT Corporation

CHDT Corporation (http://www.chdtcorp.com) is a public holding company that engages, through its wholly owned subsidiary (Capstone Industries), in the development, manufacturing, logistics, and distribution of consumer products to retailers and wholesalers throughout North America. See http://www.chdtcorp.com for more information about the company and www.capstoneindustries.com, www.takeanyware.com and www.stptools.com for information on our current product offerings. Reference of URLs in this press release does not incorporate said URLs or any of their contents in this press release.

FORWARD-LOOKING STATEMENTS: This press release, including the financial information that follows, contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995, as amended. These statements are based on the Company's and its subsidiaries' current expectations and involve risks and uncertainties, which may cause results to differ materially from those set forth in the statements. CHDT undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this press release and risks associated with any investment in CHDT, which is a small business concern and a "penny stock company" and, as such, a highly risky investment suitable for only those who can afford to lose such investment, should be evaluated together with the many uncertainties that affect CHDT's business, particularly those mentioned in the cautionary statements in current and future CHDT's SEC Filings.