SOURCE: Emerson Radio Corp.

July 14, 2010 17:01 ET

Emerson Radio Corp. Reports Fiscal 2010 Fourth Quarter and Full Year Results

MOONACHIE, NJ--(Marketwire - July 14, 2010) -  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, 2010   March 31, 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

Contact Information

  • CONTACT:
    Emerson Radio Corp.
    Greenfield Pitts
    Chief Financial Officer
    (212) 897-5441

    Investor Relations:
    Robert Maffei
    Investor Relations Manager
    (973) 428-2098