FORT LAUDERDALE, FL--(Marketwired - Jan 17, 2017) - The Singing Machine Company, Inc. ("Singing Machine" or the "Company") (OTCQX: SMDM) today announced that on January 11, 2016, the Company fully paid down the balance of its revolving line of credit with PNC Bank. During its peak season, the Company borrowed approximately $10,000,000 from its line of credit.
As part of the Company's terms with PNC Bank, it must pay down the line of credit to a minimum of $1,000,000 for 30 consecutive days prior to April 30. The Company elected to completely pay off the line 11 days after the conclusion of its peak season.
Lionel Marquis, Company CFO commented, "We are pleased to be able to pay down our revolving line of credit with PNC Bank so quickly. During November we hit our peak borrowing on the line of approximately $10,000,000 so to be able to pay it down in early January represents the strength of our cash flow. This year we were successful in keeping many of our direct import retail accounts to letter of credit which speeds up the average time to collect receivables. We also successfully managed our inventory for year-end which helped us turn inventory into cash."
About The Singing Machine
Based in the US, Singing Machine® is the North American leader in consumer karaoke products. The first to provide karaoke systems for home entertainment in the United States, the Company sells its products world-wide through major mass merchandisers and on-line retailers. We offer the industry's widest line of at-home karaoke entertainment products, which allow consumers to find a machine that suits their needs and skill level. As the most recognized brand in karaoke, Singing Machine products incorporate the latest technology for singing practice, music listening, entertainment and social sharing. The Singing Machine provides consumers the best warranties in the industry and access to over 12,000 songs for streaming and download. Singing Machine products are sold through most major retailers in North America and also internationally. See www.singingmachine.com for more details.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management and include, but are not limited to statements about our financial statements for the fiscal year ended March 31, 2016. You should review our risk factors in our SEC filings which are incorporated herein by reference. Such forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.