PARSIPPANY, N.J., July 14 /PRNewswire-FirstCall/ -- Emerson Radio
Corp. (NYSE Alternext US, LLC: MSN) today reported financial
results for its fourth quarter and full year ended March 31, 2009.
As a result of the Company's sale of its membership in the ASI
joint venture in April 2009, the results of operations of the
Company's membership interest in the ASI joint venture have been
presented as discontinued operations for all periods presented. Net
revenues for the fourth quarter of fiscal 2009 were $43.2 million,
an increase of 17.2% compared to net revenues in the fourth quarter
of fiscal 2008. The increase in net revenues during the fourth
quarter of fiscal 2009 was primarily due to higher sales in the
housewares category offset by lower sales in the Company's audio
category. Net revenues for fiscal 2009 decreased by $22.6 million,
or 10.1%, to $200.6 million, compared to $223.2 million during
fiscal 2008. Higher net revenues from housewares, which increased
$12.8 million or 10.0% to $140.4 million in fiscal 2009, were
offset by a decline of $34.0 million, or 43.1%, in net revenue from
Emerson branded products, resulting primarily from lower sales
across the Company's audio product category. Operating loss for the
fourth quarter of fiscal 2009 was $2.9 million compared to an
operating loss of $6.0 million for the fourth quarter of fiscal
2008. Operating loss for the fourth quarter of fiscal 2009
decreased compared to the prior year primarily as a result of the
higher revenue coupled with lower SG&A expenses. The Company's
operating loss for fiscal 2009 was $4.4 million compared to an
operating loss of $7.2 million during fiscal 2008. The decrease in
operating loss during fiscal 2009 was primarily due to a $6.4
million decline in SG&A costs, or 27.5%, resulting from
decreases in legal fees, freight costs, and personnel costs,
partially offset by the impact of the lower net revenues. Net loss
from continuing operations for the fourth quarter fiscal 2009 was
$2.2 million or $0.08 per diluted share compared to a fourth
quarter fiscal 2008 net loss from continuing operations of $7.3
million or $0.27 per diluted share. Net loss from continuing
operations for fiscal 2009 was $4.2 million or $0.16 per diluted
share compared to fiscal 2008's net loss from continuing operations
of $9.0 million or $0.33 per diluted share. After considering the
impact of discontinued operations, net loss for the fourth quarter
of fiscal 2009 was $2.5 million, or $0.09 per diluted share,
compared to a net loss of $7.3 million, or $0.27 per diluted share,
for the fourth quarter of fiscal 2008. Net loss for fiscal 2009 was
$4.8 million, or $0.18 per diluted share, compared to net loss of
$9.0 million, or $0.33 per diluted share, in fiscal 2008. "While
the economy remains difficult we are beginning to see some early
signs of success in repositioning Emerson as a leaner operation. In
the fourth quarter we grew sales, lowered our costs and narrowed
losses," said Greenfield Pitts, Executive Vice President and Chief
Financial Officer of Emerson Radio. "Looking ahead, we are looking
to further reduce spending and improve efficiencies throughout the
Company to better position Emerson for growth once economic
conditions normalize. On the product front, we remain focused on
bringing redesigned and innovative products to market. In addition,
we are exploring opportunities to leverage our portfolio of well
known consumer electronic brands, including the recently acquired
Olevia brand, through strategic licensing agreements in a variety
of consumer product categories." The Company also announced today
that it filed a Current Report on Form 8-K, dated July 9, 2009 with
the Securities and Exchange Commission (SEC), stating that it will
issue restated financial statements for the three months ended June
30, 2008 and September 30, 2008 to correct an overstatement of
pre-tax loss in the June quarter and an understatement of pre-tax
loss in the September quarter, each in an amount currently
estimated at $1.0 million. Because the amounts to be restated in
the periods offset each other, the Company believes that its
financial statements for the six months ended September 30, 2008
continue to present fairly the Company's results of operations and
financial condition for the period as of that date. The company
currently anticipates that it will file the amended financial
statements on or before August 31, 2009. About Emerson Radio Corp.
Emerson Radio Corporation (NYSE Alternext US, LLC: MSN), founded in
1948, is headquartered in Parsippany, N.J. The Company designs,
sources, imports and markets a variety of consumer electronic and
houseware 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
http://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 (Unaudited) (In thousands,
except earnings per share data) Three Months Twelve Months Ended
Ended March 31, March 31, 2009* 2008* 2009* 2008* ----- ---- ----
---- Net revenues Net revenues $43,157 $36,832 $200,581 $222,801
Net revenues-related party - 3 15 373 --- --- --- --- 43,157 36,835
200,596 223,174 ------ ------ ------- ------- Costs and expenses:
Cost of sales 41,912 35,934 182,346 200,766 Cost of sales-related
party - - - 232 Other operating costs and expenses 993 1,319 5,762
6,097 Selling, general and administrative expenses 3,108 5,537
16,889 23,285 ----- ----- ------ ------ 46,013 42,790 204,997
230,380 ------ ------ ------- ------- Operating loss (2,856)
(5,955) (4,401) (7,206) ------ ------ ------ ------ Other income
(expense): Gain on sale of building - - - 854 (Loss) Gain on
foreign exchange forward contracts - (50) - 465 Interest income
(expense), net 18 212 245 140 Interest income-related party - - -
163 Loss on impairment of securities (309) (1,952) (117) (1,952)
------ ------ ------ ------ Loss before income taxes and minority
interest (3,147) (7,745) (4,273) (7,536) (Benefit) provision for
income taxes (938) (510) (90) 1,427 ---- ---- --- ----- Loss from
continuing operations (2,209) (7,235) (4,183) (8,963) Loss from
discontinued operations, net of tax benefit (277) (58) (634) (58)
---- --- ---- --- Net loss ($2,486) ($7,293) ($4,817) ($9,021)
======= ======= ======= ======= Basic net loss income per share:
Continuing operations (0.08) (0.27) (0.16) (0.33) Discontinued
operations (0.01) - (0.02) - ----- --- ----- --- (0.09) (0.27)
(0.18) (0.33) Diluted net loss income per share: Continuing
operations (0.08) (0.27) (0.16) (0.33) Discontinued operations
(0.01) - (0.02) - ----- --- ----- --- (0.09) (0.27) (0.18) (0.33)
Weighted average shares outstanding: Basic 27,130 27,130 27,130
27,126 Diluted 27,130 27,130 27,130 27,126 * As a result of the
Company's sale of its membership in the ASI joint venture in April
2009, the results of operations of the Company's membership
interest in the ASI joint venture have been presented as
discontinued operations for all periods presented. EMERSON RADIO
CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands)
March 31, 2009 March 31, 2008 --------------- --------------- Cash
and cash equivalents $22,518 $14,283 Restricted cash 3,025 -
Foreign exchange forward contracts - 134 Accounts receivable (less
allowances of $4,325 and $4,148, respectively) 15,970 17,254 Due
from affiliates 78 765 Inventory, net 20,691 24,721 Deferred tax
assets 4,872 5,412 Other current assets 3,777 4,706 ----- -----
Total current assets 70,931 67,275 Property, plant and equipment,
net 1,139 1,481 Investments in marketable securities 6,031 11,948
Other assets 7,943 7,225 ----- ----- Total assets $86,044 $87,929
======= ======= Current liabilities 26,098 22,978 Long-term
borrowings 59 142 Other long term debt 87 57 Minority interest -
133 Shareholders' equity 59,800 64,619 ------ ------ Total
liabilities and equity $86,044 $87,929 ======= ======= DATASOURCE:
Emerson Radio Corp. CONTACT: Emerson Radio Corp., Greenfield Pitts,
Chief Financial Officer, +1-212-897-5441; Investor Relations:
Robert Maffei, Investor Relations Manager, +1-973-428-2098;
Brainerd Communicators, Denise Roche, +1-212-986-6667; or Media
Relations: Brainerd Communicators, Inc., Scott Cianciulli,
+1-212-986-6667 Web Site: http://www.emersonradio.com/
Copyright