HispanicBusiness

Forward-looking Statement Disclosure

We make forward-looking statements in this press release including but not limited to statements about our results of operations. These statements may be identified by the use of forward-looking terminology such as "may," "will," "believe," "expect," "anticipate," "estimate," "continue," or other similar words.

Forward-looking statements are subject to many risks and uncertainties. Rockford cautions you not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Actual results may differ materially from those anticipated in our forward-looking statements. Rockford disclaims any obligation or undertaking to update these forward-looking statements to reflect changes in our expectations or changes in events, conditions, or circumstances on which our expectations are based.

When considering our forward-looking statements, you should keep in mind the risk factors discussed in our press releases and earnings reports, as well as the risk factors generally applicable to a small business such as ours. We particularly call your attention to the risk factors and other cautionary statements identified on our investor relations web-site, http://www.rockfordcorp.com/RiskFactors titled "Risk Factors That May Affect Rockford's Operating Results, Business Prospects and Stock Price" (the "Risk Disclosure"). We updated the Risk Disclosure as of March 31, 2011. Our business is subject to the risk factors noted in the Risk Disclosure, other risk factors identified above and other risk factors we have not anticipated or discussed. These risk factors could cause our actual results to differ significantly from those anticipated in our forward-looking statements.

Rockford CorporationCondensed Consolidated Statements of Operations (unaudited)For the Three and Nine Months Ended September 30, 2012 and 2011($000s omitted except per share amounts)                                 Three months ended      Nine months ended                                    September 30,          September 30,                               ---------------------- ----------------------                                  2012        2011       2012        2011                               ----------  ---------- ----------  ----------Net sales                      $   15,292  $   14,237 $   54,876  $   47,808Cost of goods sold                  9,633       8,913     33,908      29,391                               ----------  ---------- ----------  ----------  Gross profit                      5,659       5,324     20,968      18,417Operating expenses:  Sales and marketing               2,231       2,098      7,742       7,438    General and administrative      1,742       1,545      5,486       5,244  Research and development            643         488      1,569       1,446                               ----------  ---------- ----------  ----------Total operating expenses            4,616       4,131     14,797      14,128                               ----------  ---------- ----------  ----------  Operating income                  1,043       1,193      6,171       4,289Interest and other expense, net                                 (347)         35       (333)         77                               ----------  ---------- ----------  ----------  Income before income taxes        1,390       1,158      6,504       4,212Income tax benefit                      -           -          -           -                               ----------  ---------- ----------  ----------Net income                     $    1,390  $    1,158 $    6,504  $    4,212                               ==========  ========== ==========  ==========Net income per common share:                               ==========  ========== ==========  ==========  Basic                        $     0.19  $     0.14 $     0.87  $     0.50                               ==========  ========== ==========  ==========  Diluted                      $     0.17  $     0.13 $     0.77  $     0.45                               ==========  ========== ==========  ==========Weighted average shares:  Basic                             7,270       8,210      7,470       8,445                               ==========  ========== ==========  ==========  Diluted                           8,281       9,162      8,489       9,323                               ==========  ========== ==========  ==========Rockford CorporationCondensed Consolidated Balance Sheets (unaudited)At September 30, 2012 and December 31, 2011(In thousands)                                               September 30,   December 31,                                                    2012           2011                                               -------------  -------------ASSETSCurrent assets:  Cash                                         $          --  $       1,762  Accounts receivable, net                            11,113          9,659  Inventories                                          9,078          8,031  Prepaid expenses and other current assets              489            473                                               -------------  -------------    Total current assets                              20,680         19,925Property and equipment, net                            1,455          1,370Other assets                                             172            220                                               -------------  -------------    Total assets                               $      22,307  $      21,515                                               =============  =============LIABILITIES AND SHAREHOLDERS' EQUITYCurrent Liabilities:  Accounts payable                             $       5,106  $       6,800  Accrued salaries and incentives                      1,442            921  Accrued warranty and returns                           491            450  Accrued customer programs                              816            644  Other accrued liabilities                            1,358          1,549  Asset based credit facility                          6,162             --                                               -------------  -------------    Total current liabilities                         15,375         10,364Other long-term liabilities                                8             26                                               -------------  -------------  Total liabilities                                   15,383         10,390Shareholders' equity:  Common stock                                            98             96  Additional paid-in-capital                          39,254         39,038  Retained deficit                                   (18,256)       (24,760)  Treasury stock                                     (14,172)        (3,249)                                               -------------  -------------    Total shareholders' equity                         6,924         11,125                                               -------------  -------------    Total liabilities and shareholders' equity $      22,307  $      21,515                                               =============  =============