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 Ended Nine Months Ended December 31, December 31, 2012 2011 2012 2011 --------- --------- --------- ---------Net revenues:Net product sales $ 22,608 $ 41,274 $ 99,783 $ 131,590Licensing revenue 2,046 2,177 5,597 4,765 --------- --------- --------- ---------Net revenues 24,654 43,451 105,380 136,355Costs and expenses:Cost of sales 20,484 36,657 88,759 119,257Other operating costs and expenses 253 306 1,046 995Selling, general and administrative expenses 1,926 2,025 5,671 6,094Impairment of Trademark - - 1,326 - --------- --------- --------- --------- 22,663 38,988 96,802 126,346 --------- --------- --------- ---------Operating income 1,991 4,463 8,578 10,009Other income:Interest income, net 132 10 230 40Gain on sale of building - 347 - 347Realized gain on sale of marketable security - - - 828 --------- --------- --------- ---------Income before income taxes 2,123 4,820 8,808 11,224Provision for income taxes 430 1,649 1,328 2,953 --------- --------- --------- ---------Net income $ 1,693 $ 3,171 $ 7,480 $ 8,271 ========= ========= ========= =========Net income per share: Basic 0.06 0.12 0.28 0.30 Diluted 0.06 0.12 0.28 0.30Weighted average shares outstanding: Basic 27,130 27,130 27,130 27,130 Diluted 27,130 27,130 27,130 27,130 EMERSON RADIO CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands except share data) 12/31/12 3/31/12 (A) ----------- ----------- (Unaudited) ASSETSCurrent Assets:Cash and cash equivalents $ 23,288 $ 44,960Restricted cash 102 215Short term investments 35,040 --Accounts receivable, net 5,945 12,134Other receivables 1,820 1,193Due from affiliates -- 1Inventory, net 12,928 11,269Prepaid expenses and other current assets 5,420 2,873Deferred tax assets 2,343 2,304 ----------- ----------- Total Current Assets 86,886 74,949Property, plant, and equipment, net 288 260Trademarks, net 219 1,545Deferred tax assets 1,453 1,668Other assets 34 262 ----------- ----------- Total Assets $ 88,880 $ 78,684 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITYCurrent Liabilities:Current maturities of long-term borrowings 42 64Accounts payable and other current liabilities 11,627 9,152Due to affiliates -- 11Accrued sales returns 1,105 1,201Income taxes payable 494 107 ----------- ----------- Total Current Liabilities 13,268 10,535Long-term borrowings 41 72Deferred tax liabilities 189 177 ----------- ----------- Total Liabilities 13,498 10,784Shareholders' Equity:Preferred shares -$.01 par value, 10,000,000 shares authorized at December 31, 2012 and March 31, 2012, respectively; 3,677 shares issued and outstanding at December 31, 2012 and March 31, 2012, respectively; liquidation preference of $3,677,000 at December 31, 2012 and March 31, 2012, respectively 3,310 3,310Common shares -- $.01 par value, 75,000,000 shares authorized, 52,965,797 shares issued at December 31, 2012 and March 31, 2012, respectively; 27,129,832 shares outstanding at December 31, 2012 and March 31, 2012, respectively 529 529Capital in excess of par value 98,785 98,785Accumulated other comprehensive income (losses) 345 (82)Accumulated deficit (3,363) (10,418)Treasury stock, at cost, 25,835,965 shares (24,224) (24,224) Total Shareholders' Equity 75,382 67,900 ----------- ----------- Total Liabilities and Shareholders' Equity $ 88,880 $ 78,684 =========== ===========(A) Reference is made to the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2012 filed with the Securities and Exchange Commission on July 13, 2012
CONTACT:
Investor Relations:
Barry Smith
Investor Relations Manager
(973) 428-2004
