Boston Acoustics Announces First Quarter Results.PEABODY, Mass. -- Boston Acoustics Founded in 1979, Boston Acoustics is a high end manufacturer of home and mobile audio equipment operated out of Peabody, Massachusetts. Boston produces speakers for the home and cars. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BOSA) today announced its financial results for the first quarter of the 2006 fiscal year, which ended on June 25, 2005. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the quarter increased approximately 42%, to $18.0 million from $12.6 million compared to the same period a year ago. Net income increased to approximately $924,000 from approximately $461,000 and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased to $.21 per share compared to $.11 per share for the same period a year ago. As previously announced on June 8, 2005, Boston Acoustics entered into an Agreement and Plan of Merger (the "Merger Agreement") with D&M Holdings U.S., Inc., a Delaware corporation A Delaware corporation is a corporation chartered in the U.S. state of Delaware. Delaware is well known as a corporate haven, and thus, over 50% of US publicly-traded corporations and 58% of the Fortune 500 companies are incorporated in the state. ("D&M"), and Allegro (operating system) Allegro - The code name for the major Mac OS release due in mid-1998. http://devworld.apple.com/mkt/informed/appledirections/mar97/roadmap.html. Acquisition Corp., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of D&M (the "Merger"). The consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the Merger is subject to shareholder approval and other customary conditions; a Shareholders Meeting has been called for August 25, 2005 to consider and act on the proposed Merger. The proposed Merger is discussed in a Current Report on a Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed with the Securities and Exchange Commission on June 9, 2005, which Report included a copy of the Merger Agreement, and in a Proxy Statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. delivered to the Company's shareholders in connection with the August 25th Shareholder's Meeting. In connection with the Merger, the company incurred expenses of approximately $580,000 during the three-month period ended June 25, 2005. These expenses, reflected as other expenses, included fees and out of pocket expenses totaling approximately $261,000 paid to the Company's financial advisor for rendering See render. (graphics, text) rendering - The conversion of a high-level object-based description into a graphical image for display. For example, ray-tracing takes a mathematical model of a three-dimensional object or scene and converts it into a bitmap image. its opinion to the Boston Acoustics board of directors, legal fees of approximately $296,000, and approximately $23,000 for audit and other accounting services.
Three Months End
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June 25, 2005 June 26, 2004
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Net Sales $17,951,953 $12,619,951
Cost of Goods Sold 10,486,445 7,131,958
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Gross Profit 7,465,508 5,487,993
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Selling and Marketing Expenses 3,099,098 2,619,638
General and Administrative Expenses 1,220,531 1,030,172
Engineering and Development Expenses 1,140,854 1,206,654
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Total Operating Expenses 5,460,483 4,856,464
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Income from Operations 2,005,025 631,529
Interest Income, net 22,192 5,901
Other Income (Expense), net (567,556) 46,297
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Income before Provision for Income Taxes 1,459,661 683,727
Provision for Income Taxes 536,000 223,000
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Net Income $923,661 $460,727
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Basic Earnings per Share $.22 $.11
Diluted Earnings per Share $.21 $.11
Weighted Average Shares Outstanding
Basic 4,199,147 4,166,845
Diluted 4,316,794 4,190,446
Consolidated Balance Sheets
June 25, 2005 March 26, 2005
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Assets
Current Assets
Cash and cash equivalents $7,913,293 $6,784,588
Accounts receivable, net 11,847,784 11,234,090
Inventories 11,565,831 12,243,617
Deferred income taxes 2,099,000 2,099,000
Prepaid income taxes 858,000 858,000
Prepaid expenses and other current
assets 907,028 1,028,474
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Total current assets 35,190,936 34,247,769
Property and Equipment, net 9,860,107 10,232,741
Other Assets, net 1,277,323 1,274,825
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Total assets $46,328,366 $45,755,335
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Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $6,823,473 $7,454,464
Accrued payroll & related expenses 607,201 701,931
Dividends payable - 355,174
Current maturity of line of credit - 9,432
Other accrued expenses 2,099,672 1,552,475
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Total current liabilities 9,530,346 10,073,476
Stockholders' Equity 36,798,020 35,681,859
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Total liabilities and stockholders'
equity $46,328,366 $45,755,335
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Founded in 1979, Boston Acoustics, Inc. (NASDAQ:BOSA) designs, manufactures, and markets high performance audio systems for use in home music and home theater An audio/video entertainment center that has a large-screen TV and hi-fi system with three speakers in the front (left, right and center) and left and right speakers in the rear. Starting in the early 1990s, video inputs were added to stereo receivers and preamplifiers. systems, after-market and OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and automotive systems See ITS, embedded system, drive-by-wire, adaptive cruise control, collision avoidance system, autonomous vehicle, heads-up display, DSRC, lane departure system, CAN bus, FlexRay and SYNC. , and custom built-in audio systems. Highly regarded for creating The Boston Sound (TM), the company is renowned for delivering superior, competitively priced products emphasizing performance and value. For further information, visit the company's web site at www.bostonacoustics.com. Certain statements in this press release contain certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. concerning Boston Acoustics' operations, economic performance and financial condition. Such forward-looking statements are based on a number of assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Boston Acoustics to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause such differences include, but are not limited to, those discussed in the Company's annual financial statements filed with its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended March 26, 2005. The words "believe," "expect," "anticipate," "intend," and "plan" and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Boston Acoustics has filed a proxy statement with the Securities and Exchange Commission in connection with the merger transaction referenced above. Investors and security holders are urged to read this filing because it contains important information about the merger transaction. Investors and security holders may obtain a free copy of the proxy statement and other documents filed with the SEC by Boston Acoustics at the SEC's Internet site (http://www.sec.gov). Copies of the proxy statement and the filings with the SEC incorporated by reference in the proxy statement can also be obtained, without charge, by directing a request to Boston Acoustics, 300 Jubilee jubilee (j  `bĭlē), in the Bible, a year when alienated property and land were restored, slaves were manumitted, debts were forgiven, and a general sabbatical year was observed in Drive, Peabody,
Massachusetts Peabody (pronunciation IPA: /ˈpiːbədi/) is a city in Essex County, Massachusetts, United States. As of the 2000 census, the population was 48,129. Peabody is located on the North Shore. , 01960, Attention: Investor Relations Investor relationsThe process by which the corporation communicates with its investors. . |
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