Boston Acoustics Announces Fourth Quarter Results.Business Editors PEABODY Peabody (pē`bədē, –bädē), city (1990 pop. 47,039), Essex co., NE Mass., a suburb of Boston, on the Danvers River; settled c.1633, inc. as South Danvers 1855, name changed 1868. , Mass.--(BUSINESS WIRE)--June 15, 2004 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 fourth quarter of the 2004 fiscal year, which ended March 27, 2004. 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 decreased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 14%, to $11.5 million from $13.4 million for the same period a year ago. Net income increased to approximately $.5 million from approximately $.4 million, 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 $.12 compared to $.10 per share for the same period a year ago. The Company's OEM/Multimedia segment sales decreased approximately 70%, while the Core segment sales increased approximately 8%, resulting in an overall net sales decrease of approximately 14% for the quarter. The significant decrease in the OEM/Multimedia segment was anticipated for the three-months ended March 27, 2004 and was incorporated in the 2004 fiscal year business plan. For the twelve months ended March 27, 2004, net sales decreased approximately 26%, to $52.6 million from $70.6 million in the same period a year ago. Net income increased to approximately $1.9 million from approximately $1.8 million, while diluted earnings per share were $.43 per share compared to $.41 per share for the twelve months ended March 29, 2003. During January January: see month. 2004, the Company, in partnership with Visteon Visteon NYSE: VC is an automotive parts company spun off from the Ford Motor Company. Visteon is to the Ford Motor Company as Delphi is to General Motors and Denso is to Toyota. In 2004, it had 70,000 employees worldwide and $18. Corporation, began initial shipments of its premium audio systems for the Chrysler Chrys·ler , Walter Percy 1875-1940. American automobile manufacturer who founded the Chrysler Corporation (1925). Group for upcoming vehicles. Net sales of approximately $0.9 million to Visteon Corporation during the three-months ended March 27, 2004 were included in the OEM/Multimedia segment of sales. The Company anticipates a continued ramping up of these shipments during the first quarter of fiscal 2005. There is not at this time, however, sufficient historical information to predict with any certainty CERTAINTY, UNCERTAINTY, contracts. In matters of obligation, a thing is certain, when its essence, quality, and quantity, are described, distinctly set forth, Dig. 12, 1, 6. It is uncertain, when the description is not that of one individual object, but designates only the kind. Louis. the volume of revenue the Company will experience during this initial stage. President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Moses Gabbay stated, "Although our sales declined during the quarter as compared to the corresponding quarter a year ago, it was primarily due to the OEM/Multimedia segment. Despite the decrease in sales, the Company has been successful in controlling costs and maximizing max·i·mize tr.v. max·i·mized, max·i·miz·ing, max·i·miz·es 1. To increase or make as great as possible: business efficiencies resulting in gross margin improvement during both the three-month and twelve-month periods ended March 27, 2004. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the twelve-month period as compared to a year ago have increased as a percentage of sales but have decreased in absolute dollars, while decreasing both as a percentage of sales and in absolute dollars for the three-month period ended March 27, 2004. The balance sheet continues to remain strong and, except for a small working capital line of credit utilized by one of the Company's foreign subsidiaries, we have no debt, reflecting our commitment to use resources effectively." Gabbay added, "As a result of sales efforts to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our traditional distribution base and address new channel opportunities, combined with our continued focus on realizing operational efficiencies, the Company does not expect to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. a net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. in the first quarter of fiscal year 2005 as previously announced."
Three Months Ended
March 27, March 29,
2004 2003
Net Sales $11,542,522 $13,380,438
Cost of Goods Sold 6,321,540 9,723,987
Gross Profit 5,220,982 3,656,451
Selling and Marketing Expenses 2,811,392 2,676,557
General and Administrative Expenses 962,919 1,385,939
Engineering and Development Expenses 1,060,029 2,209,294
Total Operating Expenses 4,834,340 6,271,790
Income (Loss) from Operations 386,642 (2,615,339)
Interest Income, net 9,004 118,309
Other Income (Expense) 275,797 42,066
Income (Loss) before provision
(benefit) for income taxes 671,443 (2,454,964)
Provision (Benefit) for Income Taxes 183,000 (2,874,000)
Net Income $ 488,443 $ 419,036
Basic Earnings per Share $.12 $.10
Diluted Earnings per Share $.12 $.10
Weighted Average Shares Outstanding
Basic 4,121,047 4,401,595
Diluted 4,215,602 4,419,308
Twelve Months Ended
March 27, March 29,
2004 2003
Net Sales $52,627,938 $70,629,162
Cost of Goods Sold 31,437,264 48,867,166
Gross Profit 21,190,674 21,761,996
Selling and Marketing Expenses 10,057,112 10,690,311
General and Administrative Expenses 4,557,078 5,174,316
Engineering and Development Expenses 4,460,341 6,772,875
Total Operating Expenses 19,074,531 22,637,502
Income (Loss) from Operations 2,116,143 (875,506)
Interest Income, net 101,655 163,098
Other Income (Expense) 483,335 309,292
Income(Loss) before provision
(benefit) for income taxes 2,701,133 (403,116)
Provision (Benefit) for Income Taxes 844,000 (2,246,000)
Net Income $ 1,857,133 $ 1,842,884
Basic Earnings per Share $.44 $.41
Diluted Earnings per Share $.43 $.41
Weighted Average Shares Outstanding
Basic 4,238,796 4,487,908
Diluted 4,277,397 4,552,100
Consolidated Balance Sheets
Assets March 27, March 29,
Current Assets 2004 2003
Cash and cash equivalents $ 7,552,054 $ 6,941,222
Accounts receivable, net 8,202,044 6,582,033
Inventories 12,240,838 11,919,039
Deferred income taxes 2,492,000 3,577,000
Prepaid income taxes 480,000 1,449,000
Prepaid expenses and other
current assets 956,142 1,009,369
Total current assets 31,923,078 31,477,663
Property and Equipment, net 10,874,343 12,190,549
Other Assets, net 1,160,710 996,172
Total assets $43,958,131 $44,664,384
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $ 7,322,535 $ 5,630,246
Accrued payroll & related expenses 523,234 602,589
Dividends payable 354,182 374,136
Current maturity of line of credit 309,394 ---
Other accrued expenses 1,730,873 2,079,095
Total current liabilities 10,240,218 8,686,066
Minority Interest in Joint Venture --- 37,344
Shareholders' Equity 33,717,913 35,940,974
Total liabilities and
shareholders' equity $43,958,131 $44,664,384
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 Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Factors that could cause such differences include, but are not limited to, those discussed in the Company's 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 29, 2003. 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. |
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