CONCORD CAMERA CORP. REPORTS SECOND QUARTER AND SIX MONTHS RESULTS; Company Reports Record Revenues for the Quarter as Core Camera Sales Increase 35%; Balance Sheet Continues to Improve, Chairman Sees Progress Continuing Throughout Current Fiscal Year.AVENEL, N.J.--(BUSINESS WIRE)--JANUARY 26, 1995--CONCORD CAMERA CORP. (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 NM Symbol: LENS) today announced results for the second quarter and six months ended December 31, 1994. During the second quarter ended December 31, 1994, 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 increased 7% to a record $18.6 million, compared to $17.3 million in last year's second quarter. This $18.6 million sales figure included only $200,000 of non-camera sales and no promotional sales, compared to the $3.8 million from those categories last year, resulting in a 35% increase in core business sales over the comparable period last year. Income from operations before income taxes and other non-operating income increased 11% to $1.4 million from $1.2 million in last year's second quarter. Gross margins declined from the comparable quarter of fiscal 1994, in part from competitive pressure but principally from improved control over production and inventory levels during the quarter, the benefit of which should be realized in the ensuing quarters. Net income for the quarter ended December 31, 1994 was $1.4 million, or $0.14 per share, based upon 10,509,239 weighted number of shares outstanding compared to net income of $1.6 million, or $0.16 per share, based upon 10,037,667 shares outstanding in last year's quarter. For the six months ended December 31, 1994, net sales increased approximately 12% to $33.3 million from $29.8 million for the comparable 1993 period. This 12% increase includes a 22% gain in core camera business sales to $30.8 million from $25.2 million of core business sales recorded in the same period last year. Net income for the six month period was $1.9 million, or $0.18 per share, based upon 10,499,883 weighted number of shares outstanding, compared to net income of $2.6 million, or $0.27 per share, based on 9,813,263 shares outstanding for the comparable 1993 period. In commenting on the Company's second quarter and six month results, Ira Lampert, CONCORD CAMERA's Chairman & 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. stated, "We are very pleased with the Company's results in the second quarter for a variety of reasons: sales through normal distribution channels increased 28% and sales to 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 distributors increased 80% compared to the second quarter of last year. Of equal importance is the fact that last year's second quarter $17.3 million sales figure included $3.8 million of promotional and non-camera sales. In the latest quarter that number was only $200,000, which means our core camera sales showed a 35% increase to $18.4 million from $13.6 million in the second quarter last year. Furthermore, despite $110,000 in non-recurring legal expenses our 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. declined over $200,000 and our financial expenses declined an additional $173,000 for the quarter." Commenting on the Company's improved balance sheet, Mr. Lampert stated, "We have significantly reduced our short term debt from $10.4 million at December 31, 1993 to $4.9 million at December 31, 1994. In addition, we significantly reduced our inventory levels, resulting in a year-to-year decline of $4.7 million. We now have a book value of $33.1 million, or $3.15 per share, and $4.5 million of cash. Although pleased with our results to date, we expect to continue to see improved progress." The Company also reported it has obtained an additional $1.5 million working capital credit line from the Bank of East Asia The Bank of East Asia Limited (Traditional Chinese: 東亞銀行有限公司) HKSE: 0023 often abbreviated to BEA , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , bringing its total working capital lines to $16.3 million. CONCORD CAMERA CORP. is principally engaged in the manufacture and sale of popularly-priced, easy-to-use, 35 millimeter, 110 cartridge, and single-use cameras which it manufactures and assembles in the PRC under the CONCORD, KEYSTONE, LE CLIC CLIC Centre Local d'Information et de Coordination (French) CLiC Climate and Cryosphere (World Climate Research Programme project, Norway) CLIC Compact Linear Collider CLIC Connecticut Licensing Information Center and for sales outside the United States and Mexico, ARGUS Argus (är`gəs) or Argos (är`gŏs, –gəs), in Greek mythology. 1 Many-eyed monster, also called Panoptes. He guarded Io after she had been changed into a heifer. trade names, as well as under private label. The Company sells and markets its camera products worldwide through direct sales offices in the United States, Canada, Germany, Hong Kong, Japan, Panama, the United Kingdom, Hungary, France and through independent sales agents.
CONCORD CAMERA CORP
Consolidated Statements Of Operations
(Unaudited)
Three months ended Six months ended
December 31, December 31,
1994 1993 1994 1993
Net sales $18,554,945 $17,314,681 $33,271,793 $29,799,547 Cost of products sold 12,707,180 11,229,117 22,705,134 18,567,651 Gross profit 5,847,765 6,085,564 10,566,659 11,231,896 Selling expenses 1,940,591 1,508,200 3,617,066 2,769,846 General & administrative expenses 2,147,507 2,782,620 4,276,865 4,971,151 Financial expenses 391,937 564,670 754,460 977,002 Other (income) expense, net (155,680) (426,204) (98,208) (214,002) Income from operations before income taxes 1,523,410 1,656,278 2,016,476 2,727,899 Provision for income taxes 101,299 18,481 102,944 70,279 Net income $ 1,422,111 $ 1,637,797 $ 1,913,532 $ 2,657,620 Earnings per common and common equivalent share $0.14 $0.16 $0.18 $0.27 Weighted average number of common and common equivalent shares outstanding 10,509,239 10,037,667 10,499,883 9,813,263 CONCORD CAMERA CORP. Consolidated Balance Sheets December 31, 1994 June 30, 1994 (Unaudited) Current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. : Cash $4,474,426 $3,394,658 Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , net 11,276,252 8,489,661 Inventories 17,641,184 19,107,018 Prepaid expenses and other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. 2,560,071 2,610,127 Total current assets 35,951,933 33,601,464 Plant and equipment, net 9,865,712 10,306,659 Goodwill, net 1,660,872 1,728,783 Investments in joint ventures 93,634 168,634 Other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. 3,171,268 2,377,081 Total assets $50,743,419 $48,182,558 Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. : Short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. $3,935,973 $3,708,976 Current portion of long-term debt Current Portion Of Long-Term Debt A portion of the balance sheet that represents the total amount of long-term debt that must be paid within the next year. The balance sheet has a liability section, which is broken down into long-term and current debt. 23,855 23,646 Current obligations under capital leases 954,913 877,998 Accounts payable 5,848,584 5,436,932 Accrued expenses 1,945,353 1,947,521 Income taxes payable 353,984 184,471 Due to officer -- 100,000 Other current liabilities Other Current Liabilities A balance sheet entry used by companies to group together current liabilities that are not assigned to common liabilities such as debt obligations or accounts payable. 217,056 207,333 Total current liabilities 13,279,718 12,486,877 Deferred income taxes 510,416 509,190 Long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. 3,275,601 3,284,534 Obligations under capital leases 458,165 713,721 Other long-term liabilities Other Long-Term Liabilities A balance sheet item that includes obligations that do not currently require interest payments. Notes: This would include items such as remaining leases, future employee benefits and deferred taxes. 118,253 133,011 Total liabilities $ 17,642,153 $ 17,127,333 Stockholders' equity: Common stock, no par value, 20,000,000 authorized; 10,523,634 and 10,490,526 issued as of December 31 and June 30, 1994 37,067,607 36,935,174 Paid in capital 850,786 850,786 Deficit (4,364,208) (6,277,816) 33,554,185 31,508,144 Less: treasury stock, at cost, 63,553 shares (452,919) (452,919) Total stockholders' equity 33,101,266 31,055,225 Total liabilities and stockholders' equity $50,743,419 $48,182,558
The information contained herein was obtained from the Management
of CONCORD CAMERA CORP. and other sources deemed to be reliable.
This does not constitute the solicitation of the purchase or sale of
securities.
CONTACT: Lippert/Heilshorn & Assoc. Keith L. Lippert -- Ext.108, 212/838-3777 or CONCORD CAMERA CORP. Gary Simon, 908/499-8280 |
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