Concord Camera Corp. Announces Results for the Fourth Quarter and Fiscal Year Ended July 3, 2004.HOLLYWOOD Hollywood. 1 Community within the city of Los Angeles, S Calif., on the slopes of the Santa Monica Mts.; inc. 1903, consolidated with Los Angeles 1910. , Fla. -- Concord Concord, cities, United States Concord (kŏng`kərd, kŏn`kôrd'). 1 city (1990 pop. 111,348), Contra Costa co., W central Calif.; settled c.1852, inc. 1906. Camera Corp. ("Concord" or "Company") (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 : LENS) today reported financial results for the fourth quarter and fiscal year ended July July: see month. 3, 2004 (see attached tables). Fourth Quarter Comparison For the fourth quarter ended July 3, 2004 ("Fourth Quarter Fiscal 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 were $52.4 million, a 14.8% decrease from the same quarter last year. Net (loss) was ($10.1) million, or ($0.36) per share. This compared to net sales of $61.5 million, and net income of $1.7 million, or $0.06 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the fourth quarter of the prior fiscal year ("Fourth Quarter Fiscal 2003"). The Fourth Quarter Fiscal 2004 loss includes the impact of an extraordinary gain of $5.8 million, or $0.20 per share, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the acquisition discussed below and a $1.7 million reduction in the carrying values Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of certain digital camera and component inventory related to volatility in the digital camera market resulting from recent price declines and pricing reductions by the Company's competitors. In addition, the loss includes unfavorable production variances due to lower than expected production volumes and manufacturing inefficiencies which created significant under absorption of manufacturing labor and overhead costs overhead costs see fixed costs. . Last year's fourth quarter included $0.9 million of non-cash variable stock option expense. Net sales in Retail Sales and Distribution ("RSD RSD Reflex sympathetic dystrophy, see there ") declined compared to the same quarter last year primarily due to pricing pressures for digital cameras, lower unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. for all products and increases in estimated sales returns and allowances. RSD net sales were $38.6 million in Fourth Quarter Fiscal 2004, a decrease of $9.3 million, or 19.4% over last year's fourth quarter sales of $47.9 million. Sales in Design and Manufacturing Services ("DMS (1) (Document Management System) See document management. (2) (Defense Messaging System) An X.500-compliant messaging system developed by the U.S. Dept. of Defense. ") were $13.8 million in this year's fourth quarter versus $13.6 million in Fourth Quarter Fiscal 2003. Gross profit for Fourth Quarter Fiscal 2004 was $2.6 million, or 5.1% of net sales, versus a gross profit of $10.7 million, or 17.3% of net sales in the same quarter last year. During the Fourth Quarter Fiscal 2004, gross profit was negatively affected by a $1.7 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge to cost of products sold relating to lowering the carrying value of certain digital camera and component inventory to their estimated net realizable value Net realizable value (NRV) is a commonly used method of evaluating an asset's worth in the field of inventory accounting. NRV is part of GAAP rules that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. as a result of competitive pricing pressure. Higher manufacturing costs, mainly resulting from significant under absorption of labor and overhead due to lower production volumes and production inefficiencies, contributed to the decrease in gross profit. Selling expenses for the Fourth Quarter Fiscal 2004 were $4.2 million, or 8.0% of net sales. This compared to $3.0 million, or 4.9% of net sales, for the Fourth Quarter Fiscal 2003. The increase in selling expenses was primarily due to the cost of additional sales and marketing personnel, tradeshows and higher freight costs. Consistent with the objective to grow sales, the Company increased sales and marketing personnel worldwide to position the Company for future anticipated growth. General and administrative expenses ("G&A") for the Fourth Quarter Fiscal 2004 were $8.1 million, or 15.5% of net sales. This compared to $5.7 million, or 9.3% of net sales, for the Fourth Quarter Fiscal 2003. The increase in G&A expenses was primarily due to increases in professional fees associated with designing and implementing a new Enterprise Resource and Planning ("ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ") system, costs associated with implementing measures necessary to comply with the Sarbanes-Oxley Act See SOX. of 2002 ("Sarbanes-Oxley"), increases in salaried personnel expenses, and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when expenses, partially offset by lower legal costs. Goodwill impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. was $3.7 million for the Fourth Quarter Fiscal 2004 compared to no expense for the Fourth Quarter Fiscal 2003. Under FAS 142, goodwill impairment exists if the net book value of the reporting units exceed their fair value. The Company utilized its market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. at July 3, 2004 to estimate the fair value of its reporting units. As a result of the impairment test, the Company recorded a $3.7 million impairment charge for Fiscal 2004 for all of its goodwill. Variable stock-based compensation income for the Fourth Quarter Fiscal 2004 was ($0.1) million because the Common Stock price on July 3, 2004 the last day of Fourth Quarter Fiscal 2004, was lower than the Common Stock price on the first day of the quarter. Variable stock-based compensation expense was $0.9 million in the same quarter last year. During Fourth Quarter Fiscal 2004, the Company completed the acquisition of Jenimage Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). GmbH GmbH Gesellschaft mit Beschränkter Haftung (German: limited liability company; business entity) ("Jenimage"), a German
corporation. The acquisition, recorded under the purchase method of
accounting, included the purchase of 100% of the outstanding stock of
Jenimage for $13.4 million in cash, excluding related acquisition costs.
The assets acquired and liabilities assumed were recorded based on their
estimated fair market value at the date of acquisition. The $20.3
million of net assets Net assetsThe difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. acquired exceeded the total recorded purchase price of $14.5 million (including related acquisition costs) and, as a result, $5.8 million was recorded as an extraordinary gain in the Fourth Quarter Fiscal 2004. The acquisition is expected to increase Concord's presence in Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). . The Company is currently integrating the acquired business into its German operations and expects to complete the integration during the first half of the fiscal year ending July 2, 2005 ("Fiscal 2005"). Income tax provision for the Fourth Quarter Fiscal 2004 was $2.3 million, as compared to $0.1 million in the same quarter last year. As a result of the pre-tax loss incurred during Fiscal 2004, the Company determined that all of its deferred income tax assets may not be fully realizable and, accordingly, the Company increased its deferred income tax assets valuation allowance by $11.6 million. Fiscal Year Comparison For Fiscal 2004, net sales were $203.1 million, an increase of $13.3 million, or 7.0% as compared to the same period last year, and net (loss) was $(31.2) million, or $(1.09) per share, including an extraordinary gain of $5.8 million, or $0.20 per share, relating to the acquisition discussed above. For the fiscal year ended June June: see month. 28, 2003 ("Fiscal 2003"), net sales were $189.7 million and net income was $6.4 million, or $0.22 per diluted common share. RSD sales were $156.0 million for Fiscal 2004, an increase of $10.2 million, or 7.0%, as compared to Fiscal 2003, and accounted for 76.8% of total net sales. The growth in RSD net sales was mostly due to sales of private label traditional cameras and Polaroid Polaroid: see Land, Edwin H. branded single use cameras, opening of a subsidiary in Japan, new customers and organic growth from customers due to sell through and new product introductions. DMS net sales were $47.3 million in Fiscal 2004, an increase of $3.1 million, or 7.0%, as compared to last year, and accounted for 23.3% of total net sales. The increase in DMS net sales was primarily attributable to sales of single use cameras to Kodak (company) Kodak - The photographic company responsible for Photo CD. http://kodak.com/. , partially offset by lower sales to existing customers. In Fiscal 2004, sales to Kodak accounted for 19.6% of total net sales, or $39.8 million. The Company currently manufactures products for Kodak under two DMS contracts. The Company received notification from Kodak that it intends to cease purchases under two DMS contracts by the end of the second quarter of Fiscal 2005. Gross profit for Fiscal 2004 was $14.2 million, or 7.0% of net sales, versus $36.3 million, or 19.1% of net sales, in Fiscal 2003. During Fiscal 2004, gross profit was negatively affected by the $11.1 million pre-tax charges to cost of products sold which resulted from an inventory related pre-tax charge of $11.1 million to lower the carrying value of certain digital camera and component inventories below their cost basis to their estimated net realizable value. This resulted from the negative impact of a decline in the digital camera market, competitive pricing pressure, and excess customer inventory levels. In addition, depreciation expense increased by $1.8 million due to the reduction of the remaining useful lives of molds and tooling related to certain digital cameras. In addition, higher manufacturing costs mainly resulting from production inefficiencies related to the production of digital camera products contributed to the decrease in gross profit, in dollars and as a percentage of sales. Incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. overhead costs associated with the costs incurred in implementing the Company's new ERP system contributed to lower gross profits in Fiscal 2004. Fiscal 2003 included a $2.2 million benefit resulting from the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. resolution of a previously disclosed disputed claim with a DMS customer in the third quarter, partially offset by $0.8 million of additional air freight air freight n → flete m por avión air freight n → fret aérien air freight air n → Luftfracht f costs due to the West Coast dock worker's labor dispute. Product engineering, design and development costs for Fiscal 2004 and Fiscal 2003, in dollars and as a percentage of net sales, were $10.5 million (5.2%) and $8.5 million (4.5%), respectively. It is expected that design and product development expenses will decrease in Fiscal 2005 as the Company increases its purchases of products from third-party manufacturers. Selling expenses for Fiscal 2004 were $13.5 million, or 6.6% of net sales. In Fiscal 2003, selling expenses were $8.9 million, or 4.7% of net sales. The increase was primarily due to the cost of additional sales and marketing personnel, royalties related to the Polaroid brand licenses, tradeshows, and higher variable costs, including freight and handling, all of which are attributable to the year over year increase in sales and to position the Company for future anticipated growth. Selling expenses in Fiscal 2004 included costs incurred by Jenimage during the period May 10, 2004 through July 3, 2004. G&A expenses were $26.8 million, or 13.2% of net sales for Fiscal 2004. This compared to $20.6 million, or 10.9% of net sales for the prior year. The increase in G&A expenses was primarily due to increases in personnel, severance costs, professional fees associated with designing and installing an ERP system, costs associated with implementing measures necessary to comply with Sarbanes-Oxley, and additional costs associated with the Company's anticipated sales growth. G & A expenses in Fiscal 2004 included costs incurred by Jenimage during the period May 10, 2004 through July 3, 2004. During Fiscal 2003, G&A expenses included a $0.5 million recovery from Polaroid Corporation resulting in a reduction of expenses. For Fiscal 2003, the Company recorded $0.9 million of variable stock-based compensation expense in the consolidated statements of operations because its Common Stock price on June 28, 2003 was higher than the new repriced stock options' exercise price of $5.97. Variable stock-based compensation income cannot exceed the cumulative expense recorded to date of $0.9 million. Variable stock-based compensation income for Fiscal 2004 was $0.7 million because the Company's Common Stock price on July 3, 2004 was below the new repriced stock options' exercise price of $5.97. Interest expense for Fiscal 2004 was $0.7 million, compared to $1.2 million for Fiscal 2003. The decrease of $0.5 million was attributable to the reduction in interest expense related to the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of Senior Notes in Fiscal 2003 and the related non-recurring write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of deferred finance costs of $0.3 million recorded in Fiscal 2003. Goodwill impairment was $3.7 million for Fiscal 2004 compared to no expense for Fiscal 2003. Under FAS 142, goodwill impairment exists if the net book value of the reporting unit exceeds its fair value. The Company utilized its market capitalization at July 3, 2004 to estimate the fair value of its reporting units. As a result of the impairment tests, the Company recorded a $3.7 million impairment charge for all of its goodwill. Other income, net was $0.5 million and $2.4 million for Fiscal 2004 and Fiscal 2003, respectively. The decrease of $1.9 million related primarily to the loss of $0.9 million recorded in the Second Quarter Fiscal 2004 as a result of the sale of short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments. Over the holding period of the short-term investments, the Company realized a net positive return of $0.6 million after giving effect to the dividend income received which more than offset the loss. Income tax provision for Fiscal 2004 was $7.5 million as compared to $0.6 million in Fiscal 2003. As a result of the pre-tax loss incurred during Fiscal 2004, the Company determined that all of the deferred income tax assets may not be fully realizable, and accordingly, increased the deferred income tax asset valuation allowance by $11.6 million, which included the benefit relating to losses generated during Fiscal 2004. Working Capital Concord ended the fourth quarter with working capital of $100.6 million and cash and short-term investments on hand of $57.9 million. The Company had total shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of $127.1 million, or approximately $4.44 per share, as of July 3, 2004. Cash and short-term investments decreased by $30.4 million, primarily as the result of cash used in operations of $25.1 million, a $13.4 million utilization of cash in the Jenimage acquisition and payment of $6.8 million for fixed asset expenditures. These uses of cash, totaling $45.3 million, were partially offset by $3.6 million of cash acquired in the Jenimage acquisition and $1.9 million of proceeds received from Common Stock issuances upon stock option exercises. 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 decreased by ($11.6) million and inventory increased by $23.0 million, respectively, during Fiscal 2004. Controls and Procedures In connection with the Fiscal 2004 audit of the Company's financial statements, the Company's auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together communicated to the Company's management and the Audit Committee of the Board of Directors several reportable conditions involving the Company's internal financial controls. The Company's auditors noted one reportable condition which they considered to be a material weakness in the Company's internal controls. The material weakness noted by the auditors is that the Company's financial statement close process does not insure Insure can mean:
tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. a high priority to the remediation of the reportable conditions. Potential New Products and Relationships Consistent with our recent acquisition of Jenimage Europe GmbH and in conjunction with our assessment of recent market conditions, the Company continues to evaluate its strategic direction in order to operate effectively in the digital camera marketplace. The Company will also continue to evaluate other opportunities that fit with our objective of becoming a meaningful participant at the opening price point in the image capture market. These include: (1) potential opportunities to create a more significant and visible branded product presence for the digital cameras we offer; (2) companies that represent potential acquisition or investment opportunities; and (3) potential joint venture partners looking to form strategic alliances that would broaden our product base or enable us to enter into new lines of business. If the Company's sourcing and development efforts are successfully concluded, the Company anticipates introducing several new digital, single use and traditional cameras to new and existing customers during Fiscal 2005 and beyond. We are evaluating various growth opportunities that could require significant funding commitments. We have from time to time held, and will continue to hold, discussions and negotiations with (i) companies that represent potential acquisition or investment opportunities, (ii) potential strategic and financial investors who might have an interest in making an investment in or acquiring us, (iii) potential joint venture partners looking toward formation of strategic alliances that would broaden our product base or enable us to enter new lines of business. Investor Conference Call Ira B. Lampert, Chairman, Chief Executive Officer and President, will host a conference call Wednesday Wednesday: see week. , October October: see month. 6, 2004 at 11:00 A.M. Eastern Time, to discuss Fiscal 2004 Fourth Quarter and Fiscal 2004 results as well as other topics. Interested parties may participate in the call by dialing (913) 905-3159 approximately 10 minutes before the call is scheduled to begin and ask to be connected to the Concord conference call. The conference call will also be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the via the Webcast section featured on the home page of Concord's website - www.concord-camera.com. To listen to the live call, go to the website at least 15 minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. If you are unable to listen to the live call, the conference call will be archived and can be accessed on Concord's website for approximately 5 business days. A copy of the earnings release will be available on the same website, by going to the Investor Relations Investor relations The process by which the corporation communicates with its investors. page and clicking on the "Press Releases" link. About Concord Camera Corp. Concord Camera Corp. is a global developer, designer, manufacturer and marketer of popularly priced, digital, instant, Advanced Photo System (APS) and 35mm cameras. Concord markets its cameras under the trademarks POLAROID, CONCORD, CONCORD EYE Q and JENOPTIK Jenoptik AG is a large international photonics technology company based in Jena, Thuringia, Germany. The group can trace its heritage back to the original Zeiss company, founded in Jena in 1846. . Concord sells and markets its camera products worldwide through direct sales offices in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , Germany, Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , the United Kingdom and France and through independent sales agents. Concord manufactures its products in its vertically integrated manufacturing facilities in the People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China. The Polaroid trademark is owned by Polaroid Corporation and is used by Concord under license from Polaroid. CONCORD and CONCORD EYE Q are trademarks and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. registered trademarks of Concord Camera Corp. in the United States and/or other countries. The JENOPTIK trademark is owned by Jenoptik AG and is used by Concord under license from Jenoptik AG. Except for the historical matters contained herein, statements in this press release are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that 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. , including the statements regarding anticipated or expected results and the future introduction of new products, involve risks and uncertainties which may affect the Company's business and prospects, including the risks discussed under "Risk Factors" 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 July 3, 2004 and subsequently filed reports. Any forward-looking statements contained in this press release represent our estimates only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , or as of such earlier dates as are indicated, and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any obligation to do so, even if our estimates change.
Concord Camera Corp. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
July 3, June 28,
2004 2003
--------- ---------
Assets
Current Assets:
Cash and cash equivalents $ 18,323 $ 14,071
Short-term investments 39,600 74,185
Accounts receivable, net 29,367 32,494
Inventories 52,418 32,317
Prepaid expenses and other current assets 11,563 5,122
-------- --------
Total current assets 151,271 158,189
Property, plant and equipment, net 20,597 21,328
Goodwill, net - 3,721
Other assets, net 17,649 22,576
-------- --------
Total assets $189,517 $205,814
======== ========
Liabilities and Stockholders' Equity
Current Liabilities:
Short-term borrowings under credit facilities $ 9,170
Accounts payable 18,783 $ 22,105
Accrued expenses 16,395 13,023
Other current liabilities 6,320 1,984
-------- --------
Total current liabilities 50,668 37,112
Other long-term liabilities 11,724 11,874
-------- --------
Total liabilities 62,392 48,986
Commitments and contingencies
Stockholders' equity:
Blank check preferred stock, no par value,
1,000 shares authorized, none issued - -
Common stock, no par value, 100,000 shares
authorized; 30,572 and 29,464 shares issued
as of July 3, 2004 and June 28, 2003,
respectively 143,073 141,109
Additional paid-in capital 4,853 5,407
Deferred stock-based compensation (29) (190)
Deferred share arrangement 413 -
(Accumulated deficit) retained earnings (16,152) 15,070
Accumulated other comprehensive loss - (431)
-------- --------
132,158 160,965
Less: treasury stock, at cost, 1,599 and 1,543
shares as of July 3, 2004 and June 28, 2003,
respectively (4,620) (4,137)
Less: common stock held in trust, 331 shares as
of July 3, 2004 (413) -
-------- --------
Total stockholders' equity 127,125 156,828
-------- --------
Total liabilities and stockholders' equity $189,517 $205,814
======== ========
Concord Camera Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
For the Quarter For the Fiscal
ended year ended
(unaudited)
July 3, June 28, July 3, June 28,
2004 2003 2004 2003
-------- ------- -------- --------
Net sales $ 52,388 $61,515 $203,132 $189,783
Cost of products sold 49,740 50,846 188,954 153,532
-------- ------- -------- --------
Gross profit 2,648 10,669 14,178 36,251
Selling expenses 4,200 3,009 13,522 8,905
General and administrative
expenses 8,106 5,702 26,842 20,616
Goodwill impairment 3,721 - 3,721 -
Variable stock-based
compensation (income)
expense (58) 900 (659) 900
Interest expense 221 200 715 1,230
Other expense (income), net 39 (943) (500) (2,372)
-------- ------- -------- --------
(Loss) income before
income taxes (13,581) 1,801 (29,463) 6,972
Provision for
income taxes 2,298 131 7,537 569
-------- ------- -------- --------
(Loss) income before
extraordinary item (15,879) 1,670 (37,000) 6,403
Extraordinary gain -
acquired net assets in excess
of cost 5,778 - 5,778 -
-------- ------- -------- --------
Net (loss) income $(10,101) $ 1,670 $(31,222) $ 6,403
======== ======= ======== ========
Net (loss) income per
common share:
Basic:
(Loss) income before
extraordinary item $ (0.56) $ 0.06 $ (1.29) $ 0.23
Extraordinary gain, 0.20 - 0.20 -
-------- ------- -------- --------
Basic (loss) income per
common share $ (0.36) $ 0.06 $ (1.09) $ 0.23
======== ======= ======== ========
Diluted:
(Loss) income before
extraordinary item $ (0.56) $ 0.06 $ (1.29) $ 0.22
Extraordinary gain, net 0.20 - 0.20 -
-------- ------- -------- --------
Diluted (loss) income per
common share $ (0.36) $ 0.06 $ (1.09) $ 0.22
======== ======= ======== ========
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