EMERSON RADIO REPORTS RESULTS
EMERSON RADIO REPORTS RESULTS NORTH BERGEN, N.J., Nov. 14 /PRNewswire/ -- "Emerson Radio is on
track with its strategic restructuring efforts, initiated during its second quarter, deigned to return the company to long term profitability and growth as a leading designer and marketer of consumer electronic products," Gerald Zarin, president and chief executive officer, today reported.
Emerson achieved sales of $230.6 million and net earnings of $982,000, $.03 per share, for the third quarter ended Sept. 30, 1991 versus sales of $229.3 million and a net loss of $5,211,000, $.15 per share, for the September 1990 quarter. Management's turnaround strategy has been to concentrate its efforts in Emerson's traditional areas of strength, primarily consumer audio and video products and to exit the personal computer, high-end audio and certain other product categories in to which it had diversified. Sales in the traditional core business product categories increased 13 percent over the same period last year. Zarin stated, "Emerson's third quarter results are clear signs that the turnaround that we have worked towards for our core consumer electronics business is beginning to be achieved. The results also demonstrate the increasing benefits that Emerson is achieving by refocusing its sales and marketing efforts to emphasize Emerson's trademark and consumer brand awareness in the highly competitive consumer electronics industry. We have in place strong sourcing capabilities and one of the best distribution networks to the U.S. retail marketplace. By capitalizing on these strength and strategies, Emerson is positioning itself to build value for its shareholders, customers and employees. "The September quarter is traditionally Emerson's most robust quarter reflecting, in particular, increased orders by retailers in preparation for the Christmas selling season. The company is currently proceeding in line with management's expectations, as evidenced by the results of its core consumer electronics business in the third calendar quarter of 1991, and our fourth quarter performance is currently expected to meet management's expectations. Due to the seasonality of the consumer electronics business combined with the soft economy, the company does not expect results for the fourth quarter of 1991, or for the first quarter of 1992 to be as strong as those reported for the September 1991 quarter. "Semi-Tech (Global) Limited recently announced its intent to proceed to a timely closing of the previously announced transaction whereby Semi-Tech, through a subsidiary, would invest US$30,000,000 and acquire 10,000,000 Emerson common shares, and control of the company's board of directors. Fidenas Investment Limited, a 15 percent shareholder of Emerson, has expressed its continuing interest in making an offer involving the purchase of a sizable number of Emerson common shares, and control of the company's board of directors. Both proposals are conditioned on Emerson reaching an agreement with its lenders to restructure its debt. Emerson continues to meet with its institutional and bank lenders. The company anticipates that a proposal will be submitted to shareholders for approval at a meeting to be called for early 1992 and that a closing will occur shortly thereafter." Emerson Radio Corp. (NYSE: EME) designs and markets a full line of popularly priced consumer electronics products. The range of the company's products includes televisions, video cassette recorders, portable compact disc players, radios, stereo systems, tape players and recorders, microwave ovens and fax machines. EMERSON RADIO CORP. Comparative Highlights (In thousands, except per share amounts -- Unaudited) Periods ended Nine months Three months Sept. 30 1991 1990 1991 1990 Net sales $572,656 $575,332 $230,576 $229,253 Income (loss) before restructuring & non- recurring charges & income taxes $(22,490) $(17,052) $3,507 $(5,093) Restructuring & non- recurring charges (33,398) -- (2,012) -- Loss before income taxes (55,888) (17,052) 1,495 (5,093) Income taxes (benefits) (120) (4,140) 513 118 Net income (loss) $(55,768) $(12,912) 982 (5,211) Earnings (loss) per share $(1.47) $(0.36) $0.03 $(0.15) Average number of shares outstanding 37,891 35,760 37,912 35,877 -0- 11/14/91 /CONTACT: Robert D. Siegfried of Kekst and Company, 212-593-2655, for Emerson/ (EME) CO: Emerson Radio Corp. ST: New Jersey IN: REA SU: ERN JT-SM -- NY027 -- 4365 11/14/91 11:05 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Nov 14, 1991|
|Previous Article:||LOS ANGELES AREA CONSUMER PRICES UP 0.2 PERCENT IN OCTOBER|
|Next Article:||JEAN PHILIPPE FRAGRANCES REPORTS RECORD SALES AND EARNINGS FOR THE THIRD QUARTER 1991: SALES UP 30 PERCENT, NET INCOME UP 48 PERCENT|