EMERSON RADIO REPORTS RESULTS
EMERSON RADIO REPORTS RESULTS NORTH BERGEN, N.J., March 11 /PRNewswire/ -- Emerson Radio Corp.
(NYSE: EME) today reported results for the full year and fourth quarter ended Dec. 31, 1991.
Emerson's efforts to achieve a successful operating turnaround by restructuring its operations around its core consumer electronics business continued to succeed, as evidenced by the profitable operating results of the core business for the second half of 1991. The renewed focus of Emerson's management on the core business has resulted in higher profit margins for the 12 months ended Dec. 31, 1991 as compared to the same period for 1990. The results for Emerson's 12 month fiscal year ended Dec. 31, 1991 were affected by the combination of a number of factors, including the impact of the difficult economic environment on retailers; restructuring and nonrecurring charges aggregating $36,964,000 relating to costs to exit the personal computer and high-end audio business and other restructuring efforts; and increased interest expense related to higher interest rates. These factors are reflected in the company's net loss of $60,746,000, or $1.60 per share, on net sales of $790,206,000 for 1991. Virtually all of this loss, however, occurred in the first half of the year. Emerson reported a profit of $982,000 for the third quarter ended Sept. 30, 1991. At that time, management stated that it did not anticipate results for the fourth quarter of 1991 or the first quarter of 1992 to be as strong as those for the September quarter due to the seasonality of the business and the soft economy. For the second half of 1991 Emerson had a net loss of $3,996,000, or $0.11 per share. For the fourth quarter ended Dec. 31, 1991, Emerson had restructuring and nonrecurring charges totalling $3,566,000, primarily incurred in completing the exiting of the computer business which is included in the net loss of $4,978,000 ($.13 per share) on net sales of $217,550,000. Emerson changed its fiscal year end to Dec. 31 from March 31 beginning with the nine month period ended Dec. 31, 1990. For the 12 months ended Dec. 31, 1990, Emerson had net sales of $803,687,000 and a net loss of $40,340,000, or $1.11 per share. For the nine month period ended Dec. 31, 1990, Emerson's net sales were $625,418,000, and it had a net loss of $37,463,000, or $1.03 per share. Emerson also reported that it intends to seek judicial confirmation that redemption of its 1989 rights may be consummated as previously announced notwithstanding the fact that Fidenas Investment Limited reported beneficial ownership of 20.46 percent of Emerson's common shares as of Jan. 31, 1992 by virtue of an agreement with Stephen Lane. The court-approved settlement of Emerson's shareholder litigation requires redemption of the 1989 rights on or before March 25, 1992. Emerson previously announced that a payment of $.01 per right would be made on March 20, 1992 to shareholders of record at the close of business on March 13, 1992. Commenting on Emerson's financial results, Gerald Zarin, chairman, president and chief executive, stated, "We are making important progress in our efforts to position Emerson Radio for the long term. We have refocused the company on its core business and completed our program to discontinue the sale of personal computer and high-end audio products. We have undertaken actions to substantially reduce overhead and other operating costs. We have significantly reduced inventories, particularly in the non- core areas. We are making progress in our negotiations to restructure Emerson's debt. Emerson has the trademark and brand awareness, the products, the sourcing capability, and excellent relationships with retailers in a strong national distribution network to enable it to successfully build its business for the long term," he said. As previously reported, Semi-Tech (Global) Limited has an agreement with Emerson to make a $30 million equity infusion into Emerson and receive control of the company's board. As also reported, Emerson has received a proposal from Fidenas Investment Limited, a 20.46 percent investor, expressing an interest in making an offer involving the purchase of a sizable number of Emerson common shares and control of Emerson's board. Both the Semi-Tech agreement and the Fidenas proposal are subject to Emerson concluding an agreement with its lenders to restructure its debt. Emerson Radio Corp. 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, and microwave ovens. EMERSON RADIO CORP. Comparative Highlights (In thousands, except per share amounts) Period ended Year Three months Nine months Dec. 31 1991 1990 1991 1990 1990 (unaudited) (unaudited) Net sales $790,206 $803,687 $217,550 $228,355 $625,418 Loss before restructuring and nonrecurring charges and income taxes (22,607) (44,480) (117) (27,428) (39,851) Restructuring and nonrecurring charges (36,964) -- (3,566) -- -- Loss before income taxes (59,571) (44,480) (3,683) (27,428) (39,851) Income taxes (benefits) 1,175 (4,140) 1,295 -- (2,388) Net loss (60,746) (40,340) (4,978) (27,428) (37,463) Loss per share (1.60) (1.11) (.13) (.72) (1.03) Average number of shares outstg. 37,897 36,283 37,915 37,851 36,519 -0- 3/11/92 /CONTACT: Robert D. Siegfried of Kekst and Company, 212-593-2655, for Emerson/ (EME) CO: Emerson Radio Corp. ST: New Jersey IN: CPR SU: ERN
SM-OS -- NY066 -- 7521 03/11/92 17:09 EST
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|Date:||Mar 11, 1992|
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