Printer Friendly

IMAGE ENTERTAINMENT REPORTS RECORD SALES AND EARNINGS FOR FISCAL 1992; OPERATING INCOME CLIMBS 154 PERCENT

IMAGE ENTERTAINMENT REPORTS RECORD SALES AND EARNINGS FOR FISCAL 1992;
 OPERATING INCOME CLIMBS 154 PERCENT
 CHATSWORTH, Calif., June 3 /PRNewswire/ -- Image Entertainment Inc. (NASDAQ-NMS: DISK), one of the largest distributors of programing on laserdisc in the United States, today reported record sales and earnings for the fiscal year ended March 31, 1992.
 For fiscal 1992, net sales increased 23 percent to a record $59.1 million from $48.2 million for the prior year. Fiscal 1992 operating income climbed to a record $2,746,000, up 154 percent from $1,083,000 for fiscal 1991. Fiscal 1992 marked the company's first full fiscal year of profitability. Fiscal 1992 net income was $516,000, or 4 cents per share, compared with a net loss of $609,000, or 6 cents per share, for fiscal 1991.
 For the fourth quarter of fiscal 1992, net sales increased 16 percent to $17.0 million from $14.7 million for the corresponding quarter of fiscal 1991. Operating income increased 150 percent to $1,057,000 from $423,000 for the prior period. Net income was $337,000, or 2 cents per share, compared with a net loss of $131,000, or 1 cent per share, for the prior period.
 Improved operating efficiencies in the current fiscal year contributed to a significant decrease in selling, general and administrative expenses as a percentage of net sales -- 12.4 percent in fiscal 1992 versus 14.4 percent in fiscal 1991. The company believes that, as net sales increase, selling, general and administrative expenses as a percentage of net sales will continue to decline.
 Amortization of production costs also declined in the current fiscal year to $2,896,000 from $3,049,000. This decrease primarily resulted from the release of fewer, but more popular, titles, as well as the cost savings afforded by the company's in-house post-production facility, in operation for its first full fiscal year.
 Interest expense for fiscal 1992 was $2,010,000 versus $1,559,000 for fiscal 1991. This increase was due to the company's $20 million financing in November 1991.
 Martin W. Greenwald, Image's chairman and chief executive officer, commented, "I believe Image Entertainment is at a turning point. Even though the overall economy, especially consumer electronics, grew at an anemic rate, we saw a growth in demand for both laserdisc hardware and software. Image continued to position itself to take advantage of this growth. 'Strategic partnering' began in November 1991 with the signing of a long-term licensing agreement with Disney. In addition, Disney was issued a warrant to purchase up to 1,672,000 shares of the company's common stock. On the heels of the Disney deal, Mitsubishi and Mitsui purchased $6 million of restricted common stock from Image in connection with nonexclusive manufacturing pacts."
 Looking forward, Greenwald said, "While the company anticipates record sales and earnings for fiscal 1993, results for the first quarter, ending June 30, 1992, will be weak due to a generally poor schedule of new releases from Image's suppliers. Historically, the June quarter has been slow. In fact, the quarter ended June 30, 1991 represented only 16 percent of fiscal 1992's net sales and resulted in a $483,000 net loss. It is impractical to look at any individual three month period and predict full-year numbers. Even though Image is in a dynamic growth mode, there will be peaks and valleys in sales and earnings. What's vital is that the laserdisc industry and Image continue to grow."
 Image Entertainment has an estimated 35-40 percent share of the domestic laserdisc market. The company has the most extensive library of titles, and exclusive licensing and distribution agreements with some of the most important suppliers of movies, music videos and specialty programing, including Disney's Buena Vista Home Video, FoxVideo, Hanna- Barbera Home Video, Playboy Home Video and Turner Home Video.
 Image Entertainment Inc.
 9333 Oso Avenue
 Chatsworth, Calif. 91311
 818-407-9100
 -0- 6/3/92
 /CONTACT: David DelGross-media relations, 818-407-9100 ext. 275 or Cheryl Lee-investor relations, 818-407-9100 ext. 256, both of Image Entertainment; or Lise Needham, 415-986-1591, or Bill Coffin, 818-783-2400, of the the Financial Relations Board/
 (DISK) CO: Image Entertainment Inc. ST: California IN: ENT SU: ERN


TQ -- NY006 -- 6487 06/03/92 08:32 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 3, 1992
Words:706
Previous Article:OFFICE DEPOT & APPLE COMPUTER LAUNCH SPECIAL MARKETING PROGRAM FOR SELECTED MACINTOSH COMPUTERS
Next Article:USAIR/ALPA CONTRACT WILL SAVE THE AIRLINE $70 MILLION OVER THE NEXT 12 MONTHS AND UP TO $100 MILLION A YEAR
Topics:


Related Articles
PARAMOUNT COMMUNICATIONS REPORTS SHARPLY HIGHER FIRST QUARTER NET INCOME; INCREASES QUARTERLY CASH DIVIDEND 14 PERCENT
PLAYBOY ENTERPRISES POSTS 9 PERCENT REVENUES INCREASE FOR THE THIRD QUARTER OF FISCAL 1992; OPERATING INCOME UP 5 PERCENT
READER'S DIGEST REPORTS RECORD REVENUES, PROFITS FOR FISCAL 1992 THIRD QUARTER AND NINE MONTHS
READER'S DIGEST REPORTS RECORD FISCAL 1992 RESULTS; EIGHTH STRAIGHT YEAR OF RECORD PROFITS
PARAMOUNT COMMUNICATIONS REPORTS A 12 PERCENT RISE IN THIRD QUARTER NET EARNINGS
PARAMOUNT COMMUNICATIONS REPORTS SHARPLY HIGHER FISCAL 1992 EARNINGS
PARAMOUNT COMMUNICATIONS REPORTS FISCAL 1993 FIRST QUARTER RESULTS
PARAMOUNT COMMUNICATIONS REPORTS FISCAL 1993 FIRST QUARTER RESULTS
DISNEY RELEASES YEAR-END EARNINGS
DISNEY REPORTS RECORD REVENUES AND EARNINGS FOR QUARTER AND YEAR

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters