Singing Machine Company Announces Record Earnings in 3rd Quarter Release
(firmenpresse) - FORT LAUDERDALE, FL -- (Marketwired) -- 02/16/16 -- (OTCQB: SMDM) announces the financial results for its third quarter ended December 31, 2015.
Singing Machine reports net sales of approximately $20.6 million in its third fiscal quarter ended December 31, 2015, up from approximately $18.1 million reported for the same period last year (an increase of 14%). The increase in net sales was attributable to an increase in sales to the Company''s major retailers. Gross margin increased to 27.1% compared to 22.4% in the same quarter in 2014 as a result of more favorable costing and pricing. The Company reports gross profits of approximately $5.6 million up from $4.1 million in the prior year (a 37% increase).
Operating expenses in the quarter ended December 31 were $3.4 million compared to $2.4 million in the same quarter of 2014. This increase was primarily the result of an increase in selling expenses due to the increased sales volume. General and administrative expenses increased slightly by 8% to approximately $1.4 million.
As a result the Company reports income from operations of approximately $2.2 million for the quarter, compared to approximately $1.7 million in the prior year. The Company reports December 2015 quarter net income of approximately $2.0 million (or $0.05 per share), compared to approximately $1.0 million (or $0.03 per share) in the same quarter last year.
Through the first nine months of its fiscal year, the Company reports net sales increased by 23% to $45.2 million and income from operations increased by 120% to approximately $3.3 million, compared to net sales and income from operations in the same nine-month period last year of approximately $36.6 million and $1.5 million, respectively.
Net income for the first nine months improved to $2.6 million, compared with $0.9 million in the same period last year.
Commenting on the results, Gary Atkinson, CEO, said, "It was a fantastic quarter for Singing Machine. We saw improvements across all key financial metrics, including sales growth, margin improvement, and a doubling in net income for the quarter. We also reduced inventory by approximately $3.6 million compared to the same time last year."
"Hardware sales during the recent holiday season continue to perform strongly. Our retailers reported on average over 90% sell-through on Singing Machine products. We saw one major retail customer double their business with Singing Machine this year and sales to the United Kingdom grew by 100% year-over-year. Per a recent report by The NPD Group, a leading global information company, ranked Singing Machine #1 in the Electronic Entertainment category during the month of December on a sales velocity per weighted store metric."
Atkinson commented on the new Singing Machine Karaoke Download Store''s success, "We got off to a terrific start with our new Karaoke Download Store. We beat internal forecasts and saw over 200,000 unique song downloads in the final two weeks in December. Almost 50% of our music download revenue in December was generated from our new Download Line of karaoke products. The Download line represented approximately 5% of our overall hardware sales during the nine-month period. We intend to aggressively expand our Download Line in the coming year, which we believe will significantly drive further recurring revenue to the Download Store."
Atkinson concluded, "We begin calendar 2016 in a great position -- we are fresh off a fantastic holiday quarter with strong sell-through, light on current model inventory, and with the biggest and best retailers now carrying Singing Machine products year-round."
The Company will host a conference call today, February 16, beginning at 11:00 am Eastern time to discuss these results and answer questions.
If you would like to participate on the call, please dial 877-876-9174 and use conference ID: SMDM.
An audio rebroadcast of the call will be available later in the day after the earnings call and can be heard at: .
Based in the US, Singing Machine® is the North American leader in consumer karaoke products. The first to provide karaoke systems for home entertainment in the United States, the Company sells its products world-wide through major mass merchandisers and on-line retailers. We offer the industry''s widest line of at-home karaoke entertainment products, which allow consumers to find a machine that suits their needs and skill level. As the most recognized brand in karaoke, Singing Machine products incorporate the latest technology for singing practice, music listening, entertainment and social sharing. The Singing Machine provides consumers the best warranties in the industry and access to over 10,000 songs for streaming and download. Singing Machine products are sold through most major retailers in North America and also internationally. See for more details.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about the Company''s business based, in part, on assumptions made by management and include, but are not limited to statements about our financial statements for the fiscal year ended March 31, 2015. You should review our risk factors in our SEC filings which are incorporated herein by reference. Such forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
Brendan Hopkins
(407) 645-5295
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Datum: 16.02.2016 - 06:00 Uhr
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