Singing Machine Announces Record Earnings in Fiscal 2016 Annual Report
(firmenpresse) - FORT LAUDERDALE, FL -- (Marketwired) -- 06/29/16 -- ("Singing Machine" or the "Company") (OTCQB: SMDM) -- the North American leader in consumer karaoke products -- today announced record-breaking financial results for its fiscal year ended March 31, 2016.
Earnings per share of $0.04 for the March 31, 2016 fiscal year end.
Net sales for the fiscal year increased by 24% to $48.9 million.
Gross profit margins increased by 3.3% to 24.4%.
Gross profits increased by $3.6 million to $11.9 million.
Product returns reduced to historical low of 5.5% of gross sales.
Inventory decreased by 50% to $3.7 million.
Net income for the fiscal year end increased to $1.7 million.
Singing Machine reports net sales of approximately $48.9 million for the March 31, 2016 fiscal year end period, an increase of 24% from the prior year ($39.3 million). The increase in net sales is attributable to an increase in sales to the Company''s major retailers caused by successful marketing campaigns and increased consumer demand. The increase is also attributable to an expansion in international sales to the United Kingdom and other new territories. E-commerce sales through the Company''s online platforms continue to grow, accounting for 18% of the increase.
Gross profit increased by $3.6 million to $11.9 million, or 24.4% of net sales compared to $8.3 million or 21.1% of net sales reported in the prior year. The increase in gross profit margin is primarily attributable to the Company successfully negotiating price reductions on select high volume products and the Company''s ability to command a higher margin on its digital download line of products.
Total operating expenses for FYE March 2016 were $10.0 million compared to $7.7 million in the prior year. The increase is primarily attributable to the rise in selling expenses due to the 24% increase in overall net sales.
As a result, the Company reported income from operations of $1.9 million for the fiscal year ended March 31, 2016, compared to $0.6 million reported in the prior year. The Company reversed its remaining deferred tax asset valuation allowance of approximately $0.8 million based upon the Company''s history of profitability and Management''s assessment of the current business climate and expected future profits. As a result, the Company recognized a net income tax benefit of $0.1 million. Consequently, net income for the year was $1.7 million, compared to $0.2 million for the 2015 fiscal year end and earnings per share for the fiscal year end was $0.04 cents.
Gary Atkinson, Singing Machine CEO commented, "Fiscal 2016 was a banner year for Singing Machine. The Company has now recorded profits in five consecutive years and demonstrated continued growth. We drove improvements in all financial areas including sales growth, margin improvement, inventory reduction, and significant improvement in bottom line earnings. In addition, we realized a historically low rate of product returns (5.5% of gross sales compared to historical average of 8.0% of gross sales), signaling that our customers are thrilled with the new digital line of products."
Atkinson added, "In Fiscal 2016 we generated heavy promotion and distribution on our Classic line of karaoke products which was carried by almost every single major big box retailer. We also successfully launched a new digital download line of products that generated an average revenue stream of over $27 per paying user, not including recurring mobile App revenue that has increased 75% from the prior year. In addition, we have confirmed a backlog of orders on our digital download products for this coming year that represents a 400% increase on last year''s numbers."
"As we move into Fiscal 2017, we enter the fiscal year with the best retailers carrying Singing Machine products year-round, increasing international demand and establishing a strong cash position, a significantly improved balance sheet, and a product development strategy that will focus on driving more music sales to our various music revenue platforms."
The Company will host a conference call tomorrow, Thursday, June 30, beginning at 10:00 am Eastern time to discuss these results and answer questions. If you would like to participate on the call, please dial 800-894-5910 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 U.S., 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 worldwide 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 12,000 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, 2016. 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: 29.06.2016 - 14:33 Uhr
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