Singing Machine Announces Second Quarter 2018 Earnings Report
(firmenpresse) - FORT LAUDERDALE, FL -- (Marketwired) -- 11/14/17 -- ("Singing Machine" or the "Company") (OTCQX: SMDM) -- the North American leader in consumer karaoke products -- today announced its financial results for its second quarter ended September 30, 2017.
Net sales increased by 17% to $32.8 million for the September 30, 2017 quarter.
Gross profit for the second quarter increased to $7.7 million compared to $6.5 million in the prior year.
Gross margin increased by .5% to 23.6%.
A $2.0 million bad debt reserve was taken as a result of the Toys ''R'' Us bankruptcy.
The Company reported income before tax of $1.2 million for the quarter.
Earnings per share of $0.02 per share on a fully diluted basis.
Singing Machine reports net sales of approximately $32.8 million for the quarter-ended September 30, 2017 period, an increase of 17% from the prior year. The increase in net sales was primarily the result of an increase in new shipments to a large retailer and an increase in e-commerce sales to another major retailer this holiday season.
Gross profit margin increased by approximately 0.5% to 23.6% net sales compared to approximately 23.1% of net sales reported in the prior year. The increase in gross profit margin is due to slightly better margin on new promotional shipments for the holidays.
General and administrative expenses increased by $2.5 million to $4.0 million. The increase was primarily due to an increase in bad debt reserve of $2.1 million which was the result of the Toys ''R'' Us bankruptcy filing in September 2017. As a result of the bad debt reserve, total operating expenses for the second quarter increased to $6.4 million.
As a result, the Company reported income before tax of $1.2 million and net income after tax of approximately $0.78 million, or earnings per share of $0.02 cents.
Gary Atkinson, Chief Executive Officer of Singing Machine, commented, "This quarter we experienced a short-term disruption to our operating profit as a direct result of the Toys ''R'' Us bankruptcy. However, we are very pleased with the business results of this quarter, notably the 17% growth to top line sales and improvement to gross margin. We have continued to ship product to Toys ''R'' Us post-bankruptcy and we continue to work with them to make sure they are fully stocked for this holiday season. We don''t anticipate any lost sales to Toys ''R'' Us this year and remain hopeful they will emerge from the bankruptcy as a stronger retailer."
Bernardo Melo, Vice President of Sales, commented, "We''re excited to be heading into our peak season with the biggest, most reputable list of retailers and eTailers. With the addition of Best Buy brick and mortar stores as well as major promotional ads running with every major retailer, we''re well positioned to take advantage of the forecasted increase in home entertainment spending this season. This quarter we saw strong trends on our core karaoke lines of products and our new SMC Kids Toy line is off to a hot start. There are already a few clear winners that should be must-have toys for parents and kids this holiday season."
Date: Tuesday, November 14, 2017
Time: 10 a.m. ET
Dial-in number: (800) 459-5343
Conference ID: SMDM
An audio rebroadcast of the call will be available later in the day 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 13,000 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, 2017. 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: 14.11.2017 - 06:00 Uhr
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