Boston Acoustics Announces Fourth Quarter and Fiscal Year 2001 Results and Quarterly Dividend Payment
PEABODY, Mass.--May 25, 2001--Boston Acoustics, Inc. today announced its financial results for the fourth quarter and the fiscal year ended March 31, 2001.Net sales for the quarter decreased 1% to $26.6 million from $26.9 million for the same period a year ago. The Company incurred a net loss for the period of $1.3 million compared to net income of $1.0 million for the corresponding period last year. The diluted loss per share was $.27 compared to diluted earnings per share of $.19 for the same period a year ago.
Net sales for the fiscal year increased 9% to $117.7 million, while net income decreased 41% to $3.9 million compared to $6.6 million last year. Diluted earnings per share decreased 37% to $.79 per share compared to $1.25 per share last year. The 2001 fiscal year covers 53 weeks of sales and earnings compared to 52 weeks for Fiscal 2000.
CEO Andy Kotsatos stated, "Our sales decline during the quarter was the result of the slowing economy and the industry-wide decline in sales in our two business segments: home and car entertainment products and multimedia speakers for personal computers. The loss for the quarter resulted from the previously announced write-offs for obsolete inventory, inventory rework, and severance charges related to the reduction in the workforce. In addition, the results for the quarter also reflect a larger than expected foreign currency translation loss of $434,000 related to the Company's foreign subsidiaries."
The Company also reported that the Board of Directors has declared and authorized the regular quarterly dividend of $.085 per common share, payable on July 27, 2001, to stockholders of record on June 22, 2001.
Boston Acoustics, Inc. provides audio solutions for home entertainment, automobiles and personal computers. Founded in 1979, Boston Acoustics is located in Peabody, Massachusetts.
Three Months Ended
March 31, 2001 March 25, 2000
Net Sales $ 26,623,221 $ 26,905,754
Cost of Goods Sold 21,884,943 19,243,429
Gross Profit 4,738,278 7,662,325
Selling and Marketing Expenses 2,957,097 2,946,456
General and Administrative Expenses 1,455,302 1,578,304
Engineering and Development Expenses 1,302,525 1,292,101
Total Operating Expenses 5,714,924 5,816,861
Income (Loss) from Operations (976,646) 1,845,464
Other expenses (433,782) --
Interest Income (Expense), net (168,279) (161,909)
Income (Loss) before provision
for income taxes (1,578,707) 1,683,555
Provision (Benefit) for Income Taxes (258,000) 649,000
Net Income (Loss) $ (1,320,707) $ 1,034,555
Basic Earnings (Loss) per Share ($ .27) $ .21
Diluted Earnings (Loss) per Share ($ .27) $ .19
Weighted Average Shares Outstanding
Basic 4,922,818 4,946,407
Diluted 4,922,818 5,343,576
Twelve Months Ended
(53 weeks) (52 weeks)
March 31, 2001 March 25, 2000
Net Sales $ 117,712,559 $ 107,997,650
Cost of Goods Sold 86,469,935 74,248,866
Gross Profit 31,242,624 33,748,784
Selling and Marketing Expenses 12,689,399 11,166,266
General and Administrative Expenses 5,470,738 5,182,270
Engineering and Development Expenses 5,316,005 5,935,690
Total Operating Expenses 23,476,142 22,284,226
Income from Operations 7,766,482 11,464,558
Other Expenses (433,782) --
Interest Income (Expense), net (561,383) (643,041)
Income before provision
for income taxes 6,771,317 10,821,517
Provision for Income Taxes 2,874,000 4,175,000
Net Income $ 3,897,317 $ 6,646,517
Basic Earnings per Share $ .79 $ 1.32
Diluted Earnings per Share $ .79 $ 1.25
Weighted Average Shares Outstanding
Basic 4,914,206 5,016,954
Diluted 4,962,027 5,302,734
Consolidated Balance Sheets
March 31, 2001 March 25, 2000
Assets
Current Assets
Cash and cash equivalents $ 2,785,846 $ 1,506,741
Accounts receivable, net 11,426,411 12,632,632
Inventories 24,622,417 19,333,515
Other current assets 2,791,844 2,696,536
Total current assets 41,626,518 36,169,424
Property and equipment, net 15,392,459 15,614,034
Other assets 1,012,671 1,080,569
Total assets $ 58,031,648 $ 52,864,027
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $ 2,743,371 $ 6,002,158
Accrued payroll & related expenses 1,779,942 2,148,272
Current maturity line of credit 1,508,985 1,602,287
Other current liabilities 3,119,984 1,588,401
Total current liabilities 9,152,282 11,341,118
Line of credit 10,000,000 4,850,000
Shareholders' equity 38,879,366 36,672,909
Total liabilities and
shareholders' equity $ 58,031,648 $ 52,864,027
Certain statements in this press release contain certain forward-looking statements concerning Boston Acoustics' operations, economic performance and financial condition. Such forward-looking statements are based on a number of assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Boston Acoustics to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause such differences include, but are not limited to, those discussed in the Company's Annual Report on Form 10-K for the fiscal year ended March 25, 2000. The words "believe," "expect," "anticipate," "intend," and "plan" and similar expressions identify forward-looking statements, which speak only as of the date the statement was made.