Boston Acoustics Announces Fourth Quarter and Fiscal Year 2002 Results and Quarterly Dividend Payment
PEABODY, Mass.--May 22, 2002--Boston Acoustics, Inc. today announced its financial results for the fourth quarter and the fiscal year ended March 30, 2002.Net sales for the quarter were $20.1 million compared to $26.6 million for the same period a year ago, a decrease of $6.5 million or 24%. However, the Company reported net income for the period of $1.5 million compared to a net loss of $1.3 million for the corresponding period last year. Diluted earnings per share were $.32 compared to a net loss per share of ($.27) for the same period a year ago. The results for the current quarter benefit from a lower effective income tax rate, primarily resulting from the U.S. Company's bad debt deduction for intercompany receivables from its wholly-owned German subsidiary.
Net sales for the fiscal year decreased to $83.2 million compared to $117.7 million for the same period a year ago. Net income was essentially the same as a year ago at $3.9 million, while diluted earnings per share increased 4% to $.82 per share compared to $.79 per share last year. The 2002 fiscal year covers 52 weeks of sales and earnings compared to 53 weeks for Fiscal 2001.
Of the $34.5 million sales decrease for fiscal year 2002, almost $31 million was attributable to the OEM/Multimedia segment of its business. The remainder of the decrease resulted from a decline in International Core sales.
CEO Andy Kotsatos stated, "Because we anticipated a challenging year, we instituted a multi-pronged strategy to improve margins in the Core business, to reduce operating expenses, and to convert excess inventory into cash. As a result, we remained profitable and strengthened our balance sheet despite a 29% decrease in sales. In addition, we reduced our debt by $9 million and repurchased $3.2 million of the Company's stock."
The Company also reported that the Board of Directors has declared and authorized the payment of the regular quarterly dividend of $.085 per common share, payable on July 19, 2002, to stockholders of record on June 21, 2002.
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 30, 2002 March 31, 2001
Net Sales $20,129,987 $26,623,221
Cost of Goods Sold 13,722,295 21,884,943
Gross Profit 6,407,692 4,738,278
Selling and Marketing Expenses 2,504,787 2,957,097
General and Administrative Expenses 1,168,852 1,455,302
Engineering and Development Expenses 1,401,643 1,302,525
Total Operating Expenses 5,075,282 5,714,924
Income (Loss) from Operations 1,332,410 (976,646)
Other Income (Expense) 73,159 (433,782)
Interest Expense, net (2,890) (168,279)
Income (Loss) before provision
for income taxes 1,402,679 (1,578,707)
Provision (Benefit) for Income Taxes (85,000) (258,000)
Net Income (Loss) $ 1,487,679 ($ 1,320,707)
Basic Earnings (Loss) per Share $.32 ($.27)
Diluted Earnings (Loss) per Share $.32 ($.27)
Weighted Average Shares Outstanding
Basic 4,595,595 4,922,818
Diluted 4,615,767 4,922,818
Twelve Months Ended
(52 weeks) (53 weeks)
March 30, 2002 March 31, 2001
Net Sales $83,198,583 $117,712,559
Cost of Goods Sold 56,998,493 86,469,935
Gross Profit 26,200,090 31,242,624
Selling and Marketing Expenses 10,446,858 12,689,399
General and Administrative Expenses 4,806,545 5,470,738
Engineering and Development Expenses 5,252,466 5,316,005
Total Operating Expenses 20,505,869 23,476,142
Income from Operations 5,694,221 7,766,482
Other Expense (68,959) (433,782)
Interest Expense, net (154,863) (561,383)
Income before provision for
income taxes 5,470,399 6,771,317
Provision for Income Taxes 1,560,000 2,874,000
Net Income $ 3,910,399 $ 3,897,317
Basic Earnings per Share $.82 $.79
Diluted Earnings per Share $.82 $.79
Weighted Average Shares Outstanding
Basic 4,774,746 4,914,206
Diluted 4,784,926 4,962,027
Consolidated Balance Sheets
March 30, 2002 March 31, 2001
Assets
Current Assets
Cash and cash equivalents $ 5,134,558 $ 2,785,846
Accounts receivable, net 10,830,538 11,426,411
Inventories 14,370,308 24,622,417
Other current assets 2,734,792 2,791,844
Total current assets 33,070,196 41,626,518
Property and equipment, net 13,919,964 15,392,459
Other assets 1,428,286 1,012,671
Total assets $48,418,446 $58,031,648
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $5,230,684 $ 2,743,371
Accrued payroll & related expenses 1,185,529 1,779,942
Current maturity of line of credit 2,500,000 1,500,000
Other current liabilities 1,485,995 3,101,644
Total current liabilities 10,402,208 9,124,957
Line of credit, net of current maturity -- 10,000,000
Minority interest in joint venture 18,265 27,325
Shareholders' equity 37,997,973 38,879,366
Total liabilities and
shareholders' equity $48,418,446 $58,031,648
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 31, 2001. 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.