Phoenix Gold Announces 51% Increase in Second Quarter Earnings
13 April 2000
Phoenix Gold Announces 51% Increase in Second Quarter Earnings
PORTLAND, Ore., April 13 Phoenix Gold International, Inc. (Nasdaq: PGLD) today reported a 51% increase
in its net earnings for the second quarter of fiscal 2000 which ended
March 31, 2000 over the second quarter of fiscal 1999. Net earnings were
$241,000, or $0.08 per diluted share, for the three months ended
March 31, 2000 compared to net earnings of $160,000, or $0.05 per diluted
share, in last year's second quarter. Revenue for the second quarter of
fiscal 2000 was $6.5 million, an increase of 5% from revenue of $6.2 million
in the second quarter of fiscal 1999.
"We are pleased to report our sixth consecutive quarter-over-quarter
earnings improvement," stated Keith A. Peterson, Chairman, President and
Chief Executive Officer. "Strengthening markets domestically for our car
audio and pro sound products, as well as improved international markets,
contributed to the increased sales and earnings. Even with softness in
Latin America, international sales increased 20%, lead by a 81% increase in
sales to Asia and a 32% increase in sales to Europe. Sales of our car audio
and pro sound electronics increased 20% and 35% from a year ago which offset
decreased OEM speaker sales."
"After a number of months of finalizing the last details, we will begin
manufacturing a family of high-end home electronics for a new OEM customer
during the third quarter," disclosed Timothy G. Johnson, Executive
Vice President and Chief Operating Officer. "We continue to pursue other
opportunities to increase our OEM business. Additionally, we are introducing
several new electronics, speakers and accessories products during the
remainder of fiscal 2000."
Phoenix Gold also reported that it continues to acquire shares of its
common stock under a previously announced $1 million stock repurchase program.
During the second quarter, the Company purchased 44,100 shares of its common
stock for $126,000. Total purchases of common stock since inception of the
stock repurchase program now total $979,000.
Phoenix Gold International, Inc. designs, manufactures, markets and sells
innovative, high quality, high performance electronics, accessories and
speakers for the audio market.
This press release may contain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995, including,
without limitation, statements as to expectations, beliefs and future
financial performance, and are based on current expectations and are subject
to certain risks, trends and uncertainties that could cause actual results to
vary from those projected, which variances may have a material adverse effect
on the Company. Among the factors that could cause actual results to differ
materially are the following: competitive factors; potential fluctuations in
quarterly results and seasonality; the adverse effect of reduced discretionary
consumer spending; the need for the introduction of new products and product
enhancements; dependence on suppliers; control by current shareholders; high
inventory requirements; business conditions in international markets; the
Company's dependence on key employees; the need to protect intellectual
property; costs or expenditures associated with remediating potential
Year 2000 issues; and, environmental regulation as well as other factors
discussed in Exhibit 99.1 to the Company's 1999 Annual Report on
Form 10-K which are hereby incorporated by reference. Given these
uncertainties, readers are cautioned not to place undue reliance on the
forward-looking statements. The Company does not intend to update its
forward-looking statements.
PHOENIX GOLD INTERNATIONAL, INC.
BALANCE SHEETS
(Unaudited)
March 31, September 30,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $495,928 $868,458
Accounts receivable, net 4,144,232 4,794,799
Inventories:
Raw materials and
work-in-process 2,606,935 2,531,260
Finished goods and supplies 3,455,483 3,089,575
6,062,418 5,620,835
Prepaid expenses 264,748 213,677
Deferred taxes 360,000 315,000
Total current assets 11,327,326 11,812,769
Property and equipment, net 989,897 1,055,531
Goodwill, net 158,270 178,081
Deferred taxes 610,000 600,000
Other assets 252,099 242,058
Total assets $ 13,337,592 $ 13,888,439
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $674,768 $1,074,881
Accrued payroll and benefits 354,741 436,970
Other accrued expenses 395,036 379,782
Income taxes payable 180,910 81,644
Total current liabilities 1,605,455 1,973,277
Deferred gain on sale of facility 907,217 956,256
Shareholders' equity:
Preferred stock;
Authorized - 5,000,000 shares;
none outstanding -- --
Common stock, no par value;
Authorized - 20,000,000 shares
Issued and outstanding
- 3,034,345 and 3,234,345 shares 6,569,428 7,155,997
Retained earnings 4,255,492 3,802,909
Total shareholders' equity 10,824,920 10,958,906
Total liabilities and
shareholders' equity $ 13,337,592 $ 13,888,439
PHOENIX GOLD INTERNATIONAL, INC.
STATEMENTS OF EARNINGS
(Unaudited)
Three Months Ended Six Months Ended
March 31 March 31
2000 1999 2000 1999
Net sales $6,511,208 $6,200,066 $13,404,835 $12,866,001
Cost of sales 4,627,577 4,526,449 9,720,435 9,471,332
Gross profit 1,883,631 1,673,617 3,684,400 3,394,669
Operating expenses:
Selling 913,768 795,642 1,840,537 1,582,323
General and
administrative 573,553 572,467 1,104,940 1,114,644
Total operating
expenses 1,487,321 1,368,109 2,945,477 2,696,967
Income from operations 396,310 305,508 738,923 697,702
Other income (expense):
Interest expense -- (39,789) -- (88,647)
Other income, net 3,300 -- 11,660 --
Total other income
(expense) 3,300 (39,789) 11,660 (88,647)
Earnings before
income taxes 399,610 265,719 750,583 609,055
Income tax expense (159,000) (106,000) (298,000) (243,000)
Net earnings $240,610 $159,719 $452,583 $366,055
Earnings per share
- basic and diluted $0.08 $0.05 $0.15 $0.11
Average shares
outstanding
- basic and
diluted 3,048,212 3,248,745 3,102,466 3,342,503