Phoenix Gold Announces Increased Third Quarter Earnings
13 July 2000
Phoenix Gold Announces Increased Third Quarter EarningsPORTLAND, Ore. - Phoenix Gold International, Inc. today reported a 8% increase in its net earnings for the third quarter of fiscal 2000 over the third quarter of fiscal 1999. Net earnings were $364,000, or $0.12 per diluted share, for the three months ended June 30, 2000 compared to net earnings of $336,000, or $0.10 per diluted share, in last year's third quarter. For the nine months ended June 30, 2000, net earnings increased 16% to $816,000, or $0.27 per diluted share as compared to net earnings of $702,000, or $0.21 per diluted share, for the comparable period last year. Revenue for the third quarter of fiscal 2000 was $7.1 million, a decrease of 5% from revenue of $7.5 million in the third quarter of fiscal 1999. Revenue for the nine months ended June 30, 2000 increased to $20.5 million from $20.3 for the same period in 1999. "This marks our seventh consecutive quarter-over-quarter earnings improvement," stated Keith A. Peterson, Chairman, President and Chief Executive Officer. "Despite continuing softness in the international markets, we improved net earnings through operating efficiencies implemented over a year ago. Particularly encouraging was the strength of our car audio electronic sales, specifically our ZEROpoint ZXti and XS series of car audio amplifiers which increased 20% during the quarter despite decreased international sales. "We will begin shipping our new QX series of car audio amplifiers during the fourth quarter," continued Mr. Peterson. "Additionally, we expect to ship our new contractor series of professional sound amplifiers and a family of high-end home electronics for a new OEM customer before our year end." Phoenix Gold also reported that it has completed its purchases of common stock under its $1 million stock repurchase program. Phoenix Gold International, Inc. designs, manufactures, markets and sells innovative, high quality, high performance electronics, accessories and speakers for the audio market. PHOENIX GOLD INTERNATIONAL, INC. STATEMENTS OF EARNINGS (Unaudited) Three Months Ended Nine Months Ended June 30 June 30 2000 1999 2000 1999 Net sales $7,056,124 $7,454,978 $20,460,959 $20,320,979 Cost of sales 4,980,598 5,399,452 14,701,033 14,870,784 Gross profit 2,075,526 2,055,526 5,759,926 5,450,195 Operating expenses: Selling 957,638 883,550 2,798,175 2,465,873 General and administrative 527,314 585,084 1,632,254 1,699,728 Total operating expenses 1,484,952 1,468,634 4,430,429 4,165,601 Income from operations 590,574 586,892 1,329,497 1,284,594 Other income (expense): Interest expense -- (27,991) -- (116,638) Other income, net 13,930 -- 25,590 -- Total other income (expense) 13,930 (27,991) 25,590 (116,638) Earnings before income taxes 604,504 558,901 1,355,087 1,167,956 Income tax expense (241,000) (223,000) (539,000) (466,000) Net earnings $363,504 $335,901 $816,087 $701,956 Earnings per share - basic and diluted $0.12 $0.10 $0.27 $0.21 Average shares outstanding - basic and diluted 3,028,946 3,246,231 3,077,960 3,310,412 PHOENIX GOLD INTERNATIONAL, INC. BALANCE SHEETS (Unaudited) June 30, September 30, 2000 1999 ASSETS Current assets: Cash and cash equivalents $1,074,057 $868,458 Accounts receivable, net 3,967,342 4,794,799 Inventories: Raw materials and work-in-process 2,220,501 2,531,260 Finished goods and supplies 3,312,693 3,089,575 5,533,194 5,620,835 Prepaid expenses 247,541 213,677 Deferred taxes 340,000 315,000 Total current assets 11,162,134 11,812,769 Property and equipment, net 939,917 1,055,531 Goodwill, net 148,365 178,081 Deferred taxes 610,000 600,000 Other assets 311,728 242,058 Total assets $13,172,144 $13,888,439 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $383,144 $1,074,881 Accrued payroll and benefits 348,541 436,970 Other accrued expenses 387,837 379,782 Income taxes payable -- 81,644 Total current liabilities 1,119,522 1,973,277 Deferred gain on sale of facility 882,698 956,256 Shareholders' equity: Preferred stock; Authorized - 5,000,000 shares; none outstanding -- -- Common stock, no par value; Authorized - 20,000,000 shares Issued and outstanding - 3,026,945 and 3,234,345 shares 6,550,928 7,155,997 Retained earnings 4,618,996 3,802,909 Total shareholders' equity 11,169,924 10,958,906 Total liabilities and shareholders' equity $13,172,144 $13,888,439