Phoenix Gold Announces Increased Third Quarter Earnings
13 July 2000
Phoenix Gold Announces Increased Third Quarter Earnings
PORTLAND, 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