Welcome!

Microsoft Cloud Authors: Kevin Benedict, Pat Romanski, Liz McMillan, Lori MacVittie, Elizabeth White

News Feed Item

Singing Machine Announces $14.3 Million in Net Sales, Profit in 2nd Quarter Earnings Release

FORT LAUDERDALE, Fla., Nov. 13, 2012 /PRNewswire/ -- The Singing Machine Company, Inc.  ("Singing Machine" or the "Company") (OTCBB: SMDM) announces the results for its second fiscal quarter ended September 30, 2012.

For the quarter, the Company reported net sales of approximately $14.3 million compared to $14.1 million in the same period last year, an increase of approximately $0.2 million (approximately 1% increase). Gross margins also improved for the quarter from 22.6% to 24.1% (increase of 1.5%) as compared to the same period last year. Total operating expenses went up from approximately $1.7 million to $2.0 million, compared to the same period last year.  

As a result, the Company reported net income of approximately $1.4 million for the quarter ended September 30, 2011, compared to approximately $1.5 million over the same period last year. For the quarter, income per share remained steady at $0.04 cents per share as compared to the same period last year. The Company reports the flat growth in net sales and net income is primarily a timing issue due to retail customers taking delivery later in the year for the holiday.  

"We're pleased with our results so far," commented Gary Atkinson, Singing Machine CEO. "We were able to meet our 2nd quarter numbers from the prior year, despite being forced to delay some shipments to some of our retail customers. As we head into our holiday season, look for us in new and existing retail stores and keep your eyes out for some Black Friday deals. We're also pleased to announce our new website launch which you can visit at www.singingmachine.com."

About The Singing Machine
Incorporated in 1982, The Singing Machine Company develops and distributes a full line of consumer-oriented karaoke machines and music under The Singing Machine, SMDigital™, SoundX™, and Sound X Kids™ and other brand names.  The first to provide karaoke systems for home entertainment in the United States, The Singing Machine sells its products in North America, Europe and Australia. The Singing Machine is also the first to offer digital music downloads for play on home karaoke machines. See www.singingmachine.com for more details.

Forward-Looking Statements
This press release contains forward‑looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward‑looking statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management and include, but are not limited to statements about our financial statements for the fiscal year ended March 31, 2011.  You should review our risk factors in our SEC filings which are incorporated herein by reference.  Such forward‑looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward‑looking statement to reflect events or circumstances after the date of this release.

(Financial statements attached)


The Singing Machine Company, Inc. and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEETS 






September 30, 2012


 March 31, 2012 




 (Unaudited) 


 (Audited) 

Assets





Current Assets






Cash

$

2,828,669

$

267,465


Accounts receivable, net of allowances of $198,717 and      






   $168,554, respectively


4,786,689


785,490


Due from related party - Starlight Consumer Electronics USA, Inc.


236,267


36,036


Due from related party - Starlight Electronics USA, Inc.


43,509


58,536


Due from related party - Starlight Electronics Co., Ltd.


369,692


-


Due from related party - Cosmo Communications Canada, Ltd


310,974


68,291


Inventories, net


7,524,056


4,008,392


Prepaid expenses and other current assets


47,155


53,233


           Total Current Assets


16,147,011


5,277,443







Property and equipment, net


338,633


296,222

Other non-current assets


159,957


159,674


          Total Assets

$

16,645,601

$

5,733,339







Liabilities and Shareholders' Equity (Deficit)





Current Liabilities






Accounts payable

$

7,984,620

$

1,303,395


Due to related party - Starlight Marketing Development, Ltd.


1,924,431


1,924,431


Due to related party - Starfair Electronics Company, Ltd.


276,524


-


Due to related party - Ram Light Management, Ltd.


1,683,247


1,683,247


Due to related party - Starlight R&D, Ltd.


512,061


416,026


Due to related party - Cosmo Communications USA, Inc.


240,394


226,747


Due to related party - Starlight Consumer Electronics Co., Ltd.


1,996,133


103,545


Due to related parties - Other Starlight Group Companies


3,534


3,534


Accrued expenses


1,050,055


168,156


Obligations to clients for returns and allowances


112,367


242,379


Warranty provisions


462,387


219,760


        Total Current Liabilities


16,245,753


6,291,220







Shareholders' Equity (Deficit)






Preferred stock, $1.00 par value; 1,000,000 shares authorized; no shares issued and outstanding







-


-


Common stock, Class A, $.01 par value;  100,000 shares 






  authorized; no shares issued and outstanding


-


-


Common stock, $0.01 par value;  100,000,000 shares authorized; 37,960,794 and 37,960,794 shares issued and outstanding, respectively







379,607


379,607


Additional paid-in capital


19,144,379


19,141,098


Accumulated deficit


(19,124,138)


(20,078,586)


        Total Shareholders' Equity (Deficit)


399,848


(557,881)


        Total Liabilities and Shareholders' Equity (Deficit)

$

16,645,601

$

5,733,339







The accompanying notes are an integral part of these condensed consolidated financial statements.


The Singing Machine Company, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 

(Unaudited)


















For Three Months Ended


For Six Months Ended


September 30,
2012


September 30,
2011


September 30,
2012


September 30,
2011

















Net Sales

$   14,376,086


$    14,149,564


$    16,138,791


$    15,937,610









Cost of Goods Sold

10,905,307


10,956,081


12,223,934


12,315,584









Gross Profit

3,470,779


3,193,483


3,914,857


3,622,026









Operating Expenses








    Selling expenses

1,250,642


1,041,388


1,499,290


1,390,064

    General and administrative expenses

742,708


654,992


1,385,826


1,210,604

    Depreciation and amortization

34,076


29,313


66,851


61,391

Total Operating Expenses

2,027,426


1,725,693


2,951,967


2,662,059









Income from Operations

1,443,353


1,467,790


962,890


959,967









Other Expenses








    Interest expense

(8,442)


(2,250)


(8,442)


(2,344)









Income before provision for income taxes

1,434,911


1,465,540


954,448


957,623









Provision for  income taxes

-


-


-


-









Net Income 

$     1,434,911


$      1,465,540


$        954,448


$         957,623









Income per Common Share








    Basic and Diluted 

$             0.04


$              0.04


$              0.03


$              0.03









Weighted Average Common and Common 








    Equivalent Shares:








    Basic and Diluted

37,960,794


37,835,793


37,960,794


37,835,793









The accompanying notes are an integral part of these condensed consolidated financial statements.


The Singing Machine Company, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)






For Six Months Ended






September 30, 2012


September 30, 2011

















Cash flows from operating activities






Net Income 

$

954,448

$

957,623


Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities:







Depreciation and amortization


66,851


61,391



Change in inventory reserve 


(167,000)


153,926



Change in allowance for bad debts


22,913


43,994



Disposal of property and equipment


-


4,027



Stock based compensation


3,281


14,185



Warranty provisions


242,627


294,346


   Changes in assets and liabilities:






     (Increase) Decrease in:







Accounts receivable


(4,024,112)


(10,239,086)



Inventories


(3,348,664)


(1,203,562)



Prepaid expenses and other current assets


6,078


6,064



Other non-current assets


(283)


(658)


      Increase (Decrease) in:







Accounts payable 


6,681,225


5,415,195



Net due to related parties


1,481,215


2,180,058



Accrued expenses


881,899


686,472



Obligations to clients for returns and allowances


(130,012)


(66,446)




Net cash provided by (used in) operating activities


2,670,466


(1,692,471)

Cash flows from investing activities






Purchase of property and equipment


(109,262)


(83,369)




Net cash used in investing activities


(109,262)


(83,369)

Cash flows from financing activities






Net proceeds from short-term bank loan 


-


1,293,326


Payments on long-term financing obligation


-


(4,547)




Net cash provided by financing activities


-


1,288,779

Change in cash 


2,561,204


(487,061)









Cash at beginning of period


267,465


674,712

Cash at end of period

$

2,828,669

$

187,651









Supplemental Disclosures of Cash Flow Information:






Cash paid for interest

$

8,442

$

2,344









The accompanying notes are an integral part of these condensed consolidated financial statements.


 

SOURCE The Singing Machine Company, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

IoT & Smart Cities Stories
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER gives detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPOalso offers sp...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of San...