Mackie Designs Inc. Announces Second Quarter Results
July 27, 2000 – Woodinville, Wash. – Mackie Designs Inc. (Nasdaq: MKIE) today announced revenues and earnings for the quarter ended June 30, 2000. Revenues for the second quarter were $56 million, compared with $39 million for the corresponding quarter in 1999, an increase of 43%. Net income for the quarter was $2.2 million, or $0.17 per share. This compares with earnings of $1.1 million, or $0.09 per share, in the second quarter of 1999, an increase of $1.1 million over the prior year or a 100% increase in earnings.
"The growth of Mackie Designs as an important leader in the professional audio industry continues," stated Jamie Engen, Chief Operating Officer. "This quarter includes the results of Eastern Acoustic Works Inc. (EAW), which was acquired in early April, 2000. I think that earnings of $0.17 per share, is a reasonable result for us, given that this is the first quarter to reflect a significant new acquisition and associated purchase price accounting. I am particularly encouraged because I am confident that we can perform significantly better in the future."
Company Chairman, Greg Mackie, stated, "I am pleased with the continued growth of our company. I am very enthusiastic about the products which we are about to deliver and the synergies that are already being realized with the addition of EAW to the Mackie group. We continue to be focused on bringing innovative solutions to our customers while delivering high value to our shareholders.
Forward-Looking Statements
This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: changes in demand for the Company's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, constraints on supplies of critical components, excess or shortage of production capacity, difficulties encountered in the integration of acquired businesses and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. 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.
MACKIE DESIGNS INC. STATEMENTS OF OPERATIONS (Unaudited)
| |
Three months ended
June 30, |
Six months ended
June 30, |
| |
2000 |
|
1999 |
|
2000 |
|
1999 |
| |
|
| Net sales |
$56,068,880 |
$39,255,560 |
|
$100,607,956 |
|
$70,879,772 |
| Cost of goods sold |
34,503,710 |
24,710,843 |
62,729,714 |
45,465,849 |
| Gross profit |
21,565,170 |
14,544,717 |
37,878,242 |
25,413,923 |
| |
|
|
|
|
| Operating expenses: |
|
|
|
|
| Selling, general and administrative |
13,914,810 |
10,479,560 |
23,875,214 |
20,383,699 |
| Research and development |
2,773,927 |
1,649,959 |
4,713,015 |
3,477,967 |
| Total operating expenses |
16,688,737 |
12,129,519 |
28,588,229 |
23,861,666 |
| Operating income |
4,876,433 |
2,415,198 |
9,290,013 |
1,552,257 |
| |
|
|
|
|
| Interest income |
146,881 |
186,088 |
342,858 |
362,622 |
| Interest expense |
(1,105,801) |
(638,562) |
(1,752,236) |
(1,492,194) |
| Other expense, net |
(55,836) |
(227,829) |
(36,630) |
(332,594) |
| Income before income taxes |
3,861,677 |
1,734,895 |
7,844,005 |
90,091 |
| |
|
|
|
|
| Income taxes |
1,615,187 |
613,859 |
3,178,961 |
338,251 |
| |
|
|
|
|
| Net income (loss) |
$2,246,490 |
$1,121,036 |
$4,665,044 |
$(248,160) |
| |
|
|
|
|
| |
|
|
|
|
| Basic net income (loss) per share |
$ 0.19 |
$ 0.09 |
$ 0.38 |
$ (0.02) |
| |
|
|
|
|
| Diluted net income (loss) per share |
$ 0.17 |
$ 0.09 |
$ 0.37 |
$ (0.02) |
| |
|
|
|
|
| Basic weighted average shares outstanding |
12,131,218 |
12,249,613 |
12,120,495 |
12,288,965 |
| |
|
|
|
| Diluted weighted average shares outstanding |
12,900,599 |
12,249,613 |
12,619,153 |
12,288,965 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About Mackie
Mackie Designs Inc. is known worldwide as a leading manufacturer and marketer of high-quality, affordable professional audio systems. Mackie products can be found in professional and project recording studios, video and broadcast suites, post production facilities, sound reinforcement applications including churches and nightclubs, retail locations and on major musical tours. Mackie Designs Inc. products are marketed by 54 distributors to more than 100 countries around the world.
"Mackie." is a registered trademark of Mackie Designs Inc. in the United States and other countries.
For more information please contact: Mackie Designs Inc. – 16220 Wood-Red Road N.E. – Woodinville, WA 98072 – Phone: 425-487-4333 – Fax: 425-487-4337 – Internet: www.mackiedesigns.com
|
