Sound Advice, Inc. announces fiscal 1996 results

Business Wire, Sept 27, 1996

DANIA, Fla.--(BUSINESS WIRE)--Sept. 27, 1996--Sound Advice, Inc. (Nasdaq/NNM:SUND) today reported financial results for the fourth quarter and fiscal year ended June 30, 1996. Net sales for the fiscal 1996 fourth quarter were $32,481,000, compared with $39,148,000 for the same period a year ago. The Company recorded a net loss for the fiscal 1996 fourth quarter of $1,446,000, or $0.39 per share, compared with a net loss of $745,000, or $0.20 per share, for the fourth quarter of fiscal 1995.

For the full fiscal year 1996, Sound Advice reported net sales of $168,985,000, compared with $190,504,000 reported for fiscal 1995. The Company incurred a net loss for fiscal 1996 of $4,227,000, or $1.13 per share, which compared with a net loss of $481,000, or $0.13 per share, for fiscal 1995.

The Company noted that it was able to improve the gross profit margin as a percentage of sales, despite the lower sales and losses in the recent periods. The gross profit margin as a percentage of sales was 32.7% in the fiscal 1996 fourth quarter, versus 28.7% in the same quarter of 1995. Excluding the loss provision for discontinued personal computer products, the fiscal 1996 full year gross profit margin was 30.0%, compared with 29.2% for fiscal 1995. SG&A expenses decreased by $392,000, or 3.3%, for the fiscal 1996 fourth quarter, and were reduced by $2,109,000, or 3.9%, for the full fiscal year 1996, as compared with the year-ago periods.

Results for the fourth quarter and fiscal year 1996 reflected a decrease in net sales, primarily due to the Company's decision to eliminate personal computer products and related accessories and eliminate or reduce certain non-performing, low-margin products, as well as increased competition and the general weakness in the retailing environment for consumer electronics. Results for the full year 1996 also included a provision of approximately $1,500,000 for loss related to the elimination of personal computers and related accessories.

Peter Beshouri, Sound Advice Chairman and CEO, stated, "Fiscal 1996 was basically a transitional year, as we refocused our strategy to return to our traditional core business of selling high-end audio, video and mobile electronics. The improvement in our gross profit margin, which began in the fiscal 1996 third quarter as a result of this strategic shift, has continued into the fourth quarter. We also have reduced SG&A expenses which should position us for greater profitability as we build sales. Finally, our balance sheet was strengthened as efforts to reduce inventory and receivables led to increased cash flow from operations, which was used to repay debt."

Sound Advice, Inc. is a specialty retailer of a broad range of high quality, upscale entertainment and consumer electronics products. It currently operates 21 stores in the South Florida, Orlando, Tampa/St. Petersburg, Ft. Myers and Jacksonville markets. -0-

                  SOUND ADVICE, INC (NASDAQ/NNM:SUND)
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