Fort Lauderdale, FL, Feb. 14, 2022 (GLOBE NEWSWIRE) -- The Singing Machine Company, Inc. (“Singing Machine” or the “Company”) (OTCQX: SMDM) – the worldwide leader in consumer karaoke products – today announced its third quarter financial results for the three months ended December 31, 2021.
Third Quarter Highlights:
- Net sales for the quarter grew to $21.2 million which represents an increase of 25% over the same period in the prior year; fiscal year-to-date revenue of $44.7 million.
- Gross profit increased to $5.3 million, representing an increase of 5% over the same period in the prior year.
- Strong growth in music subscription service, the Company’s expanding recurring revenue base, which increased 370% relative to the same quarter in the prior year.
- Net income increased to approximately $1.4 million for the quarter, as compared to $1.2 million in the prior year.
- Fully diluted EPS of $0.03 for the quarter.
Management Commentary:
Gary Atkinson, Singing Machine CEO, commented, “I couldn’t be more proud of our team for finishing the year strong and delivering significant growth despite all of the global supply chain challenges we faced last year. We successfully navigated the global supply chain crisis, where our experienced team thrived under the adverse circumstances. Our world class sales force did an excellent job protecting and even expanding our industry-leading market share, which resulted in solid 25% growth in sales during the quarter.”
“Across all of our retail partners, we continued to see strong demand for karaoke products – particularly on our higher price point products.” Atkinson continued, “As far as supply chain, we don’t anticipate much relief this year. We are already aggressively managing our supply chain by keeping inventory when necessary, passing along price increases where applicable, and shifting as much of our business to direct-import to mitigate freight increases and container shortages.”
On the content subscription side of the business, Atkinson commented, “We are committed to expanding our subscription-based content business which saw a 25% increase in revenue year over year across all platforms. Most notably, our integrated WiFi machines drove a 370% increase in subscription revenue during that same time period. We intend to scale the recurring subscription revenue model to all of our hardware machines. As the market leader and most-trusted brand in karaoke, we are the best positioned to take advantage of our strong distribution network into over 25,000 retail doors.”
Earnings Call Information:
The Company will host a conference call today, Monday, February 14, 2022, beginning at 4:00 pm Eastern time to discuss these results and answer questions. If you would like to participate on the call, please dial (866) 518-6930 and use conference ID: SMDM.
An audio rebroadcast of the call will be available later in the day after the earnings call and can be heard at: www.singingmachine.com/investors.
About The Singing Machine
Singing Machine® is the leading provider of karaoke products to consumers across the world. The Company offers the industry's widest line of at-home and in-car karaoke entertainment products, which allow consumers to find a machine that suits their needs and skill level. The Company’s products are sold in over 25,000 locations worldwide, including at well-known retailers such as Amazon, Costco, Sam’s Club, Target, and Walmart. As the most recognized brand in karaoke, Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products. To learn more, go to www.singingmachine.com.
Investor Relations Contact:
Brendan Hopkins
(407) 645-5295
investors@singingmachine.com
www.singingmachine.com
www.singingmachine.com/investors
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, 2021. 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.
