HUNTINGDON VALLEY, Pa., July 22, 2015 (GLOBE NEWSWIRE) -- Wireless Xcessories Group, Inc. (WIRX.PK), a nationwide manufacturer and distributor of electronic and cellular accessories, announced audited results for the year ended December 31, 2014. This report updates the unaudited report that was issued on March 31, 2015.
Sales
The Company reported 2014 full year's net sales of $34,644,716 compared to $35,858,315 for 2013, a decrease of approximately 3.3%.
(Loss) Income from Operations
Full Year Loss from operations were $(986,783) or $(.25) per share in 2014, compared to a loss from operations of $(109,024) or $(.03) per share in 2013.
Income tax expense (benefit)
The Company showed a total expense of $62,535 in 2014, as opposed to a benefit of $(48,836) in 2013.
In 2014, The Company took a valuation allowance adjustment of $484,412 against its Net Deferred Tax Asset which offset a tax benefit of $(421,877) resulting from its taxable losses in the year, resulting in a total expense of $62,535.
Net Loss (Income) Comparison
The Company had a full year net Loss of $(1,073,633) or $(0.27) per share, compared to $(81,233) or $(0.02) per share in 2013.
Other (Expense)
Other (expense) was a net expense of $24,315 in 2014, compared to expense of $21,045 in 2013; the increase was principally due to an increase of net interest expense of approximately $18,500 due to increased use of borrowed funds in 2014 offset by losses on disposal of property and equipment in 2013 of $15,647.
Key Financial Comparisons
The Company had working capital of approximately $7.3 million, on December 31, 2014 and total shareholder equity was approximately $7.4 million. There was total debt outstanding at December 31, 2014 of $2,490,000 related to a secured Revolving Term Note with a major Bank.
Management Comments
Steve Rade, CEO stated, "2014 results were disappointing as our sales were off by 3.3% for the year. The drop was a result of many factors, including continued consolidation in the Dealer base and, in particular, our largest carrier market which is Verizon.
Additionally, lack of new smartphone introductions during the first nine months of the year did not spur traffic into our Dealer base which contributed to an overall slower rate of consumer handset upgrades.
These factors, combined with an overall very competitive pricing environment, reduced our gross profit from the prior year.
OtterBox
Our primary case vendor, OtterBox has decided to restructure its USA distribution program. Wireless Xcessories Group, Inc. was notified that we were one of five distributers terminated from the program effective 4/1/2015. We have attempted to substitute two new case brands to our product offering, but it remains to be seen how many of our customers will be willing to transition to this new line. We intend to report financial results much sooner after the end of each reporting quarter to let our stockholders know about our progress in replacing this lost volume and gross profit contribution.
About Wireless Xccessories Group
Wireless Xccessories Group, Inc. designs, manufactures and distributes accessories for cellular phones. The Company offers in excess of 3,500 items that include batteries; hands free devices, car and travel chargers, as well as a variety of carrying cases. The Company sells to dealers and distributors through an in-house sales force and directly from its website, http://www.wirexgroup.com