Koss net income in the third quarter

MILWAUKEE, May 05, 2022 (GLOBE NEWSWIRE) — Koss Corporation (KOSS) (the “Company”), the American high-fidelity headphone company, reported results for the third quarter ended March 31, 2022.

Sales for the third fiscal quarter were $4,634,552, an increase of 16.2% over sales of $3,987,452 for the same three-month period a year ago. Three-month net earnings were $403,204, compared to a net loss of $474,168 for the third quarter last year. Diluted earnings per common share for the quarter were $0.04 compared to a diluted loss per common share of $0.06 for the three-month period a year ago.

Sales for the nine months ended March 31, 2022 decreased 5% from $14,125,537 for the same period a year ago to $13,415,506 for the current year. Net income for nine months was $882,814 compared to net income of $161,651 for the same period of the previous year. Diluted earnings per common share were $0.09 for the nine months ended March 31, 2022, compared to earnings per common share of $0.02 for the same nine-month period a year ago.

“The year-over-year sales decline is the result of lower sales to some national distributors and the complete withdrawal of an unbranded model from a single major U.S. retailer. Direct-to-consumer sales ( DTC) continue to grow following a shift in business from brick-and-mortar retail stores to direct-to-consumer online sales,” said Michael J. Koss, President and Chief Executive Officer today. “While sales to European distributors exceeded the first three quarters of the previous year, the export gains were offset by a contraction in sales to distributors in Asia.

“The improvement in gross margin for the three and nine months ended March 31, 2022 can be attributed to last year’s exit from traditional mass retail stores, resulting in a more favorable product mix within of growing market classes,” continued Koss. “The inconsistent global response to the persistence of COVID-19 and the war in Eastern Europe has continued to disrupt the supply chain and exacerbate the negative impact that current administration policy has had on energy costs.” These political factors offset some of the company’s gross margin preference. While rising energy costs are expected to persist and inflate our material costs, the company continued to invest in its finished goods inventory and brought in a freight forwarding partner to ensure some improvement in freight rates. of the quarter.

About Koss Corporation

Koss Corporation markets a complete line of high fidelity headphones, wireless Bluetooth® speakers, computer headsets, telecommunications headsets, active noise canceling headphones, wireless headphones and compact disc recordings from American symphony orchestras under the Koss Classics® label.

Forward-looking statements

This press release contains forward-looking statements. These statements relate to future events or our future financial performance. In some instances, you can identify forward-looking statements by words such as “anticipates”, “believes”, “estimates”, “expects”, “intends”, “plans”, ” may”, “will”, “should”, “plans”, “predicts”, “potential”, “continues” or the negative of these and other comparable terms. These statements are based on operational, financial and competitive information currently available and are subject to various risks and uncertainties. Actual events or results may differ materially. When evaluating forward-looking statements, you should specifically consider various factors that could cause actual results to differ from those contained in forward-looking statements, such as general economic conditions, the impacts of the COVID-19 pandemic, geopolitical instability and war, consumer demand for the Company’s and its customers’ products, developments competitive and technological factors, foreign currency fluctuations and operating costs. Shareholders, potential investors and other readers are urged to carefully consider these factors when evaluating forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances or new information. In addition, these uncertainties and other operational matters are discussed in more detail in the Company’s quarterly and annual filings with the Securities and Exchange Commission.

KOSS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

Three months completed Nine month period ended
March, 31st March, 31st
2022 2021 2022 2021
Net sales $ 4,634,552 $ 3,987,452 $ 13,415,506 $ 14,125,537
Cost of Goods Sold 2,671,336 2,569,900 8,320,759 9,453,860
Gross profit 1,963,216 1,417,552 5,094,747 4,671,677
Selling, general and administrative expenses 1,566,430 2,271,615 4,576,521 5,393,211
Operating income (loss) 396,786 (854,063 ) 518 226 (721,534 )
Other income 6,415 378,805 362 389 885 505
interest income 3,578 1,139 7,837 1,748
Profit (loss) before provision for income tax 406,779 (474,119 ) 888 452 165,719
Provision for income tax 3,575 49 5,638 4,068
Net profit (loss) $ 403 204 $ (474,168 ) $ 882 814 $ 161,651
Earnings (loss) per common share:
Basic $ 0.04 $ (0.06 ) $ 0.10 $ 0.02
Diluted $ 0.04 $ (0.06 ) $ 0.09 $ 0.02
Weighted average number of shares:
Basic 9,147,795 8,100,730 9,044,532 7,633,722
Diluted 9,888,083 8,100,730 10,024,473 9,188,002

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