This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Merisel, Inc. Announces Fourth Quarter And Full Year 2012 Results

NEW YORK, March 29, 2013 (GLOBE NEWSWIRE) -- Merisel, Inc. (OTC:MSEL), a leading provider of visual communications and brand imaging solutions to the consumer products, retail, advertising and entertainment industries, today reported financial results for the fourth quarter and full year ended December 31, 2012.

The Company reported net income of $764 or $0.11 per share and a net loss of ($18,131) or ($2.51) per share for the three and twelve month periods ended December 31, 2012, respectively, as compared to net income of $642 or $0.09 per share and a net loss of ($2,451) or ($0.34) per share for the three and twelve month periods ended December 31, 2011, respectively. Revenues for the three and twelve months ended December 31, 2012, were $16,605 and $58,061, respectively, as compared to $20,462 and $69,652 for the same periods in 2011. The net loss for the twelve month period ended December 31, 2012, includes a gain on insurance proceeds of $422, a non-cash intangible impairment charge of $6,190 for a write-down of trademarks, a lease abandonment charge of $3,977 and a restructuring charge of $809 related to severance costs. The net income for the three month period ended December 31, 2012 includes the gain on insurance proceeds of $422. The effect of these non-recurring charges was $.06 and ($1.46) for the three and twelve month periods ended December 31, 2012. Without these charges the EPS would have been $.05 and ($1.05) for the three and twelve month periods ended December 31, 2012.

The Company experienced significant damage to its Carlstadt, New Jersey facility on October 29 th and 30 th due to Hurricane Sandy. As noted above, the Company recorded a gain during the period related to insurance claims received for damages related to the storm. However, the Company expended an additional $2.6 million for capital equipment to replace equipment damaged during the storm. In order to fund these expenditures, the Company sold 10% convertible notes to its majority shareholder, Saints Capital Granite, L.P. ("Saints"), in the total amount of $2.25 million, $1.5 million in November, 2012 and $.750 million in February, 2013 and used lease financing for another $.785 in February, 2013.  The remaining cash received was used to fund working capital. The funding was in addition to the convertible notes sold to Saints in August, 2012 in the amount of $2.0 million. Terry A. Tevis, Merisel's Chief Executive Officer, noted that "Sandy tested the Company in several ways. Our management team, sales organization, and production staff did a remarkable job meeting the challenges from the storm. We were able to perform much of the work in our California facility and utilized the industry's extensive network and competitor facilities while the New Jersey operation was being repaired and new, replacement equipment installed. Furthermore, the ongoing support from Saints during this difficult period demonstrated the value of a majority shareholder partnership that believes and invests in the Company."  Mr. Tevis continued, "Without the hard work of our team, the understanding of our clients, terrific support from the industry and the investment from Saints, it would have been extremely difficult to survive the damage caused by the storm."

About Merisel

Merisel, headquartered in New York, N.Y., is a leading visual communications and brand imaging solutions provider to its clients. Merisel provides a broad portfolio of digital and graphic services to clients in the retail, manufacturing, beverage, cosmetic, advertising, entertainment and consumer packaged goods industries. These solutions are delivered to clients through its portfolio companies: ColorEdge, Crush Creative, Comp 24, and Fuel Digital. In March 2010, Crush Creative and Fuel Digital were consolidated under the ColorEdge brand. Merisel has sales offices in New York City, Atlanta and Los Angeles, and production facilities in New York, New Jersey, Atlanta and Los Angeles to ensure the highest quality solutions and services to its clients. Learn more at www.merisel.com .

Cautionary Statement

This press release contains forward-looking statements that involve risks and uncertainties concerning Merisel's expectations for future performance (including without limitation the quotations from management in this press release). In this context, forward-looking statements often address Merisel's expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," or "will." Any such forward-looking statements are inherently speculative and are based on currently available information, operating plans and projections about future events and trends. As such, these statements are subject to numerous risks and uncertainties that include, among others, the impact of management and organizational changes, the implementation of ongoing strategic and cost initiatives, changes in and a dependence on key personnel, the outcome of pending legal proceedings, the severity and duration of the current economic conditions and changes in economic conditions. These uncertainties may cause Merisel's actual future results to be materially different than those expressed in such forward-looking statements. All information set forth in this press release is as of March 29, 2013. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of the press release. The Company undertakes no obligation to update any such forward-looking statements. More information about the potential factors that could affect Merisel's business and financial results is included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012, which is on file with the SEC and available on the SEC's website at www.sec.gov

 

MERISEL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
 
 
  Three Months Ended December 31, Year Ended December 31,
   2011  2012  2011  2012
         
Net sales $20,462 $16,605 $69,652 $58,061
         
Cost of sales 11,908 9,357 41,839 37,837
         
Gross profit 8,554 7,248 27,813 20,224
         
Selling, general & administrative expenses 7,152 5,842 27,957 24,280
         
Intangible impairment  -- -- -- 6,190
         
Lease abandonment charge  -- --   3,977
         
Restructuring charge  --  --  -- 809
  Insurance proceeds, net  --  (422)  -- (422)
         
Operating income (loss) 1,402 1,828 (144) (14,610)
         
Interest expense, net 755  1,224 2,333  3,681
Income (loss) before provision (benefit) for income tax  647 604 (2,477)   (18,291)
  Income tax provision (benefit) 5 (160) (26)  (160)
Net income (loss) 642 764 (2,451) (18,131)
         
Income (loss) per share (basic and diluted):        
Net income (loss) $0.09 $0.11 $(0.34) $(2.51)
         
Weighted average number of shares:        
Basic 7,215 7,215 7,215 7,215
Diluted 7,215 7,215 7,215 7,215
         
CONTACT: John (Jeb) Ball
         (212) 502-6606
         jeb.ball@merisel.com

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,837.58 -74.53 -0.44%
S&P 500 1,968.62 -1.33 -0.07%
NASDAQ 4,457.3350 +14.6370 0.33%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs