LOUD Technologies Inc.  
 
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LOUD Technologies Reports 2005 Third Quarter Net Income Of $0.02 Per Share And A 74% Increase In Revenues To $54.0 Million

November 14, 2005 – Woodinville, Wash. LOUD Technologies Inc. (LOUD) (OTCBB:LTEC) today announced financial results for the third quarter and first nine months of 2005, highlighted by higher revenue and profitability compared to the same periods of 2004. "In addition to the substantial positive impact of the acquisition of St. Louis Music, LOUD's financial performance so far this year also has benefited from our programs to reign in operating costs, eliminate excess manufacturing capacity, rationalize our corporate structure, and solidify our balance sheet," said Chairman and CEO Jamie Engen. "We expect that our improved operating platform, as well as our larger scale of operations, will allow us to continue to leverage LOUD's expanding global distribution capability, growing portfolio of well-known branded products, and solid reputation for quality and innovation in the professional audio and music industries.

Third Quarter Results
For the three months ended September 30, 2005, revenue increased 74.2% to $54.0 million from $31.0 million for the third quarter of 2004. Revenue for this year's third quarter included $19.3 million attributable to St. Louis Music, Inc., which was acquired on March 4, 2005. Gross margin improved to 33.7% of revenue from 33.2% a year ago. Engen said that gross margin is expected to remain in the 31% to 35% range. Selling, general and administrative expenses declined to 23.5% of revenue for this year's third quarter compared to 25.2% of revenue for the third quarter of 2004, while R&D expense declined slightly to 5.0% of revenue from 5.5% last year.

Net income for the third quarter of 2005 was 379,000, or $0.02 per diluted share based on approximately 24.9 million weighted average diluted shares outstanding. This compares to a net loss for the third quarter last year of $603,000, or $0.03 per share based on approximately 22.5 million weighted average shares outstanding.

On November 3, 2005, LOUD announced a 1-for-5 reverse stock split that will be effective after the close of the market on November 17, 2005.

Nine Month Results
For the nine months ended September 30, 2005, revenue increased 69.8% to $148.2 million from $87.3 million for the first nine months of 2004. St. Louis Music accounted for revenue of $44.4 million for this year's first nine months. Net income for the first nine months of 2005 was $2.0 million, or $0.09 per diluted share. This compares to a net loss for the first nine months of 2004 of $5.5 million, or $0.26 per share. Results for the first nine months of 2005 included a net gain of $2.8 million from the discontinued operations of the Company's former Italian subsidiary.

Balance Sheet Highlights
On August 29, 2005, LOUD entered into a new credit facility, which provides a $69.5 million senior secured loan facility and a $14.8 million senior subordinated note payable. The senior secured loan facility consists of a $40.0 million revolving loan and term loans totaling $29.5 million. At September 30, 2005, the company had an outstanding balance on the revolving portion of the credit facility of $17.4 million and available borrowing capacity of $13.0 million.

"Our new credit facility has significantly strengthened LOUD's financial footing," Engen said. At September 30, 2005, working capital was $27.5 million and stockholders' equity was $7.3 million. This compares to working capital of $2.3 million and stockholders' equity of $3.3 million at December 31, 2004.

About LOUD Technologies Inc.
LOUD Technologies Inc. develops professional audio products under the brands Mackie, EAW, EAW Commercial, TAPCO, SIA Software and Acuma Labs. Products from LOUD Technologies' brands can be found in professional and project recording studios, video and broadcast suites, post production facilities, sound reinforcement applications including churches and nightclubs, retail locations and on major musical tours.

Mackie, EAW, and TAPCO are registered trademarks of LOUD Technologies Inc. in the United States and other countries. All other trademarks are the property of their respective owners.

Forward Looking Statements
Statements in this release that are "forward–looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as: market acceptance of new products; continued acceptance of existing products; delays in product development and related product release schedules; product price discounts; reliance on third party manufacturers and reliance on sole or limited source suppliers for key components that could result in component shortages and delays in product delivery, any of which may cause revenues and income to fall short of anticipated levels; obsolete inventory or product returns by distributors, resellers and retailers; warranty and other claims on products; changes or delays in product shipments; technological shifts; the availability of competitive products at lower prices; the continued ability to protect the company's intellectual property rights; changes in product mix; maturing product life cycles; product sale terms and conditions; the financial condition of our customers and vendors; adverse results in litigation; the effects of terrorist activity and armed conflict such as disruptions in general economic activity and changes in our operations and security arrangements; continued softness in retail spending or other changes in general economic conditions that affect demand for our products; currency fluctuations; and vigorous competition.  For further information regarding risks and uncertainties associated with LOUD's business, please refer to the "Management's Discussion and Analysis of Results of Operations and Financial Condition" section of LOUD's SEC filings, including, but not limited to, its annual report on Form 10–K and quarterly reports on Form 10–Q, copies of which may be obtained by contacting LOUD's investor relations department at 1–866–858–LTEC (5832) or 425–892–6500, or on LOUD's website at http://www.loudtechinc.com/invest/index.html.

All information in this release is as of March 7, 2005. The company undertakes no duty to update any forward–looking statement to conform the statement to actual results or changes in the company's expectations.

For more information please contact: LOUD Technologies Inc. – 16220 Wood–Red Road N.E. – Woodinville, WA 98072 – Phone: (425) 487–4333 – Fax: (425) 487–4337 – Internet: www.loudtechinc.com

 
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