Navarre Corporation Reports Financial Results for First Quarter of Fiscal Year 2011
MINNEAPOLIS, Aug 2, 2010 (GlobeNewswire via COMTEX) --
Navarre Corporation (Nasdaq:NAVR), a leading distributor and publisher of computer software and provider of third party logistics services, today reported its financial results for the first quarter of fiscal year 2011, the three month period ended June 30, 2010.
-- Net sales from continuing operations were $98.8 million, as compared to
net sales from continuing operations of $123.4 million for the same
period last year, a reduction of $24.6 million or 20%. Continuing
operations does not include the results of FUNimation Entertainment,
which the Company is currently marketing for a potential sale and is
classified as discontinued operations pursuant to GAAP.
-- Operating income from continuing operations during the first quarter was
$1.2 million, as compared to operating income from continuing operations
of $1.1 million in the prior fiscal year.
-- Net income was $1.1 million, or $0.03 per diluted share, as compared to
net income of $4.2 million, or $0.11 per diluted share, in the prior
year's first quarter.
-- EBITDA before share-based compensation expense from continuing
operations was $2.0 million, as compared to EBITDA before share-based
compensation expense from continuing operations of $3.1 million in the
prior year's first quarter. (See "Use of Non-GAAP Financial Information"
below)
-- Debt at June 30, 2010 was $19.7 million, a reduction of $3.5 million as
compared to debt of $23.2 million on June 30, 2009. During the first
quarter the Company paid $8.1 million in connection with the acquisition
of Punch! Software.
Cary L. Deacon, Chief Executive Officer, commented, "Our revenue shortfall from last year's results during the first quarter occurred in the distribution business and was generally expected. We are on track with the execution of our strategy to focus on the distribution and software publishing businesses and we continue to anticipate delivering results that are in line with our previously-issued full year guidance. The early performance of Encore's Punch! acquisition has been positive and we look forward to building on this momentum as we move through the remainder of the fiscal year. On the distribution front, we opened our Toronto facility in May and we are already adding new business in Canada. Our balance sheet continues to strengthen as is reflected in our debt being lower than at the end of last year's first quarter, despite having paid approximately $8 million in connection with the Punch! acquisition.
"As we announced during the quarter, we are evaluating strategic alternatives which include the potential sale of FUNimation Entertainment. Although we believe that FUNimation has a bright future, its growth initiatives have limited synergies with our other businesses and we believe that they are best executed with ownership that has expertise in those areas. We are currently evaluating various indications of interest in connection with this process and we anticipate making a strategic decision regarding that business within the next two quarters," continued Deacon.
Distribution Segment
For the first quarter ended June 30, 2010, the distribution segment's net sales, before inter-company eliminations, were $96.7 million, as compared to net sales of $121.4 million for the same period last year, a decrease of 20%. This decrease in net sales resulted from the discontinuation of certain low margin video game product sales, reduced net sales of DVD video, and a shift of re-stocking activity by retailers in March that had originally anticipated to occur during the first quarter. The distribution segment had an operating loss of $9,000 in the first quarter, as compared to operating income of $364,000 in the first quarter of the prior fiscal year. (See "Use of Non-GAAP Financial Information" below)
Publishing Segment
The publishing segment includes the results of Encore Software and BCI (BCI's operations were wound down during fiscal year 2010). It should be noted that the Company has presented information related to the publishing segment without including the results of FUNimation Entertainment which is being marketed for sale and is classified as discontinued operations pursuant to GAAP.
For the first quarter ended June 30, 2010, the publishing segment had net sales, before inter-company eliminations, of $6.9 million, an increase of 2%, as compared to net sales, before inter-company eliminations, of $6.8 million in the first quarter of the prior fiscal year. Operating income during the first quarter for the publishing segment was $1.2 million, as compared to operating income of $780,000 in the first quarter of the prior year. (See "Use of Non-GAAP Financial Information" below)
Discontinued Operations
Discontinued operations includes the results of FUNimation Entertainment. Net income from discontinued operations was $895,000, as compared to $3.3 million in the first quarter of the prior fiscal year. FUNimation benefitted from a strong release schedule of Dragon Ball Z titles during the first quarter of fiscal year 2010.
Outlook
The Company's guidance from continuing operations for fiscal year 2011 remains unchanged as follows:
-- Net sales from continuing operations are anticipated to be between $480
million and $520 million;
-- EBITDA before share-based compensation expense from continuing
operations is expected to be between $18 million and $21 million; and
-- Cash flow from continuing operations is anticipated to be positive.
Conference Call
The Company will host a conference call at 12:00 p.m. ET (11:00 a.m. CT), today, Monday, August 2, 2010, to discuss its fiscal year 2011 first quarter financial results. The conference call can be accessed by dialing (866) 783-2140, and utilizing conference participant passcode "75856226", ten minutes prior to the scheduled start time. In addition, this discussion will be simultaneously webcast live and can be accessed in the "Investors" section of the Company's web site located at www.navarre.com. A replay of the conference call will be available at the Company's web site.
Use of Non-GAAP Financial Information
In evaluating our financial performance and operating trends, management considers information concerning our net sales before inter-company eliminations, and earnings before interest, taxes, depreciation, amortization, share-based compensation expense, and goodwill impairment, which are not calculated in accordance with generally accepted accounting principles ("GAAP") in the United States of America. The Company's management believes these non-GAAP measures are useful to investors because they provide supplemental information that facilitates comparisons to prior periods and for the evaluation of financial results. Management uses these non-GAAP measures to evaluate its financial results, develop budgets and manage expenditures. The method the Company uses to produce non-GAAP results is not computed according to GAAP, is likely to differ from the methods used by other companies and should not be regarded as a replacement for corresponding GAAP measures. Investors are encouraged to review the reconciliation of these preliminary non-GAAP financial measures to the comparable preliminary GAAP results, which is attached to this release and can also be found on the Company's web site at www.navarre.com.
About Navarre Corporation
Navarre(R) Corporation is a leading distributor and publisher of computer software and provider of third party logistics services. Navarre Distribution Services provides complete distribution and third-party logistics (3PL) services to North American retailers and their suppliers. The Company publishes computer software through Encore(R) and produces anime video through FUNimation Entertainment(R). Navarre was founded in 1983 and is headquartered in Minneapolis, Minnesota. Additional information can be found at www.navarre.com.
The Navarre Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6839
Safe Harbor
The statements in this press release that are not strictly historical are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbors provided therein. The forward-looking statements are subject to risks and uncertainties, and the actual results that the Company achieves may differ materially from these forward-looking statements due to such risks and uncertainties, including, but not limited to: the Company's revenues being derived from a small group of customers; the Company's dependence on significant vendors; the continued deterioration in the business of some of the Company's customers could harm its business; a pending investigation by the U.S. Securities and Exchange Commission (the "SEC") or litigation arising out of this investigation may subject the Company to significant costs; the seasonal nature of the Company's business; the Company's ability to meet significant working capital requirements; the Company may not be able to adequately adjust its cost structure in response to a decrease in net sale; technology developments could continue to adversely affect the Company's business; and the Company's ability to compete effectively in the highly competitive distribution and publishing industries. In addition to these, a detailed statement of risks and uncertainties is contained in the Company's SEC reports, including, in particular, the Company's Form 10-K filings, as well as its other SEC filings and public disclosures.
Investors and shareholders are urged to read this press release carefully. The Company can offer no assurances that any projections, assumptions or forecasts made or discussed in this press release will be met, and investors should understand the risks of investing solely due to such projections. The forward-looking statements included in this press release are made only as of the date of this report and the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.
Investors and shareholders may obtain free copies of the public filings through the website maintained by the SEC at http://www.sec.gov/ or at one of the SEC's other public reference rooms in Washington D.C., New York, New York or Chicago, Illinois. Please contact the SEC at 1-800-SEC-0330 for further information with respect to the SEC's public reference rooms.
NAVARRE CORPORATION
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended June
30,
-----------------------
2010 2009
----------- ----------
Net sales $ 98,792 $ 123,416
Cost of sales (exclusive of
depreciation and
amortization) 84,315 108,453
----------- ----------
Gross profit 14,477 14,963
Operating expenses:
Selling and marketing 4,884 4,068
Distribution and
warehousing 2,472 2,076
General and administrative 5,074 6,453
Depreciation and
amortization 891 1,222
----------- ----------
Total operating expenses 13,321 13,819
----------- ----------
Income from operations 1,156 1,144
Other income (expense):
Interest expense (396) (568)
Interest income 1 7
Other income (expense) (259) 451
----------- ----------
Income from continuing
operations before income
tax 502 1,034
Income tax expense (299) (180)
----------- ----------
Net income from continuing
operations 203 854
Discontinued operations
Income from discontinued
operations, net of tax 895 3,307
----------- ----------
Net income $ 1,098 $ 4,161
=========== ==========
Basic earnings per common
share:
Continuing operations $ 0.01 $ 0.02
Discontinued operations 0.02 0.09
----------- ----------
Net income $ 0.03 $ 0.11
=========== ==========
Diluted earnings per common
share:
Continuing operations $ 0.01 $ 0.02
Discontinued operations 0.02 0.09
----------- ----------
Net income $ 0.03 $ 0.11
=========== ==========
Weighted average shares
outstanding:
Basic 36,367 36,237
Diluted 36,813 36,347
NAVARRE CORPORATION
Consolidated Condensed Balance Sheets
(In thousands)
(Unaudited) (Unaudited)
June 30, June 30, March 31,
2010 2009 2010
----------- ----------- ----------
Assets
Current assets:
Accounts receivables,
net $ 42,859 $ 55,055 $ 61,880
Inventories 24,820 26,794 21,164
Other 21,836 20,810 21,210
Current assets of
discontinued operations 6,347 10,058 6,071
----------- ----------- ----------
Total current assets 95,862 112,717 110,325
Property and equipment,
net 11,292 13,592 11,790
Other assets 28,355 15,309 20,054
Non-current assets of
discontinued operations 29,715 31,033 29,434
----------- ----------- ----------
Total assets $ 165,224 $ 172,651 $ 171,603
=========== =========== ==========
Liabilities and
shareholders' equity
Current liabilities:
Revolving line of credit $ 19,709 $ 23,229 $ 6,634
Accounts payable 65,614 85,643 79,968
Other 8,347 10,867 17,177
Liabilities of
discontinued operations 6,121 10,125 5,760
----------- ----------- ----------
Total current liabilities 99,791 129,864 109,539
Long-term liabilities:
Other 3,408 1,357 1,303
Liabilities of
discontinued operations -- 4 --
----------- ----------- ----------
Total liabilities 103,199 131,225 110,842
Shareholders' equity 62,025 41,426 60,761
----------- ----------- ----------
Total liabilities and
shareholders' equity $ 165,224 $ 172,651 $ 171,603
=========== =========== ==========
NAVARRE CORPORATION
Consolidated Condensed Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
June 30,
---------------------
2010 2009
----------- --------
Net cash (used in) provided by operating
activities $ (1,436) $ 2,945
Net cash used in investing activities (8,667) (611)
Net cash provided by (used in) financing
activities 9,464 (1,168)
Net effect of exchange rate changes on
cash (60) --
----------- --------
Net cash (used in) provided by continuing
operations (699) 1,166
Discontinued operations
Net cash provided by (used in) operating
activities 832 (1,109)
Net cash used in investing activities (130) (55)
Net cash used in financing activities (3) (2)
----------- --------
Net cash provided by (used in)
discontinued operations 699 (1,166)
Net increase (decrease) in cash -- --
Cash at beginning of period -- --
----------- --------
Cash at end of period $ -- $ --
=========== ========
NAVARRE CORPORATION
Supplemental Information
(In thousands)
(Unaudited)
Reconciliation of Net Sales from Continuing Operations Before
Inter-Company Eliminations to GAAP Net
Sales and Business Segment Information
Three Months Ended June 30,
2010 % 2009 %
--------- ----- ---------- -----
Net sales:
Distribution $ 96,686 93.3% $ 121,396 94.7%
Publishing 6,922 6,797
--------- 6.7% ---------- 5.3%
Net sales before
inter-company
eliminations 103,608 128,193
Inter-company
eliminations (4,816) (4,777)
--------- ----------
Net sales as reported $ 98,792 $ 123,416
========= ==========
Income (loss) from
continuing operations:
Distribution $ (9) $ 364
Publishing 1,165 780
--------- ----------
Consolidated income from
continuing operations $ 1,156 $ 1,144
========= ==========
NAVARRE CORPORATION
Supplemental Information
(In thousands)
(Unaudited)
Reconciliation of Net Income from Continuing
Operations to EBITDA Before Share-Based
Compensation Expense from Continuing Operations
Three Months Ended
June 30,
2010 2009
-------- --------
Net income from continuing
operations, as reported $ 203 $ 854
Interest expense (income), net 395 561
Income tax expense 299 180
Depreciation and amortization 891 1,222
Share-based compensation 226 257
-------- --------
EBITDA before share-based
compensation expense
from continuing operations $ 2,014 $ 3,074
======== ========
Navarre Corporation (Nasdaq:NAVR), a leading distributor and publisher of computer software and provider of third party logistics services, today reported its financial results for the first quarter of fiscal year 2011, the three month period ended June 30, 2010.
-- Net sales from continuing operations were $98.8 million, as compared to
net sales from continuing operations of $123.4 million for the same
period last year, a reduction of $24.6 million or 20%. Continuing
operations does not include the results of FUNimation Entertainment,
which the Company is currently marketing for a potential sale and is
classified as discontinued operations pursuant to GAAP.
-- Operating income from continuing operations during the first quarter was
$1.2 million, as compared to operating income from continuing operations
of $1.1 million in the prior fiscal year.
-- Net income was $1.1 million, or $0.03 per diluted share, as compared to
net income of $4.2 million, or $0.11 per diluted share, in the prior
year's first quarter.
-- EBITDA before share-based compensation expense from continuing
operations was $2.0 million, as compared to EBITDA before share-based
compensation expense from continuing operations of $3.1 million in the
prior year's first quarter. (See "Use of Non-GAAP Financial Information"
below)
-- Debt at June 30, 2010 was $19.7 million, a reduction of $3.5 million as
compared to debt of $23.2 million on June 30, 2009. During the first
quarter the Company paid $8.1 million in connection with the acquisition
of Punch! Software.
Cary L. Deacon, Chief Executive Officer, commented, "Our revenue shortfall from last year's results during the first quarter occurred in the distribution business and was generally expected. We are on track with the execution of our strategy to focus on the distribution and software publishing businesses and we continue to anticipate delivering results that are in line with our previously-issued full year guidance. The early performance of Encore's Punch! acquisition has been positive and we look forward to building on this momentum as we move through the remainder of the fiscal year. On the distribution front, we opened our Toronto facility in May and we are already adding new business in Canada. Our balance sheet continues to strengthen as is reflected in our debt being lower than at the end of last year's first quarter, despite having paid approximately $8 million in connection with the Punch! acquisition.
"As we announced during the quarter, we are evaluating strategic alternatives which include the potential sale of FUNimation Entertainment. Although we believe that FUNimation has a bright future, its growth initiatives have limited synergies with our other businesses and we believe that they are best executed with ownership that has expertise in those areas. We are currently evaluating various indications of interest in connection with this process and we anticipate making a strategic decision regarding that business within the next two quarters," continued Deacon.
Distribution Segment
For the first quarter ended June 30, 2010, the distribution segment's net sales, before inter-company eliminations, were $96.7 million, as compared to net sales of $121.4 million for the same period last year, a decrease of 20%. This decrease in net sales resulted from the discontinuation of certain low margin video game product sales, reduced net sales of DVD video, and a shift of re-stocking activity by retailers in March that had originally anticipated to occur during the first quarter. The distribution segment had an operating loss of $9,000 in the first quarter, as compared to operating income of $364,000 in the first quarter of the prior fiscal year. (See "Use of Non-GAAP Financial Information" below)
Publishing Segment
The publishing segment includes the results of Encore Software and BCI (BCI's operations were wound down during fiscal year 2010). It should be noted that the Company has presented information related to the publishing segment without including the results of FUNimation Entertainment which is being marketed for sale and is classified as discontinued operations pursuant to GAAP.
For the first quarter ended June 30, 2010, the publishing segment had net sales, before inter-company eliminations, of $6.9 million, an increase of 2%, as compared to net sales, before inter-company eliminations, of $6.8 million in the first quarter of the prior fiscal year. Operating income during the first quarter for the publishing segment was $1.2 million, as compared to operating income of $780,000 in the first quarter of the prior year. (See "Use of Non-GAAP Financial Information" below)
Discontinued Operations
Discontinued operations includes the results of FUNimation Entertainment. Net income from discontinued operations was $895,000, as compared to $3.3 million in the first quarter of the prior fiscal year. FUNimation benefitted from a strong release schedule of Dragon Ball Z titles during the first quarter of fiscal year 2010.
Outlook
The Company's guidance from continuing operations for fiscal year 2011 remains unchanged as follows:
-- Net sales from continuing operations are anticipated to be between $480
million and $520 million;
-- EBITDA before share-based compensation expense from continuing
operations is expected to be between $18 million and $21 million; and
-- Cash flow from continuing operations is anticipated to be positive.
Conference Call
The Company will host a conference call at 12:00 p.m. ET (11:00 a.m. CT), today, Monday, August 2, 2010, to discuss its fiscal year 2011 first quarter financial results. The conference call can be accessed by dialing (866) 783-2140, and utilizing conference participant passcode "75856226", ten minutes prior to the scheduled start time. In addition, this discussion will be simultaneously webcast live and can be accessed in the "Investors" section of the Company's web site located at www.navarre.com. A replay of the conference call will be available at the Company's web site.
Use of Non-GAAP Financial Information
In evaluating our financial performance and operating trends, management considers information concerning our net sales before inter-company eliminations, and earnings before interest, taxes, depreciation, amortization, share-based compensation expense, and goodwill impairment, which are not calculated in accordance with generally accepted accounting principles ("GAAP") in the United States of America. The Company's management believes these non-GAAP measures are useful to investors because they provide supplemental information that facilitates comparisons to prior periods and for the evaluation of financial results. Management uses these non-GAAP measures to evaluate its financial results, develop budgets and manage expenditures. The method the Company uses to produce non-GAAP results is not computed according to GAAP, is likely to differ from the methods used by other companies and should not be regarded as a replacement for corresponding GAAP measures. Investors are encouraged to review the reconciliation of these preliminary non-GAAP financial measures to the comparable preliminary GAAP results, which is attached to this release and can also be found on the Company's web site at www.navarre.com.
About Navarre Corporation
Navarre(R) Corporation is a leading distributor and publisher of computer software and provider of third party logistics services. Navarre Distribution Services provides complete distribution and third-party logistics (3PL) services to North American retailers and their suppliers. The Company publishes computer software through Encore(R) and produces anime video through FUNimation Entertainment(R). Navarre was founded in 1983 and is headquartered in Minneapolis, Minnesota. Additional information can be found at www.navarre.com.
The Navarre Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6839
Safe Harbor
The statements in this press release that are not strictly historical are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbors provided therein. The forward-looking statements are subject to risks and uncertainties, and the actual results that the Company achieves may differ materially from these forward-looking statements due to such risks and uncertainties, including, but not limited to: the Company's revenues being derived from a small group of customers; the Company's dependence on significant vendors; the continued deterioration in the business of some of the Company's customers could harm its business; a pending investigation by the U.S. Securities and Exchange Commission (the "SEC") or litigation arising out of this investigation may subject the Company to significant costs; the seasonal nature of the Company's business; the Company's ability to meet significant working capital requirements; the Company may not be able to adequately adjust its cost structure in response to a decrease in net sale; technology developments could continue to adversely affect the Company's business; and the Company's ability to compete effectively in the highly competitive distribution and publishing industries. In addition to these, a detailed statement of risks and uncertainties is contained in the Company's SEC reports, including, in particular, the Company's Form 10-K filings, as well as its other SEC filings and public disclosures.
Investors and shareholders are urged to read this press release carefully. The Company can offer no assurances that any projections, assumptions or forecasts made or discussed in this press release will be met, and investors should understand the risks of investing solely due to such projections. The forward-looking statements included in this press release are made only as of the date of this report and the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.
Investors and shareholders may obtain free copies of the public filings through the website maintained by the SEC at http://www.sec.gov/ or at one of the SEC's other public reference rooms in Washington D.C., New York, New York or Chicago, Illinois. Please contact the SEC at 1-800-SEC-0330 for further information with respect to the SEC's public reference rooms.
NAVARRE CORPORATION
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended June
30,
-----------------------
2010 2009
----------- ----------
Net sales $ 98,792 $ 123,416
Cost of sales (exclusive of
depreciation and
amortization) 84,315 108,453
----------- ----------
Gross profit 14,477 14,963
Operating expenses:
Selling and marketing 4,884 4,068
Distribution and
warehousing 2,472 2,076
General and administrative 5,074 6,453
Depreciation and
amortization 891 1,222
----------- ----------
Total operating expenses 13,321 13,819
----------- ----------
Income from operations 1,156 1,144
Other income (expense):
Interest expense (396) (568)
Interest income 1 7
Other income (expense) (259) 451
----------- ----------
Income from continuing
operations before income
tax 502 1,034
Income tax expense (299) (180)
----------- ----------
Net income from continuing
operations 203 854
Discontinued operations
Income from discontinued
operations, net of tax 895 3,307
----------- ----------
Net income $ 1,098 $ 4,161
=========== ==========
Basic earnings per common
share:
Continuing operations $ 0.01 $ 0.02
Discontinued operations 0.02 0.09
----------- ----------
Net income $ 0.03 $ 0.11
=========== ==========
Diluted earnings per common
share:
Continuing operations $ 0.01 $ 0.02
Discontinued operations 0.02 0.09
----------- ----------
Net income $ 0.03 $ 0.11
=========== ==========
Weighted average shares
outstanding:
Basic 36,367 36,237
Diluted 36,813 36,347
NAVARRE CORPORATION
Consolidated Condensed Balance Sheets
(In thousands)
(Unaudited) (Unaudited)
June 30, June 30, March 31,
2010 2009 2010
----------- ----------- ----------
Assets
Current assets:
Accounts receivables,
net $ 42,859 $ 55,055 $ 61,880
Inventories 24,820 26,794 21,164
Other 21,836 20,810 21,210
Current assets of
discontinued operations 6,347 10,058 6,071
----------- ----------- ----------
Total current assets 95,862 112,717 110,325
Property and equipment,
net 11,292 13,592 11,790
Other assets 28,355 15,309 20,054
Non-current assets of
discontinued operations 29,715 31,033 29,434
----------- ----------- ----------
Total assets $ 165,224 $ 172,651 $ 171,603
=========== =========== ==========
Liabilities and
shareholders' equity
Current liabilities:
Revolving line of credit $ 19,709 $ 23,229 $ 6,634
Accounts payable 65,614 85,643 79,968
Other 8,347 10,867 17,177
Liabilities of
discontinued operations 6,121 10,125 5,760
----------- ----------- ----------
Total current liabilities 99,791 129,864 109,539
Long-term liabilities:
Other 3,408 1,357 1,303
Liabilities of
discontinued operations -- 4 --
----------- ----------- ----------
Total liabilities 103,199 131,225 110,842
Shareholders' equity 62,025 41,426 60,761
----------- ----------- ----------
Total liabilities and
shareholders' equity $ 165,224 $ 172,651 $ 171,603
=========== =========== ==========
NAVARRE CORPORATION
Consolidated Condensed Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
June 30,
---------------------
2010 2009
----------- --------
Net cash (used in) provided by operating
activities $ (1,436) $ 2,945
Net cash used in investing activities (8,667) (611)
Net cash provided by (used in) financing
activities 9,464 (1,168)
Net effect of exchange rate changes on
cash (60) --
----------- --------
Net cash (used in) provided by continuing
operations (699) 1,166
Discontinued operations
Net cash provided by (used in) operating
activities 832 (1,109)
Net cash used in investing activities (130) (55)
Net cash used in financing activities (3) (2)
----------- --------
Net cash provided by (used in)
discontinued operations 699 (1,166)
Net increase (decrease) in cash -- --
Cash at beginning of period -- --
----------- --------
Cash at end of period $ -- $ --
=========== ========
NAVARRE CORPORATION
Supplemental Information
(In thousands)
(Unaudited)
Reconciliation of Net Sales from Continuing Operations Before
Inter-Company Eliminations to GAAP Net
Sales and Business Segment Information
Three Months Ended June 30,
2010 % 2009 %
--------- ----- ---------- -----
Net sales:
Distribution $ 96,686 93.3% $ 121,396 94.7%
Publishing 6,922 6,797
--------- 6.7% ---------- 5.3%
Net sales before
inter-company
eliminations 103,608 128,193
Inter-company
eliminations (4,816) (4,777)
--------- ----------
Net sales as reported $ 98,792 $ 123,416
========= ==========
Income (loss) from
continuing operations:
Distribution $ (9) $ 364
Publishing 1,165 780
--------- ----------
Consolidated income from
continuing operations $ 1,156 $ 1,144
========= ==========
NAVARRE CORPORATION
Supplemental Information
(In thousands)
(Unaudited)
Reconciliation of Net Income from Continuing
Operations to EBITDA Before Share-Based
Compensation Expense from Continuing Operations
Three Months Ended
June 30,
2010 2009
-------- --------
Net income from continuing
operations, as reported $ 203 $ 854
Interest expense (income), net 395 561
Income tax expense 299 180
Depreciation and amortization 891 1,222
Share-based compensation 226 257
-------- --------
EBITDA before share-based
compensation expense
from continuing operations $ 2,014 $ 3,074
======== ========
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