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VISTA, Calif., Jan 24, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Directed Electronics, Inc. (Nasdaq: DEIX) today announced that it paid down approximately $43 million of its debt during the fourth quarter of 2007, including $40 million of term debt, bringing the total debt paid in fiscal year 2007 to $75 million. This additional fourth quarter debt reduction leaves the total debt balance as of December 31, 2007 at $267 million, or 22% lower as compared with $342 million at the end of fiscal 2006.
Jim Minarik, Directed's President and CEO, commented, "Our revenue and efficient use of working capital generated the cash flow necessary to pay off a meaningful portion of our long-term debt, particularly compared to our full year 2007 required principal payments of approximately $3 million. With the combination of our new 2008 products, expanding distribution opportunities, and a significantly increased focus on managing working capital, we believe our business plan is solid and will keep us in compliance with our debt covenants."
Directed will update investors on its debt covenants and provide specific fourth quarter 2007 results during its year-end earnings call, which is expected to occur in March 2008.
About Directed Electronics
Headquartered in Vista, California, Directed Electronics (Nasdaq: DEIX) is the largest designer and marketer in North America of premium home theater loudspeakers, consumer branded vehicle security, vehicle remote start and convenience systems, and the largest supplier of aftermarket satellite radio receivers based on sales. Directed is also a major supplier of mobile audio and video systems and has exclusive rights to market and sell certain SIRIUS-branded satellite radio receivers and accessories to Directed's existing U.S. retailer customer base. In the home audio market, Directed designs and markets award-winning Polk Audio® and Definitive Technology® premium loudspeakers. Directed's broad portfolio of security products, remote start, hybrid systems, and GPS tracking systems are sold under leading brands including Viper®, Clifford®, Python®, Astroflex® and Autostart®. Directed's mobile audio and video products include speakers, subwoofers, amplifiers and video screens, sold under its Polk Audio®, Orion®, Precision Power®, and Directed Video® brand names. Directed was founded in 1982 and markets its broad portfolio of products through many channels including leading retailers and specialty chains throughout North America and around the world. More information is available at www.directed.com.
Forward-Looking Statements
Certain statements in this news release that are not historical fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically are identified by the use of terms such as "may," "should," "might," "believe," "expect," "anticipate," "estimate" and similar words, although some may be expressed differently. Forward-looking statements in this release include, but are not limited to, statements as to distribution opportunities and compliance with debt covenants. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results of Directed to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include competition in the consumer electronics industry, development of new products and changing demand of customers, reliance on certain key customers, adverse developments affecting SIRIUS Satellite Radio, challenge of the company's pricing and promotional practices, reliance on certain manufacturers and their ability to maintain satisfactory delivery schedules, disruption in supply chain, shortages of components and materials, disruption in imports, quality installation of products by customers, significant product returns or product liability claims, compliance with various state and local regulations, remediation of any internal control deficiencies and identified material weaknesses in internal control over financial reporting, risks with international operations, claims related to intellectual property, ability to service debt obligations, disruption in distribution centers, decline in consumer spending, outcome of existing litigation, dependence on senior management, ability to realize on investments made in the business, and integration of acquired businesses. Certain of these factors, as well as various additional factors, are discussed from time to time in the reports filed by Directed with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2006. Directed disclaims any intent or obligation to update these forward-looking statements.
Copyright © 2008 Directed Electronics, Inc. All rights reserved
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