Slightly interesting news on Rockford Fosgate

[CRXBMPN 5,000+ posts]

yep, try being up here in Maine where we have 1/8th the amt of people in the entire state as you'z fellaz do in the Big Apple... our audio industry blows nuts...

Go RF, something had to change drastically for the #'s to sway the way they did.

 

[sundownz Pro Seller]

I would credit things like the 3Sixty.2 and perhaps their 3kw and 4kw amps -- those are popular. Heck, I've installed four 3Sixty.2s since their debut!

It has been rough... the last few months for me were tough!

 

[Deephitters Mag 10+ year member]

The amps are very nice like the 4000 but very big. I have met Bill Jackson (Prez), very nice man and he personally came down here to do a rally for dealers thing. The way he spoke about the direction Rockford was going motivated more dealers to push it. I guess it starts from the very top.

 

[duece212 5,000+ posts]

Isn't there a carmaker (mitsubishi) that offers upgraded stereo's in them which are rockford parts? Maybe oem brought them in some extra dough...

yup, its mitubishi, just checked

 

[businessjournal 10+ year member]

while no company wants to operate at a loss, it's more common than people think. Amazon.com was launched in 1995 but did not post any net profit until 2003. that's eight years of continuous losses.

operating costs, R&D, marketing and advertising, salaries, production and inventory managment are all on one side of the scale - and for the most part, on the other side of the scale all you've got is sales. and how the company spends its money is largely dependent upon trying to forecast sales trends - a very complex and sometimes hit-or-miss task. furthermore, sales forecasts must be determined very far in advance, too. think Nintendo Wii. even though it's been out for a year and the company is obviously aware of the demand, the Wii continues to be in short supply. ramping up production isn't exactly just a phone call and a rocker switch away.

without looking at the Rockford 10K, there's really not a whole lot else to say. even looking at their financials may not shed a whole lot of light, full of PR fluff and vague items that only investors or accountants would understand.

I'd sum it up to say that any of our speculation (including mine - I do not claim to be an expert, just a regular dude with some background) is pretty much worthless.

 

[Deephitters Mag 10+ year member]

while no company wants to operate at a loss, it's more common than people think. Amazon.com was launched in 1995 but did not post any net profit until 2003. that's eight years of continuous losses.
operating costs, R&D, marketing and advertising, salaries, production and inventory managment are all on one side of the scale - and for the most part, on the other side of the scale all you've got is sales. and how the company spends its money is largely dependent upon trying to forecast sales trends - a very complex and sometimes hit-or-miss task. furthermore, sales forecasts must be determined very far in advance, too. think Nintendo Wii. even though it's been out for a year and the company is obviously aware of the demand, the Wii continues to be in short supply. ramping up production isn't exactly just a phone call and a rocker switch away.

without looking at the Rockford 10K, there's really not a whole lot else to say. even looking at their financials may not shed a whole lot of light, full of PR fluff and vague items that only investors or accountants would understand.

I'd sum it up to say that any of our speculation (including mine - I do not claim to be an expert, just a regular dude with some background) is pretty much worthless.

wow

 

[businessjournal 10+ year member]

wow

I smoked out and looks like I may have gotten carried away...

 

[the727kid 10+ year member]

Half of that net income was from Meade's buddy buying 2 of the 15,000 watt amps.

 

[twisztdauthorit 10+ year member]

Half of that net income was from Meade's buddy buying 2 of the 15,000 watt amps.

//content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif:laugh://content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

 

[Deephitters Mag 10+ year member]

Half of that net income was from Meade's buddy buying 2 of the 15,000 watt amps.

lol:laugh:

 

[tc300 10+ year member]

is that $100k profit really that big for a company like fosgate???? just think.... if there products were made like they were in the 90's..............hummmm that'd be AWSOME!!!!!!!!!! they just dont make'm like they use to LOL

 

[Deephitters Mag 10+ year member]

is that $100k profit really that big for a company like fosgate???? just think.... if there products were made like they were in the 90's..............hummmm that'd be AWSOME!!!!!!!!!! they just dont make'm like they use to LOL

I think todays economy has a big role on these companies barely staying above water. Todays products are better but with the gas so high, everything else going up and the new vehicles being so well equipped that it's hard and I don't see it changing any time soon. Some will survive but all depends on their products, marketing strategies and affordability.

 

[fwb_1234 10+ year member]

Isn't there a carmaker (mitsubishi) that offers upgraded stereo's in them which are rockford parts? Maybe oem brought them in some extra dough...
yup, its mitubishi, just checked

Nissan too.

 

[Jacobman 10+ year member]

Half of that net income was from Meade's buddy buying 2 of the 15,000 watt amps.

lmao so true

 

[SeanDub 10+ year member]

Well I just looked up their latest annual report filing with the SEC (10K) to take a quick look at their latest financial statements.

Data calculated comparing 2006 and 2005.

Their debt to asset ratio is 0.77, which is somewhat high and means that the majority of their assets are financed by debt (credit) instead of equity (shareholders). This is an increase from 2005, when it was 0.64. That means they are adopting increasingly risky financing strategies.

Their Asset Turnover was 2.12, which means for every $1 of asset they generate $2.12 of sales revenue. In 2005 it was 2.59, which means they are doing worse in this area compared to last year as well.

Their Net Profit Margin was most telling because it was 0.086. This is Net Income / Sales Revenue. It is an analysis of how well a company controls expenses. Rockford gets blasted by expenses and therefore ends up with a net loss instead of net income for the year ended 2006.

Basic overview: do not invest in Rockford Fosgate, do not become a dealer for them, etc. They cannot control their expenses and cannot generate enough revenue to overcome these expenses. They also are using debt financing and therefore won't be able to pay back their loans because they will have to take out more loans to do so. They may go under soon....

I have an accounting exam tomorrow, so this was a pretty good review.