EMERSON RADIO — 100 YEARS - Vintage Radio and Phonograph

EMERSON RADIO — 100 YEARS
40TH ANNUAL VRPS CONVENTION
NOVEMBER 20, 21, 22, 2015
Convention Theme— 100 years of Emerson Radio combination sold in the United States, the company remained
Emerson Radio Corporation is one of the United States’
largest volume consumer electronics distributors and has a
recognized trademark in continuous use since 1912. The
company designs, markets, and licenses many product lines
worldwide, including products sold, and sometimes licensed,
under the brand name G Clef, a homage to Emerson's logo.
in obscurity until 1932, when, during the Great Depression, it
introduced the "peewee" radio.
1915–1920
Emerson Radio Corp. was incorporated in 1915 as Emerson
Phonograph Co. (NAICS: 421620 Consumer Electronics
Wholesaling), based in New York City, by an early recording
engineer and executive, Victor Hugo Emerson, who was at
one time employed by Columbia Records. In 1915, at the
company's inception, Emerson's main product was the
Universal Cut Records, capable of being played laterally or
vertically. Music offered included a wide variety of popular,
band, opera, classical, religious, and folk music. Also during
their first years, Emerson offered one of the last of the
external-horn phonographs, which sold for only $3. The first
factories were opened in Chicago and Boston in 1920. In
December of that year, the company fell victim to the sales
slump for phonograph music that accompanied the postWorld War I recession and the growth of commercial radio. It
went from the self-claimed third largest record manufacturer
into receivership.
1941–1950
Emerson Radio & Phonograph converted to military production
for World War II in 1942, when it held one-sixth of the U.S. radio
market. In 1943, it became a public corporation, when it offered
over 40 percent of its stock to the public for $12 a share. In
1947, among its first post-war products, Emerson offered a
television set with a 10-inch tube. Although its ending retail
price was nearly equal to a month's salary for the average
working American, it put Emerson at the lower end of the
market. However, between fiscal 1948 and 1950, the high
demand for television allowed Emerson to more than double its
sales. Its net income reached a record of $6.5 million in fiscal
1950, with sales of $74.2 million.
1951–1960
In 1953 Emerson Radio and Phonograph purchased Quiet Heet
Corp., which entered the company into air conditioning.
Although radio represented only 15 percent of Emerson's
revenue by 1954, the company credited the company credited
itself as creating the firsts of the clock radio, self-powered
radio, and transistorized pocket radio; production of tape
recorders began in 1955.
1921–1940
In 1922 Emerson Phonograph Co. passed into the hands of
Benjamin Abrams and Rudolph Kanarak. Abrams, a
phonograph and record salesman, along with his two
brothers, ran the company and renamed it Emerson Radio &
Phonograph Corp in 1924 after entering the radio business.
The company's record interests were subsequently sold.
Although Emerson introduced the first radio-phonograph
Emerson Radio and Phonograph paid $6 million to purchase the
consumer products division of DuMont Laboratories in 1958.
With this acquisition, a higher-priced line of television sets,
phonographs and high-fidelity and stereo instruments, along
with the DuMont trademark was added to Emerson's products.
However, by this time, the US television market was saturated,
and many customers who were in need of another set were
waiting for color television instead of buying a replacement.
Sales fell from $87.4 million in fiscal 1955 to $73.9 million in
fiscal 1956, when the company earned only $84,852.
entertainment products. In 1973 Emerson sold its license for
marketing products under the Emerson name to Major
Electronics Corp. Founded in 1948 by Melvin Lane and
incorporated in 1956, this Brooklyn-based company originally
made children's phonographs. The company later diversified
into the production and sale of a broad line of low-priced home
entertainment products that included stereos, radios, and
clock radios. In 1971 Major also began importing low-cost
radios. By 1975 the company was only manufacturing portable
phonographs. In 1976 the company moved its headquarters to
Secaucus, New Jersey, and changed its name to Emerson
Radio Corp. in 1977.
Sales rose from $11.5 million in fiscal 1975 to $49.2 million in
fiscal 1978, the year in which phonographs, radios, tape
recorders and players, compact stereos, digital clock radios,
and other low to medium-priced electronic equipment was
being imported, assembled, and marketed, primarily under the
Emerson name. Approximately 60 percent of its components
were being imported from the Far East and 20 percent from
each Great Britain and domestically, and assembled in either
Secaucus or Sun Valley, California.
A cost-cutting campaign by Abrams rebounded net income
which reached $2.7 million in fiscal 1959 on sales of $67.4
million. In fiscal 1964 (Emerson's last full year of independent
operation) it earned $2.1 million on sales of $68.2 million.
In 1979, Emerson began selling Heart Aid, after purchasing a
large portion of Cardiac Resuscitator Corp., a near-bankrupt
company. Emerson spent heavily to develop and produce both
an improved Implantable cardioverter-defibrillator and a
pacemaker. In addition, the company took an 18 percent share
in a developer of Computerized Axial Tomographic (CAT)
scanners. Because this line of products never made money,
Emerson disposed of its holdings in them between 1987-88.
Emerson Radio dropped its last U.S.-made product, the
phonograph line, in 1980 because it became unprofitable due
1961–1980
to rising labor costs. Despite harsh competition, Emerson
In 1965 the company acquired the Pilot Radio Corp. from Jerrold Radio raised its sales and earnings in fiscal 1980 to $81.9
million and $1.6 million, respectively. Their plan was to have
Corp. Later in 1965 Emerson Radio and Phonograph was
their suppliers (mainly in Taiwan and South Korea) imitate
purchased for approximately $62 million in cash and stock by
National Union Electric Corp., a diversified manufacturer. Its line Sony and Panasonic audio/video products and then sell them
at a lower price.
of Quiet Kool air conditioners became a separate National
Union Electric division. This company continued to produce
radios, television sets and phonographs distributed under the
Emerson and DuMont names and hi-fi equipment under the
Pilot name.
Between 1967 and 1971 the National Union Electric division lost
about $27 million due to too little volume to cover costs. The
division contracted out the manufacturing of television sets and
some other home entertainment products to Admiral Corp., and
laid-off 1,800 employees. In addition to importing some of its
home entertainment products from the Far East, Emerson
continued to be responsible for design, engineering, and
marketing.
In late 1972 National Union Electric announced that Emerson
was discontinuing distribution of television sets and other home
1981–1990
duty and self-dealing. Emerson also fell into technical default on
its long-term debt of $55.4 million at the end of the year. In 1988,
Emerson Radio was sold to Panasonic.
Sales increased from $94.8 million in fiscal 1983 to $181.6
million in fiscal 1984, when net income came to $9.1 million
because of the company's reintroduction of television sets 1991–2000
in 1983. Emerson purchased sets from Goldstar Electric Co.
(AKA LG Electronics), a South Korean company, but sold
Fidenas Investment Ltd., a Swiss firm based in the Bahamas,
them at a higher price point.
began purchasing shares of Emerson Radio stock in 1989. It held a
20 percent stake (more than that held by Stephen and William
In 1984, Emerson signed a 10-year contract with Orion
Lane) by 1992, when they began a takeover attempt. The Lane
Electric to produce a line of VCRs to its existing product
brothers were seeking to restructure $180 million in debt, but
lineup.
conceded defeat in June 1992. Emerson's financial situation
worsened, and in fiscal 1993 the company incurred a loss of $56
In 1985, a compact disc player and microwave oven were
million on sales of $741.4 million. When the company filed for
introduced causing sales to once again double in fiscal 1985 bankruptcy in October 1993, Emerson had been in default on
to $357.5 million, and net income rose to $13.3 million. TV
$223 million in debt for the previous two years.
sets and VCR's accounted for two-thirds of sales that year.
Later that year, Emerson Radio moved its headquarters to In 1994, the company emerged from bankruptcy pursuant to a
North Bergen, New Jersey, and acquired H. H. Scott, Inc., a plan of reorganization and with $75 million in financing arranged
company that manufactured high-fidelity audio and visual by Fidenas, which had assumed a 90 percent stake in Emerson. It
equipment. Products were sold under the Scott name until then issued 30 million shares, some of which were claimed by
1991, the year the line was discontinued.
creditors. Legal battles ensued and continued until mid-August
2001.
In 1986 Emerson began importing and marketing compact
refrigerators and Hi-Fi stereo VHS VCRs. Camcorders,
In early 1995, in an effort to cut costs, Emerson Radio licensed the
telephones, and answering machines were added to its
manufacture of certain video products under the Emerson and G
product line in fiscal 1988. In 1990 personal computers and Clef trademarks for a three-year period to Otake Trading Co. Ltd.
facsimile machines were added for a major roll-out to more The company also licensed the sale of these products in the
than 500 Wal-Mart stores. In 1992 sales reached a peak of
United States and Canada for the same period to Wal-Mart
$891.4 million, but net income was only $10.4 million.
Stores, Inc. As a result, Emerson's net sales fell from $654.7
million in fiscal 1995 to $245.7 million in fiscal 1996, with the
Emerson's addition of personal computers resulted in a
licensing agreement only providing about $4 million a year in
$150 million loss for the company. That coupled with the
royalty income.
recession that began in 1990 brought the company's total
loss to $37.5 million in the last nine months of the year.
Also in 1995, Emerson Radio entered the home theater and car
Shares of stock fell as low as $2, compared to the high of
audio fields, and the $900-million-a-year home and personal
$12.75 in 1987. Several shareholder lawsuits charged some security market with a carbon monoxide detector. The company
Emerson directors and officials with breach of fiduciary
planned to eventually lend its name to burglar alarms, motion
detectors, personal alarms, smoke detectors, and
safety lights; however, the company left this field in
fiscal 1997. Additionally, Emerson announced it would
license the Emerson name to more than 250 audio
and video accessories made by Jasco Products Co., an
Oklahoma firm selling cables, remote controls, and
appliance cleaning devices.
The company took a 27 percent stake in Sport Supply
Group, Inc., the largest direct-mail distributor of
sporting goods equipment and supplies to the U.S.
institutional market, for $11.5 million in late 1996.
Subsequent to a net income of $7.4 million in fiscal
1995, Emerson dropped into the red again the
following three years. They lost $13.4 million, $24
million, and $1.4 million in fiscal 1996, 1997, and 1998,
respectively, with net revenues of $245.7 million,
$178.7 million, and $162.7 million.
Emerson Radio Corp. announced in November 1998 that it had entered into an exclusive agreement with Team Products
International, Inc. of Boonton, N.J., a distributor of audio, video and other consumer electronic product accessories in the
United States and Canada. They promoted the sale of a wide variety of Emerson branded consumer electronic products and
accessories.
The owner of Fidenas's, Geoffrey P. Jurick, had assumed the position of Chief Executive Officer (CEO) of the company in 1992
and in 1998 he added the titles of President and Chairman of the Board. In December 1998 he held 60 percent of Emerson's
common stock. Kenneth S. Grossman, a private investor, along with Oaktree Capital Management, a Los Angeles-based
investment firm that held a smaller stake in Emerson Radio, proposed to buy Jurick's holdings in the company for more than
$14.6 million. The offer was rejected as "inadequate." Emerson announced in August 1999 that it planned to sell to Oaktree for
$28.9 million.
On the day the licensing agreement with Otake expired, Emerson replaced the company with Daewoo Electronics Co. Ltd.,
which entered into a four-year agreement with Emerson to manufacture and sell television and video products bearing the
Emerson and G Clef trademark to U.S. retailers. In 1999, Emerson also signed five-year license and supply agreements with
Cargil International covering the Caribbean and Central and South American markets, along with WW Mexicana for certain
consumer products to be sold in Mexico. They also had a licensing agreement with Telesound Electronics for telephones,
answering machines, and caller ID products in the United States and Canada.
Net income for Emerson was only $289,000 on net revenues of $158.7 million in fiscal 1999 with a long-term debt of $20.8
million at the end of the fiscal year. Nearly 84 percent of its merchandise that year was imported, primarily from China, Hong
Kong, Malaysia, South Korea, and Thailand. Tonic Electronics (32 percent), Daewoo (22 percent), and Imarflex (12 percent)
were its main suppliers. The company depended heavily on Wal-Mart Stores, which took about 52 percent of its goods in fiscal
1999, and Target Stores, Inc., which took about 24 percent.
2001–present
In 2001, Emerson exited the video electronics business (TVs, DVD players, VCRs) and handed 100% of the manufacturing
operations to Funai, which continued to make and market Emerson consumer video products for Wal-Mart. In January 2003,
Emerson announced it had entered into a letter of intent naming Sanlian Group of Shandong, China the exclusive distributor of
Emerson branded products through its subsidiary, Sanlian Household Electric Appliance Company (SHEAC). The agreement
contemplated the supply and distribution of Emerson originated product categories through SHEAC's 200 retail stores and
maintenance service centers as well as its extensive BtoB and BtoC e-commerce network. Sanlian was to license the Emerson
brand for additional product categories it finds suitable for China-wide distribution and cooperate with Emerson in the design,
development and sourcing for such.
Emerson Radio. (2015, June 5). In Wikipedia, The Free Encyclopedia.
Retrieved 18:47, August 30, 2015, from https://en.wikipedia.org/w/
index.php?title=Emerson_Radio&oldid=665592071
Editor’s Note: My 25 shares of Emerson stock (purchased for the OEC in 2011) earned $17.50 December 2014
CONTEST CATEGORIES FOR 2015 VRPS CONVENTION
THEME– EMERSON RADIO
1.
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5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Crystal Radios Pre 1940
Battery Receivers Pre 1928
AC Table Receivers Pre WWII
AC/DC Tube Radios Pre 1960 Any Style of Cabinet
Foreign Tube Type Radios
Transistor Radios Pre 1965
Tube Type Audio Equipment
Phonographs and Related Accessories Pre 1928
Speakers and Microphones Pre 1960
Tube Type Ham Radio and Military Equipment
Novelty Radios Tube or Transistor
Test Equipment Pre 1950
Radio Related Ads, Ephemera, and Accessories
Televisions Pre 1970
Restoration Category - Must Include Documentation
(Photos, etc.)
16. Open Category- Radio Related Items Not Belonging in
Other Categories
2015 OLD EQUIPMENT CONTEST RULES
1.
A contest participant must be a VRPS member in good
standing at the time of the contest entry.
2.
Equipment must be properly registered and paperwork
completed to be eligible for judging.
3.
A contestant may enter no more than two entries in any
one category, but may enter in as many categories as
desired.
4.
Any piece of equipment entered in the 2012, 2013, or
2014 Convention Contests and winning 1st place will not
be allowed to compete this year.
5.
There is no fee or charge to enter or display an item.
Decisions of contest officials and judges are final. Judges
will be qualified collectors in the categories they judge.
6.
Judges and contest officials may have contest entries,
but may not act as a judge or attempt to influence judging in those categories.
7.
Dud tubes, of appropriate type and dating may be installed for display purposes without penalty. Restored
equipment will be judged on the similarity of restored
items to the original when known. Equipment will be
judged based on the following guidelines;
2015 CONTEST AWARDS
The top four awards and the 1st place winners will be recognized at the Annual Awards Banquet: Best of Show, President’s
Award, First Time Contestant Award and People’s Choice Award.
Awards for 1st and 2nd place winners will be displayed on the
contest entries
a. General appearance - is item restored, cleaned, and
generally presentable, or just "as found".
b. Item rarity - not as important as authenticity, but it
counts for the item to be relatively hard to find.
c. Authenticity - how much of the item is demonstrably
authentic? Documentation may be crucial.
SILENT AUCTION RULES
1.
2.
3.
4.
5.
1.
2.
No maximum lots - smaller items preferred.
Use special Silent Auction Control Forms, designate minimum bid - not less than $5.00.
For Lot Number use your Auction Number followed by 91,
92, 93, 94, or 95. Example 145--91.
Bidding will end at the clock signal. The Silent Auction Manager will promptly enter winning bid and bidder’s number
on the Auction Control Form. Pay for items from the Silent
Auction at the end of the Auction #3 Saturday night.
Please pick up and take your items at the end of the Silent
Auction.
AUCTION RULES
Each item must be clearly tagged using the Auction Control
Form. The form has places for Seller Number, Item Number,
minimum bid, and condition. If an item is not tagged properly, it will not be presented for auction.
Registered members will be allowed to enter 25 items per
day - 5 will be guaranteed to move and the rest as time permits. Sets-for-parts, junkers, and non-vintage radio/
phonograph related items will not be accepted and will be
removed from the auction area. These are ideal for the flea
market Sunday morning.
d. Documents - ads, journal articles, books, newsclips,
photos.
e. Entrant effort - how much was done by entrant based
on appearance and documentation?
f. Qualitative bonus based on judgment and experience.
9.
Accessory items such as accompanying external speakers
are encouraged for display, but only original literature
and documentation will be considered in the judging.
3.
A minimum of 10% of the selling price of each lot will go
to the VRPS to support the auction. Any auction lot
withdrawn to sell after entering in the auction will be
subject to a 10% charge. Sellers are not allowed to up bid
their own items.
There will be no one allowed in the auction equipment
room or storage area other than the auction staff. This is
to protect YOUR equipment, and keep the aisles clear for
the set handlers. Viewing will be before the auctions.
A 5% Buyers Premium will be accessed on all purchases.
4.
5.
CONVENTION DISCLAIMER - The Vintage Radio and Phonograph Society, Inc. will not be responsible for fire, theft, or personal injury or any loss of equipment occurring during VRPS conventions. The best advice- Be sure you and your equipment are insured. VRPS conventions are private functions for VRPS members and their guests.
Joe Herrington is a Novelist, Cowboy Poet and Master Western Storyteller. His stories and poems are
homespun and told in the Western tradition of honor, courage and rugged characters. His stories and poems not only entertain but also prod the soul with a truer understanding of the deep values and solid character of the American Cowboy. He has been nominated seven times Cowboy Poet of the Year, for the Will
Rogers award and named among the top three Western Storytellers/Poets in the country.
SATURDAY AWARDS BANQUET
The last event Saturday will be the Annual Awards Banquet at 7:30 PM. Preceding the Banquet will be a
reception and cash bar from 6:30—7:30. The drawing for pre-registration prizes will be conducted during
the Banquet. Banquet meals are all $25.
FRIDAY TECHNICAL SESSION: SOUND OF MAGIC
Joe Herrington came to Walt Disney in 1981 to manage Imagineering’s new Sound Effects Department.
His first several years were influenced by the retiring Jimmy Macdonald, Disney’s legendary sound effects
genius.
Joe began with sound effects design for all EPCOT attractions and has worked on every major project since
that date. He is currently the Sound Design lead for the Shanghai Disneyland in China. He has fathered numerous techniques and technologies that have revolutionized sound production in the themed entertainment industry.
VRPS 2015 CONVENTION EVENTS SCHEDULE
A registration badge is required for entrance to all activities
FRIDAY, NOVEMBER 20, 2015
9:00 AM - 7:00 PM Registration
9:30 AM - 3:00 PM Contest Registration and Viewing
8:00 AM - 5:00 PM Auction #1 and #2 Check- In
11:30 AM –12:30 PM Technical Session: Joe Herrington—The Sound of
Magic
12:30 PM - 1:30 PM Lunch
2:45 PM - 4:00 PM Auction #1- Tubes and Paper
5:00 PM - 10:00 PM Auction #2- Friday Night Auction- $10.00 minimum
7:30 AM - 9:00 AM Contest Registration and Viewing
8:00 AM - 8:30 AM Silent Auction Check-In
8:30 AM - 9:00 AM Silent Auction (Please remove your items after
auction!)
9:00 AM - 11:00 AM Contest Judging- Contest room will be closed
for viewing during judging!
11:00 AM - 3:00 PM Contest Viewing
11:00 AM - 5:00 PM Auction #3- Main Auction- $20.00 minimum
2:00 PM Raffle Drawing- Must Be Present To Win!
5:30 PM - 7:30 PM Reception (Cash Bar)
7:00 PM - 9:30 PM Annual Awards Banquet
Banquet Entertainment—Joe Herrington (see page 7 for details)
SUNDAY, NOVEMBER 22, 2015
7:00AM- Noon Indoor Flea Market
SATURDAY, NOVEMBER 21, 2015
7:30 AM - 2:00 PM Registration
PRE-REGISTRATION DOOR PRIZES
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PHILCO 60
(early model)
WESTINGHOUSE H-126
PHILCO 60
(late model)
ACCOMMODATIONS: The VRPS Convention will
be November 20—22 , 2015.
Hotel reservations are due before November 1 in
order to get the club rate.
THE HAMPTON INN & SUITES
1700 RODEO DRIVE
MESQUITE, TX 75149
RAFFLE PRIZE — BELMONT 6D111
Purchase your Raffle Tickets at the Registration
Desk. $1 each or 6 for $5.
You can use the direct link on the VRPS web site
( www.vrps.org ) to make your reservations or call
(972) 329-3100 or 1-800-Hampton. The VRPS has arranged a special discount room rate. Room rates are
$86.00 (plus tax) for single/double rooms or $106.00
(plus tax) for suites.