Universal Electronics Reports Financial Results for the Second Quarter 2024
Universal Electronics (NASDAQ: UEIC) reported Q2 2024 financial results. GAAP net sales were $90.5M, down from $107.4M in Q2 2023. GAAP gross margin increased to 28.7%, from 22.9%. GAAP net loss was $8.2M, or $0.63 per share, compared to $10.4M, or $0.81 per share. For H1 2024, GAAP net sales were $182.4M, down from $215.8M in H1 2023. GAAP net loss was $16.8M, or $1.30 per share, compared to $71.8M, or $5.61 per share.
Q3 2024 guidance projects GAAP net sales between $98M-$108M, and GAAP loss per share between $0.33-$0.23. Adjusted Non-GAAP earnings per share is expected to range from $0.01-$0.11.
Key points included higher margins due to optimized manufacturing, strong product pipeline, and recent design wins. The company repurchased 27,000 shares for $0.3M and held $23.1M in cash and equivalents at the end of Q2 2024.
Universal Electronics (NASDAQ: UEIC) ha riportato i risultati finanziari del secondo trimestre 2024. Le vendite nette GAAP sono state di $90,5 milioni, in calo rispetto a $107,4 milioni nel secondo trimestre 2023. Il margine lordo GAAP è aumentato al 28,7%, rispetto al 22,9%. La perdita netta GAAP è stata di $8,2 milioni, ovvero $0,63 per azione, rispetto a $10,4 milioni, ovvero $0,81 per azione. Per il primo semestre 2024, le vendite nette GAAP sono state di $182,4 milioni, in calo rispetto a $215,8 milioni nel primo semestre 2023. La perdita netta GAAP è stata di $16,8 milioni, ovvero $1,30 per azione, rispetto a $71,8 milioni, ovvero $5,61 per azione.
Le proiezioni per il terzo trimestre 2024 prevedono vendite nette GAAP tra $98 milioni e $108 milioni e una perdita per azione GAAP compresa tra $0,33 e $0,23. Si prevede che gli utili per azione rettificati Non-GAAP varieranno da $0,01 a $0,11.
I punti chiave includevano margini più elevati grazie a una produzione ottimizzata, un forte portafoglio prodotti e recenti vittorie di design. L'azienda ha riacquistato 27.000 azioni per $0,3 milioni e ha mantenuto $23,1 milioni in contante e equivalenti alla fine del secondo trimestre 2024.
Universal Electronics (NASDAQ: UEIC) reportó los resultados financieros del segundo trimestre de 2024. Las ventas netas GAAP fueron de $90,5 millones, en comparación con $107,4 millones en el segundo trimestre de 2023. El margen bruto GAAP aumentó al 28,7%, desde el 22,9%. La pérdida neta GAAP fue de $8,2 millones, o $0,63 por acción, en comparación con $10,4 millones, o $0,81 por acción. Para el primer semestre de 2024, las ventas netas GAAP alcanzaron los $182,4 millones, por debajo de los $215,8 millones del primer semestre de 2023. La pérdida neta GAAP fue de $16,8 millones, o $1,30 por acción, en comparación con $71,8 millones, o $5,61 por acción.
Las proyecciones para el tercer trimestre de 2024 estiman ventas netas GAAP entre $98 millones y $108 millones, y pérdidas por acción GAAP entre $0,33 y $0,23. Se espera que las ganancias por acción ajustadas no GAAP varíen de $0,01 a $0,11.
Puntos clave incluyeron márgenes más altos debido a una fabricación optimizada, un fuerte portafolio de productos y recientes éxitos en el diseño. La empresa recompró 27,000 acciones por $0,3 millones y tenía $23,1 millones en efectivo y equivalentes al final del segundo trimestre de 2024.
유니버설 일렉트로닉스 (NASDAQ: UEIC)는 2024년 2분기 재무 결과를 발표했습니다. GAAP 순매출은 9050만 달러로, 2023년 2분기 1억 740만 달러에서 감소했습니다. GAAP 총 마진은 22.9%에서 28.7%로 증가했습니다. GAAP 순손실은 820만 달러, 주당 0.63달러로, 1040만 달러, 주당 0.81달러와 비교되었습니다. 2024년 상반기 GAAP 순매출은 1억 8240만 달러로, 2023년 상반기 2억 1580만 달러에서 감소했습니다. GAAP 순손실은 1680만 달러, 주당 1.30달러로, 7180만 달러, 주당 5.61달러와 비교되었습니다.
2024년 3분기 전망은 GAAP 순매출이 9800만 달러에서 1억 800만 달러 사이, GAAP 손실은 주당 0.33달러에서 0.23달러 사이가 될 것으로 예상됩니다. 조정된 비GAAP 주당 순이익은 0.01달러에서 0.11달러 사이가 될 것으로 예상됩니다.
중요한 사항으로는 최적화된 제조로 인한 높은 마진, 강력한 제품 파이프라인, 최근의 디자인 성공 등이 포함되었습니다. 이 회사는 27,000주의 주식을 30만 달러에 재매입했으며 2024년 2분기 말에 2,310만 달러의 현금 및 동등자산을 보유하고 있었습니다.
Universal Electronics (NASDAQ: UEIC) a annoncé les résultats financiers du deuxième trimestre 2024. Les ventes nettes selon les normes GAAP se sont élevées à 90,5 millions de dollars, en baisse par rapport à 107,4 millions de dollars au deuxième trimestre 2023. La marge brute GAAP a augmenté à 28,7 %, contre 22,9 %. La perte nette GAAP était de 8,2 millions de dollars, soit 0,63 dollar par action, par rapport à 10,4 millions de dollars, soit 0,81 dollar par action. Pour le premier semestre 2024, les ventes nettes GAAP étaient de 182,4 millions de dollars, en baisse par rapport à 215,8 millions de dollars au premier semestre 2023. La perte nette GAAP était de 16,8 millions de dollars, soit 1,30 dollar par action, contre 71,8 millions de dollars, soit 5,61 dollars par action.
Les prévisions pour le troisième trimestre 2024 projettent des ventes nettes GAAP entre 98 millions et 108 millions de dollars, et une perte GAAP par action entre 0,33 et 0,23 dollar. Les bénéfices par action ajustés non GAAP devraient varier entre 0,01 et 0,11 dollar.
Les points clés comprenaient des marges plus élevées grâce à une fabrication optimisée, un solide portefeuille de produits et des succès récents en design. L’entreprise a racheté 27 000 actions pour 0,3 million de dollars et détenait 23,1 millions de dollars en liquidités et équivalents à la fin du deuxième trimestre 2024.
Universal Electronics (NASDAQ: UEIC) hat die finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht. Die Nettoverkäufe gemäß GAAP betrugen 90,5 Millionen US-Dollar, ein Rückgang von 107,4 Millionen US-Dollar im zweiten Quartal 2023. Die Bruttomarge gemäß GAAP stieg auf 28,7%, verglichen mit 22,9%. Der Nettoverlust gemäß GAAP betrug 8,2 Millionen US-Dollar oder 0,63 US-Dollar pro Aktie, im Vergleich zu 10,4 Millionen US-Dollar oder 0,81 US-Dollar pro Aktie. Für das erste Halbjahr 2024 lagen die Nettoverkäufe nach GAAP bei 182,4 Millionen US-Dollar, ein Rückgang von 215,8 Millionen US-Dollar im ersten Halbjahr 2023. Der netto Verlust gemäß GAAP betrug 16,8 Millionen US-Dollar oder 1,30 US-Dollar pro Aktie, verglichen mit 71,8 Millionen US-Dollar oder 5,61 US-Dollar pro Aktie.
Die Prognose für Q3 2024 erwartet Nettoverkäufe gemäß GAAP zwischen 98 Millionen und 108 Millionen US-Dollar und einen GAAP-Verlust pro Aktie zwischen 0,33 und 0,23 US-Dollar. Die bereinigten Non-GAAP-Ergebnisse pro Aktie werden voraussichtlich zwischen 0,01 und 0,11 US-Dollar liegen.
Wichtige Punkte umfassten höhere Margen aufgrund optimierter Produktionsprozesse, eine starke Produktpipeline und kürzlich gewonnene Designaufträge. Das Unternehmen hat 27.000 Aktien für 0,3 Millionen US-Dollar zurückgekauft und hielt zum Ende des zweiten Quartals 2024 23,1 Millionen US-Dollar in Bar und liquiden Mitteln.
- GAAP gross margin increased to 28.7%, up from 22.9% YoY.
- GAAP net loss reduced to $8.2M, from $10.4M YoY.
- Optimization of manufacturing footprint leading to higher margins.
- Guidance for Q3 2024 projects improved Adjusted Non-GAAP EPS between $0.01-$0.11.
- GAAP net sales decreased to $90.5M from $107.4M YoY.
- GAAP operating loss was $4.5M, compared to $9.1M YoY.
- H1 2024 GAAP net sales decreased to $182.4M from $215.8M YoY.
- H1 2024 GAAP net loss was $16.8M compared to $71.8M YoY.
Insights
Universal Electronics Inc.'s Q2 2024 results show a mixed financial picture. While net sales declined
The company's operating loss narrowed to
Looking ahead, UEI expects Q3 2024 net sales between
UEI's performance reflects broader industry challenges in the consumer electronics sector. The company's focus on wireless control solutions and patented technologies appears to be yielding results, with reported design wins from major global household brands. This suggests potential for future growth despite current headwinds.
The company's strategy of fortifying its business through customer relationships, expanding its IP portfolio and managing expenses is prudent in the face of market uncertainties. The nearly completed two-year plan to optimize the global manufacturing footprint has significantly improved margins, which could enhance competitiveness in the long run.
UEI's expectation of consistent sales and earnings growth into 2025 and 2026 indicates confidence in its product pipeline and market position. However, investors should monitor the company's ability to convert design wins into revenue and its success in navigating ongoing supply chain and market demand fluctuations.
“Our innovative wireless control solutions and patented technologies continue to capture design wins from major global household brands across all areas of the business,” said UEI Chairman and CEO Paul Arling. “Second quarter 2024 net sales were within guidance, even though some quarter-end orders were pushed out and shipped in early third quarter. Our pipeline of new product developments, recent design wins and new project engagements are laying the foundation for a strong future. We continue to fortify our business by fostering new and existing customer relationships, expanding our intellectual property portfolio and managing our expenses. We have nearly completed our two-year plan to optimize our global manufacturing footprint, which has yielded significantly higher margins. For the second quarter 2024, our gross margin percentage increased 580 basis points over the prior year quarter. As a result of these efforts, we expect to be profitable for the second half of 2024 and to deliver consistent sales and earnings growth into 2025, 2026 and beyond.”
Financial Results for the Three Months Ended June 30: 2024 Compared to 2023
-
GAAP net sales were
$90.5 million $107.4 million $90.5 million $107.4 million -
GAAP gross margins were
28.7% , compared to22.9% ; Adjusted Non-GAAP gross margins were28.7% , compared to22.9% . -
GAAP operating loss was
$4.5 million $9.1 million $1.1 million $4.5 million -
GAAP net loss was
$8.2 million $0.63 $10.4 million $0.81 $1.2 million $0.09 $3.1 million $0.24 -
GAAP gross margin, operating loss and net loss for the three months ended June 30, 2024 include
$1.4 million $0.09 Mexico andVietnam , and depreciation related to the mark-up from cost to fair value of fixed assets acquired in business combinations ("excess manufacturing costs"). GAAP gross margin, operating loss and net loss for the three months ended June 30, 2023 include$2.7 million $0.18 -
At June 30, 2024, cash and cash equivalents were
$23.1 million $0.3 million
Financial Results for the Six Months Ended June 30: 2024 Compared to 2023
-
GAAP net sales were
$182.4 million $215.8 million $182.4 million $215.8 million -
GAAP gross margins were
28.5% , compared to22.9% ; Adjusted Non-GAAP gross margins were28.5% , compared to22.9% . -
GAAP operating loss was
$11.4 million $68.7 million $49.1 million $4.6 million $11.0 million -
GAAP net loss was
$16.8 million $1.30 $71.8 million $5.61 $4.6 million $0.36 $8.8 million $0.69 -
GAAP gross margin, operating loss and net loss for the six months ended June 30, 2024 include
$2.6 million $0.17 $5.5 million $0.35
Financial Outlook
For the third quarter of 2024, the company expects GAAP net sales to range from
For the third quarter of 2024, the company expects Adjusted Non-GAAP net sales to range from
Conference Call Information
UEI’s management team will hold a conference call today, Thursday, August 8, 2024 at 4:30 p.m. ET / 1:30 p.m. PT, to discuss its second quarter 2024 earnings results, review recent activity and answer questions. To attend the call please register at https://edge.media-server.com/mmc/p/9am3dm57 to receive a computer-generated dial-in number and a unique pin number. The conference call will also be broadcast live on the investor section of the UEI website where it will be available for replay for 90 days.
Use of Non-GAAP Financial Metrics and Additional Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, UEI provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GAAP financial measures. These measures are not required by, in accordance with, or an alternative for, GAAP and may be different from non-GAAP financial measures used by other companies. UEI’s management uses these measures for reviewing the financial results of UEI for budget planning purposes and for making operational and financial decisions. Management believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, help investors evaluate UEI’s core operating and financial performance and business trends consistent with how management evaluates such performance and trends. Additionally, management believes these measures facilitate comparisons with the core operating and financial results and business trends of competitors and other companies.
Adjusted Non-GAAP net sales is defined as net sales. Adjusted Non-GAAP gross profit is defined as gross profit excluding stock-based compensation expense. Adjusted Non-GAAP operating expenses are defined as operating expenses excluding stock-based compensation expense, amortization of intangibles acquired, costs associated with certain litigation efforts, factory restructuring costs, goodwill impairment and severance. Adjusted Non-GAAP net income (loss) is defined as net income (loss) excluding the aforementioned items, foreign currency gains and losses, and the related tax effects of all adjustments. Adjusted Non-GAAP earnings (loss) per diluted share is calculated using Adjusted Non-GAAP net income (loss). A reconciliation of these financial measures to the most directly comparable GAAP financial measures is included at the end of this press release.
The company will no longer exclude excess manufacturing overhead costs resulting from the continued transition of its global manufacturing footprint, specifically in
About Universal Electronics
Universal Electronics Inc. (NASDAQ: UEIC) is the global leader in wireless universal control solutions for home entertainment and smart home devices and designs, develops, manufactures, ships and supports hardware and software control and sensor technology solutions. UEI partners with many Fortune 500 customers, including Comcast, Vivint Smart Home, Samsung, LG, Sony and Daikin to serve video, telecommunications, security service providers, television, smart home and HVAC system manufacturers. For over 37 years, UEI has been pioneering breakthrough innovations such as voice control and QuickSet cloud, the world's leading platform for automated set-up and control of devices in the home. For more information, visit www.uei.com.
Forward-looking Statements
This press release and accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including net sales, profit margin and earnings trends, estimates and assumptions; our expectations about new product introductions; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those we identify below and other risk factors that we identify in our annual report on Form 10-K for the year ended December 31, 2023 and the periodic reports filed and furnished since then.
Risks that could affect forward-looking statements in this press release include: our continued ability to timely develop and deliver innovative wireless control solutions and technologies that are accepted by our customers, both near- and long-term; our ability to attract new customers and to successfully capture sales in all markets we serve, including in the climate control and connected home markets as anticipated by management; our ability to continue optimizing our manufacturing footprint and realize the lower concentration risks in the time frame and to the extent expected by management; our ability to maintain our market share in the traditional subscription broadcast market as expected by management; our ability to manage through the worldwide inflationary pressures and macroeconomic conditions; our ability to continue to manage our business, inventories and cash flows to achieve our net sales, margins and earnings through financial discipline, operational efficiency, product line management, liquidity requirements, capital expenditures and other investment spending expectations; our continued ability to successfully enforce our patented technology against Roku; the continued fluctuation in our market capitalization; the direct and indirect impact we may experience with respect to our business and financial results and management’s ability to anticipate and mitigate the impact stemming from the continued economic uncertainty affecting consumers’ confidence and spending, natural disasters or other events beyond our control, public health crises (including an outbreak of infectious disease), governmental actions, including the effects of political unrest, war, terrorist activities, or other hostilities; the effects and uncertainties and other factors more fully described in our reports filed with the SEC; and the effects that changes in or enhanced use of laws, regulations and policies may have on our business including the impact of trade regulations pertaining to importation of our products. Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. Further, any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release. We make these forward-looking statements as of August 8, 2024, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
– Tables Follow –
UNIVERSAL ELECTRONICS INC. |
||||||||
CONSOLIDATED BALANCE SHEETS |
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(In thousands, except share-related data) |
||||||||
(Unaudited) |
||||||||
|
|
June 30, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
23,128 |
|
|
$ |
42,751 |
|
Accounts receivable, net |
|
|
98,800 |
|
|
|
112,596 |
|
Contract assets |
|
|
3,274 |
|
|
|
4,240 |
|
Inventories |
|
|
87,491 |
|
|
|
88,273 |
|
Prepaid expenses and other current assets |
|
|
11,130 |
|
|
|
7,325 |
|
Income tax receivable |
|
|
2,309 |
|
|
|
3,666 |
|
Total current assets |
|
|
226,132 |
|
|
|
258,851 |
|
Property, plant and equipment, net |
|
|
39,259 |
|
|
|
44,619 |
|
Intangible assets, net |
|
|
25,200 |
|
|
|
25,349 |
|
Operating lease right-of-use assets |
|
|
15,922 |
|
|
|
18,693 |
|
Deferred income taxes |
|
|
6,086 |
|
|
|
6,787 |
|
Other assets |
|
|
1,404 |
|
|
|
1,573 |
|
Total assets |
|
$ |
314,003 |
|
|
$ |
355,872 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
55,518 |
|
|
$ |
57,033 |
|
Line of credit |
|
|
41,000 |
|
|
|
55,000 |
|
Accrued compensation |
|
|
18,870 |
|
|
|
20,305 |
|
Accrued sales discounts, rebates and royalties |
|
|
4,103 |
|
|
|
5,796 |
|
Accrued income taxes |
|
|
1,462 |
|
|
|
1,833 |
|
Other accrued liabilities |
|
|
20,022 |
|
|
|
21,181 |
|
Total current liabilities |
|
|
140,975 |
|
|
|
161,148 |
|
Long-term liabilities: |
|
|
|
|
||||
Operating lease obligations |
|
|
10,386 |
|
|
|
12,560 |
|
Deferred income taxes |
|
|
1,718 |
|
|
|
1,992 |
|
Income tax payable |
|
|
434 |
|
|
|
435 |
|
Other long-term liabilities |
|
|
719 |
|
|
|
817 |
|
Total liabilities |
|
|
154,232 |
|
|
|
176,952 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
256 |
|
|
|
253 |
|
Paid-in capital |
|
|
340,962 |
|
|
|
336,938 |
|
Treasury stock, at cost, 12,654,970 and 12,459,845 shares on June 30, 2024 and December 31, 2023, respectively |
|
|
(371,814 |
) |
|
|
(369,973 |
) |
Accumulated other comprehensive income (loss) |
|
|
(25,251 |
) |
|
|
(20,758 |
) |
Retained earnings |
|
|
215,618 |
|
|
|
232,460 |
|
Total stockholders’ equity |
|
|
159,771 |
|
|
|
178,920 |
|
Total liabilities and stockholders’ equity |
|
$ |
314,003 |
|
|
$ |
355,872 |
|
UNIVERSAL ELECTRONICS INC. |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(In thousands, except per share amounts) |
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(Unaudited) |
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|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales |
$ |
90,452 |
|
|
$ |
107,391 |
|
|
$ |
182,352 |
|
|
$ |
215,768 |
|
Cost of sales |
|
64,500 |
|
|
|
82,774 |
|
|
|
130,412 |
|
|
|
166,458 |
|
Gross profit |
|
25,952 |
|
|
|
24,617 |
|
|
|
51,940 |
|
|
|
49,310 |
|
Research and development expenses |
|
7,520 |
|
|
|
8,484 |
|
|
|
15,341 |
|
|
|
16,844 |
|
Selling, general and administrative expenses |
|
21,330 |
|
|
|
25,265 |
|
|
|
45,341 |
|
|
|
52,047 |
|
Factory restructuring charges |
|
1,555 |
|
|
|
— |
|
|
|
2,619 |
|
|
|
— |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
49,075 |
|
Operating income (loss) |
|
(4,453 |
) |
|
|
(9,132 |
) |
|
|
(11,361 |
) |
|
|
(68,656 |
) |
Interest income (expense), net |
|
(843 |
) |
|
|
(1,097 |
) |
|
|
(1,765 |
) |
|
|
(2,072 |
) |
Other income (expense), net |
|
(89 |
) |
|
|
(702 |
) |
|
|
(169 |
) |
|
|
(916 |
) |
Income (loss) before provision for (benefit from) income taxes |
|
(5,385 |
) |
|
|
(10,931 |
) |
|
|
(13,295 |
) |
|
|
(71,644 |
) |
Provision for (benefit from) income taxes |
|
2,808 |
|
|
|
(520 |
) |
|
|
3,547 |
|
|
|
130 |
|
Net income (loss) |
$ |
(8,193 |
) |
|
$ |
(10,411 |
) |
|
$ |
(16,842 |
) |
|
$ |
(71,774 |
) |
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share: |
|
|
|
|
|
|
|||||||||
Basic |
$ |
(0.63 |
) |
|
$ |
(0.81 |
) |
|
$ |
(1.30 |
) |
|
$ |
(5.61 |
) |
Diluted |
$ |
(0.63 |
) |
|
$ |
(0.81 |
) |
|
$ |
(1.30 |
) |
|
$ |
(5.61 |
) |
Shares used in computing earnings (loss) per share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
12,917 |
|
|
|
12,860 |
|
|
|
12,909 |
|
|
|
12,804 |
|
Diluted |
|
12,917 |
|
|
|
12,860 |
|
|
|
12,909 |
|
|
|
12,804 |
|
UNIVERSAL ELECTRONICS INC. |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In thousands) |
||||||||
(Unaudited) |
||||||||
|
|
Six Months Ended June 30, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
|
||||
Net income (loss) |
|
$ |
(16,842 |
) |
|
$ |
(71,774 |
) |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
9,143 |
|
|
|
11,707 |
|
Provision for credit losses |
|
|
— |
|
|
|
3 |
|
Deferred income taxes |
|
|
112 |
|
|
|
142 |
|
Shares issued for employee benefit plan |
|
|
663 |
|
|
|
725 |
|
Employee and director stock-based compensation |
|
|
3,364 |
|
|
|
4,698 |
|
Impairment of goodwill |
|
|
— |
|
|
|
49,075 |
|
Impairment of long-lived assets |
|
|
148 |
|
|
|
49 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable and contract assets |
|
|
13,095 |
|
|
|
10,586 |
|
Inventories |
|
|
(914 |
) |
|
|
33,195 |
|
Prepaid expenses and other assets |
|
|
(1,621 |
) |
|
|
2,615 |
|
Accounts payable and accrued liabilities |
|
|
(5,478 |
) |
|
|
(26,542 |
) |
Accrued income taxes |
|
|
1,005 |
|
|
|
(1,224 |
) |
Net cash provided by (used for) operating activities |
|
|
2,675 |
|
|
|
13,255 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Acquisitions of property, plant and equipment |
|
|
(2,696 |
) |
|
|
(5,807 |
) |
Acquisitions of intangible assets |
|
|
(2,308 |
) |
|
|
(3,295 |
) |
Net cash provided by (used for) investing activities |
|
|
(5,004 |
) |
|
|
(9,102 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Borrowings under line of credit |
|
|
35,000 |
|
|
|
25,000 |
|
Repayments on line of credit |
|
|
(49,000 |
) |
|
|
(38,000 |
) |
Treasury stock purchased |
|
|
(1,841 |
) |
|
|
(855 |
) |
Net cash provided by (used for) financing activities |
|
|
(15,841 |
) |
|
|
(13,855 |
) |
Effect of foreign currency exchange rates on cash and cash equivalents |
|
|
(1,453 |
) |
|
|
(1,215 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
(19,623 |
) |
|
|
(10,917 |
) |
Cash and cash equivalents at beginning of period |
|
|
42,751 |
|
|
|
66,740 |
|
Cash and cash equivalents at end of period |
|
$ |
23,128 |
|
|
$ |
55,823 |
|
|
|
|
|
|
||||
Supplemental cash flow information: |
|
|
|
|
||||
Income taxes paid |
|
$ |
2,175 |
|
|
$ |
3,956 |
|
Interest paid |
|
$ |
2,545 |
|
|
$ |
3,843 |
|
UNIVERSAL ELECTRONICS INC. |
||||||||||||||||
RECONCILIATION OF ADJUSTED NON-GAAP FINANCIAL RESULTS |
||||||||||||||||
(In thousands, except per share amounts) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales: |
|
|
|
|
|
|
|
|
||||||||
Net sales - GAAP |
|
$ |
90,452 |
|
|
$ |
107,391 |
|
|
$ |
182,352 |
|
|
$ |
215,768 |
|
Adjusted Non-GAAP net sales |
|
$ |
90,452 |
|
|
$ |
107,391 |
|
|
$ |
182,352 |
|
|
$ |
215,768 |
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of sales: |
|
|
|
|
|
|
|
|
||||||||
Cost of sales - GAAP (1) |
|
$ |
64,500 |
|
|
$ |
82,774 |
|
|
$ |
130,412 |
|
|
$ |
166,458 |
|
Stock-based compensation expense |
|
|
(20 |
) |
|
|
(26 |
) |
|
|
(47 |
) |
|
|
(62 |
) |
Adjusted Non-GAAP cost of sales |
|
|
64,480 |
|
|
|
82,748 |
|
|
|
130,365 |
|
|
|
166,396 |
|
Adjusted Non-GAAP gross profit |
|
$ |
25,972 |
|
|
$ |
24,643 |
|
|
$ |
51,987 |
|
|
$ |
49,372 |
|
|
|
|
|
|
|
|
|
|
||||||||
Gross margin: |
|
|
|
|
|
|
|
|
||||||||
Gross margin - GAAP (1) |
|
|
28.7 |
% |
|
|
22.9 |
% |
|
|
28.5 |
% |
|
|
22.9 |
% |
Stock-based compensation expense |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
Adjusted Non-GAAP gross margin |
|
|
28.7 |
% |
|
|
22.9 |
% |
|
|
28.5 |
% |
|
|
22.9 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Operating expenses - GAAP |
|
$ |
30,405 |
|
|
$ |
33,749 |
|
|
$ |
63,301 |
|
|
$ |
117,966 |
|
Stock-based compensation expense |
|
|
(1,441 |
) |
|
|
(2,132 |
) |
|
|
(3,318 |
) |
|
|
(4,636 |
) |
Amortization of acquired intangible assets |
|
|
(219 |
) |
|
|
(284 |
) |
|
|
(467 |
) |
|
|
(570 |
) |
Litigation costs (2) |
|
|
(71 |
) |
|
|
(270 |
) |
|
|
(357 |
) |
|
|
(1,428 |
) |
Factory restructuring charges (3) |
|
|
(1,555 |
) |
|
|
— |
|
|
|
(2,618 |
) |
|
|
— |
|
Goodwill impairment (4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(49,075 |
) |
Severance (5) |
|
|
— |
|
|
|
(1,886 |
) |
|
|
— |
|
|
|
(1,886 |
) |
Adjusted Non-GAAP operating expenses |
|
$ |
27,119 |
|
|
$ |
29,177 |
|
|
$ |
56,541 |
|
|
$ |
60,371 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) - GAAP (1) |
|
$ |
(4,453 |
) |
|
$ |
(9,132 |
) |
|
$ |
(11,361 |
) |
|
$ |
(68,656 |
) |
Stock-based compensation expense |
|
|
1,461 |
|
|
|
2,158 |
|
|
|
3,365 |
|
|
|
4,698 |
|
Amortization of acquired intangible assets |
|
|
219 |
|
|
|
284 |
|
|
|
467 |
|
|
|
570 |
|
Litigation costs (2) |
|
|
71 |
|
|
|
270 |
|
|
|
357 |
|
|
|
1,428 |
|
Factory restructuring costs (3) |
|
|
1,555 |
|
|
|
— |
|
|
|
2,618 |
|
|
|
— |
|
Goodwill impairment (4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
49,075 |
|
Severance (5) |
|
|
— |
|
|
|
1,886 |
|
|
|
— |
|
|
|
1,886 |
|
Adjusted Non-GAAP operating income (loss) |
|
$ |
(1,147 |
) |
|
$ |
(4,534 |
) |
|
$ |
(4,554 |
) |
|
$ |
(10,999 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted pro forma operating income (loss) as a percentage of net sales |
|
|
(1.3 |
)% |
|
|
(4.2 |
)% |
|
|
(2.5 |
)% |
|
|
(5.1 |
)% |
UNIVERSAL ELECTRONICS INC. |
||||||||||||||||
RECONCILIATION OF ADJUSTED NON-GAAP FINANCIAL RESULTS |
||||||||||||||||
(In thousands, except per share amounts) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss): |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) - GAAP (1) |
|
$ |
(8,193 |
) |
|
$ |
(10,411 |
) |
|
$ |
(16,842 |
) |
|
$ |
(71,774 |
) |
Stock-based compensation expense |
|
|
1,461 |
|
|
|
2,158 |
|
|
|
3,365 |
|
|
|
4,698 |
|
Amortization of acquired intangible assets |
|
|
219 |
|
|
|
284 |
|
|
|
467 |
|
|
|
570 |
|
Litigation costs (2) |
|
|
71 |
|
|
|
270 |
|
|
|
357 |
|
|
|
1,428 |
|
Factory restructuring costs (3) |
|
|
1,555 |
|
|
|
— |
|
|
|
2,618 |
|
|
|
— |
|
Goodwill impairment (4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
49,075 |
|
Severance (5) |
|
|
— |
|
|
|
1,886 |
|
|
|
— |
|
|
|
1,886 |
|
Foreign currency (gain)/loss |
|
|
354 |
|
|
|
744 |
|
|
|
458 |
|
|
|
1,176 |
|
Income tax provision on adjustments |
|
|
3,341 |
|
|
|
2,016 |
|
|
|
4,967 |
|
|
|
4,102 |
|
Adjusted Non-GAAP net income (loss) |
|
$ |
(1,192 |
) |
|
$ |
(3,053 |
) |
|
$ |
(4,610 |
) |
|
$ |
(8,839 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Diluted shares used in computing earnings (loss) per share: |
|
|
|
|
|
|
|
|
||||||||
GAAP |
|
|
12,917 |
|
|
|
12,860 |
|
|
|
12,909 |
|
|
|
12,804 |
|
Adjusted Non-GAAP |
|
|
12,917 |
|
|
|
12,860 |
|
|
|
12,909 |
|
|
|
12,804 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per share: |
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per share - GAAP (1) |
|
$ |
(0.63 |
) |
|
$ |
(0.81 |
) |
|
$ |
(1.30 |
) |
|
$ |
(5.61 |
) |
Total adjustments |
|
$ |
0.54 |
|
|
$ |
0.57 |
|
|
$ |
0.95 |
|
|
$ |
4.92 |
|
Adjusted Non-GAAP diluted earnings (loss) per share |
|
$ |
(0.09 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.69 |
) |
(1) |
GAAP gross margin, operating loss and net loss for the three months ended June 30, 2024 include |
|
|
|
|
|
GAAP gross margin, operating loss and net loss for the six months ended June 30, 2024 include |
|
|
|
|
(2) |
The three and six months ended June 30, 2024 and 2023, include expenses related to our various litigation matters involving Roku, Inc. and certain other related entities including three |
|
|
|
|
(3) |
The three and six months ended June 30, 2024 include severance and other exit costs associated with the closure of our southwestern |
|
|
|
|
(4) |
The six months ended June 30, 2023 includes a goodwill impairment charge of |
|
|
|
|
(5) |
The three and six months ended June 30, 2023 include severance costs associated with a reduction in headcount at our corporate offices. |
UNIVERSAL ELECTRONICS INC. |
||||||||||||
RECONCILIATION OF ADJUSTED NON-GAAP FINANCIAL OUTLOOK AND FINANCIAL RESULTS |
||||||||||||
(In thousands, except per share amounts) |
||||||||||||
(Unaudited) |
||||||||||||
|
|
Three Months Ended September 30, |
||||||||||
|
|
2024 |
|
|
|
2023 |
|
|||||
|
|
Low Range |
|
High Range |
|
Actual |
||||||
Net sales: |
|
|
|
|
|
|
||||||
Net sales - GAAP |
|
$ |
98,000 |
|
|
$ |
108,000 |
|
|
$ |
107,095 |
|
Total adjustments (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted Non-GAAP net sales |
|
$ |
98,000 |
|
|
$ |
108,000 |
|
|
$ |
107,095 |
|
|
|
|
|
|
|
|
||||||
Diluted earnings (loss) per share: |
|
|
|
|
|
|
||||||
Diluted earnings (loss) per share - GAAP |
|
$ |
(0.33 |
) |
|
$ |
(0.23 |
) |
|
$ |
(1.50 |
) |
Total adjustments (2) |
|
$ |
0.34 |
|
|
$ |
0.34 |
|
|
$ |
1.56 |
|
Adjusted Non-GAAP diluted earnings (loss) per share |
|
$ |
0.01 |
|
|
$ |
0.11 |
|
|
$ |
0.06 |
|
(1) |
The three months ended September 30, 2024 and 2023 do not include any Non-GAAP adjustments to net sales. |
|
|
|
|
(2) |
The three months ended September 30, 2024 and 2023 include adjustments for stock-based compensation expense, amortization of acquired intangibles, costs associated with certain litigation efforts, factory restructuring costs, foreign currency gains and losses and the related tax impact of these adjustments. The three months ended September 30, 2023 also includes adjustments for impairment, severance and a valuation allowance on certain deferred tax assets. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808583056/en/
UEI: Bryan Hackworth, CFO, UEI, 480-530-3000
Investors: Kirsten Chapman, LHA Investor Relations, uei@lhai.com, 415-433-3777
Source: Universal Electronics Inc.
FAQ
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What was UEI's Q2 2024 GAAP net loss?
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How did UEI’s GAAP gross margin perform in Q2 2024?
