Universal Electronics Reports Financial Results for the Third Quarter 2024
Universal Electronics (UEIC) reported its Q3 2024 financial results. Net sales reached $102.1 million, compared to $107.1 million in Q3 2023. GAAP gross margins improved to 30.1% from 19.1%. GAAP net loss was $2.7 million ($0.20 per share), a significant improvement from a $19.4 million loss ($1.50 per share) in the prior year. Adjusted Non-GAAP net income was $1.4 million ($0.10 per share), compared to a loss of $0.7 million ($0.05 per share) in Q3 2023.
For the first nine months of 2024, net sales were $284.4 million, down from $322.9 million in 2023. GAAP gross margins increased to 29.1% from 21.6%. GAAP net loss decreased to $19.5 million ($1.51 per share) from $91.1 million ($7.10 per share) in the same period last year.
UEI forecasts Q4 2024 GAAP net sales between $99.0 million and $109.0 million, with an expected GAAP loss per share ranging from $0.27 to $0.17. Adjusted Non-GAAP earnings per share are projected between $0.10 and $0.20.
Universal Electronics (UEIC) ha riportato i risultati finanziari del terzo trimestre 2024. Le vendite nette hanno raggiunto 102,1 milioni di dollari, rispetto ai 107,1 milioni di dollari del terzo trimestre 2023. I margini lordi GAAP sono migliorati al 30,1% rispetto al 19,1%. La perdita netta GAAP è stata di 2,7 milioni di dollari (0,20 dollari per azione), un miglioramento significativo rispetto a una perdita di 19,4 milioni di dollari (1,50 dollari per azione) dell'anno precedente. L'utile netto rettificato non GAAP è stato di 1,4 milioni di dollari (0,10 dollari per azione), rispetto a una perdita di 0,7 milioni di dollari (0,05 dollari per azione) nel terzo trimestre 2023.
Nei primi nove mesi del 2024, le vendite nette sono state di 284,4 milioni di dollari, in calo rispetto ai 322,9 milioni di dollari del 2023. I margini lordi GAAP sono aumentati al 29,1% rispetto al 21,6%. La perdita netta GAAP è diminuita a 19,5 milioni di dollari (1,51 dollari per azione) da 91,1 milioni di dollari (7,10 dollari per azione) nello stesso periodo dell'anno scorso.
UEI prevede vendite nette GAAP per il quarto trimestre 2024 comprese tra 99,0 milioni e 109,0 milioni di dollari, con una perdita GAAP per azione prevista tra 0,27 e 0,17 dollari. Gli utili per azione rettificati non GAAP sono previsti tra 0,10 e 0,20 dollari.
Universal Electronics (UEIC) ha publicado sus resultados financieros del tercer trimestre de 2024. Las ventas netas alcanzaron 102,1 millones de dólares, en comparación con 107,1 millones de dólares en el tercer trimestre de 2023. Los márgenes brutos GAAP mejoraron al 30,1% desde el 19,1%. La pérdida neta GAAP fue de 2,7 millones de dólares (0,20 dólares por acción), una mejora significativa respecto a una pérdida de 19,4 millones de dólares (1,50 dólares por acción) del año anterior. El ingreso neto ajustado no GAAP fue de 1,4 millones de dólares (0,10 dólares por acción), en comparación con una pérdida de 0,7 millones de dólares (0,05 dólares por acción) en el tercer trimestre de 2023.
En los primeros nueve meses de 2024, las ventas netas fueron 284,4 millones de dólares, en comparación con 322,9 millones de dólares en 2023. Los márgenes brutos GAAP aumentaron al 29,1% desde el 21,6%. La pérdida neta GAAP disminuyó a 19,5 millones de dólares (1,51 dólares por acción) desde 91,1 millones de dólares (7,10 dólares por acción) en el mismo período del año anterior.
UEI pronostica ventas netas GAAP para el cuarto trimestre de 2024 entre 99,0 millones y 109,0 millones de dólares, con una pérdida GAAP prevista por acción que oscila entre 0,27 y 0,17 dólares. Se proyecta que las ganancias por acción ajustadas no GAAP estén entre 0,10 y 0,20 dólares.
유니버설 일렉트로닉스 (UEIC)는 2024년 3분기 재무 결과를 발표했습니다. 순매출은 1억 21만 달러에 달했으며, 2023년 3분기의 1억 71만 달러와 비교됩니다. GAAP 총 마진은 19.1%에서 30.1%로 증가했습니다. GAAP 순손실은 270만 달러 (주당 0.20달러)로, 작년 같은 기간의 1940만 달러 손실 (주당 1.50달러)에서 크게 개선되었습니다. 조정된 비GAAP 순소득은 140만 달러 (주당 0.10달러)로, 2023년 3분기의 70만 달러 손실 (주당 0.05달러)에서 개선되었습니다.
2024년 첫 9개월 동안 순매출은 2억 84만 40만 달러로, 2023년의 3억 22만 90만 달러에서 감소했습니다. GAAP 총 마진은 21.6%에서 29.1%로 증가했습니다. GAAP 순손실은 작년 같은 기간의 9110만 달러 (주당 7.10달러)에서 1950만 달러 (주당 1.51달러)로 감소했습니다.
UEI는 2024년 4분기 GAAP 순매출을 9900만 달러에서 1억 900만 달러 사이로 예상하며, 주당 예상 GAAP 손실은 0.27달러에서 0.17달러 사이로 예상됩니다. 조정된 비GAAP 주당 수익은 0.10달러에서 0.20달러 사이로 예상됩니다.
Universal Electronics (UEIC) a annoncé ses résultats financiers du troisième trimestre 2024. Les ventes nettes ont atteint 102,1 millions de dollars, contre 107,1 millions de dollars au troisième trimestre 2023. Les marges brutes GAAP se sont améliorées, passant de 19,1 % à 30,1 %. La perte nette GAAP a été de 2,7 millions de dollars (0,20 dollars par action), une amélioration significative par rapport à une perte de 19,4 millions de dollars (1,50 dollars par action) l'an dernier. Le résultat net ajusté non GAAP était de 1,4 million de dollars (0,10 dollars par action), contre une perte de 0,7 million de dollars (0,05 dollars par action) au troisième trimestre 2023.
Au cours des neuf premiers mois de 2024, les ventes nettes se sont élevées à 284,4 millions de dollars, en baisse par rapport à 322,9 millions de dollars en 2023. Les marges brutes GAAP ont augmenté de 21,6 % à 29,1 %. La perte nette GAAP a diminué, passant de 91,1 millions de dollars (7,10 dollars par action) à 19,5 millions de dollars (1,51 dollars par action) sur la même période l'année précédente.
UEI prévoit des ventes nettes GAAP pour le quatrième trimestre de 2024 comprises entre 99,0 millions et 109,0 millions de dollars, avec une perte GAAP par action prévue de 0,27 à 0,17 dollars. Les bénéfices par action ajustés non GAAP sont projetés entre 0,10 et 0,20 dollars.
Universal Electronics (UEIC) hat seine Finanzzahlen für das dritte Quartal 2024 veröffentlicht. Die Nettoumsätze beliefen sich auf 102,1 Millionen Dollar, verglichen mit 107,1 Millionen Dollar im dritten Quartal 2023. Die GAAP-Bruttomargen verbesserten sich auf 30,1% von 19,1%. Der GAAP-Nettoverlust betrug 2,7 Millionen Dollar (0,20 Dollar pro Aktie), eine signifikante Verbesserung im Vergleich zu einem Verlust von 19,4 Millionen Dollar (1,50 Dollar pro Aktie) im Vorjahr. Der bereinigte Non-GAAP-Nettoertrag betrug 1,4 Millionen Dollar (0,10 Dollar pro Aktie), verglichen mit einem Verlust von 0,7 Millionen Dollar (0,05 Dollar pro Aktie) im dritten Quartal 2023.
In den ersten neun Monaten des Jahres 2024 betrugen die Nettoumsätze 284,4 Millionen Dollar, ein Rückgang von 322,9 Millionen Dollar im Jahr 2023. Die GAAP-Bruttomargen stiegen auf 29,1% von 21,6%. Der GAAP-Nettoverlust sank auf 19,5 Millionen Dollar (1,51 Dollar pro Aktie) von 91,1 Millionen Dollar (7,10 Dollar pro Aktie) im selben Zeitraum des Vorjahres.
UEI prognostiziert für das vierte Quartal 2024 Nettoumsätze in einer Spanne von 99,0 Millionen bis 109,0 Millionen Dollar, mit einem erwarteten GAAP-Verlust pro Aktie von 0,27 bis 0,17 Dollar. Die bereinigten Non-GAAP-Gewinne pro Aktie werden zwischen 0,10 und 0,20 Dollar erwartet.
- GAAP gross margins increased to 30.1% from 19.1% year-over-year.
- GAAP net loss improved to $2.7 million from $19.4 million year-over-year.
- Adjusted Non-GAAP net income was $1.4 million, compared to a loss of $0.7 million year-over-year.
- GAAP net loss decreased to $19.5 million for the first nine months of 2024 from $91.1 million in the same period in 2023.
- GAAP net sales decreased to $102.1 million from $107.1 million year-over-year.
- GAAP net sales for the first nine months of 2024 decreased to $284.4 million from $322.9 million in the same period in 2023.
Insights
Universal Electronics' Q3 2024 results show mixed signals with some positive developments amid ongoing challenges. Net sales decreased to
The transition in manufacturing footprint continues to impact profitability with
The company's design wins with Carrier, Daikin and multiple telecom providers suggest strengthening market position, though the
“Our customer growth strategy, product development and footprint optimization initiatives are beginning to deliver, as projected,” stated UEI Chairman and CEO Paul Arling. “Third quarter 2024 net sales were solidly within guidance; gross profit increased 380 basis points year-over-year; and our bottom line improved again. We are building in all of our markets one brick at a time. Recent design wins and new production launches include Carrier, Daikin, multiple smart home solution leaders as well as multiple telecom and video service providers. Our recent efforts have strengthened our foundation and paved a path for financial improvement, placing UEI in its best position in several years. We expect to deliver year-over-year top- and bottom-line growth in both the fourth quarter 2024 and full year 2025.”
Financial Results for the Three Months Ended September 30: 2024 Compared to 2023
-
GAAP net sales were
, compared to$102.1 million ; Adjusted Non-GAAP net sales were$107.1 million , compared to$102.1 million .$107.1 million -
GAAP gross margins were
30.1% , compared to19.1% ; Adjusted Non-GAAP gross margins were30.1% , compared to26.3% . -
GAAP operating income was
, compared to GAAP operating loss of$0.4 million ; Adjusted Non-GAAP operating income was$14.0 million , compared to$2.6 million .$0.6 million -
GAAP net loss was
, or$2.7 million per share, compared to$0.20 , or$19.4 million per share; Adjusted Non-GAAP net income was$1.50 , or$1.4 million per diluted share, compared to Adjusted Non-GAAP net loss of$0.10 , or$0.7 million per share.$0.05 -
GAAP gross margin, operating income and net loss for the three months ended September 30, 2024 include
, equivalent to 110 basis points of gross margin or$1.1 million per share (net of tax), of excess manufacturing overhead costs resulting from the continued transition of our global manufacturing footprint, specifically in$0.07 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 September 30, 2023 include , equivalent to 210 basis points of gross margin or$2.2 million per share (net of tax), of excess manufacturing costs.$0.13 -
At September 30, 2024, cash and cash equivalents were
.$26.3 million
Financial Results for the Nine Months Ended September 30: 2024 Compared to 2023
-
GAAP net sales were
, compared to$284.4 million ; Adjusted Non-GAAP net sales were$322.9 million , compared to$284.4 million .$322.9 million -
GAAP gross margins were
29.1% , compared to21.6% ; Adjusted Non-GAAP gross margins were29.1% , compared to24.0% . -
GAAP operating loss was
, compared to$10.9 million , including a$82.7 million non-cash charge for goodwill impairment; Adjusted Non-GAAP operating loss was$49.1 million , compared to$2.0 million .$10.4 million -
GAAP net loss was
, or$19.5 million per share, compared to$1.51 including the aforementioned non-cash charge, or$91.1 million per share; Adjusted Non-GAAP net loss was$7.10 , or$3.2 million per share, compared to$0.25 , or$9.5 million per share.$0.74 -
GAAP gross margin, operating loss and net loss for the nine months ended September 30, 2024 include
, equivalent to 130 basis points of gross margin or$3.7 million per share (net of tax), of excess manufacturing costs. GAAP gross margin, operating loss and net loss for the nine months ended September 30, 2023 include$0.23 , equivalent to 240 basis points of gross margin or$7.8 million per share (net of tax), of excess manufacturing costs.$0.49
Financial Outlook
For the fourth quarter of 2024, the company expects GAAP net sales to range from
For the fourth 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, November 7, 2024 at 4:30 p.m. ET / 1:30 p.m. PT, to discuss its third quarter 2024 earnings results, review recent activity and answer questions. To attend the call please register at https://register.vevent.com/register/BIa5ad6a7bfd934a5798098c189609cbaa 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 are defined as net sales. Adjusted Non-GAAP gross profit is defined as gross profit excluding impairment of long-lived assets and 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, impairment of long-lived assets and severance. Adjusted Non-GAAP net income (loss) is defined as net income (loss) excluding the aforementioned items, foreign currency gains and losses, the related tax effects of all adjustments, as well as a valuation allowance on certain deferred tax assets. 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 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, including with respect to our litigation against Roku; our continued ability to strategically enhance, expand, and monetize our IP portfolios; 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 decreased governmental incentive programs worldwide or of enhanced or expanded trade regulations, including expanded use of tariffs, pertaining to importation of our products, particularly in light of the recent
UNIVERSAL ELECTRONICS INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share-related data) (Unaudited) |
||||||||
|
|
September 30, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
26,287 |
|
|
$ |
42,751 |
|
Accounts receivable, net |
|
|
106,629 |
|
|
|
112,596 |
|
Contract assets |
|
|
4,288 |
|
|
|
4,240 |
|
Inventories |
|
|
88,939 |
|
|
|
88,273 |
|
Prepaid expenses and other current assets |
|
|
9,664 |
|
|
|
7,325 |
|
Income tax receivable |
|
|
1,458 |
|
|
|
3,666 |
|
Total current assets |
|
|
237,265 |
|
|
|
258,851 |
|
Property, plant and equipment, net |
|
|
37,610 |
|
|
|
44,619 |
|
Intangible assets, net |
|
|
24,674 |
|
|
|
25,349 |
|
Operating lease right-of-use assets |
|
|
15,126 |
|
|
|
18,693 |
|
Deferred income taxes |
|
|
5,175 |
|
|
|
6,787 |
|
Other assets |
|
|
1,405 |
|
|
|
1,573 |
|
Total assets |
|
$ |
321,255 |
|
|
$ |
355,872 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
62,785 |
|
|
$ |
57,033 |
|
Lines of credit |
|
|
39,853 |
|
|
|
55,000 |
|
Accrued compensation |
|
|
20,636 |
|
|
|
20,305 |
|
Accrued sales discounts, rebates and royalties |
|
|
4,717 |
|
|
|
5,796 |
|
Accrued income taxes |
|
|
1,118 |
|
|
|
1,833 |
|
Other accrued liabilities |
|
|
18,636 |
|
|
|
21,181 |
|
Total current liabilities |
|
|
147,745 |
|
|
|
161,148 |
|
Long-term liabilities: |
|
|
|
|
||||
Operating lease obligations |
|
|
9,409 |
|
|
|
12,560 |
|
Deferred income taxes |
|
|
1,753 |
|
|
|
1,992 |
|
Income tax payable |
|
|
434 |
|
|
|
435 |
|
Other long-term liabilities |
|
|
728 |
|
|
|
817 |
|
Total liabilities |
|
|
160,069 |
|
|
|
176,952 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
257 |
|
|
|
253 |
|
Paid-in capital |
|
|
342,889 |
|
|
|
336,938 |
|
Treasury stock, at cost, 12,660,397 and 12,459,845 shares on September 30, 2024 and December 31, 2023, respectively |
|
|
(371,869 |
) |
|
|
(369,973 |
) |
Accumulated other comprehensive income (loss) |
|
|
(23,051 |
) |
|
|
(20,758 |
) |
Retained earnings |
|
|
212,960 |
|
|
|
232,460 |
|
Total stockholders’ equity |
|
|
161,186 |
|
|
|
178,920 |
|
Total liabilities and stockholders’ equity |
|
$ |
321,255 |
|
|
$ |
355,872 |
|
UNIVERSAL ELECTRONICS INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) |
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Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net sales |
$ |
102,073 |
|
|
$ |
107,095 |
|
|
$ |
284,425 |
|
|
$ |
322,863 |
|
Cost of sales |
|
71,341 |
|
|
|
86,683 |
|
|
|
201,753 |
|
|
|
253,141 |
|
Gross profit |
|
30,732 |
|
|
|
20,412 |
|
|
|
82,672 |
|
|
|
69,722 |
|
Research and development expenses |
|
7,338 |
|
|
|
7,658 |
|
|
|
22,679 |
|
|
|
24,502 |
|
Selling, general and administrative expenses |
|
22,872 |
|
|
|
23,097 |
|
|
|
68,213 |
|
|
|
75,144 |
|
Factory restructuring charges |
|
104 |
|
|
|
3,690 |
|
|
|
2,723 |
|
|
|
3,690 |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
49,075 |
|
Operating income (loss) |
|
418 |
|
|
|
(14,033 |
) |
|
|
(10,943 |
) |
|
|
(82,689 |
) |
Interest income (expense), net |
|
(891 |
) |
|
|
(1,216 |
) |
|
|
(2,656 |
) |
|
|
(3,288 |
) |
Other income (expense), net |
|
274 |
|
|
|
(851 |
) |
|
|
105 |
|
|
|
(1,767 |
) |
Income (loss) before provision for income taxes |
|
(199 |
) |
|
|
(16,100 |
) |
|
|
(13,494 |
) |
|
|
(87,744 |
) |
Provision for income taxes |
|
2,459 |
|
|
|
3,262 |
|
|
|
6,006 |
|
|
|
3,392 |
|
Net income (loss) |
$ |
(2,658 |
) |
|
$ |
(19,362 |
) |
|
$ |
(19,500 |
) |
|
$ |
(91,136 |
) |
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share: |
|
|
|
|
|
|
|||||||||
Basic |
$ |
(0.20 |
) |
|
$ |
(1.50 |
) |
|
$ |
(1.51 |
) |
|
$ |
(7.10 |
) |
Diluted |
$ |
(0.20 |
) |
|
$ |
(1.50 |
) |
|
$ |
(1.51 |
) |
|
$ |
(7.10 |
) |
Shares used in computing earnings (loss) per share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
12,985 |
|
|
|
12,911 |
|
|
|
12,935 |
|
|
|
12,839 |
|
Diluted |
|
12,985 |
|
|
|
12,911 |
|
|
|
12,935 |
|
|
|
12,839 |
|
UNIVERSAL ELECTRONICS INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
||||||||
|
|
Nine Months Ended September 30, |
||||||
|
|
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income (loss) |
|
$ |
(19,500 |
) |
|
$ |
(91,136 |
) |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
13,528 |
|
|
|
17,549 |
|
Provision for credit losses |
|
|
17 |
|
|
|
69 |
|
Deferred income taxes |
|
|
1,056 |
|
|
|
259 |
|
Shares issued for employee benefit plan |
|
|
940 |
|
|
|
1,014 |
|
Employee and director stock-based compensation |
|
|
5,015 |
|
|
|
6,833 |
|
Impairment of goodwill |
|
|
— |
|
|
|
49,075 |
|
Impairment of long-lived assets |
|
|
148 |
|
|
|
7,794 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable and contract assets |
|
|
5,367 |
|
|
|
(488 |
) |
Inventories |
|
|
(453 |
) |
|
|
44,991 |
|
Prepaid expenses and other assets |
|
|
826 |
|
|
|
4,981 |
|
Accounts payable and accrued liabilities |
|
|
(102 |
) |
|
|
(21,289 |
) |
Accrued income taxes |
|
|
1,497 |
|
|
|
424 |
|
Net cash provided by (used for) operating activities |
|
|
8,339 |
|
|
|
20,076 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Acquisitions of property, plant and equipment |
|
|
(3,541 |
) |
|
|
(6,840 |
) |
Acquisitions of intangible assets |
|
|
(3,150 |
) |
|
|
(4,643 |
) |
Net cash provided by (used for) investing activities |
|
|
(6,691 |
) |
|
|
(11,483 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Borrowings under lines of credit |
|
|
57,794 |
|
|
|
35,000 |
|
Repayments on lines of credit |
|
|
(73,000 |
) |
|
|
(48,000 |
) |
Treasury stock purchased |
|
|
(1,896 |
) |
|
|
(888 |
) |
Net cash provided by (used for) financing activities |
|
|
(17,102 |
) |
|
|
(13,888 |
) |
Effect of foreign currency exchange rates on cash and cash equivalents |
|
|
(1,010 |
) |
|
|
(1,366 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
(16,464 |
) |
|
|
(6,661 |
) |
Cash and cash equivalents at beginning of period |
|
|
42,751 |
|
|
|
66,740 |
|
Cash and cash equivalents at end of period |
|
$ |
26,287 |
|
|
$ |
60,079 |
|
|
|
|
|
|
||||
Supplemental cash flow information: |
|
|
|
|
||||
Income taxes paid |
|
$ |
2,922 |
|
|
$ |
5,327 |
|
Interest paid |
|
$ |
3,900 |
|
|
$ |
5,431 |
|
UNIVERSAL ELECTRONICS INC. RECONCILIATION OF ADJUSTED NON-GAAP FINANCIAL RESULTS (In thousands, except per share amounts) (Unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net sales: |
|
|
|
|
|
|
|
|
||||||||
Net sales - GAAP |
|
$ |
102,073 |
|
|
$ |
107,095 |
|
|
$ |
284,425 |
|
|
$ |
322,863 |
|
Adjusted Non-GAAP net sales |
|
$ |
102,073 |
|
|
$ |
107,095 |
|
|
$ |
284,425 |
|
|
$ |
322,863 |
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of sales: |
|
|
|
|
|
|
|
|
||||||||
Cost of sales - GAAP (1) |
|
$ |
71,341 |
|
|
$ |
86,683 |
|
|
$ |
201,753 |
|
|
$ |
253,141 |
|
Impairment of long-lived assets (2) |
|
|
— |
|
|
|
(7,723 |
) |
|
|
— |
|
|
|
(7,723 |
) |
Stock-based compensation expense |
|
|
(25 |
) |
|
|
(31 |
) |
|
|
(72 |
) |
|
|
(93 |
) |
Adjusted Non-GAAP cost of sales |
|
|
71,316 |
|
|
|
78,929 |
|
|
|
201,681 |
|
|
|
245,325 |
|
Adjusted Non-GAAP gross profit |
|
$ |
30,757 |
|
|
$ |
28,166 |
|
|
$ |
82,744 |
|
|
$ |
77,538 |
|
|
|
|
|
|
|
|
|
|
||||||||
Gross margin: |
|
|
|
|
|
|
|
|
||||||||
Gross margin - GAAP (1) |
|
|
30.1 |
% |
|
|
19.1 |
% |
|
|
29.1 |
% |
|
|
21.6 |
% |
Impairment of long-lived assets (2) |
|
|
— |
% |
|
|
7.2 |
% |
|
|
— |
% |
|
|
2.4 |
% |
Stock-based compensation expense |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
Adjusted Non-GAAP gross margin |
|
|
30.1 |
% |
|
|
26.3 |
% |
|
|
29.1 |
% |
|
|
24.0 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Operating expenses - GAAP |
|
$ |
30,314 |
|
|
$ |
34,445 |
|
|
$ |
93,615 |
|
|
$ |
152,411 |
|
Stock-based compensation expense |
|
|
(1,626 |
) |
|
|
(2,103 |
) |
|
|
(4,944 |
) |
|
|
(6,739 |
) |
Amortization of acquired intangible assets |
|
|
(219 |
) |
|
|
(286 |
) |
|
|
(686 |
) |
|
|
(856 |
) |
Litigation costs (3) |
|
|
(175 |
) |
|
|
(176 |
) |
|
|
(532 |
) |
|
|
(1,604 |
) |
Factory restructuring charges (4) |
|
|
(104 |
) |
|
|
(3,690 |
) |
|
|
(2,722 |
) |
|
|
(3,690 |
) |
Goodwill impairment (5) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(49,075 |
) |
Impairment of long-lived assets (2) |
|
|
— |
|
|
|
(100 |
) |
|
|
— |
|
|
|
(100 |
) |
Severance (6) |
|
|
— |
|
|
|
(569 |
) |
|
|
— |
|
|
|
(2,455 |
) |
Adjusted Non-GAAP operating expenses |
|
$ |
28,190 |
|
|
$ |
27,521 |
|
|
$ |
84,731 |
|
|
$ |
87,892 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) - GAAP (1) |
|
$ |
418 |
|
|
$ |
(14,033 |
) |
|
$ |
(10,943 |
) |
|
$ |
(82,689 |
) |
Impairment of long-lived assets (2) |
|
|
— |
|
|
|
7,823 |
|
|
|
— |
|
|
|
7,823 |
|
Stock-based compensation expense |
|
|
1,651 |
|
|
|
2,134 |
|
|
|
5,016 |
|
|
|
6,832 |
|
Amortization of acquired intangible assets |
|
|
219 |
|
|
|
286 |
|
|
|
686 |
|
|
|
856 |
|
Litigation costs (3) |
|
|
175 |
|
|
|
176 |
|
|
|
532 |
|
|
|
1,604 |
|
Factory restructuring costs (4) |
|
|
104 |
|
|
|
3,690 |
|
|
|
2,722 |
|
|
|
3,690 |
|
Goodwill impairment (5) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
49,075 |
|
Severance (6) |
|
|
— |
|
|
|
569 |
|
|
|
— |
|
|
|
2,455 |
|
Adjusted Non-GAAP operating income (loss) |
|
$ |
2,567 |
|
|
$ |
645 |
|
|
$ |
(1,987 |
) |
|
$ |
(10,354 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted pro forma operating income (loss) as a percentage of net sales |
|
|
2.5 |
% |
|
|
0.6 |
% |
|
|
(0.7 |
)% |
|
|
(3.2 |
)% |
UNIVERSAL ELECTRONICS INC. RECONCILIATION OF ADJUSTED NON-GAAP FINANCIAL RESULTS (In thousands, except per share amounts) (Unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income (loss): |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) - GAAP (1) |
|
$ |
(2,658 |
) |
|
$ |
(19,362 |
) |
|
$ |
(19,500 |
) |
|
$ |
(91,136 |
) |
Impairment of long-lived assets (2) |
|
|
— |
|
|
|
7,823 |
|
|
|
— |
|
|
|
7,823 |
|
Stock-based compensation expense |
|
|
1,651 |
|
|
|
2,134 |
|
|
|
5,016 |
|
|
|
6,832 |
|
Amortization of acquired intangible assets |
|
|
219 |
|
|
|
286 |
|
|
|
686 |
|
|
|
856 |
|
Litigation costs (3) |
|
|
175 |
|
|
|
176 |
|
|
|
532 |
|
|
|
1,604 |
|
Factory restructuring costs (4) |
|
|
104 |
|
|
|
3,690 |
|
|
|
2,722 |
|
|
|
3,690 |
|
Goodwill impairment (5) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
49,075 |
|
Severance (6) |
|
|
— |
|
|
|
569 |
|
|
|
— |
|
|
|
2,455 |
|
Foreign currency (gain)/loss |
|
|
(264 |
) |
|
|
1,067 |
|
|
|
194 |
|
|
|
2,243 |
|
Income tax provision on adjustments |
|
|
2,134 |
|
|
|
1,582 |
|
|
|
7,101 |
|
|
|
5,684 |
|
Other income tax adjustments (7) |
|
|
— |
|
|
|
1,377 |
|
|
|
— |
|
|
|
1,377 |
|
Adjusted Non-GAAP net income (loss) |
|
$ |
1,361 |
|
|
$ |
(658 |
) |
|
$ |
(3,249 |
) |
|
$ |
(9,497 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Diluted shares used in computing earnings (loss) per share: |
|
|
|
|
|
|
|
|
||||||||
GAAP |
|
|
12,985 |
|
|
|
12,911 |
|
|
|
12,935 |
|
|
|
12,839 |
|
Adjusted Non-GAAP |
|
|
13,140 |
|
|
|
12,911 |
|
|
|
12,935 |
|
|
|
12,839 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per share: |
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per share - GAAP (1) |
|
$ |
(0.20 |
) |
|
$ |
(1.50 |
) |
|
$ |
(1.51 |
) |
|
$ |
(7.10 |
) |
Total adjustments |
|
$ |
0.31 |
|
|
$ |
1.45 |
|
|
$ |
1.26 |
|
|
$ |
6.36 |
|
Adjusted Non-GAAP diluted earnings (loss) per share |
|
$ |
0.10 |
|
|
$ |
(0.05 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.74 |
) |
(1) |
GAAP gross margin, operating income and net loss for the three months ended September 30, 2024 include |
|
|
GAAP gross margin, operating loss and net loss for the nine months ended September 30, 2024 include |
|
(2) |
The three and nine months ended September 30, 2023 include impairment charges relating to machinery and equipment and leasehold improvements associated with the closure of our southwestern |
|
(3) |
The three and nine months ended September 30, 2024 and 2023, include expenses related to our various litigation matters involving Roku, Inc. and certain other related entities including three |
|
(4) |
The three and nine months ended September 30, 2024 include severance and other exit costs associated with the closure of our southwestern |
|
(5) |
The nine months ended September 30, 2023 includes a goodwill impairment charge of |
|
(6) |
The three and nine months ended September 30, 2023 include severance costs associated with a reduction in headcount at our corporate offices. |
|
(7) |
The three and nine months ended September 30, 2023 include |
UNIVERSAL ELECTRONICS INC. RECONCILIATION OF ADJUSTED NON-GAAP FINANCIAL OUTLOOK AND FINANCIAL RESULTS (In thousands, except per share amounts) (Unaudited) |
||||||||||||
|
|
Three Months Ended December 31, |
||||||||||
|
|
2024 |
|
2023 |
||||||||
|
|
Low Range |
|
High Range |
|
Actual |
||||||
Net sales: |
|
|
|
|
|
|
||||||
Net sales - GAAP |
|
$ |
99,000 |
|
|
$ |
109,000 |
|
|
$ |
97,594 |
|
Total adjustments (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted Non-GAAP net sales |
|
$ |
99,000 |
|
|
$ |
109,000 |
|
|
$ |
97,594 |
|
|
|
|
|
|
|
|
||||||
Diluted earnings (loss) per share: |
|
|
|
|
|
|
||||||
Diluted earnings (loss) per share - GAAP |
|
$ |
(0.27 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.55 |
) |
Total adjustments (2) |
|
$ |
0.37 |
|
|
$ |
0.37 |
|
|
$ |
0.51 |
|
Adjusted Non-GAAP diluted earnings (loss) per share |
|
$ |
0.10 |
|
|
$ |
0.20 |
|
|
$ |
(0.04 |
) |
(1) |
The three months ended December 31, 2024 and 2023 do not include any Non-GAAP adjustments to net sales. |
|
(2) |
The three months ended December 31, 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 December 31, 2023 also includes adjustments for severance. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107258742/en/
UEI: Bryan Hackworth, CFO, UEI, 480-530-3000
Investors: Kirsten Chapman, Alliance Advisors, investors@uei.com or ueiinvestor@allianceadvisors.com, 415-433-3777
Source: Universal Electronics Inc.
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