VOXX International Corporation Reports Its Fiscal 2021 Fourth Quarter And Year-End Financial Results
VOXX International Corporation (NASDAQ: VOXX) reported strong financial results for the fourth quarter and fiscal year 2021. Net sales for Q4 reached $162.5 million, up 60.8% year-over-year, driven by growth in both Automotive and Consumer Electronics segments. Fiscal 2021 net sales totaled $563.6 million, a 42.7% increase compared to the previous year. The company achieved net income of $26.8 million, a significant turnaround from a net loss of $26.4 million in FY 2020. Despite a slight decrease in gross margin, VOXX anticipates robust growth and improved EBITDA in the upcoming fiscal year, bolstered by recent acquisitions and strategic partnerships.
- Net sales for Q4 2021 increased by 60.8%, reaching $162.5 million.
- Fiscal 2021 net sales grew by 42.7% year-over-year to $563.6 million.
- Net income improved to $26.8 million from a loss of $26.4 million in FY 2020.
- EBITDA rose to $44.4 million, up from an EBITDA loss of $11.9 million in FY 2020.
- Acquired new OEM awards exceeding $400 million, bolstering future revenue potential.
- Expectations of strong performance in Fiscal 2022, with positive guidance.
- Gross margin decreased from 28.2% in Q4 FY20 to 26.1% in Q4 FY21.
- Total operating expenses in Q4 included $4.6 million for new subsidiaries, increasing financial pressure.
ORLANDO, Fla., May 13, 2021 /PRNewswire/ -- VOXX International Corporation (NASDAQ: VOXX), a leading manufacturer and distributor of automotive and consumer technologies for the global markets, today announced its financial results for its Fiscal 2021 fourth quarter and year ended February 28, 2021.
Commenting on the Company's Fiscal 2021 results, Pat Lavelle, President and Chief Executive Officer stated, "As our results demonstrate, we made significant progress this past fiscal year and believe we are at the beginning of the next phase of growth. We made two strategic acquisitions to strengthen our automotive business and have been awarded over
Lavelle continued, "Looking ahead and barring any major downturns in the economy or changes that could impact our customer base, we are poised for growth in Fiscal 2022 and anticipate strong bottom-line performance. In the years that follow, we believe we are in an excellent position to continue this trend due to the volume of automotive awards received and others we expect will materialize. Our premium audio offering and expanded distribution should result in new opportunities and our Biometrics segment should show improvements given awards, projects currently in the testing phase, and through our new strategic alliance with GalvanEyes Partners. Lastly, our cash position and balance sheet are strong, we have access to capital, and we continue to look for strategic transactions that can drive profitability further while enhancing shareholder value."
Fiscal 2021 and Fiscal 2020 Fourth Quarter Comparisons
Net sales in the Fiscal 2021 fourth quarter ended February 28, 2021 were
- Automotive Electronics segment net sales of
$52.5 million as compared to$27.7 million , an increase of$24.8 million or89.7% . - Consumer Electronics segment net sales of
$109.7 million as compared to$73.1 million , an increase of$36.6 million or50.1% . - Biometrics segment net sales of approximately
$0.1 million in both, fiscal fourth quarter periods.
The gross margin in the Fiscal 2021 fourth quarter was
- Automotive Electronics segment gross margin of
26.2% as compared to17.7% , up 850 basis points. - Consumer Electronics segment gross margin of
26.2% as compared to32.2% , down 600 basis points. - Biometrics segment gross margins were negative for both of the comparable periods.
Total operating expenses in the Fiscal 2021 fourth quarter were
The Company reported operating income in the Fiscal 2021 fourth quarter of
Total other expenses for the Fiscal 2021 and Fiscal 2020 fourth quarter periods were
Net income attributable to VOXX International Corporation in the Fiscal 2021 fourth quarter was
Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") in the Fiscal 2021 fourth quarter was
Fiscal 2021 and Fiscal 2020 Year-End Comparisons
Net sales in the Fiscal 2021 year ended February 28, 2021 were
- Automotive Electronics net sales in Fiscal 2021 were
$163.9 million as compared to$114.2 million in Fiscal 2020, an increase of$49.7 million or43.6% . The year-over-year growth was primarily driven by higher sales related to the Company's VSM and DEI subsidiaries. The Company also had a year-over-year increase in sales of aftermarket security and remote start products. Offsetting this growth, was the adverse impact caused by COVID-19 which resulted in several of the Company's OEM customers shutting down their plants as well as various retail and aftermarket store closures.
- Consumer Electronics net sales in Fiscal 2021 were
$398.3 million as compared to$279.7 million in Fiscal 2020, an increase of$118.6 million or42.4% . The year-over-year growth was primarily related to higher sales of premium audio products, particularly in the premium home theater, subwoofer, and premium wireless categories, all of which achieved market share growth. Additionally, new distribution agreements through the Company's newly formed subsidiary, 11 Trading Company LLC ("11TC") positively contributed to the year-over-year increase in net sales, as did higher sales in Europe.
- Biometrics net sales in Fiscal 2021 were
$0.8 million as compared to$0.5 million in Fiscal 2020, an increase of$0.4 million or81.3% . Driving the year-over-year growth were higher sales of the Company's EXT outdoor perimeter access and Nano NXT perimeter access products. Additionally, in Fiscal 2021, the Company began selling its NIXT product which can be optionally fitted with iTEMP, a product that can take an individual's temperature before allowing iris access.
Gross margin in Fiscal 2021 was
Total operating expenses in Fiscal 2021 were
The Company reported operating income in Fiscal 2021 of
Total other income in Fiscal 2021 was
Net income attributable to VOXX International Corporation in Fiscal 2021 was
EBITDA in Fiscal 2021 was
Balance Sheet Update
As of February 28, 2021, the Company had cash and cash equivalents of
Conference Call Information
VOXX International Corporation will be hosting its conference call and webcast today, May 13, 2021 at 5:00 p.m. Eastern. Interested parties can participate by visiting www.voxxintl.com and clicking on the webcast in the Investor Relations section or via teleconference using the information below.
- Toll-free number: 877-303-9079 / International number: 970-315-0461 / Conference ID: 8489189
For those unable to participate, a webcast and teleconference replay will be available approximately one hour after the completion of the call.
Replay Information
- Replay number: 855-859-2056 / International replay number: 404-537-3406 / Conference ID: 8489189
Non-GAAP Measures
EBITDA and Adjusted EBITDA are not financial measures recognized by GAAP. EBITDA represents net income (loss), computed in accordance with GAAP, before interest expense and bank charges, taxes, and depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted for stock-based compensation expense, life insurance proceeds, certain settlements, gains and losses, impairment charges, restructuring charges, and environmental remediation charges. Depreciation, amortization, stock-based compensation, and impairment charges are non-cash items.
We present EBITDA and Adjusted EBITDA in our Form 10-K because we consider them to be useful and appropriate supplemental measures of our performance. Adjusted EBITDA helps us to evaluate our performance without the effects of certain GAAP calculations that may not have a direct cash impact on our current operating performance. In addition, the exclusion of certain costs or gains relating to certain events that occurred during the periods presented allows for a more meaningful comparison of our results from period-to-period. These non-GAAP measures, as we define them, are not necessarily comparable to similarly entitled measures of other companies and may not be an appropriate measure for performance relative to other companies. EBITDA and Adjusted EBITDA should not be assessed in isolation from, are not intended to represent, and should not be considered to be more meaningful measures than, or alternatives to, measures of operating performance as determined in accordance with GAAP.
About VOXX International Corporation
VOXX International Corporation (NASDAQ: VOXX) has grown into a leader in Automotive Electronics and Consumer Electronics, with emerging Biometrics technology to capitalize on the increased need for advanced security. Over the past several decades, with a portfolio of approximately 35 trusted brands, VOXX has built market-leading positions in in-vehicle entertainment, automotive security, reception products, a number of premium audio market segments, and more. VOXX is a global company, with an extensive distribution network that includes power retailers, mass merchandisers, 12-volt specialists and many of the world's leading automotive manufacturers. For additional information, please visit our website at www.voxxintl.com.
Safe Harbor Statement
Except for historical information contained herein, statements made in this release constitute forward-looking statements and thus may involve certain risks and uncertainties. All forward-looking statements made in this release are based on currently available information and the Company assumes no responsibility to update any such forward-looking statements. The following factors, among others, may cause actual results to differ materially from the results suggested in the forward-looking statements. The factors include, but are not limited to the: risk factors described in the Company's annual report on Form 10-K for the fiscal year ended February 28, 2021 and other filings made by the Company from time to time with the SEC. The factors described in such SEC filings include, without limitation: the impact of the COVID-19 outbreak on the Company's results of operations, the Company's ability to realize the anticipated results of its business realignment; cybersecurity risks; risks that may result from changes in the Company's business operations; our ability to keep pace with technological advances; significant competition in the automotive electronics, consumer electronics and biometrics businesses; our relationships with key suppliers and customers; quality and consumer acceptance of newly introduced products; market volatility; non-availability of product; excess inventory; price and product competition; new product introductions; foreign currency fluctuations; and restrictive debt covenants. Many of the foregoing risks and uncertainties are, and will be, exacerbated by the COVID-19 pandemic and any worsening of the global business and economic environment as a result. The Company assumes no obligation and does not intend to update these forward-looking statements.
Investor Relations Contact:
Glenn Wiener, GW Communications (for VOXX)
Email: gwiener@GWCco.com
-- Tables to Follow --
VOXX International Corporation and Subsidiaries Consolidated Balance Sheets February 28, 2021 and February 29, 2020 (In thousands, except share data) | ||||||||
February 28, 2021 | February 29, 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 59,404 | $ | 37,425 | ||||
Accounts receivable, net | 106,165 | 69,714 | ||||||
Inventory, net | 130,793 | 99,110 | ||||||
Receivables from vendors | 277 | 230 | ||||||
Prepaid expenses and other current assets | 22,266 | 10,885 | ||||||
Income tax receivable | 434 | 456 | ||||||
Total current assets | 319,339 | 217,820 | ||||||
Investment securities | 1,777 | 2,282 | ||||||
Equity investments | 23,267 | 21,924 | ||||||
Property, plant and equipment, net | 52,026 | 51,424 | ||||||
Operating lease, right of use asset | 4,572 | 3,143 | ||||||
Goodwill | 58,311 | 55,000 | ||||||
Intangible assets, net | 90,104 | 88,288 | ||||||
Deferred income tax assets | 99 | 52 | ||||||
Other assets | 1,323 | 1,638 | ||||||
Total assets | $ | 550,818 | $ | 441,571 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 61,826 | $ | 22,096 | ||||
Accrued expenses and other current liabilities | 53,392 | 34,046 | ||||||
Income taxes payable | 1,587 | 1,523 | ||||||
Accrued sales incentives | 25,313 | 12,250 | ||||||
Contract liabilities, current | 4,178 | — | ||||||
Current portion of long-term debt | 500 | 1,107 | ||||||
Total current liabilities | 146,796 | 71,022 | ||||||
Long-term debt, net of debt issuance costs | 5,962 | 6,099 | ||||||
Finance lease liabilities, less current portion | 302 | 720 | ||||||
Operating lease liabilities, less current portion | 3,582 | 2,391 | ||||||
Deferred compensation | 1,777 | 2,282 | ||||||
Deferred income tax liabilities | 6,645 | 3,828 | ||||||
Other tax liabilities | 1,170 | 1,225 | ||||||
Other long-term liabilities | 5,255 | 3,294 | ||||||
Total liabilities | 171,489 | 90,861 | ||||||
Commitments and contingencies | ||||||||
Redeemable equity | 3,260 | 2,481 | ||||||
Stockholders' equity: | ||||||||
Preferred stock: | ||||||||
No shares issued or outstanding | — | — | ||||||
Common stock: | ||||||||
Class A, $.01 par value; 60,000,000 shares authorized, 24,416,194 and 24,306,194 shares issued and 21,666,976 and 21,556,976 shares outstanding at February 28, 2021 and February 29, 2020, respectively | 245 | 244 | ||||||
Class B Convertible, $.01 par value, 10,000,000 shares authorized, 2,260,954 shares issued and outstanding | 22 | 22 | ||||||
Paid-in capital | 300,402 | 299,228 | ||||||
Retained earnings | 148,906 | 122,139 | ||||||
Accumulated other comprehensive loss | (14,977) | (19,055) | ||||||
Less: Treasury stock, at cost, 2,749,218 shares of Class A Common Stock at both February 28, 2021 and February 29, 2020 | (23,918) | (23,918) | ||||||
Less: Redeemable equity | (3,260) | (2,481) | ||||||
Total VOXX International Corporation stockholders' equity | 407,420 | 376,179 | ||||||
Non-controlling interest | (31,351) | (27,950) | ||||||
Total stockholders' equity | 376,069 | 348,229 | ||||||
Total liabilities and stockholders' equity | $ | 550,818 | $ | 441,571 | ||||
VOXX International Corporation and Subsidiaries Consolidated Statements of Operations and Comprehensive Income (Loss) Years Ended February 28, 2021, February 29, 2020 and February 28, 2019 (In thousands, except share and per share data) | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
February 28, 2021 | February 29, 2020 | February 28, 2019 | ||||||||||
Net sales | $ | 563,605 | $ | 394,889 | $ | 446,816 | ||||||
Cost of sales | 405,058 | 285,113 | 325,399 | |||||||||
Gross profit | 158,547 | 109,776 | 121,417 | |||||||||
Operating expenses: | ||||||||||||
Selling | 43,786 | 39,319 | 41,731 | |||||||||
General and administrative | 70,085 | 68,928 | 66,935 | |||||||||
Engineering and technical support | 20,897 | 21,602 | 24,387 | |||||||||
Intangible asset impairment charges | 1,300 | 30,230 | 25,789 | |||||||||
Restructuring expense | — | — | 4,588 | |||||||||
Total operating expenses | 136,068 | 160,079 | 163,430 | |||||||||
Operating income (loss) | 22,479 | (50,303) | (42,013) | |||||||||
Other (expense) income: | ||||||||||||
Interest and bank charges | (2,979) | (2,975) | (3,788) | |||||||||
Equity in income of equity investee | 7,350 | 5,174 | 6,618 | |||||||||
Gain on sale of real property | — | 4,057 | — | |||||||||
Impairment of Venezuela investment properties | — | — | (3,473) | |||||||||
Impairment of notes receivable | — | — | (16,509) | |||||||||
Investment gain (loss) | 42 | 775 | (530) | |||||||||
Other, net | 746 | 2,332 | 732 | |||||||||
Total other income (expense), net | 5,159 | 9,363 | (16,950) | |||||||||
Income (loss) before income taxes | 27,638 | (40,940) | (58,963) | |||||||||
Income tax expense (benefit) | 4,272 | 882 | (6,131) | |||||||||
Net income (loss) | $ | 23,366 | $ | (41,822) | $ | (52,832) | ||||||
Less: net loss attributable to non-controlling interest | (3,401) | (15,379) | (6,741) | |||||||||
Net income (loss) attributable to VOXX International Corporation | $ | 26,767 | $ | (26,443) | $ | (46,091) | ||||||
Other comprehensive income (loss): | ||||||||||||
Foreign currency translation adjustments | 4,365 | (1,517) | (3,195) | |||||||||
Derivatives designated for hedging, net of tax | (305) | (505) | 461 | |||||||||
Pension plan adjustments, net of tax | 18 | (89) | (12) | |||||||||
Unrealized holding gain on available-for-sale investment securities arising during the period, net of tax | - | - | 24 | |||||||||
Other comprehensive income (loss), net of tax | 4,078 | (2,111) | (2,722) | |||||||||
Comprehensive income (loss) attributable to VOXX International Corporation | $ | 30,845 | $ | (28,554) | $ | (48,813) | ||||||
Net income (loss) per common share attributable to VOXX International Corporation - basic | $ | 1.11 | $ | (1.08) | $ | (1.89) | ||||||
Net income (loss) per common share attributable to VOXX International Corporation - diluted | $ | 1.09 | $ | (1.08) | $ | (1.89) | ||||||
Weighted-average common shares outstanding (basic) | 24,201,221 | 24,394,663 | 24,355,791 | |||||||||
Weighted-average common shares outstanding (diluted) | 24,650,106 | 24,394,663 | 24,355,791 | |||||||||
VOXX International Corporation and Subsidiaries Consolidated Statements of Operations and Comprehensive (Loss) Income Three Months Ended February 28, 2021, February 29, 2020 and February 28, 2019 (In thousands, except share and per share data) | |||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||
February 28, 2021 | February 29, 2020 | February 28, 2019 | |||||||||
Net sales | $ | 162,521 | $ | 101,077 | $ | 107,457 | |||||
Cost of sales | 120,153 | 72,543 | 83,703 | ||||||||
Gross profit | 42,368 | 28,534 | 23,754 | ||||||||
Operating expenses: | |||||||||||
Selling | 12,810 | 10,574 | 10,465 | ||||||||
General and administrative | 18,417 | 17,032 | 17,303 | ||||||||
Engineering and technical support | 5,955 | 5,701 | 6,038 | ||||||||
Intangible asset impairment charges | 1,300 | 30,230 | 15,975 | ||||||||
Restructuring expense | - | - | 4,588 | ||||||||
Total operating expenses | 38,482 | 63,537 | 54,369 | ||||||||
Operating income (loss) | 3,886 | (35,003) | (30,615) | ||||||||
Other (expense) income: | |||||||||||
Interest and bank charges | (699) | (782) | (890) | ||||||||
Equity in income of equity investee | 2,844 | 1,502 | 1,472 | ||||||||
Impairment of notes receivable | - | - | (16,509) | ||||||||
Investment loss | - | - | (530) | ||||||||
Other, net | (7) | 322 | (553) | ||||||||
Total other income (expense), net | 2,138 | 1,042 | (17,010) | ||||||||
Income (loss) from before income taxes | 6,024 | (33,961) | (47,625) | ||||||||
Income tax benefit | (2,452) | (308) | (9,278) | ||||||||
Net income (loss) | $ | 8,476 | $ | (33,653) | $ | (38,347) | |||||
Less: net loss attributable to non-controlling interest | (972) | (11,858) | (1,787) | ||||||||
Net income (loss) attributable to VOXX International Corporation | $ | 9,448 | $ | (21,795) | $ | (36,560) | |||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustments | 757 | (196) | 138 | ||||||||
Derivatives designated for hedging, net of tax | 209 | (234) | (81) | ||||||||
Pension Plan adjustments, net of tax | 103 | (114) | (69) | ||||||||
Other comprehensive income (loss), net of tax | 1,069 | (544) | (12) | ||||||||
Comprehensive income (loss) attributable to VOXX International Corporation | $ | 10,517 | $ | (22,339) | $ | (36,572) | |||||
Net income (loss) per common share attributable to VOXX International Corporation - basic | $ | 0.39 | $ | (0.90) | $ | (1.50) | |||||
Net income (loss) per common share attributable to VOXX International Corporation - diluted | $ | 0.38 | $ | (0.90) | $ | (1.50) | |||||
Weighted-average common shares outstanding (basic) | 24,206,248 | 24,141,506 | 24,355,791 | ||||||||
Weighted-average common shares outstanding (diluted) | 24,993,408 | 24,141,506 | 24,355,791 | ||||||||
Reconciliation of GAAP Net Income Attributable to VOXX International Corporation to EBITDA and Adjusted EBITDA | ||||||||||||
Fiscal | Fiscal | Fiscal | ||||||||||
2021 | 2020 | 2019 | ||||||||||
Net income (loss) attributable to VOXX International Corporation | $ | 26,767 | $ | (26,443) | $ | (46,091) | ||||||
Adjustments: | ||||||||||||
Interest expense and bank charges (1) | 2,404 | 2,476 | 2,223 | |||||||||
Depreciation and amortization (1) | 10,907 | 11,175 | 11,112 | |||||||||
Income tax expense (benefit) | 4,272 | 882 | (6,131) | |||||||||
EBITDA | 44,350 | (11,910) | (38,887) | |||||||||
Adjustments: | ||||||||||||
Stock-based compensation | 1,749 | 2,282 | 551 | |||||||||
Life insurance proceeds | (420) | (1,000) | — | |||||||||
Gain on sale of real property | — | (4,057) | — | |||||||||
Settlement of Hirschmann working capital | — | 804 | — | |||||||||
Impairment of investment properties in Venezuela | — | — | 3,473 | |||||||||
Impairment of notes receivable | — | — | 16,509 | |||||||||
Investment (gain) loss | (42) | (775) | 530 | |||||||||
Environmental remediation charges | — | — | 454 | |||||||||
Restructuring charges | — | — | 4,588 | |||||||||
Intangible asset impairment charges (1) | 1,300 | 19,543 | 25,789 | |||||||||
Adjusted EBITDA | $ | 46,937 | $ | 4,887 | $ | 13,007 | ||||||
(1) | For purposes of calculating Adjusted EBITDA for the Company, interest expense, bank charges, depreciation and amortization, and intangible asset impairment charges added back to net income (loss) have been adjusted in order to exclude the minority interest portion of these expenses attributable to EyeLock LLC. |
Reconciliation of GAAP Net Income Attributable to VOXX International Corporation to EBITDA, Adjusted EBITDA and Diluted Adjusted EBITDA per Common Share | ||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||
February 28, 2021 | February 29, 2020 | February 28, 2019 | ||||||||||
Net income (loss) attributable to VOXX International Corporation | $ | 9,448 | $ | (21,795) | $ | (36,560) | ||||||
Adjustments: | ||||||||||||
Interest expense and bank charges (1) | 497 | 649 | 464 | |||||||||
Depreciation and amortization (1) | 2,779 | 3,074 | 3,226 | |||||||||
Income tax benefit | (2,452) | (308) | (9,278) | |||||||||
EBITDA | 10,272 | (18,380) | (42,148) | |||||||||
Adjustments: | ||||||||||||
Stock-based compensation | 295 | 466 | 158 | |||||||||
Impairment of notes receivable | - | - | 16,509 | |||||||||
Investment loss | - | - | 530 | |||||||||
Environmental remediation charges | - | - | 454 | |||||||||
Restructuring charges | - | - | 4,588 | |||||||||
Intangible asset impairment charges (1) | 1,300 | 19,543 | 15,975 | |||||||||
Adjusted EBITDA | $ | 11,867 | $ | 1,629 | $ | (3,934) | ||||||
(1) | For purposes of calculating Adjusted EBITDA for the Company, interest expense, bank charges, depreciation and amortization expense, and intangible asset impairment charges added back to net income (loss) have been adjusted in order to exclude the minority interest portion of these expenses attributable to EyeLock LLC. |
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SOURCE VOXX International Corporation
FAQ
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