VOXX International Corporation Reports its Fiscal 2024 Fourth Quarter and Year-end Financial Results
VOXX International (NASDAQ: VOXX) reported its Fiscal 2024 fourth quarter and year-end financial results, revealing significant declines in net sales and gross margins across its segments.
The company witnessed a 20.8% drop in Q4 net sales to $108.1 million and a 12.2% annual decrease to $468.9 million. Gross margins fell from 25.4% to 19.9% in Q4. The Automotive Electronics segment saw a substantial decline in sales and margins, driven by lower rear-seat entertainment product sales and higher inventory provisions.
Despite cost-cutting measures, VOXX reported a Q4 net loss of $21.0 million, up from $18.1 million YoY, and a full-year net loss of $40.9 million compared to $27.5 million in Fiscal 2023. Higher operating expenses, including intangible asset impairments, and increased debt levels, further strained their financials.
The company has new products and automotive programs lined up for the latter half of 2024, aiming to improve profitability and margin management.
- New automotive programs starting in the second half of the year.
- Introduction of new products to market.
- Cost-saving initiatives reduced operating expenses by $3.5 million YoY.
- Cash and cash equivalents increased to $11.0 million from $6.1 million.
- Adjusted EBITDA loss improved to $3.4 million from $9.7 million YoY.
- Total availability under the Domestic Credit Facility stands at $55.3 million.
- Q4 net sales decreased by 20.8% YoY to $108.1 million.
- Annual net sales fell by 12.2% to $468.9 million.
- Gross margin dropped to 19.9% in Q4 from 25.4% YoY.
- Automotive Electronics segment gross margin declined to 12.4% from 25.4% YoY.
- Q4 net loss increased to $21.0 million from $18.1 million YoY.
- Annual net loss widened to $40.9 million from $27.5 million YoY.
- EBITDA loss in Q4 at $18.1 million, higher than $8.0 million YoY.
- Total debt increased to $73.3 million from $39.2 million.
- Intangible asset impairment charges increased to $14.2 million from $1.3 million YoY.
- Operating loss for Fiscal 2024 was $44.0 million, up from $27.3 million YoY.
Insights
The fiscal 2024 financial results for VOXX International Corporation indicate a challenging period with a significant downturn in both quarterly and annual revenue. Net sales decreased by
For a retail investor, the key takeaway is VOXX's current financial strain, characterized by increasing debt levels—total debt escalated from
It is essential to monitor VOXX's expense realignment strategies and their impact on margins in the upcoming quarters. The company’s ability to manage costs effectively while driving new revenue streams will be important for any turnaround prospects.
VOXX International's performance in the Automotive and Consumer Electronics segments has been notably weak. Automotive Electronics suffered a
The company’s gross margin decrease due to higher inventory provisions and increased competition suggests that VOXX is struggling to maintain its pricing power and operational efficiency. While new product launches and programs in the pipeline are positive signs, their potential success is yet to be seen against a backdrop of economic uncertainty and competitive pressure.
For retail investors, it's noteworthy that the biometric segment's underperformance continues to be a drag on overall results. Despite emerging technology potential, the segment's low sales and margins reveal significant hurdles in market penetration. Investors should closely watch the progress of VOXX's cost-reduction initiatives and the market reception of new products to gauge future performance.
The Seaguard settlement had a substantial financial impact on VOXX, requiring a payment of
Furthermore, the formation of BioCenturion LLC, a new joint venture, indicates strategic efforts by VOXX to diversify and possibly mitigate risks associated with its troubled segments. However, the execution and financial commitments, especially with GalvanEyes taking operational control, will need careful monitoring to ensure this venture adds value and does not become another financial burden.
For investors, understanding these legal and strategic maneuvers is essential. The short-term strain on cash flow and increased debt highlight the need for cautious optimism. It's important to assess the long-term benefits of resolving legal issues and the potential upside of the new venture against the immediate financial constraints.
Commenting on the Company's results and market outlook, Pat Lavelle, Chief Executive Officer stated, "After two strong years of growth and profits on an Adjusted EBITDA basis, we have experienced losses and as such, are taking steps to realign, both to improve margins and lower expenses. Fiscal 2024 was a tough year and we expect market conditions to remain challenged given inflation and global concerns. With that said, we have a number of new products both in and coming to market and new automotive programs starting in the second half of the year, which will help combat market softness. We have implemented new plans to improve margins and lower expenses to ensure VOXX's profitability. Concurrently, we are focused on improving capital returns, cash flow and our balance sheet."
Fiscal 2024 and Fiscal 2023 Fourth Quarter Comparisons
Net sales in the Fiscal 2024 fourth quarter ended February 29, 2024, were
- Automotive Electronics segment net sales in the Fiscal 2024 fourth quarter were
$32.6 million $49.5 million $16.9 million 34.1% . For the same comparable periods, OEM product sales were$11.7 million $21.9 million $20.9 million $27.6 million - Consumer Electronics segment net sales in the Fiscal 2024 fourth quarter were
$75.2 million $86.7 million $11.4 million 13.2% . For the same comparable periods, premium audio product sales were$57.2 million $61.9 million $18.0 million $24.8 million Europe andAsia . Other CE product sales declined across various categories primarily due to retail softness and global economic challenges, partially offset by higher sales of the Company's RCA hearing aid products and remote product line. - Biometrics segment net sales in the Fiscal 2024 fourth quarter were
$0.1 million $0.4 million
The gross margin in the Fiscal 2024 fourth quarter was
- Automotive Electronics segment gross margin of
12.4% as compared to25.4% . The year-over-year decline was primarily related to higher inventory provisions recorded in the Fiscal 2024 fourth quarter, as well as higher warehouse and assembly expenses, and product mix, which offset savings from the relocation of certain OEM manufacturing operations toMexico and other cost savings initiatives. - Consumer Electronics segment gross margin of
23.6% as compared to25.3% . The year-over-year decline was primarily driven by product mix and increased competition in select categories which impacted pricing, predominantly in the receiver category, as well as higher warehouse expenses. - Biometrics segment gross margin of
2.3% as compared to39.9% in the comparable year-ago period.
Total operating expenses in the Fiscal 2024 fourth quarter were
- Selling expenses of
$10.9 million $11.4 million $0.5 million - General and administrative ("G&A") expenses of
$16.6 million $19.7 million $3.1 million - Engineering and technical support expenses of
$6.1 million $7.6 million $1.5 million - Acquisition credit of
$0.2 million - Goodwill impairment charge of
$7.4 million - Intangible asset impairment charges of
$14.2 million $1.3 million - The Company incurred approximately
$0.3 million Florida toMexico and there were no charges recorded in the comparable Fiscal 2024 period.
The Company reported an operating loss of
Total other income, net, in the Fiscal 2024 fourth quarter increased by
Net loss attributable to VOXX International Corporation in the Fiscal 2024 fourth quarter was
The Company reported an Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") loss in the Fiscal 2024 fourth quarter of
Fiscal 2024 and Fiscal 2023 Comparisons
Net sales in the Fiscal 2024 twelve-month period ended February 29, 2024, were
- Automotive Electronics segment net sales in Fiscal 2024 were
$142.3 million $174.8 million $32.5 million 18.6% . For the same comparable periods, OEM product sales were$58.3 million $73.0 million $84.1 million $101.8 million - Consumer Electronics segment net sales in Fiscal 2024 were
$326.6 million $357.8 million $31.1 million 8.7% . For the same comparable periods, Premium Audio product sales were$237.9 million $274.5 million $88.7 million $83.2 million - Biometrics segment net sales in Fiscal 2024 were
$0.5 million $1.0 million
The gross margin in Fiscal 2024 was
- Automotive Electronics segment gross margin of
21.1% as compared to24.3% . The 320-basis point decline in gross margin was primarily related to product mix, lower sales of higher margin products such as aftermarket security and aftermarket RSE products, and higher sales of satellite radio products, the latter of which carry lower gross margins. The Company also incurred an inventory write-down of$3.8 million Mexico , among other factors. - Consumer Electronics segment gross margin of
25.6% as compared to25.5% . The year-over-year improvement of 10 basis points was primarily driven by higher sales of new products, such as RCA Hearing Aids and balcony solar products inEurope , as well as higher margins on newer premium audio products introduced and fewer promotions compared to the prior Fiscal year. The net decline in sales of the Company's Onkyo and Pioneer products domestically negatively affected margins in Fiscal 2024, as did more aggressive market competition, among other factors. - Biometrics segment gross margin of
20.5% as compared to34.2% in the comparable year-ago period.
Total operating expenses in the Fiscal 2024 twelve-month period were
- Selling expenses of
$43.1 million $47.0 million $3.9 million 8.3% , was primarily driven by lower employee salaries and related benefits and payroll taxes, lower advertising and website expenses, and lower commission expenses, among other factors. - General and administrative expenses of
$69.2 million $73.6 million $4.4 million 6.0% , was primarily due to lower salary and related payroll taxes, depreciation and amortization, professional fees and outside consulting services, as well as Employee Retention Credits which have offset payroll tax expenses, among other factors. This was partially offset by an increase in bad debt expense due to releases in the prior year that did not repeat, as well as higher travel expenses. - Engineering and technical support expenses of
$29.4 million $31.5 million $2.1 million 6.6% , was primarily due to lower research and development expenses, lower salary and payroll taxes and Employee Retention Credits which have offset payroll tax expenses, among other factors, partially offset by higher travel expense. - Intangible asset impairment charges of
$14.2 million $1.3 million $7.4 million - Restructuring expenses of
$2.1 million $1.3 million Mexico .
The Company reported an operating loss in the Fiscal 2024 twelve-month period of
Total other expense, net, in Fiscal 2024 was
Net loss attributable to VOXX International Corporation in Fiscal 2024 was
The Company reported an EBITDA loss in Fiscal 2024 of
Balance Sheet Update
As of February 29, 2024, the Company had cash and cash equivalents of
Seaguard Settlement
On December 22, 2023, the Company and Seaguard entered into a Settlement Agreement and Mutual Release, with an effective date of January 10, 2024, in which the Company agreed to pay Seaguard
BioCenturion LLC Formation
On March 1, 2024, EyeLock LLC, a majority owned subsidiary of VOXX International Corporation, entered into a joint venture agreement with GalvanEyes Partners, LLC to form the entity BioCenturion LLC ("BioCenturion"). The joint venture will operate the collective biometrics business and Beat Kahli, Co-Vice Chairman of VOXX International Corporation's Board of Directors will serve as Chairman of the Board and Chief Executive Officer of BioCenturion. Each of the members has agreed to contribute selected assets and liabilities to the joint venture, with GalvanEyes controlling the day-to-day operations. Further, GalvanEyes will be responsible for all working capital needs and the funding of the joint venture for the first two years. In conjunction with the formation of the joint venture, the distribution agreement between EyeLock and GalvanEyes was terminated, and a promissory note was signed by GalvanEyes for the repayment of the remaining quarterly installments due at February 29, 2024. The balance, with an interest rate of
Conference Call Information
The Company will be hosting its conference call and webcast on Wednesday, May 15, 2024 at 10:00 a.m. ET.
- To attend the webcast: https://edge.media-server.com/mmc/p/upj4o2cn
- To access by phone: https://register.vevent.com/register/BIdf763076ee234beeb2692a8842b45885
Participants are requested to register a day in advance or at a minimum 15 minutes before the start of the call. Those wishing to ask questions following management's remarks should use the dial-in numbers provided.
- A replay of the webcast will be available approximately two hours after the call and archived under "Events and Presentations" in the Investor Relations section of the Company's website at https://investors.voxxintl.com/events-and-presentations
Non-GAAP Measures
EBITDA and Adjusted EBITDA are not financial measures recognized by GAAP. EBITDA represents net 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, foreign currency losses and gains, gains on the sale of certain assets, acquisition costs, certain non-recurring legal and professional fees, settlements and awards, non-recurring severance expense, restructuring expenses, and impairment charges. Depreciation, amortization, stock-based compensation, foreign currency losses (gains), 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 "Risk Factors" section of the Company's Annual Report on Form 10-K for the fiscal year ended February 29, 2024, and other filings made by the Company from time to time with the SEC, as such descriptions may be updated or amended in any future reports we file with the SEC. The factors described in such SEC filings include, without limitation: impacts related to the COVID-19 pandemic, global supply shortages and logistics costs and delays; global economic trends; cybersecurity risks; risks that may result from changes in the Company's business operations; operational execution by our businesses; changes in law, regulation or policy that may affect our businesses; our ability to increase margins through implementation of operational improvements, restructuring and other cost reduction methods; 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 War in the Ukraine and any worsening of the global business and economic environment as a result.
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 29, 2024 and February 28, 2023 (In thousands, except share and per share data) | ||||||||
February 29, | February 28, | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 10,986 | $ | 6,134 | ||||
Accounts receivable, net | 71,066 | 82,753 | ||||||
Inventory, net | 128,471 | 175,129 | ||||||
Receivables from vendors | 1,192 | 112 | ||||||
Due from GalvanEyes LLC, current | 1,238 | — | ||||||
Prepaid expenses and other current assets | 20,820 | 19,817 | ||||||
Income tax receivable | 2,095 | 1,076 | ||||||
Total current assets | 235,868 | 285,021 | ||||||
Investment securities | 828 | 1,053 | ||||||
Equity investments | 21,380 | 22,018 | ||||||
Property, plant and equipment, net | 45,070 | 47,044 | ||||||
Operating lease, right of use assets | 2,577 | 3,632 | ||||||
Goodwill | 63,931 | 65,308 | ||||||
Intangible assets, net | 68,766 | 90,437 | ||||||
Due from GalvanEyes LLC, less current portion | 1,340 | — | ||||||
Deferred income tax assets | 1,452 | 1,218 | ||||||
Other assets | 2,794 | 3,720 | ||||||
Total assets | $ | 444,006 | $ | 519,451 | ||||
Liabilities, Redeemable Equity, Redeemable Non-Controlling Interest, and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 35,076 | $ | 35,099 | ||||
Accrued expenses and other current liabilities | 38,238 | 41,856 | ||||||
Income taxes payable | 1,123 | 2,276 | ||||||
Accrued sales incentives | 18,236 | 21,778 | ||||||
Contingent consideration, current | — | 4,500 | ||||||
Final arbitration award payable | — | 43,388 | ||||||
Contract liabilities, current | 3,810 | 3,990 | ||||||
Current portion of long-term debt | 500 | 500 | ||||||
Total current liabilities | 96,983 | 153,387 | ||||||
Long-term debt, net of debt issuance costs | 71,881 | 37,513 | ||||||
Finance lease liabilities, less current portion | 644 | 63 | ||||||
Operating lease liabilities, less current portion | 1,884 | 2,509 | ||||||
Deferred compensation | 828 | 1,053 | ||||||
Deferred income tax liabilities | 2,690 | 4,855 | ||||||
Other tax liabilities | 809 | 966 | ||||||
Prepaid ownership interest in EyeLock LLC due to GalvanEyes LLC | 9,817 | 7,317 | ||||||
Other long-term liabilities | 2,170 | 2,947 | ||||||
Total liabilities | 187,706 | 210,610 | ||||||
Commitments and contingencies | ||||||||
Redeemable equity: Class A, | 4,110 | 4,018 | ||||||
Redeemable non-controlling interest | (3,203) | (893) | ||||||
Stockholders' equity: | ||||||||
Preferred stock: | ||||||||
No shares issued or outstanding | — | — | ||||||
Common stock: | ||||||||
Class A, 20,589,946 shares outstanding at February 29, 2024 and February 28, 2023, respectively | 241 | 240 | ||||||
Class B Convertible, | 22 | 22 | ||||||
Paid-in capital | 293,271 | 292,565 | ||||||
Retained earnings | 58,272 | 99,122 | ||||||
Accumulated other comprehensive loss | (17,366) | (18,680) | ||||||
Less: Treasury stock, at cost, 4,287,041 and 3,370,657 shares of Class A Common Stock at February 29, 2024 and February 28, 2023, respectively | (39,573) | (30,285) | ||||||
Total VOXX International Corporation stockholders' equity | 294,867 | 342,984 | ||||||
Non-controlling interest | (39,474) | (37,268) | ||||||
Total stockholders' equity | 255,393 | 305,716 | ||||||
Total liabilities, redeemable equity, redeemable non-controlling interest, and stockholders' equity | $ | 444,006 | $ | 519,451 | ||||
VOXX International Corporation and Subsidiaries Consolidated Statements of Operations and Comprehensive Loss Years Ended February 29, 2024, February 28, 2023, and February 28, 2022 (In thousands, except share and per share data) | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
February 29, | February 28, | February 28, | ||||||||||
Net sales | $ | 468,911 | $ | 534,014 | $ | 635,920 | ||||||
Cost of sales | 354,892 | 399,715 | 466,442 | |||||||||
Gross profit | 114,019 | 134,299 | 169,478 | |||||||||
Operating expenses: | ||||||||||||
Selling | 43,090 | 46,967 | 50,507 | |||||||||
General and administrative | 69,228 | 73,638 | 75,955 | |||||||||
Engineering and technical support | 29,392 | 31,464 | 31,540 | |||||||||
Acquisition costs | — | (36) | 3,552 | |||||||||
Goodwill impairment charge | — | 7,373 | - | |||||||||
Intangible asset impairment charges | 14,214 | 1,300 | - | |||||||||
Restructuring expenses | 2,136 | 870 | - | |||||||||
Total operating expenses | 158,060 | 161,576 | 161,554 | |||||||||
Operating (loss) income | (44,041) | (27,277) | 7,924 | |||||||||
Other (expense) income: | ||||||||||||
Interest and bank charges | (6,935) | (4,643) | (2,532) | |||||||||
Equity in income of equity investee | 4,916 | 6,969 | 7,890 | |||||||||
Final arbitration award | 763 | (3,944) | (39,444) | |||||||||
Other, net | (2,080) | (2,055) | 323 | |||||||||
Total other expense, net | (3,336) | (3,673) | (33,763) | |||||||||
Loss before income taxes | (47,377) | (30,950) | (25,839) | |||||||||
Income tax (benefit) expense | (1,785) | (39) | 1,626 | |||||||||
Net loss | $ | (45,592) | $ | (30,911) | $ | (27,465) | ||||||
Less: net loss attributable to non-controlling interest | (4,742) | (3,460) | (5,132) | |||||||||
Net loss attributable to VOXX International Corporation | $ | (40,850) | $ | (27,451) | $ | (22,333) | ||||||
Other comprehensive income (loss): | ||||||||||||
Foreign currency translation adjustments | 1,375 | (1,876) | (3,317) | |||||||||
Derivatives designated for hedging, net of tax | 16 | 309 | 633 | |||||||||
Pension plan adjustments, net of tax | (77) | 390 | 158 | |||||||||
Other comprehensive income (loss), net of tax | 1,314 | (1,177) | (2,526) | |||||||||
Comprehensive loss attributable to VOXX International Corporation | $ | (39,536) | $ | (28,628) | $ | (24,859) | ||||||
Net loss per common share attributable to VOXX International Corporation - basic | $ | (1.74) | $ | (1.13) | $ | (0.92) | ||||||
Net loss per common share attributable to VOXX International Corporation - diluted | $ | (1.74) | $ | (1.13) | $ | (0.92) | ||||||
Weighted-average common shares outstanding (basic) | 23,428,473 | 24,325,938 | 24,287,179 | |||||||||
Weighted-average common shares outstanding (diluted) | 23,428,473 | 24,325,938 | 24,287,179 | |||||||||
VOXX International Corporation and Subsidiaries Consolidated Statements of Operations and Comprehensive (Loss) Income Three Months Ended February 29, 2024, February 28, 2023 and February 28, 2022 (In thousands, except share and per share data) | |||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||
February 29, | February 28, | February 28, | |||||||||
Net sales | $ | 108,083 | $ | 136,522
| $ | 163,880 | |||||
Cost of sales | 86,611 | 101,856 | 119,987 | ||||||||
Gross profit | 21,472 | 34,666 | 43,893 | ||||||||
Operating expenses: | |||||||||||
Selling | 10,936 | 11,404 | 13,338 | ||||||||
General and administrative | 16,607 | 19,735 | 19,346 | ||||||||
Engineering and technical support | 6,135 | 7,620 | 7,716 | ||||||||
Acquisition costs | - | (172) | 273 | ||||||||
Goodwill impairment charge | - | 7,373 | - | ||||||||
Intangible asset impairment charges | 14,214 | 1,300 | - | ||||||||
Restructuring charges | (32) | 338 | - | ||||||||
Total operating expenses | 47,860 | 47,598 | 40,673 | ||||||||
Operating (loss) income | (26,388) | (12,932) | 3,220 | ||||||||
Other (expense) income: | |||||||||||
Interest and bank charges | (1,924) | (1,542) | (692) | ||||||||
Equity in income of equity investee | 958 | 1,596 | 926 | ||||||||
Final arbitration award | 4,113 | (986) | - | ||||||||
Other, net | (583) | 1,114 | (352) | ||||||||
Total other income (expense), net | 2,564 | 182 | (118) | ||||||||
(Loss) income from before income taxes | (23,824) | (12,750) | 3,102 | ||||||||
Income tax (benefit) expense | (1,731) | 5,749 | 2,000 | ||||||||
Net (loss) income | $ | (22,093) | $ | (18,499) | $ | 1,102 | |||||
Less: net loss attributable to non-controlling interest | (1,133) | (370) | (1,659) | ||||||||
Net (loss) income attributable to VOXX International Corporation | $ | (20,960) | $ | (18,129) | $ | 2,761 | |||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustments | 38 | 789 | (520) | ||||||||
Derivatives designated for hedging, net of tax | 71 | 45 | 167 | ||||||||
Pension Plan adjustments, net of tax | (70) | 337 | 99 | ||||||||
Other comprehensive income (loss), net of tax | 39 | 1,171 | (254) | ||||||||
Comprehensive (loss) income attributable to VOXX International Corporation | $ | (20,921) | $ | (16,958) | $ | 2,507 | |||||
Net (loss) income per common share attributable to VOXX International Corporation - basic | $ | (0.90) | $ | (0.75) | $ | 0.11 | |||||
Net (loss) income per common share attributable to VOXX International Corporation - diluted | $ | (0.90) | $ | (0.75) | $ | 0.11 | |||||
Weighted-average common shares outstanding (basic) | 23,180,929 | 24,073,542 | 24,311,912 | ||||||||
Weighted-average common shares outstanding (diluted) | 23,180,929 | 24,073,542 | 24,044,833 | ||||||||
Reconciliation of GAAP Net Loss Attributable to VOXX International Corporation to EBITDA and Adjusted EBITDA | ||||||||||||
Fiscal | Fiscal | Fiscal | ||||||||||
2024 | 2023 | 2022 | ||||||||||
Net loss attributable to VOXX International Corporation | $ | (40,850) | $ | (27,451) | $ | (22,333) | ||||||
Adjustments: | ||||||||||||
Interest expense and bank charges (1) | 6,118 | 3,847 | 1,825 | |||||||||
Depreciation and amortization (1) | 11,855 | 12,451 | 12,053 | |||||||||
Income tax (benefit) expense (1) | (1,785) | (21) | 1,626 | |||||||||
EBITDA | (24,662) | (11,174) | (6,829) | |||||||||
Adjustments: | ||||||||||||
Stock-based compensation | 798 | 609 | 907 | |||||||||
Foreign currency losses (1) | 3,133 | 3,615 | 635 | |||||||||
Acquisition costs | — | (36) | 3,552 | |||||||||
Non-routine legal fees | 1,584 | 2,452 | 1,912 | |||||||||
Final arbitration award | (763) | 3,944 | 39,444 | |||||||||
Severance expense (2) | 863 | 864 | - | |||||||||
Gain on sale of tradename | (700) | (97) | - | |||||||||
Professional fees related to distribution agreement with GalvanEyes LLC | - | - | 325 | |||||||||
Restructuring expenses | 2,136 | 870 | - | |||||||||
Goodwill impairment charge | — | 7,373 | - | |||||||||
Intangible asset impairment charges | 14,214 | 1,300 | - | |||||||||
Adjusted EBITDA | $ | (3,397) | $ | 9,720 | $ | 39,946 | ||||||
(1) | For purposes of calculating Adjusted EBITDA for the Company, interest expense and bank charges, depreciation and amortization, income tax expense (benefit), and foreign currency losses added back to Net loss attributable to VOXX International Corporation have been adjusted in order to exclude the minority interest portion of these expenses attributable to EyeLock LLC and Onkyo, as applicable. |
(2) | Includes severance expenses for employee terminations resulting from non-recurring events, such as the departure of Section 16(b) officers and certain other executive officers of the Company. |
Reconciliation of GAAP Net Income Attributable to VOXX International Corporation to EBITDA and Adjusted EBITDA | ||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||
February 29, 2024 | February 28, 2023 | February 28, 2022 | ||||||||||
Net (loss) income attributable to VOXX International Corporation | $ | (20,960) | $ | (18,129) | $ | 2,761 | ||||||
Adjustments: | ||||||||||||
Interest expense and bank charges (1) | 1,713 | 1,347 | 468 | |||||||||
Depreciation and amortization (1) | 2,852 | 3,045 | 3,162 | |||||||||
Income tax (benefit) expense | (1,731) | 5,767 | 2,000 | |||||||||
EBITDA | (18,126) | (7,970) | 8,391 | |||||||||
Adjustments: | ||||||||||||
Stock-based compensation | 155 | 202 | 213 | |||||||||
Foreign currency losses (gains) | 813 | (252) | 367 | |||||||||
Acquisition costs | - | (172) | 273 | |||||||||
Non-routine legal fees | 35 | 1,566 | 443 | |||||||||
Final arbitration award | (4,113) | 986 | - | |||||||||
Severance expense (2) | 863 | 864 | - | |||||||||
Gain on sale of tradename | (250) | (97) | - | |||||||||
Restructuring expenses | (32) | 338 | - | |||||||||
Goodwill impairment charge | - | 7,373 | - | |||||||||
Intangible asset impairment charges | 14,214 | 1,300 | - | |||||||||
Adjusted EBITDA | $ | (6,441) | $ | 4,138 | $ | 9,687 | ||||||
(1) | For purposes of calculating Adjusted EBITDA for the Company, interest expense and bank charges, depreciation and amortization, income tax expense (benefit), and foreign currency losses (gains) added back to Net (loss) income attributable to VOXX International Corporation have been adjusted in order to exclude the minority interest portion of these expenses attributable to EyeLock LLC and Onkyo, as applicable. |
(2) | Includes severance expenses for employee terminations resulting from non-recurring events, such as the departure of Section 16(b) officers and certain other executive officers of the Company. |
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SOURCE VOXX International Corporation (NASDAQ:VOXX)
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