VOXX International Corporation Reports its Fiscal 2025 Second Quarter Financial Results
VOXX International reported its Fiscal 2025 Q2 results, showing progress in restructuring efforts despite sales declines. Key points include:
- Sales down ~18% in first half of Fiscal 2025, but gross margin up 120 basis points and operating expenses reduced by over 15%
- Sale of domestic accessory business and non-core assets for ~$28 million
- Florida real estate sale for $20 million in Q3
- Over $50 million in debt reduction since year-end, bringing total debt under $20 million
- Q2 net sales of $92.5 million, down 18.6% year-over-year
- Q2 net income of $2.4 million, compared to net loss of $11.1 million in prior year
- EBITDA of $8.5 million in Q2, compared to loss of $5.4 million in prior year
The company continues to focus on restructuring, strengthening its balance sheet, and exploring strategic alternatives to maximize shareholder value.
VOXX International ha riportato i risultati del secondo trimestre fiscale 2025, evidenziando progressi negli sforzi di ristrutturazione nonostante il calo delle vendite. I punti chiave includono:
- Vendite in calo di circa il 18% nella prima metà del fiscale 2025, ma margine lordo aumentato di 120 punti base e spese operative ridotte di oltre il 15%
- Vendita del business domestico degli accessori e di beni non core per circa 28 milioni di dollari
- Vendita di immobili in Florida per 20 milioni di dollari nel terzo trimestre
- Riduzione del debito di oltre 50 milioni di dollari dal termine dell'anno, portando il debito totale sotto i 20 milioni di dollari
- Vendite nette del secondo trimestre di 92,5 milioni di dollari, in calo del 18,6% rispetto all'anno precedente
- Utile netto del secondo trimestre di 2,4 milioni di dollari, rispetto a una perdita netta di 11,1 milioni di dollari nell'anno precedente
- EBITDA di 8,5 milioni di dollari nel secondo trimestre, rispetto a una perdita di 5,4 milioni di dollari nell'anno precedente
L'azienda continua a concentrarsi sulla ristrutturazione, sul rafforzamento del proprio bilancio e sull'esplorazione di alternative strategiche per massimizzare il valore per gli azionisti.
VOXX International informó sobre sus resultados del segundo trimestre fiscal 2025, mostrando avances en los esfuerzos de reestructuración a pesar de las disminuciones en ventas. Los puntos clave incluyen:
- Ventas en descenso de aproximadamente el 18% en la primera mitad del fiscal 2025, pero el margen bruto aumentó 120 puntos base y los gastos operativos se redujeron en más del 15%
- Venta del negocio doméstico de accesorios y activos no esenciales por aproximadamente 28 millones de dólares
- Venta de bienes raíces en Florida por 20 millones de dólares en el tercer trimestre
- Reducción de la deuda en más de 50 millones de dólares desde el cierre del año, llevando la deuda total por debajo de los 20 millones de dólares
- Ventas netas en el segundo trimestre de 92,5 millones de dólares, una disminución del 18,6% interanual
- Ingreso neto del segundo trimestre de 2,4 millones de dólares, en comparación con una pérdida neta de 11,1 millones de dólares en el año anterior
- EBITDA de 8,5 millones de dólares en el segundo trimestre, en comparación con una pérdida de 5,4 millones de dólares en el año anterior
La empresa continúa enfocándose en la reestructuración, fortaleciendo su balance general y explorando alternativas estratégicas para maximizar el valor para los accionistas.
VOXX International은 2025 회계연도 2분기 실적을 보고하며 판매 감소에도 불구하고 재구성 노력의 진전을 보여줍니다. 주요 포인트는 다음과 같습니다:
- 2025 회계연도 상반기 판매가 약 18% 감소했으나, 총 마진이 120bp 상승하고 운영비용이 15% 이상 절감됨
- 국내 액세서리 사업과 비핵심 자산을 약 2800만 달러에 판매
- 3분기에 플로리다 부동산을 2000만 달러에 판매
- 연말 이후 5000만 달러 이상의 부채 감소, 총 부채가 2000만 달러 이하로 감소
- 2분기 순매출 9250만 달러로 전년 대비 18.6% 감소
- 2분기 순이익 240만 달러로, 전년도 1110만 달러 손실과 비교됨
- 지난해 540만 달러의 손실과 비교하여 2분기 EBITDA가 850만 달러
회사는 재구성에 계속 집중하고 있으며, 재무 상태를 강화하고 주주 가치를 극대화하기 위한 전략적 대안을 모색하고 있습니다.
VOXX International a annoncé ses résultats du deuxième trimestre de l'exercice 2025, montrant des progrès dans les efforts de restructuration malgré une baisse des ventes. Les points clés incluent :
- Ventes en baisse d'environ 18% au premier semestre de l'exercice 2025, mais la marge brute augmentée de 120 points de base et les dépenses opérationnelles réduites de plus de 15%
- Vente de l'activité d'accessoires domestiques et d'actifs non essentiels pour environ 28 millions de dollars
- Vente d'immobilier en Floride pour 20 millions de dollars au troisième trimestre
- Réduction de la dette de plus de 50 millions de dollars depuis la fin de l'année, portant la dette totale en dessous de 20 millions de dollars
- Ventes nettes du deuxième trimestre de 92,5 millions de dollars, en baisse de 18,6% par rapport à l'année précédente
- Bénéfice net du deuxième trimestre de 2,4 millions de dollars, par rapport à une perte nette de 11,1 millions de dollars l'année précédente
- EBITDA de 8,5 millions de dollars au deuxième trimestre, par rapport à une perte de 5,4 millions de dollars l'année précédente
La société continue de se concentrer sur la restructuration, de renforcer son bilan et d'explorer des alternatives stratégiques pour maximiser la valeur pour les actionnaires.
VOXX International berichtete über die Ergebnisse des zweiten Quartals im Geschäftsjahr 2025 und zeigte Fortschritte bei den Umstrukturierungsmaßnahmen trotz eines Rückgangs der Umsätze. Wichtige Punkte sind:
- Umsätze im ersten Halbjahr des Geschäftsjahres 2025 um ca. 18% gesunken, aber die Bruttomarge um 120 Basispunkte gestiegen und die Betriebskosten um über 15% gesenkt
- Verkauf des inländischen Zubehörgeschäfts und nicht zum Kerngeschäft gehörenden Vermögenswerte für ca. 28 Millionen Dollar
- Verkauf von Immobilien in Florida für 20 Millionen Dollar im dritten Quartal
- Reduzierung der Schulden um über 50 Millionen Dollar seit Jahresende, wodurch die Gesamtschulden auf unter 20 Millionen Dollar gesenkt wurden
- Netto-Umsatz im zweiten Quartal von 92,5 Millionen Dollar, ein Rückgang um 18,6% im Vergleich zum Vorjahr
- Netto-Einkommen im zweiten Quartal von 2,4 Millionen Dollar, im Vergleich zu einem Nettoverlust von 11,1 Millionen Dollar im Vorjahr
- EBITDA von 8,5 Millionen Dollar im zweiten Quartal, im Vergleich zu einem Verlust von 5,4 Millionen Dollar im Vorjahr
Das Unternehmen konzentriert sich weiterhin auf die Umstrukturierung, stärkt seine Bilanz und erkundet strategische Alternativen zur Maximierung des Aktionärswerts.
- Gross margin increased by 120 basis points in first half of Fiscal 2025
- Operating expenses reduced by over 15% in first half of Fiscal 2025
- Sale of domestic accessory business and non-core assets for ~$28 million
- Florida real estate sale for $20 million in Q3
- Over $50 million in debt reduction since year-end, bringing total debt under $20 million
- Q2 net income of $2.4 million, compared to net loss of $11.1 million in prior year
- EBITDA of $8.5 million in Q2, compared to loss of $5.4 million in prior year
- Sales down ~18% in first half of Fiscal 2025
- Q2 net sales of $92.5 million, down 18.6% year-over-year
- Automotive Electronics segment net sales down 25.5% in Q2
- Consumer Electronics segment net sales down 15.4% in Q2
- Q2 operating loss of $9.1 million compared to $8.5 million loss in prior year
Insights
- Sales down
18.6% YoY to$92.5 million - Gross margin improved 120 bps to
26.1% for H1 - Operating expenses reduced by
15.5% to$64.3 million for H1 - Net income of
$2.4 million vs.$11.1 million loss in Q2 FY2024 - Debt reduced by over
$50 million since year-end to under$20 million
- Automotive segment sales down
25.5% , impacted by high vehicle prices and interest rates - Consumer Electronics sales down
15.4% , with premium audio declining due to economic concerns - European accessory sales significantly down by
$8.2 million
- New product launches in premium audio partially offsetting declines
- OEM manufacturing relocation to Mexico improving margins
- Restructuring and cost-cutting measures showing positive results
- Sales through the first half of Fiscal 2025 declined ~
18% , gross margin increased 120 basis points and operating expenses improved by over15% - Company sells its domestic accessory business and select, non-core assets for
~ and completes$28 million Florida real estate sale transaction in Fiscal 2025 third quarter for$20 million - Restructuring programs generating anticipated savings, and are expected to have a positive impact on Fiscal 2025 second half results
- Over
in debt reduction since year-end, bringing total debt to under$50 million as of today, with total net debt under$20 million $15 million - Company continues to execute on its restructuring plan and strengthen its balance sheet, while pursuing strategic alternatives to maximize shareholder value
"We made significant progress through the first half of the year in executing our plan to unlock value," stated Pat Lavelle, President and Chief Executive Officer of VOXX International Corporation. "We exited Fiscal 2024 coming off losses and had over
Lavelle continued, "We also embarked on a strategic alternatives process to explore all avenues that could generate better value for our shareholders given what we believe to be a significant disconnect in our asset value and stock price. This could mean a sale of our entire business, or additional business or asset divestitures as we still have significant value within our portfolio, as well as owned real estate. Irrespective of the outcome of the process, we are laser focused on getting VOXX back to profitability. Through restructuring programs, our OEM relocation, strong management of the supply chain, and all of our new programs and products, we believe we can do that this Fiscal year. We are aggressively taking actions and controlling what we can to offset anything the economy or business environment may throw at us. We're well on our way to achieving our goals provided sales materialize in the second half of the year as planned."
Fiscal 2025 and Fiscal 2024 Second Quarter Comparisons
Net sales in the Fiscal 2025 second quarter ended August 31, 2024, were
- Automotive Electronics segment net sales were
as compared to$26.4 million , a decrease of$35.4 million or$9.0 million 25.5% . OEM product sales were as compared to$11.0 million , with the decline primarily due to lower sales of OEM rear-seat entertainment and to a lesser extent, remote start products. Aftermarket product sales were$16.3 million as compared to$15.4 million with declines across several categories as the market continues to deal with inflated vehicle pricing and high interest rates, resulting in lower consumer spending on vehicles.$19.2 million
- Consumer Electronics segment net sales were
as compared to$66.1 million , a decrease of$78.0 million or$12.0 million 15.4% . Premium audio product sales were as compared to$49.9 million . The decline in premium audio product sales was due primarily to fewer close-out sales in the prior year, and lower consumer spending amid economic and geopolitical concerns, among other factors. This was partially offset by sales from new products that were launched. Other consumer electronics ("CE") product sales were$53.2 million as compared to$16.1 million , with the decline primarily related to lower European accessory product sales which declined by approximately$24.8 million . Domestic accessory sales declined by$8.2 million due primarily to lower consumer spending and current economic concerns.$1.4 million
On March 1, 2024, the Company's majority owned subsidiary, EyeLock LLC, contributed assets, including inventory and intangible assets, to a newly formed joint venture, BioCenturion LLC. As of and for the three and six months ended August 31, 2024, the Company accounted for its investment in BioCenturion LLC as an equity method investment with (loss) income from its equity method investee recorded within Other (Expense) Income on the Company's Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss).
The gross margin in the Fiscal 2025 second quarter was
- Automotive Electronics segment gross margin of
23.6% as compared to24.3% , down 70 basis points. The year-over-year decline was primarily driven by lower sales of higher margin products, such as aftermarket security, aftermarket rear-seat entertainment, and collision avoidance. This was partially offset by the positive impact from the Company's OEM manufacturing relocation toMexico , as well as product mix.
- Consumer Electronics segment gross margin of
25.1% as compared to25.5% , down 40 basis points. The year-over-year decline was primarily driven by the significant sales decline in the Company's European accessories business, as well as the decline in premium audio sales inEurope andAsia . This was partially offset by fewer low price, low margin close-out sales of older products compared to the prior year, as well as the positive impact from new premium audio product launches.
Total operating expenses in the Fiscal 2025 second quarter were
- Selling expenses of
as compared to$7.8 million . The year-over-year improvement of$10.0 million or$2.2 million 21.7% was primarily driven by lower advertising and website expenses, as well as lower headcount related expenses, partially offset by an increase in payroll tax expenses as a result of Employee Reduction Credits received in the comparable prior year.
- General and administrative ("G&A") expenses of
as compared to$15.8 million . The year-over-year improvement of$17.3 million or$1.5 million 8.5% was primarily driven by lower headcount related expenses, the absence of EyeLock LLC salaries and Mr. Kahli's executive salary, and a decline in depreciation and amortization expenses. Additionally, legal and professional fees declined as did occupancy costs. As an offset, the Company experienced higher taxes and licensing fees related to the implementation of its new ERP system, as well as higher payroll tax expenses.
- Engineering and technical support expenses of
as compared to$6.1 million . The year-over-year improvement of$7.9 million or$1.8 million 22.4% was primarily due to a decline in research and development expense, as well as the positive impact from the formation of the BioCenturion LLC joint venture. Additionally, labor expense and related benefits declined as a direct result of the Company's restructuring programs and its use of outside labor compared to the prior year period.
- The Company incurred approximately
of restructuring expenses as compared to$2.1 million , with restructuring costs primarily comprised of severance expense related to Companywide headcount reductions, including those related to the domestic accessories business, which was sold during the Fiscal 2025 second quarter. Restructuring expenses also included costs related to the relocation of the Company's OEM manufacturing operations to$2.0 million Mexico .
The Company reported an operating loss of
Total other income, net, in the Fiscal 2025 second quarter was
- Interest and bank charges increased by
principally due to higher borrowings on the Company's Domestic Credit Facility.$0.4 million - Equity in income of equity investee declined by
for the comparable periods. This historically included the Company's$1.0 million 50% ownership interests in ASA Electronics LLC and Subsidiaries ("ASA") and now includes its50% ownership interests in BioCenturion LLC., as of March 1, 2024. - In the Fiscal 2024 second quarter, the Company recorded
of charges representing interest expense, legal fee reimbursements, and a settlement related to patent arbitration in connection with the final arbitration award due to Seaguard, which was paid in the fourth quarter of Fiscal 2024.$1.6 million - Lastly, other, net, improved by
, principally as a result of net foreign currency gains and losses.$4.8 million
Net income attributable to VOXX International Corporation in the Fiscal 2025 second quarter was
The Company reported Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") in the Fiscal 2025 second quarter of
Fiscal 2025 and Fiscal 2024 Six-Month Comparisons
Net sales in the Fiscal 2025 six-month period ended August 31, 2024, were
- Automotive Electronics segment net sales in the Fiscal 2025 six-month period were
as compared to$54.1 million in the comparable year-ago period, a decrease of$73.8 million or$19.8 million 26.8% . For the same comparable periods, OEM product sales were as compared to$23.9 million and aftermarket product sales were$36.5 million as compared to$30.2 million . The principal drivers of the year-over-year decline were a$37.3 million decrease in OEM rear-seat entertainment sales, a$13.5 million decrease in aftermarket security product sales, and a$1.8 million decrease in sales of satellite radio products, among other factors. This was partially offset by higher sales of OEM remote start products and OEM safety products, as well as higher sales of aftermarket accessories products.$1.6 million
- Consumer Electronics segment net sales in the Fiscal 2025 six-month period were
as compared to$130.0 million in the comparable year-ago period, a decrease of$151.4 million or$21.4 million 14.1% . For the same comparable periods, Premium Audio product sales were as compared to$98.3 million and other consumer electronics product sales were$100.8 million as compared to$31.7 million . The decline in premium audio product sales was primarily due to the state of the international markets as sales declined$50.6 million in$1.9 million Europe andAsia . Domestic premium audio product sales grew modestly and sales from new products helped offset international weakness, as expected. Other CE product sales declined in$10.8 million Europe , primarily due to lower sales of balcony solar power products as sales have normalized post-launch. Domestic accessory sales declined by for the comparable periods. There were other offsetting factors when comparing the six-month periods.$7.4 million
The gross margin in the Fiscal 2025 six-month period was
- Automotive Electronics segment gross margin of
23.4% as compared to22.6% , an improvement of 80 basis points due primarily to product mix, restructuring initiatives and the positive impact from transitioning OEM manufacturing toMexico .
- Consumer Electronics segment gross margin of
27.3% as compared to25.5% . The year-over-year improvement of 180 basis points was primarily driven by fewer close out promotions in the Fiscal 2025 six-month period and improved margins from the launch of new premium audio products. This was partially offset by the decline in European accessory sales and lower premium audio product sales inEurope andAsia .
Total operating expenses in the Fiscal 2025 six-month period were
- Selling expenses of
declined by$17.4 million or$3.7 million 17.7% , primarily due to lower advertising and web expenses, trade show expenses, employee salaries and related benefits, and commissions, among other factors.
- General and administrative expenses of
declined by$32.2 million or$4.4 million 12.1% , primarily due to lower salary and related benefit expense, the absence of EyeLock LLC and former President Beat Kahli's salaries, lower legal and professional fees, and lower depreciation and amortization, among other factors.
- Engineering and technical support expenses of
declined by$12.3 million or$3.9 million 23.8% , primarily due to lower research and development expenses, as well as lower labor expenses and related benefits as a result of headcount reductions.
- Restructuring costs of
increased by$2.3 million or$0.3 million 12.7% . Restructuring costs for the six-month periods were primarily comprised of severance expense related to Companywide headcount reductions, including those related to the domestic accessories business, which was sold during the Fiscal 2025 second quarter. Restructuring expenses also included costs related to the relocation of the Company's OEM manufacturing operations toMexico .
The Company reported an operating loss in the Fiscal 2025 six-month period of
Total other income, net, in the Fiscal 2025 six-month period was
- Interest and bank charges of
increased approximately$4.1 million , primarily due to higher borrowings on the Company's Domestic Credit Facility.$1.0 million - Equity in income of equity investee of
declined by$0.6 million as it now includes the Company's$2.3 million 50% non-controlling ownership interest in BioCenturion LLC as of March 1, 2024. - The Company recorded a gain on sale of business of
related to the sale of its Domestic Accessories business and$8.3 million related to the asset sales of premium audio trademarks and inventory.$2.2 million - In the Fiscal 2024 six-month period, the Company recorded an expense of
related to the final arbitration award due to Seaguard, which was paid in the Fiscal 2024 fourth quarter.$2.6 million - Other income, net of
improved by$2.0 million as a result of net foreign currency gains and losses.$3.6 million
Net loss attributable to VOXX International Corporation in the Fiscal 2025 six-month period was
The Company reported EBITDA in the Fiscal 2025 six-month period of
Fiscal 2025 Second Quarter Dispositions and Subsequent Real Estate Transaction in the Fiscal 2025 Third Quarter
Sale of Domestic Accessories Business
On August 30, 2024, the Company's wholly owned subsidiary, VOXX Accessories Corp. ("VAC"), completed the sale of certain assets of its domestic accessories business ("the Disposal Group"), consisting of intangible assets and inventory, which was included in the Company's Consumer Electronics segment, to Talisman Brands Inc., d/b/a Established Inc. ("Established" or the "Buyer") for total consideration of
Additionally, at closing, the Company and Established entered into an operations services agreement, pursuant to which the Company agreed to continue to operate the accessories business for the Buyer's benefit, consisting of certain defined services, including purchasing, logistics, sales, MIS, human resources, customer service, credit and collections, and finance and accounting services. The operating services agreement will continue for a period of twelve months, and may be canceled at any time, or extended, at the Buyer's option.
Sale of Premium Audio Company Trade Names and Related Inventory
On August 15, 2024, the Company's wholly owned subsidiary, Premium Audio Company, LLC ("PAC"), completed the sale of certain trade names and related inventory to Jamo Holding Limited and Cinemaster Shanghai Ltd. for total consideration of
Sale of the Company's
On September 24, 2024, the Company completed the sale of its manufacturing facility in Lake Nona,
Strategic Process
On August 27, 2024, the Company announced that its board of directors had been conducting an exploration of strategic alternatives in connection with the Company's ongoing effort to maximize shareholder value. As part of the process, the board will consider a range of options including, among other things, a potential sale of the Company, a sale of segments, operational improvements, or other strategic transactions. Per its fiduciary responsibilities and to support its evaluation process, the board has established a strategic transactions committee which has retained Solomon Partners as financial advisor and Bryan Cave Leighton Paisner LLP as legal advisor.
Balance Sheet Update
As of August 31, 2024, the Company had cash and cash equivalents of
As of October 9, 2024, the Company's total debt was
Conference Call Information
The Company will be hosting its conference call and webcast on Friday, October 11, 2024 at 10:00 a.m. ET.
- To attend the webcast: https://edge.media-server.com/mmc/p/ef5x57m5
- To access by phone: https://register.vevent.com/register/BIa701ac0278704dfab04bf5c386aca9b4
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 attributable to VOXX International Corporation and Subsidiaries, 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, gains on the sale of certain assets and businesses, foreign currency gains and losses, restructuring expenses, certain non-routine legal fees, and awards. Depreciation, amortization, stock-based compensation, and foreign currency gains and losses are non-cash items.
We present EBITDA and Adjusted EBITDA in this press release and in our Form 10-Q 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 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 worldwide leader in the Automotive Electronics and Consumer Electronics industries. Over the past several decades, VOXX has built market-leading positions in in-vehicle entertainment and automotive security, as well as in 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 | ||||||||
(In thousands, except share and per share data) | ||||||||
August 31, | February 29, | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 3,661 | $ | 10,986 | ||||
Accounts receivable, net of allowances of | 64,240 | 71,066 | ||||||
Inventory | 113,253 | 128,471 | ||||||
Receivables from vendors | 795 | 1,192 | ||||||
Due from Established | 24,542 | - | ||||||
Due from GalvanEyes LLC, current | - | 1,238 | ||||||
Prepaid expenses and other current assets | 15,743 | 20,820 | ||||||
Income tax receivable | 4,710 | 2,095 | ||||||
Total current assets | 226,944 | 235,868 | ||||||
Investment securities | 398 | 828 | ||||||
Equity investments | 22,848 | 21,380 | ||||||
Property, plant and equipment, net | 44,201 | 45,070 | ||||||
Operating lease, right of use assets | 2,815 | 2,577 | ||||||
Goodwill | 64,344 | 63,931 | ||||||
Intangible assets, net | 56,632 | 68,766 | ||||||
Due from GalvanEyes LLC, less current portion | - | 1,340 | ||||||
Deferred income tax assets | 60 | 1,452 | ||||||
Other assets | 2,922 | 2,794 | ||||||
Total assets | $ | 421,164 | $ | 444,006 | ||||
Liabilities, Redeemable Equity, Redeemable Non-Controlling Interest, and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 43,895 | $ | 35,076 | ||||
Accrued expenses and other current liabilities | 38,397 | 38,238 | ||||||
Income taxes payable | 1,168 | 1,123 | ||||||
Accrued sales incentives | 16,810 | 18,236 | ||||||
Contract liabilities, current | 3,265 | 3,810 | ||||||
Current portion of long-term debt | 4,469 | 500 | ||||||
Total current liabilities | 108,004 | 96,983 | ||||||
Long-term debt, net of debt issuance costs | 50,015 | 71,881 | ||||||
Finance lease liabilities, less current portion | 484 | 644 | ||||||
Operating lease liabilities, less current portion | 1,917 | 1,884 | ||||||
Deferred compensation | 398 | 828 | ||||||
Deferred income tax liabilities | 2,615 | 2,690 | ||||||
Other tax liabilities | 721 | 809 | ||||||
Prepaid ownership interest in EyeLock LLC due to GalvanEyes LLC | - | 9,817 | ||||||
Other long-term liabilities | 2,850 | 2,170 | ||||||
Total liabilities | 167,004 | 187,706 | ||||||
Commitments and contingencies | ||||||||
Redeemable equity: Class A, | 4,173 | 4,110 | ||||||
Redeemable non-controlling interest | (4,041) | (3,203) | ||||||
Stockholders' equity: | ||||||||
Preferred stock: | ||||||||
No shares issued or outstanding | - | - | ||||||
Common stock: | ||||||||
Class A, | 240 | 240 | ||||||
Class B Convertible, | 22 | 22 | ||||||
Paid-in capital | 295,959 | 293,272 | ||||||
Retained earnings | 51,415 | 58,272 | ||||||
Accumulated other comprehensive loss | (17,219) | (17,366) | ||||||
Less: Treasury stock, at cost, 4,351,183 and 4,287,041 shares of Class A Common Stock at August 31, | (39,821) | (39,573) | ||||||
Total VOXX International Corporation stockholders' equity | 290,596 | 294,867 | ||||||
Non-controlling interest | (36,568) | (39,474) | ||||||
Total stockholders' equity | 254,028 | 255,393 | ||||||
Total liabilities, redeemable equity, redeemable non-controlling interest, and stockholders' equity | $ | 421,164 | $ | 444,006 |
VOXX International Corporation and Subsidiaries | ||||||||||||||||
Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) | ||||||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net sales | $ | 92,488 | $ | 113,642 | $ | 184,149 | $ | 225,568 | ||||||||
Cost of sales | 69,796 | 85,017 | 136,048 | 169,363 | ||||||||||||
Gross profit | 22,692 | 28,625 | 48,101 | 56,205 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling | 7,848 | 10,021 | 17,438 | 21,187 | ||||||||||||
General and administrative | 15,777 | 17,250 | 32,234 | 36,677 | ||||||||||||
Engineering and technical support | 6,100 | 7,857 | 12,344 | 16,194 | ||||||||||||
Restructuring expenses | 2,098 | 2,008 | 2,329 | 2,067 | ||||||||||||
Total operating expenses | 31,823 | 37,136 | 64,345 | 76,125 | ||||||||||||
Operating loss | (9,131) | (8,511) | (16,244) | (19,920) | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest and bank charges | (1,973) | (1,573) | (4,111) | (3,119) | ||||||||||||
Equity in income of equity investees | 200 | 1,241 | 551 | 2,857 | ||||||||||||
Gain on sale of business | 8,300 | - | 8,300 | - | ||||||||||||
Gain on sale of assets | 2,154 | - | 2,154 | - | ||||||||||||
Final arbitration award | - | (1,612) | - | (2,598) | ||||||||||||
Other, net | 3,842 | (952) | 1,971 | (1,653) | ||||||||||||
Total other income (expense), net | 12,523 | (2,896) | 8,865 | (4,513) | ||||||||||||
Income (loss) before income taxes | 3,392 | (11,407) | (7,379) | (24,433) | ||||||||||||
Income tax expense (benefit) | 1,600 | 1,170 | 1,006 | (151) | ||||||||||||
Net income (loss) | 1,792 | (12,577) | (8,385) | (24,282) | ||||||||||||
Less: net loss attributable to non-controlling interest | (620) | (1,513) | (1,528) | (2,480) | ||||||||||||
Net income (loss) attributable to VOXX International | $ | 2,412 | $ | (11,064) | $ | (6,857) | $ | (21,802) | ||||||||
Other comprehensive (loss) income: | ||||||||||||||||
Foreign currency translation adjustments | (337) | 820 | 258 | 1,058 | ||||||||||||
Derivatives designated for hedging | (90) | 34 | (103) | (26) | ||||||||||||
Pension plan adjustments | (8) | (5) | (8) | (6) | ||||||||||||
Other comprehensive (loss) income, net of tax | (435) | 849 | 147 | 1,026 | ||||||||||||
Comprehensive income (loss) attributable to VOXX | $ | 1,977 | $ | (10,215) | $ | (6,710) | $ | (20,776) | ||||||||
Income (loss) per share - basic: Attributable to VOXX | $ | 0.10 | $ | (0.47) | $ | (0.30) | $ | (0.92) | ||||||||
Income (loss) per share - diluted: Attributable to VOXX | $ | 0.10 | $ | (0.47) | $ | (0.30) | $ | (0.92) | ||||||||
Weighted-average common shares outstanding (basic) | 23,125,665 | 23,462,575 | 23,132,771 | 23,629,147 | ||||||||||||
Weighted-average common shares outstanding (diluted) | 23,159,333 | 23,462,575 | 23,132,771 | 23,629,147 |
Reconciliation of GAAP Net Income (Loss) Attributable to VOXX International Corporation to EBITDA and | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net income (loss) attributable to VOXX International | $ | 2,412 | $ | (11,064) | $ | (6,857) | $ | (21,802) | ||||||||
Adjustments: | ||||||||||||||||
Interest expense and bank charges (1) | 1,758 | 1,371 | 3,681 | 2,717 | ||||||||||||
Depreciation and amortization (1) | 2,727 | 3,094 | 5,455 | 6,195 | ||||||||||||
Income tax expense (benefit) | 1,600 | 1,170 | 1,006 | (151) | ||||||||||||
EBITDA | 8,497 | (5,429) | 3,285 | (13,041) | ||||||||||||
Stock-based compensation | 412 | 208 | 558 | 466 | ||||||||||||
Gain on sale of tradename | - | - | - | (450) | ||||||||||||
Gain on sale of business | (8,300) | - | (8,300) | - | ||||||||||||
Gain on sale of assets | (2,154) | - | (2,154) | - | ||||||||||||
Foreign currency gains (losses) (1) | (3,204) | 1,214 | (1,355) | 2,176 | ||||||||||||
Restructuring expenses | 2,098 | 2,008 | 2,329 | 2,067 | ||||||||||||
Non-routine legal fees | (2) | 378 | (125) | 1,231 | ||||||||||||
Final arbitration award | - | 1,612 | - | 2,598 | ||||||||||||
Adjusted EBITDA | $ | (2,653) | $ | (9) | $ | (5,762) | $ | (4,953) |
(1) | For purposes of calculating Adjusted EBITDA for the Company, interest expense and bank charges, depreciation and amortization, and foreign currency gains and losses have been adjusted in order to exclude the non-controlling interest portion of these expenses attributable to EyeLock LLC and Onkyo Technology KK, as appropriate. |
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SOURCE VOXX International Corporation
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