ORLANDO,
Fla., Jan. 9, 2023 /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 2023 third quarter ended November 30,
2022.
Commenting on the Company's results and business outlook,
Pat Lavelle, President and Chief
Executive Officer stated, "As expected, we were profitable in the
third quarter, as the steps we have taken to improve gross margins
and reduce expenses had a more positive impact on our business.
However, sales and profitability were significantly curtailed by
the current state of the global economies and ongoing supply chain
issues. While reported Holiday sales were up, industry-wide CE
sales declined year-over-year as consumer discretionary spending is
down, retailers are carrying high inventory positions and in-store
retail traffic slowed. This impacted sales of our Automotive
Aftermarket and Premium Audio products the most, and we also had to
manage through OEM customers shutting production lines due to chip
shortages. We expect continued softness in the market and are
preparing accordingly."
"Despite some of the near-term headwinds, we remain steadfast in
our belief that VOXX is well positioned for growth in the years
ahead. Our brands, products, distribution and customer
relationships have never been stronger and we have been awarded
significant OEM business that runs several years out. We are also
increasing production of Onkyo and Pioneer related products to meet
the demand from our North America
customers and new distributors, while preparing to open up
production to serve select global markets. The expected growth from
both Automotive OEM and the contributions from Onkyo and Pioneer
should help offset market weakness and as economies across the
globe stabilize, other areas of our business are poised for growth
as well. We are weathering the storm, controlling what we can and
ensuring we have the resources and flexibility to drive value."
Fiscal 2023 and Fiscal 2022 Third Quarter Comparisons
Net sales in the Fiscal 2023 third quarter ended November 30, 2022, were $143.1 million as compared to net sales of
$191.9 million in the Fiscal 2022
third quarter ended November 30,
2021, a decrease of $48.8
million or 25.4%.
- Automotive Electronics segment net sales in the Fiscal 2023
third quarter were $48.6 million as
compared to $61.6 million in the
comparable year-ago period, a decrease of $13.0 million or 21.2%. For the same comparable
periods, OEM product sales were $19.1
million, up $0.6 million, with
the increase driven primarily by higher sales of OEM remote start
and security products, as well as OEM safety products. Aftermarket
product sales were $29.4 million, a
decline of $13.6 million, which was
primarily driven by lower sales of aftermarket security products,
higher customer inventory on hand, fewer vehicles due to supply
chain shortages and a slowing U.S. economy.
- Consumer Electronics segment net sales in the Fiscal 2023 third
quarter were $94.1 million as
compared to $129.7 million in the
comparable year-ago period, a decrease of $35.6 million or 27.5%. For the same comparable
periods, Premium Audio product sales were $73.5 million, a decline of $31.4 million and other CE product sales were
$20.6 million, a decline of
$4.2 million. Lower segment sales
were primarily attributable to lower domestic sales of premium home
theater speakers and wireless speaker products, lower European
sales of premium and non-premium speaker products and accessories,
and declines in other CE categories due to a slowing of the global
economy and other factors. As an offset, the Company experienced an
increase in domestic sales of Onkyo and Pioneer related products of
$9.4 million.
- Biometrics segment net sales in the Fiscal 2023 third quarter
were $0.3 million as compared to
$0.4 million in the comparable
year-ago period, with the decline primarily related to lower sales
of the Company's NIXT product as it was a newer product on the
market in the prior fiscal year. The Company anticipates a ramp up
in sales moving forward as a result of new projects awarded and a
growing pipeline across multiple industry verticals.
On a sequential basis, when compared to the Fiscal 2023 second
quarter ended August 31, 2022, Fiscal
2023 third quarter net sales increased $17.4
million or 13.8%.
The gross margin in the Fiscal 2023 third quarter was 26.0% as
compared to 26.9% in the Fiscal 2022 third quarter, a decline of 90
basis points. For the same comparable periods, the Company
reported:
- Automotive Electronics segment gross margin of 24.6% as
compared to 23.8%. The year-over-year improvement of 80 basis
points was primarily driven by steps taken to mitigate higher
supply chain costs, ongoing supply chain constraints and higher
tariffs, and the Company began to see a greater positive impact in
the Fiscal 2023 third quarter. The improvement was also driven by
the positive impact from lower satellite radio product sales, which
historically are sold at lower margin, partially offset by lower
margins on certain OEM rear-seat entertainment and lower sales of
automotive safety products, the latter of which are traditionally
are sold at higher margin.
- Consumer Electronics segment gross margin of 26.6% as compared
to 28.3%. The year-over-year decline of 170 basis points was
primarily driven by higher supply chain costs and surcharges, lower
sales of premium home theater speaker products and, an increase in
sales of lower margin products to discount channel customers in
Europe. This was partially offset
by mitigation steps the Company has taken through pricing
adjustments and other sourcing strategies, as well as the positive
impact to margins of higher sales of Onkyo and Pioneer
products.
- Biometrics segment gross margin of 22.7% as compared to 32.1%.
The year-over-year decline in gross margin was primarily related to
the decrease in sales of higher margin NIXT products compared to
the prior year, as well as due to certain high volume, low margin
discounted sales made that were not present in the prior Fiscal
year. While gross margin percentage declined, the dollar impact was
minimal based on low sales volumes.
On a sequential basis, when compared to the Fiscal 2023 second
quarter ended August 31, 2022, Fiscal
2023 third quarter gross margin improved by 270 basis points.
Total operating expenses in the Fiscal 2023 third quarter were
$34.8 million as compared to
$43.9 million in the comparable
Fiscal 2022 period, a decline of $9.1
million or 20.7%. For the same comparable periods:
- Selling expenses of $11.4 million
declined by $2.5 million or 17.7%,
driven by lower commission expense, salaries and benefits expenses,
headcount reductions and both salary and bonus reductions, as well
as lower web platform expenses, offset by the higher cost of online
platform fees, among other factors.
- General and administrative expenses of $16.2 million declined by $3.8 million or 19.1%, driven by lower salary
expenses, legal and professional fees, and other cost cutting
measures. Additionally, the Company incurred restructuring related
expenses of $0.3 million related to
the relocation of certain OEM production operations from
Florida to Mexico, and which consisted primarily of
severance expense and moving costs. Lastly, bad debt expense
declined by $0.3 million as a result
of greater reserve releases as compared to the prior Fiscal
year.
- Engineering and technical support expenses of $7.2 million declined by $2.5 million or 26.1%, primarily due to lower
research and development expenses related to headcount reductions
in the Biometrics segment that took place at the end of Fiscal
2022, and lower development expenses across each of the Company's
business segments. Additionally, direct labor expenses declined
primarily as a result of salary and benefits, as well as bonus
reductions related to cost cutting measures.
- Acquisition costs declined by $0.3
million as the Company incurred acquisitions costs in the
Fiscal 2022 third quarter associated with the asset purchase
agreement signed with Onkyo Home Entertainment Corporation and the
joint venture created with Sharp Corporation to complete the
transaction. There were no acquisition costs incurred in the Fiscal
2023 third quarter.
On a sequential basis, when compared to the Fiscal 2023 second
quarter ended August 31, 2022, Fiscal
2023 third quarter operating expenses declined by $4.4 million or 11.3%.
The Company reported operating income in the Fiscal 2023 third
quarter of $2.3 million as compared
to operating income of $7.8 million
in the Fiscal 2022 third quarter.
Total other income/expense, net, in the Fiscal 2023 third
quarter was $0.0 as compared to a
loss of $38.1 million in the Fiscal
2022 third quarter. The variance primarily relates to an Interim
arbitration award expense of $39.4
million related to the Seaguard arbitration incurred in the
prior year. Interest and bank charges increased by approximately
$0.7 million, equity in income of
equity investee declined by $0.2
million and other, net, increased by $0.6 million when comparing the Fiscal 2023 and
Fiscal 2022 third quarter periods.
Net income attributable to VOXX International Corporation in the
Fiscal 2023 third quarter was $7.4
million as compared to a net loss attributable to VOXX
International Corporation of $28.1
million in the comparable Fiscal 2022 period. The Company
reported basic and diluted income per share attributable to VOXX
International Corporation of $0.30 in
the Fiscal 2023 third quarter as compared to a basic and diluted
net loss per common share attributable to VOXX International
Corporation of $1.16, in the
comparable Fiscal 2022 period.
The Company reported Earnings Before Interest, Taxes,
Depreciation and Amortization ("EBITDA") in the Fiscal 2023 third
quarter of $7.7 million as compared
to an EBITDA loss in the Fiscal 2022 third quarter of $24.8 million. Adjusted EBITDA in the Fiscal 2023
third quarter was $9.0 million as
compared to Adjusted EBITDA in the Fiscal 2022 third quarter of
$15.8 million.
Fiscal 2023 and Fiscal 2022 Nine-Month Comparisons
Net sales in the Fiscal 2023 nine-month period
ended November 30, 2022, were $397.5 million as
compared to net sales of $472.0 million in the Fiscal
2022 nine-month period ended November 30, 2021, a decline of
$74.5 million or 15.8%.
- Automotive Electronics segment net sales in the Fiscal 2023
nine-month period were $125.4 million
as compared to $150.0 million in the
comparable year-ago period, a decline of $24.7 million or 16.4%. For the same comparable
periods, OEM product sales were $51.1
million as compared to $49.9
million, an increase of $1.2
million or 2.5%, and aftermarket product sales were
$74.3 million as compared to
$100.2 million, a decline of
$25.9 million or 25.8%.
- Consumer Electronics segment net sales in the Fiscal 2023
nine-month period were $271.1 million
as compared to $320.8 million in the
comparable Fiscal 2022 nine-month period, a decline of $49.7 million or 15.5%. For the same comparable
periods, Premium Audio product sales were $212.6 million as compared to $252.6 million, a decline of $40.0 million or 15.8%, and Other Consumer
Electronics product sales were $58.4
million as compared to $68.2
million, a decline of $9.7
million or 14.3%.
- Biometrics segment net sales for the Fiscal 2023 nine-month
period were $0.7 million as compared
to $0.8 million in the comparable
Fiscal 2022 nine-month period, a decline of 15.1%.
The gross margin in the Fiscal 2023 nine-month period was 25.1%
as compared to 26.6% in the Fiscal 2022 nine-month period, a
decline of 150 basis points. Within the segments for the same
comparable periods:
- Automotive Electronics segment gross margin was 23.8% as
compared to 24.7%, down 90 basis points.
- Consumer Electronics segment gross margin of 25.5% as compared
to 27.4%, down 190 basis points.
- Biometrics segment gross margins of 31.3% as compared to gross
margin of 28.4%.
Total operating expenses in the Fiscal 2023 nine-month period
were $114.0 million as compared to $120.9
million in the comparable Fiscal 2022 nine-month period, a
decline of $6.9 million or 5.7%.
Within this and for the same comparable nine-month periods:
- Selling expenses of $35.6 million
declined by $1.6 million, or
4.3%.
- General and administrative expenses of $54.4 million declined by $2.2 million, or 3.8%.
- Engineering and technical support expenses of $23.8 million were essentially flat.
- Acquisition costs of $0.1 million
declined by $3.1 million, or
95.9%.
The Company reported an operating loss in the Fiscal 2023
nine-month period of $14.3 million as compared to
operating income of $4.7 million in
the comparable Fiscal 2022 nine-month period.
Total other income/expense, net, for the nine-month period
ended November 30, 2022, was a loss of $3.9 million as compared to a loss of
$33.6 million for the nine-month
period ended November 30, 2021, an improvement of $29.8
million. Within this and for the same comparable nine-month
periods:
- Interest and bank charges of $3.1
million increased by $1.3
million.
- Equity in income of equity investees of $5.4 million declined by $1.6 million.
- Interim arbitration award of $3.0
million improved by $36.5
million.
- Other, net decreased by $3.8
million, as the Company had net foreign currency losses of
$3.9 million in the Fiscal 2023
nine-month period as compared to net foreign currency losses of
$0.3 million in the comparable Fiscal
2022 nine-month period.
Net loss attributable to VOXX International Corporation in the
Fiscal 2023 nine-month period was $9.3 million as
compared to a net loss attributable to VOXX International
Corporation of $25.1 million in the comparable Fiscal
2022 period. The Company reported a basic and diluted net loss per
share attributable to VOXX International Corporation
of $0.38 in the Fiscal 2023 nine-month period as compared
to a basic and diluted net loss per common share attributable to
VOXX International Corporation of $1.03 in the comparable
Fiscal 2022 period.
EBITDA in the Fiscal 2023 nine-month period was a loss
of $3.2 million as compared to an EBITDA loss in the
Fiscal 2022 nine-month period of $15.2 million. Adjusted
EBITDA in the Fiscal 2023 nine-month period was $5.6
million as compared to Adjusted EBITDA in the Fiscal 2022
nine-month period of $30.3 million.
Seaguard Electronics LLC
On March 3, 2022, the Arbitrator
issued a Partial Final Award on Bifurcated Issue in the amount of
$39.4 million plus $0.8 million for its attorneys' fees and costs.
On March 11, 2022, the Arbitrator
fixed the schedule of the patent portion of the bifurcated
arbitration, with a trial date set for October 16, 2023. The Company has put its
suppliers on notice of its indemnification rights with respect to
the alleged infringing products. On March
14, 2022, Seaguard filed a Petition in the United States District Court, Central
District of California, Western
Division, to confirm the Partial Final Award. On April 25, 2022, the Company filed its opposition
to Seaguard's Petition to Confirm and a Counter-Petition to Vacate
the Partial Final Award. On May 31,
2022, the Court ordered the matter taken under submission
for decision without oral hearing. The Court has since issued an
Order informing the parties that it will rule on the pending
Petitions by August 3, 2023.
During Fiscal 2022, the Company recorded an accrual for the
interim arbitration award in the amount of $39.4 million. During the three and nine-months
ended November 30, 2022, the Company
accrued additional charges of $1.0
million and $3.0 million,
respectively, representing interest expense related to the interim
arbitration award accrued during Fiscal 2022, which would be
payable if the interim award is confirmed and not vacated by the
U.S. District Court or an appellate court. At November 30, 2022 and February 28, 2022, the Company has a total
accrued balance of $42.4 million and
$39.4 million, respectively, on the
accompanying Consolidated Balance Sheet related to the interim
arbitration award, to be paid if confirmed and not vacated by the
U.S. District Court or an appellate court.
Balance Sheet Update
As of November 30, 2022, the Company
had cash and cash equivalents of $8.5
million as compared to $27.8
million as of February 28,
2022. Total debt as of November 30,
2022 was $47.2 million as
compared to $13.2 million as of
February 28, 2022. The increase in
total debt for the comparable periods is primarily related to
$37.0 million outstanding on the
Company's Domestic Credit Facility as of November 30, 2022, partially offset by the
absence of debt related to the Company's Euro Asset-Based Lending
Obligation for VOXX Germany. Debt associated with the Company's
Florida mortgage declined by
$0.4 million and debt associated with
the Company's shareholder loan payable to Sharp Corporation
declined by $0.7 million. Total
long-term debt, net of debt issuance costs as of November 30, 2022 was $45.9 million as compared to $9.8 million as of February 28, 2022.
Conference Call Information
The Company will be hosting its conference call and webcast on
Tuesday, January 10, 2023 at
10:00 a.m. ET.
- To attend the webcast:
https://edge.media-server.com/mmc/p/tomomefo
- To access by phone:
https://register.vevent.com/register/BIed4b330a76244d88aa2641c36e1862b5
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 income (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, foreign currency
(gains) losses, restructuring expenses, acquisition costs, certain
non-routine legal and professional fees, and awards. Depreciation,
amortization, stock-based compensation, and foreign currency
(gains) losses are non-cash items.
We present EBITDA and Adjusted EBITDA in this 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 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, 2022, 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,
global supply shortages and logistics costs and delays;
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, the War in the Ukraine 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
|
(In thousands,
except share and per share data)
|
|
|
|
November 30,
2022
|
|
|
February 28,
2022
|
|
|
|
(unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
8,477
|
|
|
$
|
27,788
|
|
Accounts receivable,
net
|
|
|
91,882
|
|
|
|
105,625
|
|
Inventory
|
|
|
192,996
|
|
|
|
174,922
|
|
Receivables from
vendors
|
|
|
138
|
|
|
|
363
|
|
Prepaid expenses and
other current assets
|
|
|
20,397
|
|
|
|
21,340
|
|
Income tax
receivable
|
|
|
7,943
|
|
|
|
734
|
|
Total current
assets
|
|
|
321,833
|
|
|
|
330,772
|
|
Investment
securities
|
|
|
1,167
|
|
|
|
1,231
|
|
Equity
investment
|
|
|
22,444
|
|
|
|
21,348
|
|
Property, plant and
equipment, net
|
|
|
47,903
|
|
|
|
49,794
|
|
Operating lease, right
of use asset
|
|
|
3,905
|
|
|
|
4,464
|
|
Goodwill
|
|
|
72,375
|
|
|
|
74,320
|
|
Intangible assets,
net
|
|
|
92,993
|
|
|
|
101,450
|
|
Deferred income tax
assets
|
|
|
38
|
|
|
|
40
|
|
Other assets
|
|
|
3,748
|
|
|
|
3,245
|
|
Total
assets
|
|
$
|
566,406
|
|
|
$
|
586,664
|
|
Liabilities,
Redeemable Equity, Redeemable Non-Controlling Interest, and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
48,734
|
|
|
$
|
76,665
|
|
Accrued expenses and
other current liabilities
|
|
|
44,486
|
|
|
|
54,659
|
|
Income taxes
payable
|
|
|
2,080
|
|
|
|
2,714
|
|
Accrued sales
incentives
|
|
|
25,466
|
|
|
|
23,755
|
|
Interim arbitration
award payable
|
|
|
42,403
|
|
|
|
39,444
|
|
Contract liabilities,
current
|
|
|
3,796
|
|
|
|
4,373
|
|
Current portion of
long-term debt
|
|
|
500
|
|
|
|
2,406
|
|
Total current
liabilities
|
|
|
167,465
|
|
|
|
204,016
|
|
Long-term debt, net of
debt issuance costs
|
|
|
45,860
|
|
|
|
9,786
|
|
Finance lease
liabilities, less current portion
|
|
|
94
|
|
|
|
78
|
|
Operating lease
liabilities, less current portion
|
|
|
2,735
|
|
|
|
3,298
|
|
Deferred
compensation
|
|
|
1,167
|
|
|
|
1,231
|
|
Contingent
consideration, less current portion
|
|
|
5,209
|
|
|
|
5,750
|
|
Deferred income tax
liabilities
|
|
|
5,228
|
|
|
|
5,300
|
|
Other tax
liabilities
|
|
|
929
|
|
|
|
1,083
|
|
Prepaid ownership
interest in EyeLock LLC due to GalvanEyes LLC
|
|
|
6,068
|
|
|
|
2,451
|
|
Other long-term
liabilities
|
|
|
3,144
|
|
|
|
3,508
|
|
Total
liabilities
|
|
|
237,899
|
|
|
|
236,501
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
Redeemable
equity
|
|
|
3,996
|
|
|
|
3,550
|
|
Redeemable
non-controlling interest
|
|
|
(932)
|
|
|
|
511
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Preferred
stock:
|
|
|
|
|
|
|
No shares issued or
outstanding
|
|
|
—
|
|
|
|
—
|
|
Common
stock:
|
|
|
|
|
|
|
Class A, $.01 par
value, 60,000,000 shares authorized, 24,538,184 and 24,476,847
shares issued and
21,398,005 and 21,614,629 shares outstanding at November 30, 2022
and February 28, 2022, respectively
|
|
|
246
|
|
|
|
245
|
|
Class B Convertible,
$.01 par value, 10,000,000 shares authorized, 2,260,954 shares
issued and
outstanding at both November 30, 2022 and February 28,
2022
|
|
|
22
|
|
|
|
22
|
|
Paid-in
capital
|
|
|
296,456
|
|
|
|
300,453
|
|
Retained
earnings
|
|
|
117,251
|
|
|
|
126,573
|
|
Accumulated other
comprehensive loss
|
|
|
(19,851)
|
|
|
|
(17,503)
|
|
Less: Treasury stock,
at cost, 3,140,179 and 2,862,218 shares of Class A Common Stock
at
November 30, 2022 and February 28, 2022, respectively
|
|
|
(27,913)
|
|
|
|
(25,138)
|
|
Less: Redeemable
equity
|
|
|
(3,996)
|
|
|
|
(3,550)
|
|
Total VOXX
International Corporation stockholders' equity
|
|
|
362,215
|
|
|
|
381,102
|
|
Non-controlling
interest
|
|
|
(36,772)
|
|
|
|
(35,000)
|
|
Total stockholders'
equity
|
|
|
325,443
|
|
|
|
346,102
|
|
Total liabilities,
redeemable equity, redeemable non-controlling interest, and
stockholders' equity
|
|
$
|
566,406
|
|
|
$
|
586,664
|
|
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
November 30,
|
|
|
Nine months
ended
November 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net sales
|
|
$
|
143,055
|
|
|
$
|
191,871
|
|
|
$
|
397,492
|
|
|
$
|
472,040
|
|
Cost of
sales
|
|
|
105,918
|
|
|
|
140,167
|
|
|
|
297,859
|
|
|
|
346,455
|
|
Gross profit
|
|
|
37,137
|
|
|
|
51,704
|
|
|
|
99,633
|
|
|
|
125,585
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
|
11,413
|
|
|
|
13,864
|
|
|
|
35,563
|
|
|
|
37,169
|
|
General and
administrative
|
|
|
16,223
|
|
|
|
20,049
|
|
|
|
54,435
|
|
|
|
56,609
|
|
Engineering and
technical support
|
|
|
7,171
|
|
|
|
9,706
|
|
|
|
23,844
|
|
|
|
23,824
|
|
Acquisition
costs
|
|
|
—
|
|
|
|
287
|
|
|
|
136
|
|
|
|
3,279
|
|
Total operating
expenses
|
|
|
34,807
|
|
|
|
43,906
|
|
|
|
113,978
|
|
|
|
120,881
|
|
Operating income
(loss)
|
|
|
2,330
|
|
|
|
7,798
|
|
|
|
(14,345)
|
|
|
|
4,704
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and bank
charges
|
|
|
(1,460)
|
|
|
|
(730)
|
|
|
|
(3,101)
|
|
|
|
(1,840)
|
|
Equity in income of
equity investee
|
|
|
2,022
|
|
|
|
2,206
|
|
|
|
5,373
|
|
|
|
6,964
|
|
Interim arbitration
award
|
|
|
(986)
|
|
|
|
(39,444)
|
|
|
|
(2,958)
|
|
|
|
(39,444)
|
|
Other, net
|
|
|
460
|
|
|
|
(143)
|
|
|
|
(3,169)
|
|
|
|
675
|
|
Total other income
(expense), net
|
|
|
36
|
|
|
|
(38,111)
|
|
|
|
(3,855)
|
|
|
|
(33,645)
|
|
Income (loss) before
income taxes
|
|
|
2,366
|
|
|
|
(30,313)
|
|
|
|
(18,200)
|
|
|
|
(28,941)
|
|
Income tax
benefit
|
|
|
(3,988)
|
|
|
|
(641)
|
|
|
|
(5,788)
|
|
|
|
(374)
|
|
Net income
(loss)
|
|
|
6,354
|
|
|
|
(29,672)
|
|
|
|
(12,412)
|
|
|
|
(28,567)
|
|
Less: net loss
attributable to non-controlling interest
|
|
|
(1,067)
|
|
|
|
(1,551)
|
|
|
|
(3,090)
|
|
|
|
(3,473)
|
|
Net income (loss)
attributable to VOXX International Corporation and
Subsidiaries
|
|
$
|
7,421
|
|
|
$
|
(28,121)
|
|
|
$
|
(9,322)
|
|
|
$
|
(25,094)
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
957
|
|
|
|
(1,835)
|
|
|
|
(2,665)
|
|
|
|
(2,797)
|
|
Derivatives designated
for hedging
|
|
|
78
|
|
|
|
184
|
|
|
|
264
|
|
|
|
466
|
|
Pension plan
adjustments
|
|
|
(19)
|
|
|
|
36
|
|
|
|
53
|
|
|
|
59
|
|
Other comprehensive
income (loss), net of tax
|
|
|
1,016
|
|
|
|
(1,615)
|
|
|
|
(2,348)
|
|
|
|
(2,272)
|
|
Comprehensive income
(loss) attributable to VOXX International Corporation and
Subsidiaries
|
|
$
|
8,437
|
|
|
$
|
(29,736)
|
|
|
$
|
(11,670)
|
|
|
$
|
(27,366)
|
|
Income (loss) per share
- basic: Attributable to VOXX International Corporation and
Subsidiaries
|
|
$
|
0.30
|
|
|
$
|
(1.16)
|
|
|
$
|
(0.38)
|
|
|
$
|
(1.03)
|
|
Income (loss) per share
- diluted: Attributable to VOXX International Corporation and
Subsidiaries
|
|
$
|
0.30
|
|
|
$
|
(1.16)
|
|
|
$
|
(0.38)
|
|
|
$
|
(1.03)
|
|
Weighted-average common
shares outstanding (basic)
|
|
|
24,389,375
|
|
|
|
24,289,909
|
|
|
|
24,408,541
|
|
|
|
24,279,084
|
|
Weighted-average common
shares outstanding (diluted)
|
|
|
24,621,359
|
|
|
|
24,289,909
|
|
|
|
24,408,541
|
|
|
|
24,279,084
|
|
Reconciliation of
GAAP Net Income Attributable to
|
VOXX International
Corporation to EBITDA and Adjusted EBITDA
|
|
|
|
Three months
ended
November 30,
|
|
|
Nine months
ended
November 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net income (loss)
attributable to VOXX International Corporation and
Subsidiaries
|
|
$
|
7,421
|
|
|
$
|
(28,121)
|
|
|
$
|
(9,322)
|
|
|
$
|
(25,094)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
bank charges (1)
|
|
|
1,263
|
|
|
|
565
|
|
|
|
2,500
|
|
|
|
1,357
|
|
Depreciation and
amortization (1)
|
|
|
3,053
|
|
|
|
3,378
|
|
|
|
9,406
|
|
|
|
8,891
|
|
Income tax
benefit
|
|
|
(3,988)
|
|
|
|
(641)
|
|
|
|
(5,788)
|
|
|
|
(374)
|
|
EBITDA
|
|
|
7,749
|
|
|
|
(24,819)
|
|
|
|
(3,204)
|
|
|
|
(15,220)
|
|
Stock-based
compensation
|
|
|
145
|
|
|
|
221
|
|
|
|
407
|
|
|
|
694
|
|
Foreign currency
(gains) losses (1)
|
|
|
(223)
|
|
|
|
382
|
|
|
|
3,867
|
|
|
|
268
|
|
Restructuring
expenses
|
|
|
303
|
|
|
|
—
|
|
|
|
532
|
|
|
|
—
|
|
Acquisition
costs
|
|
|
—
|
|
|
|
287
|
|
|
|
136
|
|
|
|
3,279
|
|
Professional fees
related to distribution agreement with GalvanEyes LLC
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
325
|
|
Non-routine legal
fees
|
|
|
28
|
|
|
|
235
|
|
|
|
886
|
|
|
|
1,469
|
|
Interim arbitration
award
|
|
|
986
|
|
|
|
39,444
|
|
|
|
2,958
|
|
|
|
39,444
|
|
Adjusted
EBITDA
|
|
$
|
8,988
|
|
|
$
|
15,750
|
|
|
$
|
5,582
|
|
|
$
|
30,259
|
|
|
(1)
|
For purposes of
calculating Adjusted EBITDA for the Company, interest expense and
bank charges, depreciation and amortization, as well as foreign
currency losses and (gains) have been adjusted in order to exclude
the non-controlling interest portion of these expenses attributable
to EyeLock LLC
and Onkyo Technology KK.
|
View original
content:https://www.prnewswire.com/news-releases/voxx-international-corporation-reports-its-fiscal-2023-third-quarter-financial-results-301716874.html
SOURCE VOXX International Corporation