HAUPPAUGE, N.Y., Jan. 9, 2012 /PRNewswire/ -- VOXX
International Corporation (NASDAQ: VOXX), today announced financial
results for its fiscal 2012, third quarter and nine months ended
November 30, 2011.
Commenting on the Company's performance, Pat Lavelle, President and CEO stated, "Our
business continued to gain traction across multiple markets,
product lines and geographies, and I believe we're well positioned
moving into 2012. We have a number of new products coming to
market, new accounts at retail and with automotive OEMs, and
several new programs and partnerships kicking off this year.
The holiday season is over and while not overly robust, there was a
pick-up in certain categories, which should continue into our
fourth fiscal quarter, and hopefully into next year. We
believe we're in a good position for organic growth and continued
profitability in fiscal 2013."
Lavelle continued, "We're also pleased with our performance year
to date, though we had budgeted for higher sales. Klipsch,
our automotive business and international operations, have all
performed at or ahead of plan, and each group has me excited about
our prospects. Consumer weakness, however, primarily in the
U.S. and at retail, led to a modest slowdown in our consumer
accessories segments. On the positive side, the steps we took
to improve margins and operating efficiencies, and to right size
our expense structure, have resulted in bottom-line performance
which is tracking ahead of our initial plan. As such, we
believe our sales for the year will be in excess of $700 million and we're raising our EBITDA
forecast to $44 million."
Net sales for the fiscal 2012 third quarter, were $206.8 million, an increase of 26.7% compared to
net sales of $163.2 million in the
comparable year ago period. For the nine month period ended
November 30, 2011, net sales were
$530.5 million, an increase of 25.5%
as compared to net sales of $422.8
million for the comparable nine month period in fiscal
2011.
For the three and nine month periods ended November 30, 2011, Electronics sales were
$165.9 million and $425.0, an increase of 35.3% and 36.0%,
respectively over the comparable prior year periods.
Accessories sales were $40.9 million
and $105.5 million, an increase of
0.9% and a decrease of 4.4%, respectively. The Electronics
Group was favorably impacted by the addition of Klipsch, and
continued increases in the automotive OEM channel, driven by
increases in domestic car sales and new OEM programs for remote
start and mobile entertainment systems. Additionally,
Accessories sales were up slightly for the quarter, primarily due
to increased sales in international markets. Offsetting these
improvements were lower sales of consumer electronics products and
a decline in the audio category. As a percentage of net
sales, Electronics represented 80.2% and 80.1% of the net sales for
the three and nine month periods ended November 30, 2011, and Accessories represented
19.8% and 19.9% for the comparable three and nine month periods
ended November 30, 2011.
The gross margin for the three months ended November 30, 2011 was 28.9%, an increase of 770
basis points as compared to 21.2% for the three months ended
November 30, 2010. For the
comparable nine month periods, the gross margin was 27.8% as
compared to 21.1%, an increase of 670 basis points. Gross
margins continue to increase throughout the year, driven by the
shift in product mix more towards high-end audio and mobile OEM
products. During the three and nine month periods,
gross margins were also positively impacted by new product
introductions, better margins in exciting product lines, lower
sales in our fulfillment business, and reduced charges for required
inventory provisions and a decline in warehouse and assembly
expenses.
For the three and nine months ended November 30, 2011 and November 30, 2010, operating expenses were
$41.4 million and $117.3 million, an increase of $12.2 million and $32.3
million, respectively. The increase was due primarily
to expenses from our Klipsch acquisition, which accounted for
approximately $9.8 million and
$29.0 million for the three and nine
months ended November 30, 2011.
Additionally, this was partially related to an increase in
compensation expense and non-recurring professional service fees
associated with the Company's patent infringement case.
These increases were partially offset by reductions in depreciation
expense, headcount reductions in select groups and a benefit
recorded related to put options. The Company continues to
monitor its expense structure and identify synergies within its
existing businesses.
The Company reported operating income of $18.4 million for the third quarter of fiscal
2012, compared to operating income of $5.4
million in the comparable year ago period. For the
nine month period ended November 30,
2011, the Company reported operating income of $30.1 million as compared to operating income of
$4.1 million for the period ended
November 30, 2010, a $26.0 million improvement.
Net income for the three month period ended November 30, 2011 was $8.9
million or $0.38 per basic and
diluted share as compared to net income of $3.9 million or earnings per basic and diluted
share of $0.17 for the third quarter
of fiscal 2011. For the nine months ended November 30, 2011, net income was $14.8 million or $0.64 per basic and diluted share as compared to
net income of $5.6 million or
earnings per basic share of $0.25 and
per diluted share of $0.24 for the
comparable nine month period ended November
30, 2010.
Adjusted net income for the three month period ended
November 30, 2011 was $9.1 million or $0.39 per diluted share compared to $4.3 million or $0.19 per diluted share for the comparable year
ago period. For the nine month period ended November 30, 2011, adjusted net income was
$16.2 million or $0.70 per diluted share compared to $6.2 million or $0.27 per diluted share for the comparable nine
month period.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) for the third quarter of fiscal 2012, was $18.7 million as compared to EBITDA of
$8.0 million for the comparable
period in fiscal 2011, an improvement of $10.7 million. Adjusted EBITDA for the same
periods was $19.1 million and
$8.5 million, respectively. For
the nine month period ended November 30,
2011, EBITDA was $37.1 million
as compared to EBITDA of $14.7
million, an improvement of $22.4
million. Adjusted EBITDA for the same periods was
$39.4 million and $16.0 million, respectively. Adjusted
EBITDA for the three and nine month periods excludes stock-based
compensation and Klipsch acquisition costs.
A reconciliation of GAAP net income to Adjusted EBITDA can be
found in the Company's Form 10-Q for the period ended November 30, 2011.
Non-GAAP Measures
Adjusted net income and adjusted EBITDA are not financial measures
recognized by GAAP. Adjusted net income represents net
income, computed in accordance with GAAP, before stock-based
compensation expense, a tax refund, and costs relating to the
Klipsch acquisition. Adjusted EBITDA represents net income,
computed in accordance with GAAP, before interest expense, taxes,
depreciation and amortization, stock-based compensation expense and
costs relating to the Klipsch acquisition. Depreciation,
amortization, and stock-based compensation expense are non-cash
items. Adjusted net income per diluted share is calculated by
dividing adjusted net income by diluted shares outstanding
calculated in accordance with GAAP.
We present adjusted net income and related per diluted share
amounts as well as adjusted EBITDA in this release because we
consider them to be useful and appropriate supplemental measures of
our performance. Adjusted net income and related per diluted
share amounts as well as adjusted EBITDA help 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 costs relating to
the Klipsch acquisition and the tax refund 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 appropriate measures for performance relative to other
companies. Adjusted net income and adjusted EBITDA should not
be assessed in isolation from or construed as a substitute for net
income prepared in accordance with GAAP. Adjusted net income
and adjusted EBITDA 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.
Conference Call Information
The Company will be hosting its conference call on
Tuesday, January 10, 2012 at
10:00 a.m. EST. Interested
parties can participate by visiting www.voxxintl.com, and clicking
on the webcast in the Investor Relations section or via
teleconference (toll-free number: 866-383-8108; international:
617-597-5343; pass code: 22494010). For those who will be
unable to participate, a replay will be available approximately one
hour after the call has been completed and will last for one week
thereafter (replay number: 888-286-8010; international replay:
617-801-6888; pass code: 92271941).
About VOXX International Corporation
VOXX International Corporation (NASDAQ:VOXX) is the new
name for Audiovox Corporation, a company that was formed over 45
years ago as Audiovox that has grown into a worldwide leader in
many automotive and consumer electronics and accessories
categories, and now into premium high-end audio. Through its
wholly owned subsidiaries, VOXX International proudly is recognized
as the #1 premium loudspeaker company in the world, and has #1
market positions in automotive video entertainment and remote
starts and TV remote controls and reception products. The
Company's brands also hold leading market positions across a
wide-spectrum of consumer and automotive segments.
Today, VOXX International is a global company….with an extensive
distribution network that includes power retailers, mass
merchandisers, 12-volt specialists and most of the world's leading
automotive manufacturers. The company has an
international footprint in Europe,
Asia, Mexico and South
America, and a growing portfolio, which is now comprised of
over 30 trusted brands. Among the key domestic brands include
Klipsch®, RCA®, Invision®, Jensen®, Audiovox®, Terk®, Acoustic
Research®, Advent®, Code Alarm®, CarLink®, Omega®, Excalibur®,
Prestige®, and SURFACE™. International brands include
Klipsch®, Jamo®, Energy®, Mirage®, Mac Audio®, Magnat®, Heco®,
Schwaiger®, Oehlbach® and Incaar™. The Company continues to
drive innovation throughout all of its subsidiaries, and maintains
its commitment to exceeding the needs of the consumers it
serves. For additional information, please visit our Web site
at www.voxxintl.com.
Safe Harbor Statement
Except for historical information contained herein,
statements made in this release that would constitute
forward-looking statements 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
statement. 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 risks that may result from changes in the Company's
business operations; our ability to keep pace with technological
advances; significant competition in the mobile and consumer
electronics businesses as well as the accessories business;
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; the possibility
that the review of our prior filings by the SEC may result in
changes to our financial statements; and the possibility that
stockholders or regulatory authorities may initiate proceedings
against VOXX International Corporation and/or our officers and
directors as a result of any restatements. Risk factors associated
with our business, including some of the facts set forth herein,
are detailed in the Company's Form 10-K for the fiscal year ended
February 28, 2011.
Company Contact:
Glenn Wiener, GW Communications
Tel: 212-786-6011 / Email: gwiener@GWCco.com
VOXX
International Corporation and Subsidiaries
|
Consolidated Balance Sheets
|
(In
thousands, except share data)
|
|
|
|
|
|
|
|
November 30,
2011
|
|
February 28,
2011
|
Assets
|
|
(unaudited)
|
|
|
Current
assets:
|
|
|
|
|
Cash and
cash equivalents
|
|
$
|
18,836
|
|
|
$
|
98,630
|
|
Accounts
receivable, net
|
|
163,476
|
|
|
108,048
|
|
Inventory,
net
|
|
147,785
|
|
|
113,620
|
|
Receivables from vendors
|
|
4,222
|
|
|
8,382
|
|
Prepaid
expenses and other current assets
|
|
8,967
|
|
|
9,382
|
|
Deferred
income taxes
|
|
2,338
|
|
|
2,768
|
|
Total
current assets
|
|
345,624
|
|
|
340,830
|
|
Investment
securities
|
|
13,027
|
|
|
13,500
|
|
Equity
investments
|
|
14,730
|
|
|
12,764
|
|
Property,
plant and equipment, net
|
|
23,199
|
|
|
19,563
|
|
Goodwill
|
|
87,366
|
|
|
7,373
|
|
Intangible
assets, net
|
|
177,327
|
|
|
99,189
|
|
Deferred
income taxes
|
|
11
|
|
|
6,244
|
|
Other
assets
|
|
3,718
|
|
|
1,634
|
|
Total
assets
|
|
$
|
665,002
|
|
|
$
|
501,097
|
|
VOXX
International Corporation and Subsidiaries
|
Consolidated Balance Sheets
|
(In
thousands, except share data)
|
|
|
|
|
|
|
|
November 30,
2011
|
|
February 28,
2011
|
Liabilities and Stockholders'
Equity
|
|
(unaudited)
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
58,799
|
|
|
$
|
27,341
|
|
Accrued
expenses and other current liabilities
|
|
54,004
|
|
|
36,500
|
|
Income
taxes payable
|
|
4,990
|
|
|
1,610
|
|
Accrued
sales incentives
|
|
21,226
|
|
|
11,981
|
|
Deferred
income taxes
|
|
388
|
|
|
399
|
|
Current
portion of long-term debt
|
|
4,293
|
|
|
4,471
|
|
Total
current liabilities
|
|
143,700
|
|
|
82,302
|
|
Long-term
debt
|
|
67,659
|
|
|
5,895
|
|
Capital
lease obligation
|
|
5,235
|
|
|
5,348
|
|
Deferred
compensation
|
|
3,224
|
|
|
3,554
|
|
Other tax
liabilities
|
|
1,788
|
|
|
1,788
|
|
Deferred
tax liabilities
|
|
30,931
|
|
|
4,919
|
|
Other
long-term liabilities
|
|
4,459
|
|
|
4,345
|
|
Total
liabilities
|
|
256,996
|
|
|
108,151
|
|
Commitments and contingencies
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Series
preferred stock, $.01 par value; 1,500,000 shares authorized, no
shares issued or outstanding
|
|
—
|
|
|
—
|
|
Common
stock:
|
|
|
|
|
Class A,
$.01 par value; 60,000,000 shares authorized, 22,630,837 shares
issued and 20,813,705 shares outstanding at November 30, 2011 and
60,000,000 shares authorized, 22,630,837 shares issued
and 20,813,005 shares outstanding February 28,
2011
|
|
226
|
|
|
226
|
|
Class B
convertible, $.01 par value; 10,000,000 shares authorized,
2,260,954 shares issued and outstanding at November 30, 2011 and
February 28, 2011
|
|
22
|
|
|
22
|
|
Paid-in
capital
|
|
278,625
|
|
|
277,896
|
|
Retained
earnings
|
|
151,810
|
|
|
137,027
|
|
Accumulated other comprehensive income
(loss)
|
|
(4,301)
|
|
|
(3,849)
|
|
Treasury
stock, at cost, 1,817,132 shares of Class A common stock at
November 30, 2011 and 1,817,832 shares of Class A common stock at
February 28, 2011
|
|
(18,376)
|
|
|
(18,376)
|
|
Total
stockholders' equity
|
|
408,006
|
|
|
392,946
|
|
Total
liabilities and stockholders' equity
|
|
$
|
665,002
|
|
|
$
|
501,097
|
|
VOXX
International Corporation and Subsidiaries
|
Consolidated Statements of
Operations
|
(In
thousands, except share and per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
Three
Months Ended
November 30,
|
|
Nine
Months Ended
November 30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
Net
sales
|
|
$
|
206,803
|
|
|
$
|
163,167
|
|
|
$
|
530,465
|
|
|
$
|
422,778
|
|
Cost of
sales
|
|
146,960
|
|
|
128,570
|
|
|
383,072
|
|
|
333,650
|
|
Gross
profit
|
|
59,843
|
|
|
34,597
|
|
|
147,393
|
|
|
89,128
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling
|
|
12,620
|
|
|
9,498
|
|
|
35,723
|
|
|
25,951
|
|
General
and administrative
|
|
24,740
|
|
|
16,674
|
|
|
68,159
|
|
|
50,034
|
|
Engineering and technical support
|
|
4,021
|
|
|
3,023
|
|
|
11,839
|
|
|
9,052
|
|
Acquisition-related costs
|
|
25
|
|
|
—
|
|
|
1,607
|
|
|
—
|
|
Total
operating expenses
|
|
41,406
|
|
|
29,195
|
|
|
117,328
|
|
|
85,037
|
|
Operating
income
|
|
18,437
|
|
|
5,402
|
|
|
30,065
|
|
|
4,091
|
|
Other
(expense) income:
|
|
|
|
|
|
|
|
|
Interest
and bank charges
|
|
(1,371)
|
|
|
(471)
|
|
|
(4,246)
|
|
|
(1,392)
|
|
Equity in
income of equity investees
|
|
1,236
|
|
|
600
|
|
|
3,255
|
|
|
2,348
|
|
Other,
net
|
|
(3,308)
|
|
|
363
|
|
|
(4,054)
|
|
|
2,363
|
|
Total
other (expense) income, net
|
|
(3,443)
|
|
|
492
|
|
|
(5,045)
|
|
|
3,319
|
|
Income
before income taxes
|
|
14,994
|
|
|
5,894
|
|
|
25,020
|
|
|
7,410
|
|
Income tax
expense
|
|
6,136
|
|
|
2,035
|
|
|
10,237
|
|
|
1,786
|
|
Net
income
|
|
$
|
8,858
|
|
|
$
|
3,859
|
|
|
$
|
14,783
|
|
|
$
|
5,624
|
|
Net income
per common share (basic)
|
|
$
0.38
|
|
|
$
|
0.17
|
|
|
$
|
0.64
|
|
|
$
|
0.25
|
|
Net income
per common share (diluted)
|
|
$
|
0.38
|
|
|
$
|
0.17
|
|
|
$
|
0.64
|
|
|
$
|
0.24
|
|
Weighted-average common shares outstanding
(basic)
|
|
23,074,030
|
|
|
22,934,211
|
|
|
23,073,983
|
|
|
22,904,746
|
|
Weighted-average common shares outstanding
(diluted)
|
|
23,074,030
|
|
|
23,098,948
|
|
|
23,203,504
|
|
|
23,057,969
|
|
VOXX
International and Subsidiaries
|
GAAP
Net Income to Adjusted Net Income
|
For the
Three and Nine Months Ended November 30, 2011
|
|
Reconciliation of GAAP to Adjusted Net Income
Available to Common Shareholders
|
|
|
|
|
|
|
|
Three
Months Ended
November 30,
|
|
Nine
Months Ended
November 30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
8,858
|
|
|
$
|
3,859
|
|
|
$
|
14,783
|
|
|
$
|
5,624
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Klipsch
acquisition costs
|
|
25
|
|
|
—
|
|
|
1,607
|
|
|
—
|
|
Stock
Compensation
|
|
353
|
|
|
428
|
|
|
728
|
|
|
1,284
|
|
Discrete
tax item
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(750)
|
|
Tax
effects of above adjustments
|
|
(154)
|
|
|
—
|
|
|
(955)
|
|
|
—
|
|
Pro forma
net income
|
|
$
|
9,082
|
|
|
$
|
4,287
|
|
|
$
|
16,163
|
|
|
$
|
6,158
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income per common share, diluted
|
|
$
|
0.38
|
|
|
$
|
0.17
|
|
|
$
|
0.64
|
|
|
$
|
0.24
|
|
Pro forma
net income per common share, diluted
|
|
$
|
0.39
|
|
|
$
|
0.19
|
|
|
$
|
0.70
|
|
|
$
|
0.27
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average number of shares (GAAP and pro forma)
|
|
23,074,000
|
|
|
23,098,948
|
|
|
23,203,504
|
|
|
23,057,969
|
|
Reconciliation of GAAP Net Income to Adjusted
EBITDA
|
|
|
|
|
|
|
|
Three
Months Ended
November 30,
|
|
Nine
Months Ended
November 30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
Net
income
|
|
$
|
8,858
|
|
|
$
|
3,859
|
|
|
$
|
14,783
|
|
|
$
|
5,624
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
|
1,371
|
|
|
471
|
|
|
4,246
|
|
|
1,392
|
|
Depreciation and amortization
|
|
2,401
|
|
|
1,682
|
|
|
7,829
|
|
|
5,874
|
|
Taxes
|
|
6,136
|
|
|
2,035
|
|
|
10,237
|
|
|
1,786
|
|
EBITDA
|
|
18,766
|
|
|
8,047
|
|
|
37,095
|
|
|
14,676
|
|
Stock-based compensation
|
|
353
|
|
|
428
|
|
|
728
|
|
|
1,284
|
|
Klipsch
acquisition costs
|
|
25
|
|
|
—
|
|
|
1,607
|
|
|
—
|
|
Adjusted
EBITDA
|
|
$
|
19,144
|
|
|
$
|
8,475
|
|
|
$
|
39,430
|
|
|
$
|
15,960
|
|
SOURCE VOXX International Corporation