ORLANDO, Fla., Oct. 12, 2021 /PRNewswire/ --
YTD Highlights
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 2022 second quarter and six-months ended August 31, 2021.
Commenting on the Company's Fiscal 2022 results year-to-date and continued business momentum, Pat Lavelle, President and Chief Executive Officer stated, "The VOXX team has done a good job navigating through what we believe was the worst of the supply chain shortfalls and we have the inventory on hand or in transit, to deliver for our customers. Excluding professional fees related to transactions which are now complete, our operations performed slightly better than the first half of Fiscal 2021, with Adjusted EBITDA up $3.9 million. We expect growth will continue in the second half of the year and to be up approximately 15% for the full fiscal year. We also expect good bottom-line performance, with extra investments in R&D to support new automotive OEM programs and future EyeLock business."
Lavelle continued, "While the industry still faces supply chain constraints, I believe we have taken the right steps to offset the higher costs of doing business, providing us with more flexibility. New automotive OEM awards received and with more expected, expanded distribution within our Premium Audio group and the added contributions from our acquisition of Onkyo's home entertainment A/V business, and our new distribution agreement with GalvanEyes for EyeLock's biometrics products, all provide avenues for strong growth and improved bottom-line performance in the years ahead."
Fiscal 2022 and Fiscal 2021 Second Quarter Comparisons
Net sales in the Fiscal 2022 second quarter ended August 31, 2021, were $143.1 million as compared to net sales of $128.0 million in the Fiscal 2021 second quarter ended August 31, 2020, an increase of $15.1 million or 11.8%.
The gross margin in the Fiscal 2022 second quarter was 26.0% as compared to 29.7% in the Fiscal 2021 second quarter, a decline of 370 basis points, or a $0.9 million decline in gross profit. The year-over-year decline in gross margin was primarily driven by global, industry-wide supply chain constraints.
Total operating expenses in the Fiscal 2022 second quarter were $39.9 million as compared to $29.6 million in the comparable Fiscal 2021 period, an increase of $10.4 million.
The Company reported an operating loss in the Fiscal 2022 second quarter of $2.7 million as compared to operating income of $8.5 million in the Fiscal 2021 second quarter.
Total other income, net, for the three-months ended August 31, 2021, was $1.8 million as compared to total other income, net, of $0.6 million for the three-months ended August 31, 2020. The primary drivers were a decline of $0.4 million in interest and bank charges, a $0.2 million improvement in equity in income of equity investees, which relates to higher sales and net income from the Company's 50% non-controlling interest in ASA Electronics, LLC ("ASA"), and a $0.6 million increase in other, net for the comparable periods, which relates to net foreign currency gains or losses, interest income, rental income, and other miscellaneous income and expense.
Net income attributable to VOXX International Corporation in the Fiscal 2022 second quarter was $0.3 million as compared to net income attributable to VOXX International Corporation of $7.3 million in the comparable Fiscal 2021 period. The Company reported basic and diluted net income per share attributable to VOXX International Corporation of $0.01 in the Fiscal 2022 second quarter as compared to basic and diluted net income per common share attributable to VOXX International Corporation of $0.30 in the comparable Fiscal 2021 period.
Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") in the Fiscal 2022 second quarter was $3.2 million as compared to EBITDA in the Fiscal 2021 second quarter of $13.5 million. Adjusted EBITDA in the Fiscal 2022 second quarter was $6.4 million as compared to Adjusted EBITDA in the Fiscal 2021 second quarter of $14.0 million.
Fiscal 2022 and Fiscal 2021 Six-Month Comparisons
Net sales in the Fiscal 2022 six-month period ended August 31, 2021, were $280.2 million as compared to net sales of $200.0 million in the Fiscal 2021 six-month period ended August 31, 2020, up $80.2 million or 40.1%.
The gross margin in the Fiscal 2022 six-month period was 26.4% as compared to 29.0% in the Fiscal 2021 six-month period, a decline of 260 basis points, and a $15.8 million improvement in gross profit.
Total operating expenses in the Fiscal 2022 six-month period were $77.0 million as compared to $57.6 million in the comparable Fiscal 2021 six-month period, an increase of $19.4 million. Within this and for the same six-month periods ended August 31, 2021 and August 31, 2020:
The Company reported an operating loss in the Fiscal 2022 six-month period of $3.1 million as compared to operating income of $0.4 million in the comparable Fiscal 2021 six-month period.
Total other income, net, for the six-month period ended August 31, 2021, was $4.5 million as compared to total other income, net, of $1.4 million for the six-month period ended August 31, 2020, an improvement of $3.1 million. Within this and for the same six-month periods ended August 31, 2020 and August 31, 2021:
Net income attributable to VOXX International Corporation in the Fiscal 2022 six-month period was $3.0 million as compared to a net loss attributable to VOXX International Corporation of $0.9 million in the comparable Fiscal 2021 period. The Company reported basic and diluted net income per share attributable to VOXX International Corporation of $0.12 in the Fiscal 2022 six-month period as compared to a basic and diluted net loss per common share attributable to VOXX International Corporation of $0.04 in the comparable Fiscal 2021 period.
Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") in the Fiscal 2022 six-month period was $9.6 million as compared to EBITDA in the Fiscal 2021 six-month period of $10.2 million. Adjusted EBITDA in the Fiscal 2022 six-month period was $14.6 million as compared to Adjusted EBITDA in the Fiscal 2021 six-month period of $10.7 million.
Balance Sheet Update
As of August 31, 2021, the Company had cash and cash equivalents of $41.1 million as compared to $36.7 million as of May 31, 2021 and $59.4 million as of February 28, 2021. Total debt as of August 31, 2021, was $7.7 million as compared to $7.0 million as of May 31, 2021 and $7.1 million as of February 28, 2021. The increase in total debt is related to a Euro asset-based lending credit facility related to VOXX Germany. Total long-term debt, net of debt issuance costs as of August 31, 2021 was $5.2 million as compared to $5.3 million as of May 31, 2021 and $6.0 million as of February 28, 2021.
Conference Call Information
VOXX International Corporation will be hosting its conference call and webcast on Wednesday, October 13, 2021, at 10:00 a.m. Eastern. Interested parties can participate by visiting www.voxxintl.com and clicking on the webcast in the Investor Relations section or via teleconference using the information below.
A webcast and teleconference replay will be available approximately one hour after the completion of the call.
Replay Information
Non-GAAP Measures
EBITDA and Adjusted EBITDA are not financial measures recognized by GAAP. EBITDA represents net income (loss) attributable to VOXX International Corporation, 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, acquisition costs, certain non-routine legal and professional fees, and life insurance proceeds. Depreciation, amortization, and stock-based compensation 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, 2021, and other filings made by the Company from time to time with the SEC.
The factors described in such SEC filings include, without limitation: the impact of the COVID-19 outbreak on the Company's results of operations, the Company's ability to realize the anticipated results of its business realignment; cybersecurity risks; risks that may result from changes in the Company's business operations; our ability to keep pace with technological advances; significant competition in the automotive electronics, consumer electronics and biometrics businesses; our relationships with key suppliers and customers; quality and consumer acceptance of newly introduced products; market volatility; non-availability of product; excess inventory; price and product competition; new product introductions; foreign currency fluctuations; and restrictive debt covenants. Many of the foregoing risks and uncertainties are, and will be, exacerbated by the COVID-19 pandemic and any worsening of the global business and economic environment as a result. The Company assumes no obligation and does not intend to update these forward-looking statements.
Investor Relations Contact:
Glenn Wiener, GW Communications (for VOXX)
Email: [email protected]
-- Tables to Follow --
VOXX International Corporation and Subsidiaries Consolidated Balance Sheets | |||||||
(In thousands, except share and per share data) | |||||||
August 31, | February 28, | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 41,051 | $ | 59,404 | |||
Accounts receivable, net | 90,346 | 106,165 | |||||
Inventory | 145,711 | 130,793 | |||||
Receivables from vendors | 362 | 277 | |||||
Due from Onkyo | 8,390 | ? | |||||
Prepaid expenses and other current assets | 24,149 | 22,266 | |||||
Income tax receivable | 435 | 434 | |||||
Total current assets | 310,444 | 319,339 | |||||
Investment securities | 1,544 | 1,777 | |||||
Equity investment | 22,457 | 23,267 | |||||
Property, plant and equipment, net | 51,022 | 52,026 | |||||
Operating lease, right of use asset | 4,309 | 4,572 | |||||
Goodwill | 56,958 | 58,311 | |||||
Intangible assets, net | 87,192 | 90,104 | |||||
Deferred income tax assets | 98 | 99 | |||||
Other assets | 798 | 1,323 | |||||
Total assets | $ | 534,822 | $ | 550,818 | |||
Liabilities, Redeemable Equity, and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 58,006 | $ | 61,826 | |||
Accrued expenses and other current liabilities | 47,742 | 53,392 | |||||
Income taxes payable | 1,390 | 1,587 | |||||
Accrued sales incentives | 21,648 | 25,313 | |||||
Contract liabilities, current | 3,698 | 4,178 | |||||
Current portion of long-term debt | 1,328 | 500 | |||||
Total current liabilities | 133,812 | 146,796 | |||||
Long-term debt, net of debt issuance costs | 5,192 | 5,962 | |||||
Finance lease liabilities, less current portion | 155 | 302 | |||||
Operating lease liabilities, less current portion | 3,327 | 3,582 | |||||
Deferred compensation | 1,544 | 1,777 | |||||
Deferred income tax liabilities | 6,910 | 6,645 | |||||
Other tax liabilities | 1,007 | 1,170 | |||||
Other long-term liabilities | 4,701 | 5,255 | |||||
Total liabilities | 156,648 | 171,489 | |||||
Commitments and contingencies | |||||||
Redeemable equity | 3,345 | 3,260 | |||||
Stockholders' equity: | |||||||
Preferred stock: | |||||||
No shares issued or outstanding | ? | ? | |||||
Common stock: | |||||||
Class A, $.01 par value, 60,000,000 shares authorized, 24,476,847 and 24,416,194 shares issued and 21,614,629 and 21,666,976 shares outstanding at August 31, 2021 and February 28, 2021, respectively | 245 | 245 | |||||
Class B Convertible, $.01 par value, 10,000,000 shares authorized, 2,260,954 shares issued and outstanding at both August 31, 2021 and February 28, 2021 | 22 | 22 | |||||
Paid-in capital | 300,019 | 300,402 | |||||
Retained earnings | 151,933 | 148,906 | |||||
Accumulated other comprehensive loss | (15,634) | (14,977) | |||||
Less: Treasury stock, at cost, 2,862,218 and 2,749,218 shares of Class A Common Stock at August 31, 2021 and February 28, 2021, respectively | (25,138) | (23,918) | |||||
Less: Redeemable equity | (3,345) | (3,260) | |||||
Total VOXX International Corporation stockholders' equity | 408,102 | 407,420 | |||||
Non-controlling interest | (33,273) | (31,351) | |||||
Total stockholders' equity | 374,829 | 376,069 | |||||
Total liabilities, redeemable equity, and stockholders' equity | $ | 534,822 | $ | 550,818 |
VOXX International Corporation and Subsidiaries | |||||||||||||||
Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income | |||||||||||||||
(In thousands, except share and per share data) | |||||||||||||||
Three months ended August 31, | Six months ended August 31, | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Net sales | $ | 143,109 | $ | 128,032 | $ | 280,169 | $ | 200,019 | |||||||
Cost of sales | 105,923 | 89,956 | 206,288 | 141,968 | |||||||||||
Gross profit | 37,186 | 38,076 | 73,881 | 58,051 | |||||||||||
Operating expenses: | |||||||||||||||
Selling | 11,838 | 9,233 | 23,305 | 17,801 | |||||||||||
General and administrative | 17,884 | 15,424 | 36,560 | 30,294 | |||||||||||
Engineering and technical support | 7,886 | 4,781 | 14,118 | 9,266 | |||||||||||
Acquisition costs | 2,316 | 121 | 2,992 | 246 | |||||||||||
Total operating expenses | 39,924 | 29,559 | 76,975 | 57,607 | |||||||||||
Operating (loss) income | (2,738) | 8,517 | (3,094) | 444 | |||||||||||
Other (expense) income: | |||||||||||||||
Interest and bank charges | (582) | (1,010) | (1,110) | (1,809) | |||||||||||
Equity in income of equity investee | 2,035 | 1,883 | 4,758 | 2,745 | |||||||||||
Other, net | 376 | (226) | 818 | 460 | |||||||||||
Total other income, net | 1,829 | 647 | 4,466 | 1,396 | |||||||||||
(Loss) income before income taxes | (909) | 9,164 | 1,372 | 1,840 | |||||||||||
Income tax (benefit) expense | (217) | 2,609 | 267 | 4,390 | |||||||||||
Net (loss) income | (692) | 6,555 | 1,105 | (2,550) | |||||||||||
Less: net loss attributable to non-controlling interest | (1,003) | (785) | (1,922) | (1,618) | |||||||||||
Net income (loss) attributable to VOXX International Corporation | $ | 311 | $ | 7,340 | $ | 3,027 | $ | (932) | |||||||
Other comprehensive income (loss): | |||||||||||||||
Foreign currency translation adjustments | (1,334) | 3,025 | (962) | 3,529 | |||||||||||
Derivatives designated for hedging | 163 | (294) | 282 | (471) | |||||||||||
Pension plan adjustments | 22 | (65) | 23 | (79) | |||||||||||
Other comprehensive (loss) income, net of tax | (1,149) | 2,666 | (657) | 2,979 | |||||||||||
Comprehensive (loss) income attributable to VOXX International Corporation | $ | (838) | $ | 10,006 | $ | 2,370 | $ | 2,047 | |||||||
Income (loss) per share - basic: Attributable to VOXX International Corporation | $ | 0.01 | $ | 0.30 | $ | 0.12 | $ | (0.04) | |||||||
Income (loss) per share - diluted: Attributable to VOXX International Corporation | $ | 0.01 | $ | 0.30 | $ | 0.12 | $ | (0.04) | |||||||
Weighted-average common shares outstanding (basic) | 24,281,220 | 24,224,478 | 24,273,731 | 24,223,935 | |||||||||||
Weighted-average common shares outstanding (diluted) | 24,855,307 | 24,552,064 | 24,890,641 | 24,223,935 |
Reconciliation of GAAP Net Income Attributable to | |||||||||||||||
VOXX International Corporation to EBITDA and Adjusted EBITDA | |||||||||||||||
Three months ended August 31, | Six months ended August 31, | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Net income (loss) attributable to VOXX International Corporation | $ | 311 | $ | 7,340 | $ | 3,027 | $ | (932) | |||||||
Adjustments: | |||||||||||||||
Interest expense and bank charges (1) | 420 | 867 | 792 | 1,528 | |||||||||||
Depreciation and amortization (1) | 2,735 | 2,715 | 5,513 | 5,224 | |||||||||||
Income tax (benefit) expense | (217) | 2,609 | 267 | 4,390 | |||||||||||
EBITDA | 3,249 | 13,531 | 9,599 | 10,210 | |||||||||||
Stock-based compensation | 237 | 335 | 473 | 686 | |||||||||||
Acquisition costs | 2,316 | 121 | 2,992 | 246 | |||||||||||
Professional fees related to distribution agreement with GalvanEyes LLC | ? | ? | 325 | ? | |||||||||||
Non-routine legal fees | 548 | ? | 1,234 | ? | |||||||||||
Life insurance proceeds | ? | 24 | ? | (420) | |||||||||||
Adjusted EBITDA | $ | 6,350 | $ | 14,011 | $ | 14,623 | $ | 10,722 |
For purposes of calculating Adjusted EBITDA for the Company, interest expense and bank charges, as well as depreciation and amortization, have been adjusted in order to exclude the non-controlling interest portion of these expenses attributable to EyeLock LLC.
SOURCE VOXX International Corporation
These press releases may also interest you
|