ORLANDO,
Fla., May 15, 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 fourth quarter and full year ended February 28, 2023.
Commenting on the Company's results and business outlook,
Pat Lavelle, Chief Executive Officer
stated, "While we had a lot of positive developments and continued
to win new business and expand globally, Fiscal 2023 was certainly
a challenging year. From inflation, fears of recessions across the
globe, the retail environment and ongoing supply chain constraints,
we faced a myriad of roadblocks this year and our results came in
lower than expected. We're anticipating continued softness in the
global economy and at retail, though chip availability has improved
which should positively impact our Automotive business. We
continued to grow the Onkyo and Pioneer business and have plans to
expand our footprint globally this year. Additionally, our
Biometrics segment should show considerable improvement with new
accounts awarded and several projects underway."
Mr. Lavelle continued, "Given the near-term market outlook, we
continue to lower expenses and manage our capital prudently. We're
optimistic for a rebound domestically as we move further into the
year and with fewer supply chain disruptions. Our view of the
opportunities within each of our segments has not changed and we
remain bullish on our future prospects when there is a return to a
more normalized operating environment."
Fiscal 2023 and Fiscal 2022 Fourth Quarter Comparisons
Net sales in the Fiscal 2023 fourth quarter ended February 28, 2023, were $136.5 million as compared to $163.9 million in the Fiscal 2022 fourth quarter
ended February 28, 2022, a decrease
of $27.4 million or 16.7%.
- Automotive Electronics segment net sales in the Fiscal 2023
fourth quarter were $49.5 million as
compared to $50.6 million in the
comparable year-ago period, a decrease of $1.1 million or 2.2%. For the same comparable
periods, OEM product sales were $21.9
million, an increase of $6.7
million, with the increase driven primarily by higher sales
of OEM remote start and security products as chip scarcity
lessened, and due to higher OEM rear-seat entertainment products
due to new launches and increased volume with select customers.
Aftermarket product sales were $27.6
million, a decline of $7.9
million, which was primarily driven by lower sales of
aftermarket security products, higher levels of customer inventory
on hand, fewer vehicles due to supply chain shortages and softness
in the U.S. economy.
- Consumer Electronics segment net sales in the Fiscal 2023
fourth quarter were $86.7 million as
compared to $113.1 million in the
comparable year-ago period, a decrease of $26.4 million or 23.4%. For the same comparable
periods, Premium Audio product sales were $61.9 million, a decline of $29.5 million, and other consumer electronics
("CE") product sales were $24.8
million, an increase of $3.0
million. Lower segment sales were primarily attributable to
lower domestic sales of premium home theater speakers, wireless
speakers and mobility products, as well as lower sales
internationally due to the weaker European markets compared to the
prior year, partially offset by higher sales of Onkyo and Pioneer
related products. The declines in other CE product categories was
primarily due to a slowing of the global economy as several product
categories were down, partially offset by an increase in domestic
wireless speakers and reception products, and an increase in sales
of Schwaiger products in Germany.
- Biometrics segment net sales in the Fiscal 2023 fourth quarter
were $0.4 million as compared to
$0.1 million in the comparable
year-ago period, an increase of $0.3
million, with the improvement primarily related to sales to
new customers secured throughout the year.
The gross margin in the Fiscal 2023 fourth quarter was 25.4% as
compared to 26.8% in the Fiscal 2022 fourth quarter, a decline of
140 basis points. For the same comparable periods, the Company
reported:
- Automotive Electronics segment gross margin of 25.4% as
compared to 20.1%. The year-over-year improvement of 530 basis
points was primarily driven by steps the Company has taken to
address ongoing chip constraints, which positively impacted gross
margin for the comparable periods. More normalized OEM production
also had a positive benefit on the Company's gross margin, and the
Company also experienced higher gross margins related to its
aftermarket offering.
- Consumer Electronics segment gross margin of 25.3% as compared
to 29.8%. The year-over-year decline of 450 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 to discount channel customers in Europe. This was partially offset by
mitigation steps the Company has taken through pricing adjustments
and other sourcing strategies.
- Biometrics segment gross margin of 39.8% as compared to
negative gross margin in the comparable year-ago period.
Total operating expenses in the Fiscal 2023 fourth quarter were
$47.6 million as compared to
$40.7 million in the comparable
Fiscal 2022 period, an increase of $6.9
million or 17.0%. However, within operating expenses for the
Fiscal 2023 fourth quarter was a non-cash goodwill impairment
charge of $7.4 million, and non-cash
intangible asset impairment charges of $1.3
million. Excluding these non-cash charges, total operating
expenses for the comparable fourth quarter periods improved by
$1.7 million or 4.3%.
For the same comparable periods:
- Selling expenses of $11.4 million
declined by $1.9 million or 14.5%,
driven by lower commissions and salesmen salaries, and a decline in
website and credit card expenses, partially offset by higher
advertising and trade show expenses, among other factors.
- General and administrative expenses of $20.1 million decreased by $0.7 million or 3.8% primarily due to lower
executive compensation and a decline in office expenses, partially
offset by higher restructuring-related expenses which are not
present in the prior year period, among other factors.
- Engineering and technical support expenses of $7.6 million declined by $0.1 million or 1.2%, primarily due to lower
direct labor expenses, partially offset by higher research and
development expenses in support of various programs within the
Company's business segments.
- Acquisition costs declined by $0.4
million as the Company incurred acquisitions costs in the
Fiscal 2022 fourth 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.
- Goodwill impairment and intangible asset impairment charges of
$7.4 million and $1.3 million, respectively, as a result of
reductions in projected volumes from OEM customers recorded in the
fourth quarter of 2023. There were no impairment charges recorded
in the comparable Fiscal 2022 period.
The Company reported an operating loss in the Fiscal 2023 fourth
quarter of $12.9 million as compared
to operating income of $3.2 million
in the comparable Fiscal 2022 fourth quarter.
Total other income, net, in the Fiscal 2023 fourth quarter was
$0.2 as compared to total other
expense, net, of $0.1 million in the
comparable Fiscal 2022 fourth quarter. Interest and bank charges
increased by approximately $0.9
million, and equity in income of equity investee increased
by $0.7 million, partially offset by
an expense of $1.0 million related to
the interim arbitration award associated with the Seaguard
arbitration. Other, net increased by approximately $1.5 million, primarily as a result of changes in
foreign currency.
Net loss attributable to VOXX International Corporation in the
Fiscal 2023 fourth quarter was $19.3
million as compared to net income attributable to VOXX
International Corporation of $2.8
million in the comparable Fiscal 2022 period. The Company
reported a basic and diluted loss per share attributable to VOXX
International Corporation of $0.80 in
the Fiscal 2023 fourth quarter as compared to basic and diluted
income per common share attributable to VOXX International
Corporation of $0.11, in the
comparable Fiscal 2022 period.
The Company reported an Earnings Before Interest, Taxes,
Depreciation and Amortization ("EBITDA") loss in the Fiscal 2023
fourth quarter of $9.1 million as
compared to EBITDA in the comparable Fiscal 2022 fourth quarter of
$8.4 million. Adjusted EBITDA in the
Fiscal 2023 fourth quarter was $3.0
million as compared to Adjusted EBITDA in the comparable
Fiscal 2022 fourth quarter of $9.7
million.
Fiscal 2023 and Fiscal 2022 Year-End Comparisons
Net sales in the Fiscal 2023 twelve-month period ended
February 28, 2023 ("Fiscal 2023"),
were $534.0 million as compared to
net sales of $635.9 million in the
comparable Fiscal 2022 period ended February
28, 2022 ("Fiscal 2022"), a decline of $101.9 million or 16.0%.
- Automotive Electronics segment net sales in Fiscal 2023 were
$174.8 million as compared to
$200.6 million in Fiscal 2022, a
decline of $25.8 million or 12.9%.
For the same comparable periods, OEM product sales were
$73.0 million as compared to
$65.0 million, an increase of
$8.0 million or 12.2%, and
aftermarket product sales were $101.8
million as compared to $135.6
million, a decline of $33.7
million or 24.9%.
- Consumer Electronics segment net sales in Fiscal 2023 were
$357.8 million as compared to
$433.9 million in Fiscal 2022, a
decline of $76.2 million or 17.6%.
For the same comparable periods, Premium Audio product sales were
$274.5 million as compared to
$344.0 million, a decline of
$69.4 million or 20.2%, and Other
Consumer Electronics product sales were $83.2 million as compared to $89.9 million, a decline of $6.7 million or 7.5%.
- Biometrics segment net sales in Fiscal 2023 were $1.0 million as compared to $0.9 million in Fiscal 2022, an increase of
18.6%.
The gross margin in Fiscal 2023 was 25.1% as compared to 26.7%
in Fiscal 2022, a decline of 160 basis points. Within the segments
for the same comparable periods:
- Automotive Electronics segment gross margin was 24.3% as
compared to 23.6%, up 70 basis points.
- Consumer Electronics segment gross margin of 25.5% as compared
to 28.0%, down 250 basis points.
- Biometrics segment gross margins of 34.2% as compared to gross
margin of 21.0%.
Total operating expenses in both Fiscal 2023 and Fiscal 2022
were $161.6 million. Excluding the non-cash goodwill
impairment and non-cash intangible impairment charges incurred in
Fiscal 2023, total operating expenses declined by $8.7 million or 5.4%. Within this and for the
same comparable twelve-month periods:
- Selling expenses of $47.0 million
declined by $3.5 million, or
7.0%.
- General and administrative expenses of $74.5 million declined by $1.4 million, or 1.9%.
- Engineering and technical support expenses of $31.5 million were essentially flat.
- Acquisition costs decreased by approximately $3.6 million.
- Goodwill impairment and intangible asset impairment charges of
$7.4 million and $1.3 million, respectively, as a result of
reductions in projected volumes from OEM customers recorded in
Fiscal 2023. There were no impairments for Fiscal 2022.
The Company reported an operating loss in Fiscal 2023
of $27.3 million as compared to operating income of
$7.9 million in Fiscal 2022.
Total other expense, net, in Fiscal 2023, was $3.7 million as compared to total other
expense, net, of $33.8
million in Fiscal 2022. Within this and for the same
comparable twelve-month periods:
- Interest and bank charges of $4.6
million increased by $2.1
million.
- Equity in income of equity investees of $7.0 million declined by $0.9 million.
- Interim arbitration award of $3.9
million as compared to $39.4
million.
- Other, net was a loss of $2.1
million, as the Company had net foreign currency losses of
$3.7 million in Fiscal 2023.
Net loss attributable to VOXX International Corporation in
Fiscal 2023 was $28.6 million as compared to a net loss
attributable to VOXX International Corporation of $22.3
million in the comparable Fiscal 2022 period. The Company
reported a basic and diluted net loss per share attributable to
VOXX International Corporation of $1.17 in Fiscal 2023 as
compared to a basic and diluted net loss per common share
attributable to VOXX International Corporation
of $0.92 in Fiscal 2022.
EBITDA in Fiscal 2023 was a loss of $12.3 million as
compared to an EBITDA loss in Fiscal 2022 of $6.8 million.
Adjusted EBITDA in Fiscal 2023 was $8.6 million as
compared to Adjusted EBITDA in Fiscal 2022 of $39.9
million.
Balance Sheet Update
As of February 28, 2023, the Company
had cash and cash equivalents of $6.1
million as compared to $27.8
million as of February 28,
2022. Total debt as of February 28,
2023 was $39.2 million as
compared to $13.2 million as of
February 28, 2022. The increase in
total debt is primarily related to $29.0
million outstanding on the Company's Domestic Credit
Facility as of February 28, 2023, and
there was nothing outstanding as of February
28, 2022. The additional variances in total debt related to
a $0.5 million decline associated
with the Company's Florida
mortgage and a $0.6 million decline
in the shareholder loan payable to Sharp Corporation. Total
long-term debt, net of debt issuance costs as of February 28, 2023 was $37.5 million as compared to $9.8 million as of February 28, 2023.
Conference Call Information
The Company will be hosting its conference call and webcast on
Tuesday, May 16, 2023 at 10:00 a.m. ET.
- To attend the webcast:
https://edge.media-server.com/mmc/p/qn7zhgsa
- To access by phone:
https://register.vevent.com/register/BI7fba4ed5195f4b03a92fe475cf346a10
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) income, computed in accordance
with GAAP, before interest expense and bank charges, taxes, and
depreciation and amortization. Adjusted EBITDA represents EBITDA
adjusted for stock-based compensation expense, foreign currency
losses (gains), life insurance proceeds, non-recurring gains,
acquisition costs, certain non-recurring legal and professional
fees, settlements and awards, non-recurring severance expense,
restructuring-related expenses, and impairment charges.
Depreciation, amortization, stock-based compensation, foreign
currency losses (gains), and impairment charges are non-cash
items.
We present EBITDA and Adjusted EBITDA in our Form 10-K because
we consider them to be useful and appropriate supplemental measures
of our performance. Adjusted EBITDA helps us to evaluate our
performance without the effects of certain GAAP calculations that
may not have a direct cash impact on our current operating
performance. In addition, the exclusion of certain costs or gains
relating to certain events that occurred during the periods
presented allows for a more meaningful comparison of our results
from period-to-period. These non-GAAP measures, as we define them,
are not necessarily comparable to similarly entitled measures of
other companies and may not be an appropriate measure for
performance relative to other companies. EBITDA and Adjusted EBITDA
should not be assessed in isolation from, are not intended to
represent, and should not be considered to be more meaningful
measures than, or alternatives to, measures of operating
performance as determined in accordance with GAAP.
About VOXX International Corporation
VOXX
International Corporation (NASDAQ: VOXX) has grown into a
leader in Automotive Electronics and Consumer
Electronics, with emerging Biometrics technology to capitalize on
the increased need for advanced security. Over the past several
decades, with a portfolio of approximately 35 trusted brands, VOXX
has built market-leading positions in in-vehicle entertainment,
automotive security, reception products, a number of premium audio
market segments, and more. VOXX is a global company, with an
extensive distribution network that includes power retailers, mass
merchandisers, 12-volt specialists and many of the world's leading
automotive manufacturers. For additional information, please visit
our website at www.voxxintl.com
Safe Harbor Statement
Except for historical
information contained herein, statements made in this release
constitute forward-looking statements and thus may involve certain
risks and uncertainties. All forward-looking statements made in
this release are based on currently available information and the
Company assumes no responsibility to update any such
forward-looking statements. The following factors, among others,
may cause actual results to differ materially from the results
suggested in the forward-looking statements. The factors include,
but are not limited to the risk factors described in the "Risk
Factors" section of the Company's Annual Report on Form 10-K for
the fiscal year ended February 28,
2023, and other filings made by the Company from time to
time with the SEC, as such descriptions may be updated or
amended in any future reports we file with the SEC. The factors
described in such SEC filings include, without limitation: impacts
related to the COVID-19 pandemic, global supply shortages and
logistics costs and delays; global economic
trends; cybersecurity risks; risks that may result from
changes in the Company's business operations; operational execution
by our businesses; changes in law, regulation or policy that may
affect our businesses; our ability to increase margins through
implementation of operational improvements, restructuring and other
cost reduction methods; our ability to keep pace with
technological advances; significant competition in the automotive
electronics, consumer electronics and biometrics businesses; our
relationships with key suppliers and customers; quality and
consumer acceptance of newly introduced products; market
volatility; non-availability of product; excess inventory; price
and product competition; new product introductions; foreign
currency fluctuations; and restrictive debt covenants. Many of the
foregoing risks and uncertainties are, and will be, exacerbated by
the War in the Ukraine and any worsening of the global
business and economic environment as a result.
Investor Relations Contact:
Glenn Wiener, GW Communications (for VOXX)
Email: gwiener@GWCco.com
Tables to Follow
VOXX International
Corporation and Subsidiaries
Consolidated Balance
Sheets
February 28, 2023
and February 28, 2022
(In thousands,
except share data)
|
|
|
|
February 28,
2023
|
|
|
February 28,
2022
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
6,134
|
|
|
$
|
27,788
|
|
Accounts receivable,
net
|
|
|
82,753
|
|
|
|
105,625
|
|
Inventory,
net
|
|
|
175,129
|
|
|
|
174,922
|
|
Receivables from
vendors
|
|
|
112
|
|
|
|
363
|
|
Prepaid expenses and
other current assets
|
|
|
19,817
|
|
|
|
21,340
|
|
Income tax
receivable
|
|
|
1,076
|
|
|
|
734
|
|
Total current
assets
|
|
|
285,021
|
|
|
|
330,772
|
|
Investment
securities
|
|
|
1,053
|
|
|
|
1,231
|
|
Equity
investments
|
|
|
22,018
|
|
|
|
21,348
|
|
Property, plant and
equipment, net
|
|
|
47,044
|
|
|
|
49,794
|
|
Operating lease, right
of use assets
|
|
|
3,632
|
|
|
|
4,464
|
|
Goodwill
|
|
|
65,308
|
|
|
|
74,320
|
|
Intangible assets,
net
|
|
|
90,437
|
|
|
|
101,450
|
|
Deferred income tax
assets
|
|
|
1,218
|
|
|
|
40
|
|
Other assets
|
|
|
3,720
|
|
|
|
3,245
|
|
Total
assets
|
|
$
|
519,451
|
|
|
$
|
586,664
|
|
Liabilities,
Redeemable Equity, Redeemable Non-Controlling Interest, and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
35,099
|
|
|
$
|
76,665
|
|
Accrued expenses and
other current liabilities
|
|
|
41,856
|
|
|
|
53,974
|
|
Income taxes
payable
|
|
|
2,276
|
|
|
|
2,714
|
|
Accrued sales
incentives
|
|
|
21,778
|
|
|
|
23,755
|
|
Contingent
consideration, current
|
|
|
4,500
|
|
|
|
685
|
|
Interim arbitration
award payable
|
|
|
43,388
|
|
|
|
39,444
|
|
Contract liabilities,
current
|
|
|
3,990
|
|
|
|
4,373
|
|
Current portion of
long-term debt
|
|
|
500
|
|
|
|
2,406
|
|
Total current
liabilities
|
|
|
153,387
|
|
|
|
204,016
|
|
Long-term debt, net of
debt issuance costs
|
|
|
37,513
|
|
|
|
9,786
|
|
Finance lease
liabilities, less current portion
|
|
|
63
|
|
|
|
78
|
|
Operating lease
liabilities, less current portion
|
|
|
2,509
|
|
|
|
3,298
|
|
Deferred
compensation
|
|
|
1,053
|
|
|
|
1,231
|
|
Contingent
consideration, less current portion
|
|
|
—
|
|
|
|
5,750
|
|
Deferred income tax
liabilities
|
|
|
4,855
|
|
|
|
5,300
|
|
Other tax
liabilities
|
|
|
966
|
|
|
|
1,083
|
|
Prepaid ownership
interest in EyeLock LLC due to GalvanEyes LLC
|
|
|
7,317
|
|
|
|
2,451
|
|
Other long-term
liabilities
|
|
|
2,947
|
|
|
|
3,508
|
|
Total
liabilities
|
|
|
210,610
|
|
|
|
236,501
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
Redeemable
equity
|
|
|
4,018
|
|
|
|
3,550
|
|
Redeemable
non-controlling interest
|
|
|
232
|
|
|
|
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
21,167,527 and
21,614,629 shares outstanding at February 28, 2023 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
|
|
|
22
|
|
|
|
22
|
|
Paid-in
capital
|
|
|
296,577
|
|
|
|
300,453
|
|
Retained
earnings
|
|
|
97,997
|
|
|
|
126,573
|
|
Accumulated other
comprehensive loss
|
|
|
(18,680)
|
|
|
|
(17,503)
|
|
Less: Treasury stock,
at cost, 3,370,657 and 2,862,218 shares of Class A Common Stock at
February 28, 2023 and
February 28, 2022,
respectively
|
|
|
(30,285)
|
|
|
|
(25,138)
|
|
Less: Redeemable
equity
|
|
|
(4,018)
|
|
|
|
(3,550)
|
|
Total VOXX
International Corporation stockholders' equity
|
|
|
341,859
|
|
|
|
381,102
|
|
Non-controlling
interest
|
|
|
(37,268)
|
|
|
|
(35,000)
|
|
Total stockholders'
equity
|
|
|
304,591
|
|
|
|
346,102
|
|
Total liabilities,
redeemable equity, redeemable non-controlling interest, and
stockholders' equity
|
|
$
|
519,451
|
|
|
$
|
586,664
|
|
VOXX International
Corporation and Subsidiaries
Consolidated
Statements of Operations and Comprehensive (Loss)
Income
Years Ended February
28, 2023, February 28, 2022, and February 28, 2021
(In thousands,
except share and per share data)
|
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
|
|
February 28,
2023
|
|
|
February 28,
2022
|
|
|
February 28,
2021
|
|
Net sales
|
|
$
|
534,014
|
|
|
$
|
635,920
|
|
|
$
|
563,605
|
|
Cost of
sales
|
|
|
399,715
|
|
|
|
466,442
|
|
|
|
405,058
|
|
Gross profit
|
|
|
134,299
|
|
|
|
169,478
|
|
|
|
158,547
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Selling
|
|
|
46,967
|
|
|
|
50,507
|
|
|
|
43,786
|
|
General and
administrative
|
|
|
74,508
|
|
|
|
75,955
|
|
|
|
69,798
|
|
Engineering and
technical support
|
|
|
31,464
|
|
|
|
31,540
|
|
|
|
20,897
|
|
Acquisition
costs
|
|
|
(36)
|
|
|
|
3,552
|
|
|
|
287
|
|
Goodwill impairment
charge
|
|
|
7,373
|
|
|
|
-
|
|
|
|
-
|
|
Intangible asset
impairment charges
|
|
|
1,300
|
|
|
|
-
|
|
|
|
1,300
|
|
Total operating
expenses
|
|
|
161,576
|
|
|
|
161,554
|
|
|
|
136,068
|
|
Operating (loss)
income
|
|
|
(27,277)
|
|
|
|
7,924
|
|
|
|
22,479
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
|
Interest and bank
charges
|
|
|
(4,643)
|
|
|
|
(2,532)
|
|
|
|
(2,979)
|
|
Equity in income of
equity investee
|
|
|
6,969
|
|
|
|
7,890
|
|
|
|
7,350
|
|
Interim arbitration
award
|
|
|
(3,944)
|
|
|
|
(39,444)
|
|
|
|
-
|
|
Investment
gain
|
|
|
-
|
|
|
|
-
|
|
|
|
42
|
|
Other, net
|
|
|
(2,055)
|
|
|
|
323
|
|
|
|
746
|
|
Total other (expense)
income, net
|
|
|
(3,673)
|
|
|
|
(33,763)
|
|
|
|
5,159
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before
income taxes
|
|
|
(30,950)
|
|
|
|
(25,839)
|
|
|
|
27,638
|
|
Income tax (benefit)
expense
|
|
|
(39)
|
|
|
|
1,626
|
|
|
|
4,272
|
|
Net (loss)
income
|
|
$
|
(30,911)
|
|
|
$
|
(27,465)
|
|
|
$
|
23,366
|
|
Less: net loss
attributable to non-controlling interest
|
|
|
(2,335)
|
|
|
|
(5,132)
|
|
|
|
(3,401)
|
|
Net (loss) income
attributable to VOXX International Corporation
|
|
$
|
(28,576)
|
|
|
$
|
(22,333)
|
|
|
$
|
26,767
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
(1,876)
|
|
|
|
(3,317)
|
|
|
|
4,365
|
|
Derivatives designated
for hedging, net of tax
|
|
|
309
|
|
|
|
633
|
|
|
|
(305)
|
|
Pension plan
adjustments, net of tax
|
|
|
390
|
|
|
|
158
|
|
|
|
18
|
|
Other comprehensive
(loss) income, net of tax
|
|
|
(1,177)
|
|
|
|
(2,526)
|
|
|
|
4,078
|
|
Comprehensive (loss)
income attributable to VOXX International Corporation
|
|
$
|
(29,753)
|
|
|
$
|
(24,859)
|
|
|
$
|
30,845
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
common share attributable to VOXX International Corporation -
basic
|
|
$
|
(1.17)
|
|
|
$
|
(0.92)
|
|
|
$
|
1.11
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
common share attributable to VOXX International Corporation -
diluted
|
|
$
|
(1.17)
|
|
|
$
|
(0.92)
|
|
|
$
|
1.09
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding (basic)
|
|
|
24,325,938
|
|
|
|
24,287,179
|
|
|
|
24,201,221
|
|
Weighted-average common
shares outstanding (diluted)
|
|
|
24,325,938
|
|
|
|
24,287,179
|
|
|
|
24,650,106
|
|
Reconciliation of
GAAP Net (Loss) Income Attributable to VOXX International
Corporation to EBITDA and
Adjusted
EBITDA
|
|
|
|
|
|
Fiscal
|
|
|
Fiscal
|
|
|
Fiscal
|
|
|
|
2023
|
|
|
2022
|
|
|
2021
|
|
Net (loss) income
attributable to VOXX International Corporation
|
|
$
|
(28,576)
|
|
|
$
|
(22,333)
|
|
|
$
|
26,767
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Interest expense and
bank charges (1)
|
|
|
3,847
|
|
|
|
1,825
|
|
|
|
2,404
|
|
Depreciation and
amortization (1)
|
|
|
12,451
|
|
|
|
12,053
|
|
|
|
10,907
|
|
Income tax (benefit)
expense (1)
|
|
|
(21)
|
|
|
|
1,626
|
|
|
|
4,272
|
|
EBITDA
|
|
|
(12,299)
|
|
|
|
(6,829)
|
|
|
|
44,350
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
609
|
|
|
|
907
|
|
|
|
1,749
|
|
Foreign currency
losses (1)
|
|
|
3,615
|
|
|
|
635
|
|
|
|
862
|
|
Life insurance
proceeds
|
|
|
-
|
|
|
|
-
|
|
|
|
(420)
|
|
Investment
gain
|
|
|
-
|
|
|
|
-
|
|
|
|
(42)
|
|
Acquisition
costs
|
|
|
(36)
|
|
|
|
3,552
|
|
|
|
287
|
|
Non-routine legal
fees
|
|
|
2,452
|
|
|
|
1,912
|
|
|
|
-
|
|
Interim arbitration
award
|
|
|
3,944
|
|
|
|
39,444
|
|
|
|
-
|
|
Severance expense
(2)
|
|
|
864
|
|
|
|
-
|
|
|
|
-
|
|
Gain on sale of
tradename
|
|
|
(97)
|
|
|
|
-
|
|
|
|
-
|
|
Professional fees
related to distribution agreement with GalvanEyes LLC
|
|
|
-
|
|
|
|
325
|
|
|
|
-
|
|
Restructuring-related
expenses
|
|
|
870
|
|
|
|
-
|
|
|
|
-
|
|
Goodwill impairment
charge
|
|
|
7,373
|
|
|
|
-
|
|
|
|
-
|
|
Intangible asset
impairment charges
|
|
|
1,300
|
|
|
|
-
|
|
|
|
1,300
|
|
Adjusted
EBITDA
|
|
$
|
8,595
|
|
|
$
|
39,946
|
|
|
$
|
48,086
|
|
|
|
(1)
|
For purposes of
calculating Adjusted EBITDA for the Company, interest expense and
bank charges, depreciation and amortization, income tax expense
(benefit), and foreign currency losses (gains) added back to Net
(loss) income attributable to VOXX International Corporation have
been adjusted in order to exclude the minority interest portion of
these expenses attributable to EyeLock LLC and Onkyo, as
applicable.
|
(2)
|
Includes severance
expenses for employee terminations resulting from non-recurring
events, such as the departure of Section 16(b) officers of the
Company.
|
VOXX International
Corporation and Subsidiaries
Consolidated
Statements of Operations and Comprehensive (Loss)
Income
Three Months Ended
February 28, 2023, February 28, 2022 and
February 28, 2021
(In thousands,
except share and per share data)
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
February 28,
2023
|
|
February 28,
2022
|
|
February 28,
2021
|
Net sales
|
$
|
136,522
|
|
|
$
|
163,880
|
|
|
$
|
162,521
|
|
Cost of
sales
|
101,856
|
|
|
119,987
|
|
|
120,153
|
|
Gross profit
|
34,666
|
|
|
43,893
|
|
|
42,368
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling
|
11,404
|
|
|
13,338
|
|
|
12,810
|
|
General and
administrative
|
20,073
|
|
|
19,346
|
|
|
18,417
|
|
Engineering and
technical support
|
7,620
|
|
|
7,716
|
|
|
5,955
|
|
Acquisition
costs
|
(172)
|
|
|
273
|
|
|
-
|
|
Goodwill impairment
charge
|
7,373
|
|
|
-
|
|
|
-
|
|
Intangible asset
impairment charges
|
1,300
|
|
|
-
|
|
|
1,300
|
|
Total operating
expenses
|
47,598
|
|
|
40,673
|
|
|
38,482
|
|
Operating (loss)
income
|
(12,932)
|
|
|
3,220
|
|
|
3,886
|
|
Other (expense)
income:
|
|
|
|
|
|
Interest and bank
charges
|
(1,542)
|
|
|
(692)
|
|
|
(699)
|
|
Equity in income of
equity investee
|
1,596
|
|
|
926
|
|
|
2,844
|
|
Interim arbitration
award
|
(986)
|
|
|
-
|
|
|
-
|
|
Other, net
|
1,114
|
|
|
(352)
|
|
|
(7)
|
|
Total other income
(expense), net
|
182
|
|
|
(118)
|
|
|
2,138
|
|
|
|
|
|
|
|
(Loss) income from
before income taxes
|
(12,750)
|
|
|
3,102
|
|
|
6,024
|
|
Income tax expense
(benefit)
|
5,749
|
|
|
2,000
|
|
|
(2,452)
|
|
Net (loss)
income
|
$
|
(18,499)
|
|
|
$
|
1,102
|
|
|
$
|
8,476
|
|
|
|
|
|
|
|
Less: net income (loss)
attributable to non-controlling interest
|
755
|
|
|
(1,659)
|
|
|
(972)
|
|
Net (loss) income
attributable to VOXX International Corporation
|
$
|
(19,254)
|
|
|
$
|
2,761
|
|
|
$
|
9,448
|
|
|
|
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
Foreign currency
translation adjustments
|
789
|
|
|
(520)
|
|
|
757
|
|
Derivatives designated
for hedging, net of tax
|
45
|
|
|
167
|
|
|
209
|
|
Pension Plan
adjustments, net of tax
|
337
|
|
|
99
|
|
|
103
|
|
Other comprehensive
income (loss), net of tax
|
1,171
|
|
|
(254)
|
|
|
1,069
|
|
Comprehensive (loss)
income attributable to VOXX International Corporation
|
$
|
(18,083)
|
|
|
$
|
2,507
|
|
|
$
|
10,517
|
|
|
|
|
|
|
|
Net (loss) income per
common share attributable to VOXX International
Corporation –
basic
|
$
|
(0.80)
|
|
|
$
|
0.11
|
|
|
$
|
0.39
|
|
Net (loss) income per
common share attributable to VOXX International
Corporation -
diluted
|
$
|
(0.80)
|
|
|
$
|
0.11
|
|
|
$
|
0.38
|
|
Weighted-average common
shares outstanding (basic)
|
24,073,542
|
|
|
24,311,912
|
|
|
24,206,248
|
|
Weighted-average common
shares outstanding (diluted)
|
24,073,542
|
|
|
24,044,833
|
|
|
24,993,408
|
|
Reconciliation of
GAAP Net Income Attributable to VOXX International Corporation to
EBITDA and Adjusted EBITDA
|
|
|
|
Three
Months
Ended
|
|
Three
Months
Ended
|
|
Three
Months
Ended
|
|
|
February
28,
2023
|
|
February
28,
2022
|
|
February
28,
2021
|
Net (loss) income
attributable to VOXX International Corporation
|
|
$
|
(19,254)
|
|
|
$
|
2,761
|
|
|
$
|
9,448
|
|
Adjustments:
|
|
|
|
|
|
|
Interest expense and
bank charges (1)
|
|
1,347
|
|
|
468
|
|
|
497
|
|
Depreciation and
amortization (1)
|
|
3,045
|
|
|
3,162
|
|
|
2,779
|
|
Income tax expense
(benefit)
|
|
5,767
|
|
|
2,000
|
|
|
(2,452)
|
|
EBITDA
|
|
(9,095)
|
|
|
8,391
|
|
|
10,272
|
|
Adjustments:
|
|
|
|
|
|
|
Stock-based
compensation
|
|
202
|
|
|
213
|
|
|
295
|
|
Foreign currency (gains)
losses
|
|
(252)
|
|
|
367
|
|
|
417
|
|
Acquisition costs
|
|
(172)
|
|
|
273
|
|
|
-
|
|
Non-routine legal
fees
|
|
1,566
|
|
|
443
|
|
|
-
|
|
Interim arbitration
award
|
|
986
|
|
|
-
|
|
|
-
|
|
Severance expense
(2)
|
|
864
|
|
|
-
|
|
|
-
|
|
Gain on sale of
tradename
|
|
(97)
|
|
|
-
|
|
|
-
|
|
Restructuring-related
expenses
|
|
338
|
|
|
-
|
|
|
-
|
|
Goodwill impairment
charge
|
|
7,373
|
|
|
-
|
|
|
-
|
|
Intangible asset impairment
charges
|
|
1,300
|
|
|
-
|
|
|
1,300
|
|
Adjusted
EBITDA
|
|
$
|
3,013
|
|
|
$
|
9,687
|
|
|
$
|
12,284
|
|
|
|
(1)
|
For purposes of
calculating Adjusted EBITDA for the Company, interest expense and
bank charges, depreciation and amortization, income tax expense
(benefit), and foreign currency losses (gains) added back to Net
(loss) income attributable to VOXX International Corporation have
been adjusted in order to exclude the minority interest portion of
these expenses attributable to EyeLock LLC and Onkyo, as
applicable.
|
(2)
|
Includes severance
expenses for employee terminations resulting from non-recurring
events, such as the departure of Section 16(b) officers of the
Company.
|
View original
content:https://www.prnewswire.com/news-releases/voxx-international-corporation-reports-its-fiscal-2023-fourth-quarter-and-year-end-financial-results-301825108.html
SOURCE VOXX International Corporation