ORLANDO, Fla., May 14, 2018 /PRNewswire/ -- VOXX
International Corporation (NASDAQ: VOXX), a leading manufacturer
and distributor of automotive and consumer technologies for global
markets, today announced its financial results for its Fiscal 2018
fourth quarter and year ended February
28, 2018.
Pat Lavelle, President and CEO
of VOXX International Corporation stated, "With the sale
of Hirschmann in Fiscal 2018, we paid down our credit facility,
strengthened our balance sheet and have begun realigning our
operations to lower our overhead and bring VOXX back to
profitability. This was the first step in our plan to unlock
shareholder value and reposition our Company. In the coming fiscal
year, we intend to look for other avenues to potentially monetize
assets, while concurrently looking at opportunities to generate
growth and improve the bottom-line, whether it be in the form of
acquisitions or strategic partnerships."
Lavelle continued, "R&D investments over the past several
years have positioned us to bring EyeLock's solutions to
commercialization, and there are several projects in development
that we believe will begin to generate royalty income for our
Company this year. Similarly, we have spent considerable resources
developing our next-generation rear-seat infotainment system, EVO,
which is now live with three large Automotive OEM's, with other
programs to follow. There are also new programs in the healthcare
space that have significant growth potential over the next two
years, and new partnerships in Premium Audio that hold great
promise for the category and should further extend our brand
recognition. While there will always be end-of-life products within
our segments, the newer categories we have invested in are
positioned for growth and we should see gradual improvements
throughout the year."
Fiscal 2018 and Fiscal 2017 Fourth Quarter Results
Comparisons
Net sales for the Fiscal 2018 fourth quarter ended February 28, 2018 were $122.2
million as compared to net sales of $124.9
million in the comparable year-ago period, a decline
of $2.7 million or 2.1%.
- Automotive segment sales were $45.1
million as compared to $43.1
million for the comparable Fiscal 2018 and 2017 fourth
quarters, an increase of $2.0 million
or 4.7%. The year-over-year increase in net sales was primarily
driven by higher sales of OEM product lines, particularly the
Company's next-generation, EVO-based rear-seat infotainment system
as new programs with General Motors and Ford began in the Company's
Fiscal 2018 third quarter.
- Consumer Accessories segment sales were $39.8 million as compared to $38.8 million, an increase of $0.9 million or 2.4%. The year-over-year increase
in net sales was driven primarily by wireless speaker sales as well
as a modest increase in Project Nursery sales, among others.
- Premium Audio segment sales were $37.4
million as compared to $43.0
million for the comparable Fiscal 2018 and Fiscal 2017
fourth quarters, a decrease of $5.7
million or 13.1%. The decline in net sales was primarily
driven by retail and discount promotions in the prior fiscal year
period, which did not repeat in the current fiscal year fourth
quarter.
The gross margin for the Fiscal 2018 fourth quarter came in at
26.4% as compared to 28.8% for the same period last year. The
year-over-year decline was related to lower gross margins in the
Automotive segment (25.6% vs. 30.1%), Premium Audio segment (31.0%
vs. 32.1%) and Consumer Accessories segment (22.9% vs. 24.0%) when
comparing the Fiscal 2018 and Fiscal 2017 fourth quarters. Each of
the Company's segments reported lower gross margins due to product
mix shifts in the comparable fiscal year periods.
Total operating expenses for the Fiscal 2018 fourth quarter
were $37.2 million as compared to $39.7
million in the Fiscal 2017 fourth quarter, an improvement
of $2.5 million or 6.2%. The year-over-year improvement
was primarily related to initiatives undertaken by the Company to
lower its fixed expenses. When comparing the Fiscal 2018 and Fiscal
2017 fourth quarter periods, general and administrative expenses
declined by $1.5 million and
engineering and technical support expenses declined by $1.5 million. These improvements were partially
offset by a $0.5 million increase in
selling expenses as the Company increased its advertising spend to
support new product introductions and online sales, primarily in
its Premium Audio and Consumer Accessories segments.
The Company reported an operating loss of $5.0 million in the Fiscal 2018 fourth quarter as
compared to an operating loss of $3.7
million for the comparable Fiscal 2017 period. Total other
income for the Fiscal 2018 fourth quarter was $0.5
million as compared to a loss of $0.7 million in the comparable year-ago
period. Interest and bank charges declined by
approximately $0.8 million due to a lower average
outstanding balance on the Company's Credit Facility compared to
the prior year period.
Net income from continuing operations was $8.4 million in the Fiscal 2018 fourth
quarter as compared to a net loss from continuing operations of
$7.9 million in the corresponding
year-ago period. Net income from discontinued operations, net of
tax, in the Fiscal 2018 fourth quarter was $2.3 million as compared to net income from
discontinued operations, net of tax, of $5.6
million in the Fiscal 2017 fourth quarter. Net income
attributable to VOXX International Corporation was $12.6 million in the Fiscal 2018 fourth quarter
as compared to a net loss attributable to VOXX International
Corporation of $0.1 million.
The Company reported earnings per share attributable
to VOXX International Corporation of $0.52 on a
basic per share basis and $0.51 on a
diluted per share basis as compared to a loss per share
attributable to VOXX International Corporation of $0.00 on a basic and diluted per share basis in
the comparable year-ago period.
The Company reported earnings before interest, taxes,
depreciation and amortization ("EBITDA") of $0.9
million and Adjusted EBITDA of $1.0 million for the
Fiscal 2018 fourth quarter. This compares to EBITDA of $8.0
million and Adjusted EBITDA of $8.1 million for the
comparable year-ago period.
Fiscal 2018 and Fiscal 2017 Results Comparisons
Fiscal 2018 net sales were $507.1
million as compared to net sales of $514.5 million in Fiscal 2017, a decrease of
$7.4 million or 1.4%.
- Automotive sales of $155.5
million declined year-over-year by $15.2 million, driven by lower satellite radio
sales, and lower OEM rear-seat infotainment sales given the
transition to the Company's new, EVO-based system, which launched
with General Motors and Ford toward the end of the Fiscal 2018
third quarter. These decreases were partially offset by a net
increase in OEM remote start programs and in aftermarket overhead
and headrest infotainment systems.
- Consumer Accessories segment sales of $178.8 million increased by $2.5 million or 1.4%. The year-over-year increase
was primarily related to higher sales of the Company's new Striiv
wearables, new Project Nursery product lines, wireless speaker
systems, and higher international sales, which offset declines in
other categories, such as 360Fly action cameras, hook-up products
and clock radios, among others.
- Premium Audio segment sales of $172.4
million increased by $5.6
million or 3.4% due to higher sales of home entertainment
speakers, including various lines of HD wireless speakers, wireless
soundbars, Klipsch Heritage products and wireless and multi-room
streaming audio systems. These increases were partially offset by
lower sales of mobility products, commercial speakers and a decline
in the European market due to an unfavorable shift in product
mix.
The gross margin for Fiscal 2018 came in at 26.1% as compared to
28.0% for the same period last year, a decline of 190 basis points.
The year-over-year decline was related to lower gross margins in
the Automotive segment (25.6% vs. 27.4%), Premium Audio segment
(31.0% vs. 33.0%) and Consumer Accessories segment (21.7% vs.
23.6%). Automotive segment gross margins were impacted by delays in
the launch of new, EVO-based rear-seat infotainment programs, which
were slated to begin early in the fiscal year but began late in the
Fiscal 2018 third quarter, as well as higher aftermarket product
sales, which tend to carry lower gross margins. Premium Audio
segment gross margins were impacted by lower sales of higher margin
commercial speakers, and lower margins associated with product
close-outs to make way for newer models in the coming year.
Offsetting these declines in the Premium Audio segment were higher
sales of higher margin home entertainment speakers and systems. The
decline in Consumer Accessories gross margin was primarily related
to higher volume sales of fulfillment programs, higher freight
charges and a one-time vendor settlement charge, among other
factors.
Total operating expenses in Fiscal 2018 were $151.4
million as compared to $152.2 million in Fiscal
2017, an improvement of $0.8 million or 0.5%. When
comparing the Fiscal 2018 and Fiscal 2017 twelve-month periods,
general and administrative expenses declined by $0.6 million and engineering and technical
support expenses declined by $3.1
million. These improvements were partially offset by a
$2.9 million increase in selling
expenses as the Company increased its advertising spend to support
new product introductions.
The Company reported an operating loss of $19.1
million in Fiscal 2018 as compared to an operating loss
of $8.2 million for the comparable Fiscal 2017 period.
Total other expenses in Fiscal 2018 were $5.0 million compared to $0.8 million in Fiscal 2017. Within this,
interest and bank charges declined by $1.1
million due to a lower average outstanding balance on the
Company's Credit Facility compared to Fiscal 2017. Following the
sale of Hirschmann on August 31,
2017, the Company repaid its entire Credit Facility balance.
Equity in income of equity investee increased by $0.4 million year-over-year. Additionally, in
Fiscal 2018, the Company recorded a $1.4
million gain on its investment in Rx Networks. The big
variance in total other expense was in other, net, driven primarily
by net losses on foreign currency, which amounted to $8.8 million in Fiscal 2018 as compared to
$0.5 million in Fiscal 2017. Included
in the foreign currency losses for the year ended February 28, 2018 are losses on forward contracts
totaling $6.6 million which were
incurred in conjunction with the sale of Hirschmann.
The Company reported a net loss from continuing operations of
$6.7 million in Fiscal 2018 as
compared to a net loss of $9.3
million in Fiscal 2017. Net income from discontinued
operations in Fiscal 2018 was $34.6
million as compared to net income of $6.1 million in Fiscal 2017. As a result, net
income attributable to VOXX International Corporation in Fiscal
2018 was $35.3 million as compared to
$4.4 million in Fiscal 2017.
In Fiscal 2018, the Company reported earnings per share
attributable to VOXX International
Corporation of $1.45 on a basic per share basis and
$1.44 on a diluted per share basis as
compared to earnings per basic and diluted share attributable to
VOXX International Corporation of $0.18 in Fiscal 2017.
In Fiscal 2018, the Company reported EBITDA of $41.1
million as compared to EBITDA of $30.1
million in Fiscal 2017, an increase of $11.0 million. Adjusted EBITDA in Fiscal 2018 was
$10.7 million as compared to Adjusted
EBITDA of $30.9 million in Fiscal
2017.
Discontinued Operations
On August 31, 2017, the Company completed its sale
of Hirschmann Car Communication GmbH and its subsidiaries
(collectively, "Hirschmann") to a subsidiary of TE
Connectivity Ltd. The consideration received by the Company
was €148.5 million. The purchase price, at the exchange rate as of
the close of business on the Closing Date approximated $177.0
million and is subject to adjustment based upon the final working
capital. The Hirschmann subsidiary group, which was previously
included within the Automotive segment, qualified to be presented
as a discontinued operation in accordance with ASC 205-20 beginning
in the Company's second quarter ended August 31, 2017 and
is reflected as such during the three and twelve months ended
February 28, 2018, February 28, 2017 and February 29, 2016.
Balance Sheet Update
For the period ended February 28, 2018, the Company had
cash and cash equivalents of $51.7
million as compared to cash and cash equivalents of
$1.0 million as of February 28, 2017, an increase of $50.8 million. Additionally, cash and cash
equivalents increased by approximately $14.2
million since the end of the Company's Fiscal 2018 third
quarter.
Total debt as of February 28, 2018 was $18.9 million, an improvement of $91.6 million as compared to February 28, 2017, as the Company used the net
proceeds from the sale of Hirschmann to reduce the majority of its
total debt position and all of its borrowings outstanding under its
domestic credit facility. Total long-term debt as of February 28, 2018 was $8.5 million as
compared to $97.7 million as of February 28, 2017,
an improvement of $89.3 million. Further details can be found
in Footnote 7 of the Company's Form 10-K which was just
recently filed with the Securities and Exchange Commission.
Conference Call and Webcast Information
VOXX
International will be hosting its conference call
on Tuesday, May 15, 2018 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 (toll-free:
877-303-9079; international: 970-315-0461 / conference ID:
8178606).
Non-GAAP Measures
EBITDA, Adjusted EBITDA and Diluted
Adjusted EBITDA per common share are not financial measures
recognized by GAAP. EBITDA represents net income (loss), computed
in accordance with GAAP, before interest expense and bank charges,
taxes, and depreciation and amortization. Adjusted EBITDA
represents EBITDA adjusted for stock-based compensation expense,
gains on the sale of discontinued operations, losses on forward
contracts, investment gains, impairment charges, as well as costs
and bargain purchase gains relating to our acquisitions.
Depreciation, amortization, stock-based compensation, bargain gains
and impairment charges are non-cash items. Diluted Adjusted EBITDA
per common share represents the Company's diluted earnings per
common share based on Adjusted EBITDA.
We present EBITDA, Adjusted EBITDA and Diluted Adjusted EBITDA
per common share in this Form 10-K because we consider them to be
useful and appropriate supplemental measures of our performance.
Adjusted EBITDA and diluted adjusted earnings per common share 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 certain costs
or gains relating to non-recurring 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, Adjusted EBITDA and Diluted Adjusted EBITDA per
common share should not be assessed in isolation from, are not
intended to represent, and should not be considered to be more
meaningful measures than, or alternatives to, measures of operating
performance as determined in accordance with GAAP.
About VOXX International Corporation
VOXX
International Corporation (NASDAQ: VOXX) has grown into a
worldwide leader in the Automotive, Consumer Electronics and
Accessories, and Premium Audio industries. Today, the Company has
an extensive distribution network that includes power retailers,
mass merchandisers, 12-volt specialists and many of the world's
leading automotive manufacturers. The Company has an international
footprint and a growing portfolio, which comprises over 30 trusted
domestic and global brands. Among the Company's brands are VOXX
Automotive, Klipsch®, RCA®, Invision®, Rosen®, Audiovox®, Terk®,
Acoustic Research®, Advent®, Code Alarm®, 808®, Prestige®, EyeLock,
Jamo®, Energy®, Mirage®, Mac Audio®, Magnat®, Heco®, Schwaiger®,
and Oehlbach®. 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 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 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,
premium audio and consumer accessories 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 concerns regarding the European debt
crisis; restrictive debt covenants; 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, 2018.
Company Contact:
Glenn Wiener, President
GW Communications
Tel: 212-786-6011
Email: gwiener@GWCco.com
VOXX International
Corporation and Subsidiaries
|
Consolidated
Balance Sheets
|
February 28,
2018 and February 28, 2017
|
(In thousands,
except share data)
|
|
|
February 28,
2018
|
|
February 28,
2017
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
51,740
|
|
|
$
|
956
|
|
Accounts receivable,
net
|
81,116
|
|
|
79,971
|
|
Inventory,
net
|
117,992
|
|
|
122,352
|
|
Receivables from
vendors
|
493
|
|
|
634
|
|
Prepaid expenses and
other current assets
|
14,007
|
|
|
12,332
|
|
Income tax
receivable
|
511
|
|
|
1,596
|
|
Assets held for sale,
current
|
—
|
|
|
55,507
|
|
Total current
assets
|
265,859
|
|
|
273,348
|
|
Investment
securities
|
4,167
|
|
|
10,388
|
|
Equity
investments
|
21,857
|
|
|
21,926
|
|
Property, plant and
equipment, net
|
65,259
|
|
|
65,589
|
|
Goodwill
|
54,785
|
|
|
53,905
|
|
Intangible assets,
net
|
150,320
|
|
|
154,939
|
|
Deferred tax
assets
|
24
|
|
|
23
|
|
Other
assets
|
13,373
|
|
|
1,699
|
|
Assets held for sale,
non-current
|
—
|
|
|
86,669
|
|
Total
assets
|
$
|
575,644
|
|
|
$
|
668,486
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
34,700
|
|
|
$
|
46,244
|
|
Accrued expenses and
other current liabilities
|
36,350
|
|
|
32,110
|
|
Income taxes
payable
|
2,587
|
|
|
703
|
|
Accrued sales
incentives
|
14,020
|
|
|
13,154
|
|
Current portion of
long-term debt
|
7,730
|
|
|
9,215
|
|
Liabilities held for
sale, current
|
—
|
|
|
28,641
|
|
Total current
liabilities
|
95,387
|
|
|
130,067
|
|
Long-term debt, net
of debt issuance costs
|
8,476
|
|
|
97,747
|
|
Capital lease
obligation
|
699
|
|
|
926
|
|
Deferred
compensation
|
3,369
|
|
|
3,844
|
|
Deferred tax
liabilities
|
12,217
|
|
|
27,627
|
|
Other tax
liabilities
|
2,191
|
|
|
3,194
|
|
Other long-term
liabilities
|
3,187
|
|
|
2,125
|
|
Liabilities held for
sale, non-current
|
—
|
|
|
11,641
|
|
Total
liabilities
|
125,526
|
|
|
277,171
|
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred
stock:
|
|
|
|
No shares issued or
outstanding (see Note 9)
|
—
|
|
|
—
|
|
Common
stock:
|
|
|
|
Class A, $.01 par
value; 60,000,000 shares authorized, 24,106,194 and 24,067,444
shares issued and 21,938,100 and 21,899,370 shares outstanding at
February 28, 2018 and February 28, 2017, respectively
|
256
|
|
|
256
|
|
Class B Convertible,
$.01 par value, 10,000,000 shares authorized, 2,260,954 shares
issued and outstanding
|
22
|
|
|
22
|
|
Paid-in
capital
|
296,395
|
|
|
295,432
|
|
Retained
earnings
|
194,673
|
|
|
159,369
|
|
Accumulated other
comprehensive loss
|
(14,222)
|
|
|
(43,898)
|
|
Treasury stock, at
cost, 2,168,094 and 2,168,074 shares of Class A Common Stock at
February 28, 2018 and February 28, 2017, respectively
|
(21,176)
|
|
|
(21,176)
|
|
Total VOXX
International Corporation stockholders' equity
|
455,948
|
|
|
390,005
|
|
Non-controlling
interest
|
(5,830)
|
|
|
1,310
|
|
Total stockholders'
equity
|
450,118
|
|
|
391,315
|
|
Total liabilities and
stockholders' equity
|
$
|
575,644
|
|
|
$
|
668,486
|
|
VOXX International
Corporation and Subsidiaries
|
Consolidated
Statements of Operations and Comprehensive Income
(Loss)
|
Years Ended
February 28, 2018, February 28, 2017 and
February 29, 2016
|
(In thousands,
except share and per share data)
|
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
February 28,
2018
|
|
February 28,
2017
|
|
February 29,
2016
|
Net sales
|
$
|
507,092
|
|
|
$
|
514,530
|
|
|
$
|
530,206
|
|
Cost of
sales
|
374,795
|
|
|
370,500
|
|
|
386,670
|
|
Gross
profit
|
132,297
|
|
|
144,030
|
|
|
143,536
|
|
Operating
expenses:
|
|
|
|
|
|
Selling
|
45,999
|
|
|
43,108
|
|
|
43,576
|
|
General and
administrative
|
78,957
|
|
|
79,573
|
|
|
84,234
|
|
Engineering and
technical support
|
26,440
|
|
|
29,517
|
|
|
22,923
|
|
Intangible asset
impairment charges
|
—
|
|
|
—
|
|
|
9,070
|
|
Acquisition related
costs
|
—
|
|
|
—
|
|
|
800
|
|
Total operating
expenses
|
151,396
|
|
|
152,198
|
|
|
160,603
|
|
Operating
loss
|
(19,099)
|
|
|
(8,168)
|
|
|
(17,067)
|
|
Other (expense)
income:
|
|
|
|
|
|
Interest and bank
charges
|
(6,009)
|
|
|
(7,105)
|
|
|
(7,898)
|
|
Equity in income of
equity investee
|
7,178
|
|
|
6,797
|
|
|
6,538
|
|
Investment
gain
|
1,416
|
|
|
—
|
|
|
—
|
|
Gain on bargain
purchase
|
—
|
|
|
—
|
|
|
4,679
|
|
Other, net
|
(7,590)
|
|
|
(454)
|
|
|
576
|
|
Total other (expense)
income, net
|
(5,005)
|
|
|
(762)
|
|
|
3,895
|
|
Loss from continuing
operations before income taxes
|
(24,104)
|
|
|
(8,930)
|
|
|
(13,172)
|
|
Income tax (benefit)
expense from continuing operations
|
(17,445)
|
|
|
338
|
|
|
(2,351)
|
|
Net loss from
continuing operations
|
$
|
(6,659)
|
|
|
$
|
(9,268)
|
|
|
$
|
(10,821)
|
|
Net income from
discontinued operations, net of tax
|
34,618
|
|
|
6,066
|
|
|
4,758
|
|
Net income
(loss)
|
$
|
27,959
|
|
|
$
|
(3,202)
|
|
|
$
|
(6,063)
|
|
Less: net loss
attributable to non-controlling interest
|
(7,345)
|
|
|
(7,624)
|
|
|
(3,381)
|
|
Net income (loss)
attributable to VOXX International Corporation
|
$
|
35,304
|
|
|
$
|
4,422
|
|
|
$
|
(2,682)
|
|
|
|
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
Foreign currency
translation adjustments
|
28,804
|
|
|
(3,194)
|
|
|
(5,702)
|
|
Derivatives
designated for hedging, net of tax
|
(698)
|
|
|
210
|
|
|
(2,440)
|
|
Pension plan
adjustments, net of tax
|
1,496
|
|
|
(180)
|
|
|
640
|
|
Unrealized holding
gain (loss) on available-for-sale investment securities arising
during the period, net of tax
|
74
|
|
|
(17)
|
|
|
20
|
|
Other comprehensive
income (loss), net of tax
|
29,676
|
|
|
(3,181)
|
|
|
(7,482)
|
|
Comprehensive income
(loss) attributable to VOXX International Corporation
|
$
|
64,980
|
|
|
$
|
1,241
|
|
|
$
|
(10,164)
|
|
Earnings (loss) per
share - basic:
|
|
|
|
|
|
Continuing
operations
|
$
|
0.03
|
|
|
$
|
(0.07)
|
|
|
$
|
(0.31)
|
|
Discontinued
operations
|
$
|
1.43
|
|
|
$
|
0.25
|
|
|
$
|
0.20
|
|
Attributable to VOXX
International Corporation
|
$
|
1.45
|
|
|
$
|
0.18
|
|
|
$
|
(0.11)
|
|
Earnings (loss) per
share - diluted:
|
|
|
|
|
|
Continuing
operations
|
$
|
0.03
|
|
|
$
|
(0.07)
|
|
|
$
|
(0.31)
|
|
Discontinued
operations
|
$
|
1.41
|
|
|
$
|
0.25
|
|
|
$
|
0.20
|
|
Attributable to VOXX
International Corporation
|
$
|
1.44
|
|
|
$
|
0.18
|
|
|
$
|
(0.11)
|
|
Weighted-average
common shares outstanding (basic)
|
24,290,563
|
|
|
24,160,324
|
|
|
24,172,710
|
|
Weighted-average
common shares outstanding (diluted)
|
24,547,246
|
|
|
24,160,324
|
|
|
24,172,710
|
|
VOXX International
Corporation and Subsidiaries
|
Consolidated
Statements of Operations and Comprehensive Income
(Loss)
|
Three Months Ended
February 28, 2018 and February 28, 2017
|
(In thousands,
except share and per share data)
|
|
|
Three-Months
Ended
|
|
Three-Months
Ended
|
|
February 28,
2018
|
|
February 28,
2017
|
Net sales
|
$
|
122,236
|
|
|
$
|
124,894
|
|
Cost of
sales
|
90,023
|
|
|
88,928
|
|
Gross
profit
|
32,213
|
|
|
35,966
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
Selling
|
11,194
|
|
|
10,721
|
|
General and
administrative
|
19,862
|
|
|
21,326
|
|
Engineering and
technical support
|
6,142
|
|
|
7,626
|
|
Total operating
expenses
|
37,198
|
|
|
39,673
|
|
|
|
|
|
Operating
loss
|
(4,985)
|
|
|
(3,707)
|
|
|
|
|
|
Other (expense)
income:
|
|
|
|
Interest and bank
charges
|
(1,159)
|
|
|
(1,911)
|
|
Equity in income of
equity investee
|
1,444
|
|
|
1,513
|
|
Other, net
|
182
|
|
|
(318)
|
|
Total other income
(expense), net
|
467
|
|
|
(716)
|
|
|
|
|
|
Loss from continuing
operations before income taxes
|
(4,518)
|
|
|
(4,423)
|
|
Income tax (benefit)
expense from continuing operations
|
(12,914)
|
|
|
3,522
|
|
Net income (loss)
from continuing operations
|
$
|
8,396
|
|
|
$
|
(7,945)
|
|
|
|
|
|
Net income from
discontinued operations, net of tax
|
2,276
|
|
|
5,649
|
|
Net income
(loss)
|
$
|
10,672
|
|
|
$
|
(2,296)
|
|
Less: net loss
attributable to non-controlling interest
|
(1,913)
|
|
|
(2,206)
|
|
Net income (loss)
attributable to VOXX International Corporation
|
$
|
12,585
|
|
|
$
|
(90)
|
|
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
Foreign currency
translation adjustments
|
1,135
|
|
|
(26)
|
|
Derivatives
designated for hedging, net of tax
|
262
|
|
|
(30)
|
|
Pension plan
adjustments, net of tax
|
(192)
|
|
|
(224)
|
|
Unrealized holding
loss on available-for-sale investment securities arising during the
period, net of tax
|
-
|
|
|
(13)
|
|
Other comprehensive
income (loss), net of tax
|
1,205
|
|
|
(293)
|
|
Comprehensive income
(loss) attributable to VOXX International Corporation
|
$
|
13,790
|
|
|
$
|
(383)
|
|
|
|
|
|
Earnings (loss) per
share - basic:
|
|
|
|
Continuing
operations
|
$
|
0.42
|
|
|
$
|
(0.24)
|
|
Discontinued
operations
|
$
|
0.09
|
|
|
$
|
0.23
|
|
Attributable to VOXX
International Corporation
|
$
|
0.52
|
|
|
$
|
0.00
|
|
|
|
|
|
Earnings (loss) per
share - diluted:
|
|
|
|
Continuing
operations
|
$
|
0.42
|
|
|
$
|
(0.24)
|
|
Discontinued
operations
|
$
|
0.09
|
|
|
$
|
0.23
|
|
Attributable to VOXX
International Corporation
|
$
|
0.51
|
|
|
$
|
0.00
|
|
|
|
|
|
Weighted-average
common shares outstanding (basic)
|
24,316,103
|
|
|
24,160,324
|
|
Weighted-average
common shares outstanding (diluted)
|
24,615,627
|
|
|
24,160,324
|
|
Reconciliation of
GAAP Net Income Attributable to VOXX International Corporation to
EBITDA, Adjusted EBITDA and Diluted Adjusted EBITDA per Common
Share (2)
|
|
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
|
|
2018
|
|
2017
|
|
2016
|
Net income (loss)
attributable to VOXX International Corporation
|
|
$
|
35,304
|
|
|
$
|
4,422
|
|
|
$
|
(2,682)
|
|
Adjustments:
|
|
|
|
|
|
|
Interest expense and
bank charges (1)
|
|
5,169
|
|
|
6,860
|
|
|
7,960
|
|
Depreciation and
amortization (1)
|
|
13,879
|
|
|
17,064
|
|
|
15,228
|
|
Income tax expense
(benefit)
|
|
(13,262)
|
|
|
1,759
|
|
|
(1,735)
|
|
EBITDA
|
|
41,090
|
|
|
30,105
|
|
|
18,771
|
|
Adjustments:
|
|
|
|
|
|
|
Stock-based compensation
attributable to stock options and restricted stock
|
|
552
|
|
|
753
|
|
|
859
|
|
Gain on sale of discontinued
operations
|
|
(36,118)
|
|
|
—
|
|
|
—
|
|
Loss on forward contracts
attributable to sale of business
|
|
6,618
|
|
|
—
|
|
|
—
|
|
Investment gain
|
|
(1,416)
|
|
|
—
|
|
|
—
|
|
Intangible and long-lived
asset impairment charges
|
|
—
|
|
|
—
|
|
|
9,070
|
|
Acquisition related
costs
|
|
—
|
|
|
—
|
|
|
800
|
|
Gain on bargain
purchase
|
|
—
|
|
|
—
|
|
|
(4,679)
|
|
Adjusted
EBITDA
|
|
$
|
10,726
|
|
|
$
|
30,858
|
|
|
$
|
24,821
|
|
Diluted income (loss)
per common share attributable to VOXX International
Corporation
|
|
$
|
1.44
|
|
|
$
|
0.18
|
|
|
$
|
(0.11)
|
|
Diluted adjusted
EBITDA per common share attributable to VOXX International
Corporation
|
|
$
|
0.44
|
|
|
$
|
1.28
|
|
|
$
|
1.03
|
|
|
|
|
|
|
|
|
(1) For purposes of
calculating Adjusted EBITDA for the Company, interest expense, bank
charges, as well as depreciation and amortization expense added
back to net income (loss) have been adjusted in order to exclude
the minority interest portion of these expenses attributable to
EyeLock LLC.
|
|
|
|
(2) EBITDA, Adjusted
EBITDA and Diluted Adjusted EBITDA per common share in this
presentation are based on a reconciliation to Net income
attributable to VOXX International Corporation, which includes net
income (loss) from both continuing and discontinued operations for
all periods presented. The Company sold its Hirschmann subsidiary
on August 31, 2017.
|
Reconciliation of
GAAP Net Income Attributable to VOXX International Corporation to
EBITDA, Adjusted EBITDA and Diluted Adjusted EBITDA per Common
Share (2)
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
Ended February
28,
|
|
Three-Months Ended
February 28,
|
|
|
2018
|
|
2017
|
Net income (loss)
attributable to VOXX International Corporation
|
|
$
|
12,585
|
|
|
$
|
(90)
|
|
Adjustments:
|
|
|
|
|
Interest expense and
bank charges (1)
|
|
842
|
|
|
1,726
|
|
Depreciation and
amortization (1)
|
|
2,717
|
|
|
4,349
|
|
Income tax expense
(benefit)
|
|
(15,201)
|
|
|
1,977
|
|
EBITDA
|
|
943
|
|
|
7,962
|
|
Adjustments:
|
|
|
|
|
Stock-based compensation
attributable to stock options and restricted stock
|
|
107
|
|
|
185
|
|
Adjusted
EBITDA
|
|
$
|
1,050
|
|
|
$
|
8,147
|
|
Diluted income (loss)
per common share attributable to VOXX International
Corporation
|
|
$
|
0.51
|
|
|
$
|
0.00
|
|
Diluted adjusted
EBITDA per common share attributable to VOXX International
Corporation
|
|
$
|
0.04
|
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For purposes of
calculating Adjusted EBITDA for the Company, interest expense, bank
charges, as well as depreciation and amortization expense added
back to net income (loss) have been adjusted in order to exclude
the minority interest portion of these expenses attributable to
EyeLock LLC.
|
|
(2) EBITDA, Adjusted
EBITDA and Diluted Adjusted EBITDA per common share in this
presentation are based on a reconciliation to Net income
attributable to VOXX International Corporation, which includes net
income (loss) from both continuing and discontinued operations for
all periods presented. The Company sold its Hirschmann subsidiary
on August 31, 2017.
|
View original
content:http://www.prnewswire.com/news-releases/voxx-international-corporation-reports-its-fiscal-2018-fourth-quarter-and-year-end-financial-results-300647996.html
SOURCE VOXX International Corporation