Company continues to execute on its
restructuring plan, pay down debt, and strengthen its balance sheet
as part of its concerted effort to improve operations and maximize
shareholder value
ORLANDO,
Fla., Sept. 5, 2024 /PRNewswire/ -- VOXX
International Corporation (NASDAQ: VOXX), today announced that it
has successfully closed the previously announced transaction with
Talisman Brands Inc./Established, Inc. to sell its domestic
accessories business for total consideration of approximately
$25.0 million. The transaction closed
on August 31, 2024 and included the
Company's RCA® trademarks, other intellectual property,
and inventory. To ensure seamless continuity for all VOXX
Accessories Corp. customers, the Company has been retained by the
purchaser to operate the business on an ongoing basis, subject to a
comprehensive overhead reimbursement arrangement. In an unrelated
transaction, the Company announced today the successful sale of its
premium audio brands Jamo™ and Energy™ to Rayleigh Lab
and Cinemaster, including inventory, for approximately $3.2 million. All consideration will be used to
retire outstanding debt.
Commenting on today's announcements, Pat
Lavelle stated, "As we reposition our portfolio, we are
realigning resources accordingly, with goals to significantly lower
our expenses and improve gross margins. Additionally, we have been
equally focused on strengthening our financial position. We exited
Fiscal 2024 with $73.3 million in
total debt, which has been lowered since year-end. Following these
transactions and receipt of all payments, our total debt will have
been reduced by over 60%. Additionally, with the successful move of
our OEM operations to Mexico
nearing completion, we are in contract to sell our Orlando, FL facility. If the sale concludes as
planned in the fiscal third quarter, VOXX will successfully
eliminate the majority of its outstanding debts, except for those
related to routine working capital needs for inventory and
receivable financing."
In Fiscal 2024, the divested brands accounted for approximately
$49.0 million in revenue. As future
restructuring plans are implemented around the new structure, the
Company anticipates a positive impact to consolidated gross profit
margins with lower operating expenses and working capital needs as
a result.
Ari Shalam, Chairman of the Board
added, "These transactions are part of our strategy to monetize
non-core assets, restructure our business, streamline operations,
and strengthen our balance sheet. By focusing on improving capital
allocation, narrowing management attention to core operations, and
returning to profitability, all in conjunction with the strategic
process underway, we are confident in our ability to generate
improved value for our shareholders and all stakeholders
served."
About VOXX International Corporation
VOXX International Corporation (NASDAQ: VOXX) has grown
into a worldwide leader in the Automotive Electronics and
Consumer Electronics industries. Over the past several decades,
with a portfolio of approximately 30 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 29,
2024, 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
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SOURCE VOXX International Corporation