ORLANDO, Fla., May 14, 2019 /PRNewswire/ -- VOXX International
Corporation (NASDAQ: VOXX), a leading manufacturer and distributor
of automotive and consumer technologies for the global markets,
today announced financial results for its Fiscal 2019 fourth
quarter and year ended February 28,
2019. The Company also provided updates on its corporate
realignment program and other material updates related to its
business operations and outlook.
Commenting on the Company's year-end results, Pat Lavelle, President and Chief Executive
Officer of VOXX International stated, "In Fiscal 2019, we took
actions to gradually exit product categories and product lines in
our Consumer Accessories segment, which was the bulk of the
year-over-year sales decline. We also made a decision to limit
distribution in our Premium Audio Group. As anticipated, Automotive
segment sales increased over Fiscal 2018, driven by new OEM
programs for our rear-seat entertainment systems and growth in the
OEM remote start business. Gross margins were up 110-basis points
year-over-year with significant increases in our Premium Audio
segment, partially offset by modest declines in the others.
Excluding the non-cash impairment charges and restructuring
expenses of $30.4 million, our
operating expenses declined year-over-year by 12.7%, with further
reductions planned in Fiscal 2020. Further, in Fiscal 2019,
Adjusted EBITDA increased 27.4% to $13.7
million. Our cash position has improved, our balance sheet
is strong, and as we move into the second half of Fiscal 2020, we
feel confident in our ability to generate more consistent
profitability on an annual basis and generate greater shareholder
returns. That is the driving force behind our restructuring
initiatives."
Fiscal 2019 and Fiscal 2018 Financial Comparisons
Net sales for the Fiscal 2019 year ended February 28, 2019 were $446.8 million, as compared to $507.1 million in the comparable year-ago period,
a decline of $60.3 million. The
primary driver for the decline was the Consumer Accessories
segment, as the Company exited certain product categories and
discontinued select product lines throughout the fiscal year, in
line with its communicated restructuring and SKU rationalization
programs. Premium Audio segment sales declined due primarily to
higher close-out promotions in the Fiscal 2018 period and due to
the Company's decision to limit distribution to improve margins.
Automotive segment sales increased due to higher sales of the
Company's EVO-based rear-seat entertainment solution to Automotive
OEM's.
- Automotive segment net sales of $161.6
million as compared to $155.5
million, up $6.2 million.
- Premium Audio segment net sales of $158.4 million as compared to $172.4 million, down $14.0
million.
- Consumer Accessories segment net sales of $125.8 million as compared to $178.8 million, down $53.0
million.
The gross margin in Fiscal 2019 was 27.2%, representing a
110-basis point increase over Fiscal 2018. The year-over-year gross
margin improvement was driven by higher gross margins in the
Premium Audio segment, offset by modest declines in the Automotive
and Consumer Accessories segments, primarily due to lower sales of
certain higher margin Automotive products as well as increases in
inventory reserves related to certain slower moving accessories
products.
- Automotive segment gross margin of 25.1% as compared to 25.6%,
down 50 basis points.
- Premium Audio segment gross margin of 34.6% as compared to
31.0%, up 360 basis points.
- Consumer Accessories segment gross margin of 20.9% as compared
to 21.7%, down 80 basis points.
Total operating expenses in Fiscal 2019 were $162.6 million, as compared to $151.4 million in the comparable year-ago period.
Operating expenses in Fiscal 2019 included $25.8 million of non-cash intangible asset
impairment charges related to the re-evaluation of projections for
certain brands within the Consumer Accessories and Automotive
segments along with the Company's SKU rationalization program, and
the Fiscal 2019 fiscal year also included $4.6 million of restructuring expenses related to
the realignment of the Consumer Accessories and Premium Audio
segments, which are expected to result in lower operating expenses
in future periods. Excluding the non-cash intangible asset
impairment charges and restructuring expenses, total operating
expenses for Fiscal 2019 were $132.2
million, representing a year-over-year improvement of
$19.2 million or 12.7%.
- Selling expenses of $40.9 million
as compared to $46.0 million, a
reduction of $5.1 million.
- General and administrative expenses of $66.9 million versus $79.0
million, a reduction of $12.0
million.
- Engineering and technical support expenses of $24.4 million as compared to $26.4 million, a reduction of $2.1 million.
Total other expense, net for Fiscal 2019 was $17.8 million, as compared to $5.0 million in the comparable year-ago period.
Fiscal 2019 included interest and bank charges of $4.4 million, as compared to $6.0 million in Fiscal 2018 due to no debt
outstanding on the Company's domestic Credit Facility. Equity in
income of equity investees in Fiscal 2019 was $6.6 million, as compared to $7.2 million in Fiscal 2018. Additionally, in
Fiscal 2019, the Company recorded an impairment on its Notes
Receivable from 360fly, Inc., resulting in a non-cash impairment
charge of $16.5 million, representing
the entire outstanding balance of these notes at February 28, 2019. The Company also recorded a
$3.5 million impairment on its
Venezuela properties. The major
variance when comparing the Fiscal 2019 and Fiscal 2018 periods is
other, net as the Fiscal 2018 period included net losses on foreign
currency of $8.8 million, of which
$6.6 million related to losses on
forward contracts incurred in conjunction with the sale of
Hirschmann.
The Company reported an operating loss of $41.2 million in Fiscal 2019, as compared to an
operating loss of $19.1 million. The
Fiscal 2019 operating loss includes $25.8
million of non-cash intangible asset impairment charges and
$4.6 million of restructuring
expenses. Excluding these two factors, operating loss improved
year-over-year.
Net loss attributable to VOXX International Corporation was
$46.1 million in Fiscal 2019, as
compared to net income attributable to VOXX International
Corporation of $35.3 million in
Fiscal 2018. The Fiscal 2019 period included the $25.8 million non-cash intangible asset
impairment charge, the $16.5 million
impairment on the 360fly, Inc. notes receivable, the $3.5 million non-cash impairment of Venezuela investment properties, and
$4.6 million of restructuring
expenses. The Fiscal 2018 period includes net income from
discontinued operations of $34.6
million, related to the sale of Hirschmann.
On a per share basis, the Company reported a basic and diluted
loss per share attributable to VOXX International
Corporation of $1.89 in Fiscal 2019, as compared to
basic and diluted income per share attributable to VOXX
International Corporation of $1.45 and $1.44, respectively, in Fiscal 2018. Note,
Fiscal 2018 includes basic and diluted income per share
of $1.43 and $1.41,
respectively, related to discontinued operations.
Adjusted EBITDA in Fiscal 2019 was $13.7
million, as compared to $10.7
million in Fiscal 2018, an improvement of $2.9 million or 27.4% year-over-year.
Balance Sheet Update
For the period ended February 28, 2019, the Company had
cash and cash equivalents of $58.2 million, an increase of
$6.5 million, as compared to
$51.7 million for the period
ended February 28, 2018 and an
increase of $9.5 million on a
sequential basis when compared to the period ended November 30, 2018.
Total debt as of February 28, 2019 was $17.6 million,
an improvement of $1.2 million, as compared to total
debt of $18.9 million as of
February 28, 2018. The Company's
total debt consists of mortgages related to its domestic and
international properties and Euro asset-based lending obligations
to support its German operations. Total long-term debt as of
February 28, 2019 was $5.8
million, as compared to $8.5 million as
of February 28, 2018, an improvement of $2.7 million. The
Company enters Fiscal 2020 with a healthy cash position to fund
working capital requirements, while continuing to invest in its
business to drive growth and profitability, along with access to
its $140.0 million Credit
Facility.
Lavelle continued, "The sale of Hirschmann was the first step in
our effort to reposition VOXX for the future. Through that sale, we
repaid all of our domestic debt and generated cash to implement our
strategy, while only carrying debt related to mortgages and our
Euro-based ABL. Repositioning efforts continued in Fiscal 2019;
first with the internal alignment of our OEM and aftermarket
Automotive operations and then with the restructuring of our
Consumer Accessories business. We consolidated the operations of
Oehlbach and Schwaiger and underwent a massive SKU rationalization
program which will continue domestically, as we focus on more
profitable categories. We also restructured our domestic
Accessories group, reducing headcount and expenses to align with
projected sales. These changes resulted in restructuring expenses
and non-cash impairment charges, which of course, had a material
impact on our Fiscal 2019 results. We took these steps to enter
Fiscal 2020 in a stronger position and we continue to move forward
on our plan to restore VOXX to profitability."
Non-Binding Letter of Intent to Sell Company Real Estate
In conjunction with the realignment of the international
accessories business, the Company signed a non-binding Letter of
Intent ("LOI") to sell its real estate in Pulheim, Germany, with anticipated gross proceeds of
approximately $12.0 million. This
pending sale is made possible by the successful consolidation of
Oehlbach and Schwaiger into one facility. This sale, upon closing,
will further strengthen the Company's cash position and balance
sheet.
New Stock Repurchase Program
As previously announced on April 29,
2019, the Board of Directors authorized the Company to
repurchase up to 3.0 million shares of Class A Common Stock, an
increase of 1,616,729 shares over the existing authorization. The
Company intends to make repurchases from time to time in the open
market, or otherwise, subject to market conditions and other
factors. The Company believes that the repurchase of its shares
represents a prudent use of capital.
New Reporting Structure in FY 2020
As also communicated on April 29,
2019, the Company has a new reporting structure, which took
effect on March 1, 2019. This move is
in line with the restructuring initiatives that began in the prior
Fiscal year, and which will continue in Fiscal 2020. The Company
believes that as a result of the restructuring, it will be able to
operate with a significantly lower cost structure and generate
greater efficiencies. The new business segments are:
- Automotive Electronics, which consists of the OEM and
aftermarket businesses;
- Consumer Electronics, comprised of the international and
domestic Accessories and Premium Audio operations;
- Biometrics, which includes EyeLock LLC, the Company's
majority-owned subsidiary.
Changes to Executive Compensation
Based on an evaluation of best practices conducted with the
assistance of an independent consulting firm, the Company is in the
process of negotiating new employment agreements with C-Suite
executives, with updates anticipated in the Company's Fiscal 2020
first quarter. Additionally, the Company's Chairman, John Shalam has agreed to forgo his annual cash
bonus.
Lavelle concluded, "We see opportunities that could drive the
top-line, such as the healthcare space, biometrics and in various
audio categories. We also see areas where our business may decline
due to changes at retail and lower car sales anticipated
domestically. These are the primary unknown variables in our Fiscal
2020 outlook. What we are doing is continuing with the SKU
rationalization program, leveraging more Shared Services functions,
instituting cost control measures while, at the same time,
investing in R&D and our future. We may look to divest more
assets this year, as between our real estate and powerful brand
portfolio, interest persists. At the same time, we will continue to
look at accretive acquisitions that would strengthen both our top-
and bottom-line. These actions are key elements of our strategy
this year. The Board is also evaluating other measures as we move
into the second half of the year, that leverage our strong balance
sheet, with further updates to come as our business progresses. We
look forward to updating investors on our progress and plans on our
call and webcast tomorrow."
Conference Call and Webcast Information
VOXX International will be hosting its conference call
on Wednesday, May 15, 2019 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:
4581065). A replay will be available on the Company's website
approximately one hour after the completion of the call.
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 Generally
Accepted Accounting Principles ("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, impairment charges, investment gains
and losses, restructuring charges, and environmental remediation
charges. Depreciation, amortization, stock-based compensation, 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 our 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 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, 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 many automotive and consumer electronics
and accessories categories, as well as premium high-end audio.
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 and Latin
America, and a growing portfolio, which is comprised of over
30 trusted brands. 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 Company's ability to realize
the anticipated results of its business realignment; the completion
of the ongoing impairment valuation; the ability to successfully
complete transactions under negotiation for EyeLock; 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, 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
restrictive debt covenants. 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, 2019.
Company Contact:
Glenn Wiener, President
GW Communications
Tel: 212-786-6011
Email: gwiener@GWCco.com
Tables to Follow
VOXX International
Corporation and Subsidiaries
|
Consolidated
Balance Sheets
|
February 28,
2019 and February 28, 2018
|
(In thousands,
except share data)
|
|
|
February
28, 2019
|
|
February
28, 2018
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
58,236
|
|
$
|
51,740
|
Accounts receivable,
net
|
73,391
|
|
81,116
|
Inventory,
net
|
102,379
|
|
117,992
|
Receivables from
vendors
|
1,009
|
|
493
|
Prepaid expenses and
other current assets
|
10,449
|
|
14,007
|
Income tax
receivable
|
921
|
|
511
|
Total current
assets
|
246,385
|
|
265,859
|
Investment
securities
|
2,858
|
|
4,167
|
Equity
investments
|
21,885
|
|
21,857
|
Property, plant and
equipment, net
|
60,493
|
|
65,259
|
Goodwill
|
54,785
|
|
54,785
|
Intangible assets,
net
|
119,449
|
|
150,320
|
Deferred tax
assets
|
79
|
|
24
|
Other
assets
|
2,877
|
|
13,373
|
Total
assets
|
$
|
508,811
|
|
$
|
575,644
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
31,143
|
|
$
|
34,700
|
Accrued expenses and
other current liabilities
|
39,129
|
|
36,350
|
Income taxes
payable
|
1,349
|
|
2,587
|
Accrued sales
incentives
|
13,574
|
|
14,020
|
Current portion of
long-term debt
|
10,021
|
|
7,730
|
Total current
liabilities
|
95,216
|
|
95,387
|
Long-term debt, net
of debt issuance costs
|
5,776
|
|
8,476
|
Capital lease
obligation
|
516
|
|
699
|
Deferred
compensation
|
2,605
|
|
3,369
|
Deferred tax
liabilities
|
5,284
|
|
12,217
|
Other tax
liabilities
|
1,332
|
|
2,191
|
Other long-term
liabilities
|
2,981
|
|
3,187
|
Total
liabilities
|
113,710
|
|
125,526
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred
stock:
|
|
|
|
No shares issued or
outstanding
|
—
|
|
—
|
Common
stock:
|
|
|
|
Class A, $.01 par
value; 60,000,000 shares authorized, 24,106,194 shares issued and
21,938,100 shares
outstanding at both February 28, 2019 and February 28,
2018
|
242
|
|
256
|
Class B Convertible,
$.01 par value, 10,000,000 shares authorized, 2,260,954 shares
issued and
outstanding
|
22
|
|
22
|
Paid-in
capital
|
296,946
|
|
296,395
|
Retained
earnings
|
148,582
|
|
194,673
|
Accumulated other
comprehensive loss
|
(16,944)
|
|
(14,222)
|
Treasury stock, at
cost, 2,168,094 shares of Class A Common Stock at both February 28,
2019 and February
28, 2018
|
(21,176)
|
|
(21,176)
|
Total VOXX
International Corporation stockholders' equity
|
407,672
|
|
455,948
|
Non-controlling
interest
|
(12,571)
|
|
(5,830)
|
Total stockholders'
equity
|
395,101
|
|
450,118
|
Total liabilities and
stockholders' equity
|
$
|
508,811
|
|
$
|
575,644
|
VOXX International
Corporation and Subsidiaries
|
Consolidated
Statements of Operations and Comprehensive (Loss)
Income
|
Years Ended
February 28, 2019, February 28, 2018 and
February 28, 2017
|
(In thousands,
except share and per share data)
|
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
February
28, 2019
|
|
February
28, 2018
|
|
February
28, 2017
|
Net sales
|
$
|
446,816
|
|
$
|
507,092
|
|
$
|
514,530
|
Cost of
sales
|
325,399
|
|
374,795
|
|
370,500
|
Gross
profit
|
121,417
|
|
132,297
|
|
144,030
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling
|
40,915
|
|
45,999
|
|
43,108
|
General and
administrative
|
66,935
|
|
78,957
|
|
79,573
|
Engineering and
technical support
|
24,387
|
|
26,440
|
|
29,517
|
Intangible asset
impairment charges
|
25,789
|
|
—
|
|
—
|
Restructuring
expense
|
4,588
|
|
—
|
|
—
|
Total operating
expenses
|
162,614
|
|
151,396
|
|
152,198
|
Operating
loss
|
(41,197)
|
|
(19,099)
|
|
(8,168)
|
Other (expense)
income:
|
|
|
|
|
|
Interest and bank
charges
|
(4,449)
|
|
(6,009)
|
|
(7,105)
|
Equity in income of
equity investee
|
6,618
|
|
7,178
|
|
6,797
|
Impairment of
Venezuela investment properties
|
(3,473)
|
|
—
|
|
—
|
Impairment of notes
receivable
|
(16,509)
|
|
—
|
|
—
|
Investment (loss)
gain
|
(530)
|
|
1,416
|
|
—
|
Other, net
|
577
|
|
(7,590)
|
|
(454)
|
Total other expense,
net
|
(17,766)
|
|
(5,005)
|
|
(762)
|
|
|
|
|
|
|
Loss from continuing
operations before income taxes
|
(58,963)
|
|
(24,104)
|
|
(8,930)
|
Income tax (benefit)
expense from continuing operations
|
(6,131)
|
|
(17,445)
|
|
338
|
Net loss from
continuing operations
|
$
|
(52,832)
|
|
$
|
(6,659)
|
|
$
|
(9,268)
|
|
|
|
|
|
|
Net income from
discontinued operations, net of tax
|
—
|
|
34,618
|
|
6,066
|
Net (loss)
income
|
$
|
(52,832)
|
|
$
|
27,959
|
|
$
|
(3,202)
|
Less: net loss
attributable to non-controlling interest
|
(6,741)
|
|
(7,345)
|
|
(7,624)
|
Net (loss) income
attributable to VOXX International Corporation
|
$
|
(46,091)
|
|
$
|
35,304
|
|
$
|
4,422
|
|
|
|
|
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(3,195)
|
|
28,804
|
|
(3,194)
|
Derivatives
designated for hedging, net of tax
|
461
|
|
(698)
|
|
210
|
Pension plan
adjustments, net of tax
|
(12)
|
|
1,496
|
|
(180)
|
Unrealized holding
gain (loss) on available-for-sale investment securities
arising during the period, net of tax
|
24
|
|
74
|
|
(17)
|
Other comprehensive
(loss) income, net of tax
|
(2,722)
|
|
29,676
|
|
(3,181)
|
Comprehensive (loss)
income attributable to VOXX International Corporation
|
$
|
(48,813)
|
|
$
|
64,980
|
|
$
|
1,241
|
|
|
|
|
|
|
(Loss) earnings per
share - basic:
|
|
|
|
|
|
Continuing operations
attributable to VOXX International Corporation
|
$
|
(1.89)
|
|
$
|
0.03
|
|
$
|
(0.07)
|
Discontinued
operations attributable to VOXX International
Corporation
|
$
|
—
|
|
$
|
1.43
|
|
$
|
0.25
|
Attributable to VOXX
International Corporation
|
$
|
(1.89)
|
|
$
|
1.45
|
|
$
|
0.18
|
(Loss) earnings per
share - diluted:
|
|
|
|
|
|
Continuing operations
attributable to VOXX International Corporation
|
$
|
(1.89)
|
|
$
|
0.03
|
|
$
|
(0.07)
|
Discontinued
operations attributable to VOXX International
Corporation
|
$
|
—
|
|
$
|
1.41
|
|
$
|
0.25
|
Attributable to VOXX
International Corporation
|
$
|
(1.89)
|
|
$
|
1.44
|
|
$
|
0.18
|
Weighted-average
common shares outstanding (basic)
|
24,355,791
|
|
24,290,563
|
|
24,160,324
|
Weighted-average
common shares outstanding (diluted)
|
24,355,791
|
|
24,547,246
|
|
24,160,324
|
VOXX International
Corporation and Subsidiaries
|
Consolidated
Statements of Operations and Comprehensive (Loss)
Income
|
Three Months Ended
February 28, 2019, February 28, 2018 and
February 28, 2017
|
(In thousands,
except share and per share data)
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
February
28, 2019
|
|
February
28, 2018
|
|
February
28, 2017
|
Net sales
|
$
|
107,457
|
|
$
|
122,236
|
|
$
|
124,894
|
Cost of
sales
|
83,703
|
|
90,023
|
|
88,928
|
Gross
profit
|
23,754
|
|
32,213
|
|
35,966
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling
|
10,254
|
|
11,194
|
|
10,721
|
General and
administrative
|
17,303
|
|
19,862
|
|
21,326
|
Engineering and
technical support
|
6,038
|
|
6,142
|
|
7,626
|
Intangible asset
impairment charges
|
15,975
|
|
—
|
|
—
|
Restructuring
expense
|
4,588
|
|
—
|
|
—
|
Total operating
expenses
|
54,158
|
|
37,198
|
|
39,673
|
Operating
loss
|
(30,404)
|
|
(4,985)
|
|
(3,707)
|
Other (expense)
income:
|
|
|
|
|
|
Interest and bank
charges
|
(1,058)
|
|
(1,159)
|
|
(1,911)
|
Equity in income of
equity investee
|
1,472
|
|
1,444
|
|
1,513
|
Impairment of notes
receivable
|
(16,509)
|
|
—
|
|
—
|
Investment
loss
|
(530)
|
|
—
|
|
—
|
Other, net
|
(596)
|
|
182
|
|
(318)
|
Total other expense,
net
|
(17,221)
|
|
467
|
|
(716)
|
|
|
|
|
|
|
Loss from continuing
operations before income taxes
|
(47,625)
|
|
(4,518)
|
|
(4,423)
|
Income tax (benefit)
expense from continuing operations
|
(9,278)
|
|
(12,914)
|
|
3,522
|
Net loss from
continuing operations
|
$
|
(38,347)
|
|
$
|
8,396
|
|
$
|
(7,945)
|
|
|
|
|
|
|
Net income from
discontinued operations, net of tax
|
—
|
|
2,276
|
|
5,649
|
Net (loss)
income
|
$
|
(38,347)
|
|
$
|
10,672
|
|
$
|
(2,296)
|
Less: net loss
attributable to non-controlling interest
|
(1,787)
|
|
(1,913)
|
|
(2,206)
|
Net (loss) income
attributable to VOXX International Corporation
|
$
|
(36,560)
|
|
$
|
12,585
|
|
$
|
(90)
|
|
|
|
|
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
Foreign currency
translation adjustments
|
138
|
|
1,135
|
|
(26)
|
Derivatives
designated for hedging, net of tax
|
(81)
|
|
262
|
|
(30)
|
Pension plan
adjustments, net of tax
|
(69)
|
|
(192)
|
|
(224)
|
Unrealized holding
gain (loss) on available-for-sale investment securities
arising during the period, net of tax
|
—
|
|
—
|
|
(13)
|
Other comprehensive
(loss) income, net of tax
|
(12)
|
|
1,205
|
|
(293)
|
Comprehensive (loss)
income attributable to VOXX International Corporation
|
$
|
(36,572)
|
|
$
|
13,790
|
|
$
|
(383)
|
|
|
|
|
|
|
(Loss) earnings per
share - basic:
|
|
|
|
|
|
Continuing operations
attributable to VOXX International Corporation
|
$
|
(1.50)
|
|
$
|
0.42
|
|
$
|
(0.24)
|
Discontinued
operations attributable to VOXX International
Corporation
|
$
|
—
|
|
$
|
0.09
|
|
$
|
0.23
|
Attributable to VOXX
International Corporation
|
$
|
(1.50)
|
|
$
|
0.52
|
|
$
|
-
|
(Loss) earnings per
share - diluted:
|
|
|
|
|
|
Continuing operations
attributable to VOXX International Corporation
|
$
|
(1.50)
|
|
$
|
0.42
|
|
$
|
(0.24)
|
Discontinued
operations attributable to VOXX International
Corporation
|
$
|
—
|
|
$
|
0.09
|
|
$
|
0.23
|
Attributable to VOXX
International Corporation
|
$
|
(1.50)
|
|
$
|
0.51
|
|
$
|
-
|
Weighted-average
common shares outstanding (basic)
|
24,355,791
|
|
24,316,103
|
|
24,160,324
|
Weighted-average
common shares outstanding (diluted)
|
24,355,791
|
|
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
|
|
|
2019
|
|
2018
|
|
2017
|
Net (loss) income
attributable to VOXX International Corporation
|
|
$
|
(46,091)
|
|
$
|
35,304
|
|
$
|
4,422
|
Adjustments:
|
|
|
|
|
|
|
Interest expense and
bank charges (1)
|
|
2,884
|
|
5,169
|
|
6,860
|
Depreciation and
amortization (1)
|
|
11,112
|
|
13,879
|
|
17,064
|
Income tax (benefit)
expense
|
|
(6,131)
|
|
(13,262)
|
|
1,759
|
EBITDA
|
|
(38,226)
|
|
41,090
|
|
30,105
|
Adjustments:
|
|
|
|
|
|
|
Stock-based compensation
attributable to stock options and
restricted stock
|
|
551
|
|
552
|
|
753
|
Gain on sale of discontinued
operations
|
|
—
|
|
(36,118)
|
|
—
|
Loss on forward contracts
attributable to sale of business
|
|
—
|
|
6,618
|
|
—
|
Impairment of investment
properties in Venezuela
|
|
3,473
|
|
—
|
|
—
|
Impairment of notes
receivable
|
|
16,509
|
|
—
|
|
—
|
Investment loss
(gain)
|
|
530
|
|
(1,416)
|
|
—
|
Environmental remediation
charges
|
|
454
|
|
—
|
|
—
|
Restructuring
charges
|
|
4,588
|
|
—
|
|
—
|
Intangible asset impairment
charges
|
|
25,789
|
|
—
|
|
—
|
Adjusted
EBITDA
|
|
$
|
13,668
|
|
$
|
10,726
|
|
$
|
30,858
|
Diluted (loss) income
per common share attributable to VOXX
International Corporation
|
|
$
|
(1.89)
|
|
$
|
1.44
|
|
$
|
0.18
|
Diluted Adjusted
EBITDA per common share attributable to
VOXX International Corporation
|
|
$
|
0.56
|
|
$
|
0.44
|
|
$
|
1.28
|
|
(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
|
|
Three
Months
Ended
|
|
Three
Months
Ended
|
|
|
February
28, 2019
|
|
February
28, 2018
|
|
February
28, 2017
|
Net (loss) income
attributable to VOXX International Corporation
|
|
$
|
(36,560)
|
|
$
|
12,585
|
|
$
|
(90)
|
Adjustments:
|
|
|
|
|
|
|
Interest expense and
bank charges (1)
|
|
632
|
|
842
|
|
1,726
|
Depreciation and
amortization (1)
|
|
3,226
|
|
2,717
|
|
4,349
|
Income tax (benefit)
expense
|
|
(9,278)
|
|
(15,201)
|
|
1,977
|
EBITDA
|
|
(41,980)
|
|
943
|
|
7,962
|
Adjustments:
|
|
|
|
|
|
|
Stock-based compensation
attributable to stock options
and restricted stock
|
|
158
|
|
107
|
|
185
|
Impairment of notes
receivable
|
|
16,509
|
|
—
|
|
—
|
Investment loss
|
|
530
|
|
—
|
|
—
|
Environmental remediation
charges
|
|
454
|
|
—
|
|
—
|
Restructuring
charges
|
|
4,588
|
|
—
|
|
—
|
Intangible asset impairment
charges
|
|
15,975
|
|
—
|
|
—
|
Adjusted
EBITDA
|
|
$
|
(3,766)
|
|
$
|
1,050
|
|
$
|
8,147
|
Diluted (loss) income
per common share attributable to
VOXX International Corporation
|
|
$
|
(1.50)
|
|
$
|
0.51
|
|
$
|
—
|
Diluted Adjusted
EBITDA per common share attributable to
VOXX International Corporation
|
|
$
|
(0.15)
|
|
$
|
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.
|
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SOURCE VOXX International Corporation