ORLANDO, Fla., June 15, 2020 /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 2020 fourth
quarter and year ended February 29,
2020.
On May 4, 2020, the Company filed
a Form 8-K with the Securities and Exchange Commission ("SEC")
noting it intended to delay its Form 10-K filing for the year ended
February 29, 2020 until June 15, 2020. This was based on an SEC order
issued on March 25, 2020 pursuant to
Section 36 (Release No. 34-88465). The additional time to finalize
the Report was solely due to COVID-19 as resources were
limited.
Commenting on the Company's Fiscal 2020 results, Pat Lavelle, President and Chief Executive
Officer of VOXX International Corporation stated, "Despite the
losses reported, Fiscal 2020 was a successful year in that we
carried through on the strategic plan we began last fiscal year. We
combined our international accessories business; brought our
international premium audio operations under Klipsch; realigned our
domestic accessories group and continued our aggressive SKU
rationalization program that began in Fiscal 2019; and, instituted
significant cost control programs to lower overhead. We also sold
international real estate and closed on a strategic acquisition to
enhance our automotive offerings. The only thing that we did not
anticipate was the unforeseen drop in our Automotive Electronics
business segment. Automotive net sales declined by approximately
$47 million due to plant delays with
our largest OEM customer and the end of life of a program with
another OEM earlier than anticipated. The overall market also
played a role as car sales have fallen and are expected to decline
further this year. However, over the past 12-months, we have won
nearly $375 million in new automotive
awards and while Fiscal 2021 may be soft to start, we're expecting
strong growth in the years to come."
Lavelle continued, "Another bright spot was the performance of
our premium audio products with sales up $12.3 million. We strengthened our offerings,
have new products coming to market, and have added new distribution
partners. Also positive is the inbound interest for EyeLock
solutions given the COVID-19 global pandemic. We have always
maintained that iris authentication is the safest and most secure,
and now, it's the most practical. Gloves impede fingerprint scans
while masks impede facial recognition. Nothing prevents a clear
scan of your eye or eyes and we've seen a large number of
opportunities emerge since the pandemic. We have secured the
services of an investment banker to review all strategic
alternatives for EyeLock and that does not necessarily mean a sale.
Rather, we are looking at partnerships, joint ventures, spin-offs,
financing arrangements, and more – anything that will help support
EyeLock and improve our business and financial position. Fiscal
2021 will start slow due to COVID-19, but barring any further
setbacks, with the contracts awarded and the additional steps we've
taken to lower overhead, we should see growth and profitability
this year, with a strong balance sheet at our disposal to take
advantage of opportunities that may be on the horizon."
Fiscal 2020 and Fiscal 2019 Fourth Quarter Financial
Comparisons
Net sales in the Fiscal 2020 fourth quarter ended February 29, 2020 were $101.1 million, a $6.4
million decline as compared to $107.5
million in the Fiscal 2019 fourth quarter ended February 28, 2019. The year-over-year decline was
driven by a $9.3 million reduction in
Automotive Electronics segment sales due to lower industrywide car
sales. This was partially offset by a $3.1
million increase in net sales in the Consumer Electronics
segment, primarily a result of strong sales of premium audio
products and expanded distribution.
- Automotive Electronics segment net sales of $27.7 million as compared to $36.9 million, down $9.3
million.
- Consumer Electronics segment net sales of $73.1 million as compared to $70.0 million, up $3.1
million.
- Biometrics segment net sales of $0.1
million as compared to $0.3
million, down $0.2
million.
The gross margin in the Fiscal 2020 fourth quarter was 28.2%,
representing a 610-basis point increase over the Fiscal 2019 fourth
quarter. Driving this increase was a 710-basis point improvement in
the Consumer Electronics segment, due to the higher sales of
premium audio products and higher margins associated with a smaller
accessories assortment. This helped offset a 690-basis point
decline in Automotive Electronics segment gross margins, which were
down primarily due to lower sales volume and the lack of overhead
absorption.
- Automotive Electronics segment gross margin of 17.7% as
compared to 24.6%, down 690 basis points.
- Consumer Electronics segment gross margin of 32.2% as compared
to 25.1%, up 710 basis points.
- Biometrics segment gross margins were negative for both of the
comparable periods.
Total operating expenses in the Fiscal 2020 fourth quarter were
$63.3 million as compared to
$54.2 million in the comparable
Fiscal 2019 period, an increase of $9.1
million. General & administrative and engineering and
technical support expenses were down when comparing the Fiscal 2020
and Fiscal 2019 fourth quarter periods and selling expenses were
relatively flat. In the Fiscal 2020 fourth quarter, the Company
incurred non-cash intangible asset impairment charges of
$30.2 million, $27.4 million of which was in the Biometrics
segment. In the Fiscal 2019 fourth quarter, the Company incurred
non-cash intangible asset impairment charges of $16.0 million and restructuring expenses of
$4.6 million. Excluding the non-cash
impairment charges and restructuring expenses, total operating
expenses declined by approximately $0.6
million.
The Company reported an operating loss of $34.7 million in the Fiscal 2020 fourth quarter,
due primarily to the non-cash impairment charges. Excluding these
charges, the Company would have reported an operating loss of
$4.5 million. In the Fiscal 2019
fourth quarter, the Company reported an operating loss of
$30.4 million. Excluding the non-cash
impairment charges and restructuring expenses, the Company would
have reported an operating loss of $9.8
million in the Fiscal 2019 fourth quarter.
Net loss attributable to VOXX International Corporation was
$21.8 million in the Fiscal 2020
fourth quarter, as compared to a net loss attributable to VOXX
International Corporation of $36.6
million in the Fiscal 2019 fourth quarter.
On a per share basis, the Company reported a basic and diluted
loss per share attributable to VOXX International
Corporation of $0.90 in the Fiscal 2020 fourth
quarter, as compared to a basic and diluted loss per share
attributable to VOXX International
Corporation of $1.50 in the Fiscal 2019 fourth
quarter.
Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA") in the Fiscal 2020 fourth quarter was
$1.8 million, as compared to an
Adjusted EBITDA loss of $3.8 million
in the Fiscal 2019 fourth quarter, an improvement of $5.5 million year-over-year.
Fiscal 2020 and Fiscal 2019 Financial Comparisons
Fiscal 2020 net sales for the period ended February 29, 2020 were $394.9 million, a $51.9
million decline as compared to $446.8
million in Fiscal 2019.
The year-over-year decline was primarily in the Automotive
Electronics segment, down $47.5
million, and was directly related to an OEM customer that
experienced plant delays and another OEM customer that ended a
program earlier than anticipated. The remaining impact was with
Subaru and was anticipated. Offsetting OEM declines were higher
sales of certain aftermarket safety and security products as
compared to the prior year period, as well as sales related to the
newly acquired Vehicle Safety Holdings Corp., which took place
towards the end of the Company's Fiscal 2020 fourth quarter.
The Consumer Electronics segment experienced a year-over-year
sales decline of $3.5 million, which
was directly related to the Company's SKU rationalization programs
and lower sales in the European markets. As previously noted, the
Company exited several legacy product categories and discontinued
other product lines throughout the fiscal year to focus on more
sustainable categories with higher gross margins and where the
Company has market-leading positions and technological advantages.
Offsetting these declines were higher sales of reception products,
activity bands within the Healthcare market and Premium Audio
products, including higher sales of premium mobility and premium
wireless and Bluetooth speakers, soundbars, Bluetooth speakers and
wireless earbuds, and premium home separate speakers.
- Automotive Electronics segment net sales of $114.2 million as compared to $161.6 million, down $47.5
million.
- Consumer Electronics segment net sales of $279.7 million as compared to $283.1 million, down $3.5
million.
- Biometrics segment net sales of $0.5
million as compared to $1.1
million, down $0.6
million.
The gross margin in Fiscal 2020 was 27.8%, a 60-basis point
improvement over Fiscal 2019. Gross margins were adversely impacted
by lower than expected Automotive Electronics segment sales, which
resulted in lower absorption of fixed overhead, as well as
write-off adjustments associated with slower moving automotive
products. Gross margins were also negatively impacted by lower
sales of higher margin accessories products, and higher warehousing
costs in Europe. Lastly, tariff
increases in Fiscal 2020 also negatively impacted gross margins
compared to the prior fiscal year. This was offset by higher sales
of certain aftermarket security products related to the acquisition
of Vehicle Safety Holdings Corp., higher sales of premium audio
products including premium wireless and Bluetooth speakers,
mobility products, home separates, and commercial speakers, all of
which carry higher gross margins.
- Automotive Electronics segment gross margin of 20.3% as
compared to 25.1%, down 480 basis points.
- Consumer Electronics segment gross margin of 31.0% as compared
to 29.0%, up 200 basis points.
- Biometrics segment gross margins were negative for both of the
comparable periods.
Total operating expenses in Fiscal 2020 were $159.2 million as compared to $162.6 million in the comparable Fiscal 2019
period, a reduction of $3.4 million.
Selling expenses declined by $2.4
million year-over-year due to headcount reductions related
to Fiscal 2019 restructuring activities, lower commissions, and
overall reductions due to cost-cutting measures. General and
administrative expenses increased by $2.0
million when comparing Fiscal 2020 and Fiscal 2019. However,
Fiscal 2020 included a $1.6 million
compensation expense associated with stock grants and Fiscal 2019
included a reimbursement of approximately $3.0 million related to a favorable lawsuit.
Disregarding these specific items, general and administrative
expenses would have declined year-over-year. Engineering and
technical support expenses declined by $2.8
million year-over-year due to lower headcount at select
subsidiaries, and lower research and development spending related
to projects that were completed in Fiscal 2020. Certain R&D
work was also transitioned in-house at EyeLock and Invision.
Offsetting these declines were higher R&D expenses related to
new projects, higher certification fees for certain products under
development, and salary and related expenses resulting from new
hires.
The Company also incurred non-cash intangible asset impairment
charges in Fiscal 2020 of $30.2
million as compared to $25.8
million in Fiscal 2019. The Company also incurred
restructuring expenses of $4.6
million in Fiscal 2019 related to its restructuring
programs, which primarily consisted of severance charges.
- Selling expenses of $38.5 million
as compared to $40.9 million, a
reduction of $2.4 million.
- General and administrative expenses of $68.9 million versus $66.9
million, an increase of $2.0
million.
- Engineering and technical support expenses of $21.6 million as compared to $24.4 million, a reduction of $2.8 million.
The Company reported an operating loss of $49.5 million in Fiscal 2020 as compared to an
operating loss of $41.2 million in
Fiscal 2019. Note, both the Fiscal 2020 and Fiscal 2019 periods
included non-cash intangible asset impairment charges and the
Fiscal 2019 period included restructuring expenses.
Total other income, net for Fiscal 2020 was $8.5 million as compared to total other expense,
net of $17.8 million in Fiscal 2019.
Interest and bank charges declined by $0.9
million as the Company temporarily suspended its domestic
supply chain financing in the Fiscal 2020 second and third
quarters, resulting in a reduction of related fees. Equity in
income of equity investee declined by $1.4
million due primarily to the impact of tariffs, an increase
in warranty costs and other product-related expenses in Fiscal 2020
that were not present in the prior year. In Fiscal 2020, the
Company recorded a gain on the sale of real property in Pulheim,
Germany of $4.1 million and in Fiscal 2020, the Company also
received the remaining proceeds from the sale of its investment in
RxNetworks of $0.8 million. Lastly,
other, net in Fiscal 2020 includes $1.0
million related to a life insurance policy, offset by a
charge of $0.8 million for a payment
made to TE Connectivity Ltd in final settlement of the working
capital calculation related to the sale of Hirschmann Car
Communication GmbH. In Fiscal 2019, the Company recorded a non-cash
impairment charge on its Venezuela
investment properties of $3.5
million, a non-cash impairment charge of $16.5 million related to the notes receivable
from 360fly, and a $0.5 million loss
associated with a prior investment.
Net loss attributable to VOXX International Corporation in
Fiscal 2020 was $26.4 million, as
compared to a net loss attributable to VOXX International
Corporation of $46.1 million in
Fiscal 2019. On a per share basis, the Company reported a basic and
diluted loss per share attributable to VOXX International
Corporation of $1.08 in Fiscal 2020, as compared to
basic and diluted loss per share attributable to VOXX
International Corporation of $1.89.
Adjusted EBITDA in Fiscal 2020 was $6.4
million, as compared to $13.7
million in Fiscal 2019.
Balance Sheet Update
As of February 29, 2020, the Company had cash and cash
equivalents of $37.4 million as compared to $58.2 as of February 28,
2019. The variance in net cash relates to a change in the
Company's supply chain financing activities as noted in its Form
10-K. Further, on a sequential basis compared to the period ended
November 30, 2019, cash and cash
equivalents increased by $5.3
million. Also note, during the Fiscal 2020 fourth quarter,
we used $16.5 million in cash to fund
the acquisition of Vehicle Safety Holdings Corp., and during Fiscal
2020, we purchased shares of the Company's Class A Common Stock for
$2.7 million.
Total debt as of February 29, 2020
was $8.2 million, an improvement of
$9.4 million, as compared to total
debt of $17.6 million as of
February 28, 2019. The Company's
total debt consists of its Florida
mortgage and its Euro asset-based lending obligation to support its
German operations. Total long-term debt as of February 29, 2020 was $6.1
million, as compared to $5.8 million as
of February 28, 2019.
Conference Call and Webcast Information
VOXX International will be hosting its conference call
on Tuesday, June 16, 2020 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:
1914749). 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 (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, life insurance proceeds, certain
settlements, gains on sale of real property, 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 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 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 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 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
Company's annual report on Form 10-K for the fiscal year ended
February 29, 2020 and other filings
made by the Company from time to time with the SEC. The factors
described in such SEC filings include, without limitation: the
impact of the COVID-19 outbreak on the Company's results of
operations, the Company's ability to realize the anticipated
results of its business realignment; cybersecurity risks; risks
that may result from changes in the Company's business operations;
our ability to keep pace with technological advances; significant
competition in the automotive electronics, consumer electronics and
biometrics businesses; our relationships with key suppliers and
customers; quality and consumer acceptance of newly introduced
products; market volatility; non-availability of product; excess
inventory; price and product competition; new product
introductions; foreign currency fluctuations; and restrictive debt
covenants. Many of the foregoing risks and uncertainties are, and
will be, exacerbated by the COVID-19 pandemic and any worsening of
the global business and economic environment as a result. The
Company assumes no obligation and does not intend to update these
forward-looking statements.
Investor & Media Relations
Contact:
Glenn Wiener, GW Communications (for
VOXX)
Tel: 212-786-6011 / Email: gwiener@GWCco.com
Tables to Follow
VOXX International
Corporation and Subsidiaries
|
|
Consolidated
Balance Sheets
|
|
February 29,
2020 and February 28, 2019
|
|
(In thousands,
except share data)
|
|
|
|
|
|
February
29,
2020
|
|
|
February 28,
2019
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
37,425
|
|
|
$
|
58,236
|
|
Accounts receivable,
net
|
|
|
69,714
|
|
|
|
73,391
|
|
Inventory,
net
|
|
|
99,110
|
|
|
|
102,379
|
|
Receivables from
vendors
|
|
|
230
|
|
|
|
1,009
|
|
Prepaid expenses and
other current assets
|
|
|
10,885
|
|
|
|
10,449
|
|
Income tax
receivable
|
|
|
456
|
|
|
|
921
|
|
Total current
assets
|
|
|
217,820
|
|
|
|
246,385
|
|
Investment
securities
|
|
|
2,282
|
|
|
|
2,858
|
|
Equity
investments
|
|
|
21,924
|
|
|
|
21,885
|
|
Property, plant and
equipment, net
|
|
|
51,424
|
|
|
|
60,493
|
|
Operating lease,
right of use asset
|
|
|
3,143
|
|
|
|
—
|
|
Goodwill
|
|
|
55,000
|
|
|
|
54,785
|
|
Intangible assets,
net
|
|
|
88,288
|
|
|
|
119,449
|
|
Deferred income tax
assets
|
|
|
52
|
|
|
|
79
|
|
Other
assets
|
|
|
1,638
|
|
|
|
2,877
|
|
Total
assets
|
|
$
|
441,571
|
|
|
$
|
508,811
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
22,096
|
|
|
$
|
31,143
|
|
Accrued expenses and
other current liabilities
|
|
|
34,046
|
|
|
|
39,129
|
|
Income taxes
payable
|
|
|
1,523
|
|
|
|
1,349
|
|
Accrued sales
incentives
|
|
|
12,250
|
|
|
|
13,574
|
|
Current portion of
long-term debt
|
|
|
1,107
|
|
|
|
10,021
|
|
Total current
liabilities
|
|
|
71,022
|
|
|
|
95,216
|
|
Long-term debt, net
of debt issuance costs
|
|
|
6,099
|
|
|
|
5,776
|
|
Finance lease
liabilities, less current portion
|
|
|
720
|
|
|
|
516
|
|
Operating lease
liabilities, less current portion
|
|
|
2,391
|
|
|
|
—
|
|
Deferred
compensation
|
|
|
2,282
|
|
|
|
2,605
|
|
Deferred income tax
liabilities
|
|
|
3,828
|
|
|
|
5,284
|
|
Other tax
liabilities
|
|
|
1,225
|
|
|
|
1,332
|
|
Other long-term
liabilities
|
|
|
3,294
|
|
|
|
2,981
|
|
Total
liabilities
|
|
|
90,861
|
|
|
|
113,710
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Redeemable
equity
|
|
|
2,481
|
|
|
|
-
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Preferred
stock:
|
|
|
|
|
|
|
|
|
No shares issued or
outstanding
|
|
|
—
|
|
|
|
—
|
|
Common
stock:
|
|
|
|
|
|
|
|
|
Class A, $.01 par
value; 60,000,000 shares authorized, 24,306,194 and 24,106,194
shares issued and 21,556,976 and 21,938,100 shares outstanding at
February 29, 2020 and February 28, 2019, respectively
|
|
|
244
|
|
|
|
242
|
|
Class B Convertible,
$.01 par value, 10,000,000 shares authorized, 2,260,954 shares
issued and outstanding
|
|
|
22
|
|
|
|
22
|
|
Paid-in
capital
|
|
|
299,228
|
|
|
|
296,946
|
|
Retained
earnings
|
|
|
122,139
|
|
|
|
148,582
|
|
Accumulated other
comprehensive loss
|
|
|
(19,055)
|
|
|
|
(16,944)
|
|
Less: Treasury stock,
at cost, 2,749,218 and 2,168,094 shares of Class A Common Stock at
February 29, 2020 and February 28, 2019, respectively
|
|
|
(23,918)
|
|
|
|
(21,176)
|
|
Less: Redeemable
equity
|
|
|
(2,481)
|
|
|
|
—
|
|
Total VOXX
International Corporation stockholders' equity
|
|
|
376,179
|
|
|
|
407,672
|
|
Non-controlling
interest
|
|
|
(27,950)
|
|
|
|
(12,571)
|
|
Total stockholders'
equity
|
|
|
348,229
|
|
|
|
395,101
|
|
Total liabilities and
stockholders' equity
|
|
$
|
441,571
|
|
|
$
|
508,811
|
|
|
|
|
|
|
|
|
|
|
VOXX International
Corporation and Subsidiaries
|
Consolidated
Statements of Operations and Comprehensive (Loss)
Income
|
Years Ended
February 29, 2020, February 28, 2019 and
February 28, 2018
|
(In thousands,
except share and per share data)
|
|
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
|
|
February
29,
2020
|
|
|
February 28,
2019
|
|
|
February 28,
2018
|
|
Net sales
|
|
$
|
394,889
|
|
|
$
|
446,816
|
|
|
$
|
507,092
|
|
Cost of
sales
|
|
|
285,113
|
|
|
|
325,399
|
|
|
|
374,795
|
|
Gross
profit
|
|
|
109,776
|
|
|
|
121,417
|
|
|
|
132,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
|
38,471
|
|
|
|
40,915
|
|
|
|
45,999
|
|
General and
administrative
|
|
|
68,928
|
|
|
|
66,935
|
|
|
|
78,957
|
|
Engineering and
technical support
|
|
|
21,602
|
|
|
|
24,387
|
|
|
|
26,440
|
|
Intangible asset
impairment charges
|
|
|
30,230
|
|
|
|
25,789
|
|
|
|
—
|
|
Restructuring
expense
|
|
|
—
|
|
|
|
4,588
|
|
|
|
—
|
|
Total operating
expenses
|
|
|
159,231
|
|
|
|
162,614
|
|
|
|
151,396
|
|
Operating
loss
|
|
|
(49,455)
|
|
|
|
(41,197)
|
|
|
|
(19,099)
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and bank
charges
|
|
|
(3,569)
|
|
|
|
(4,449)
|
|
|
|
(6,009)
|
|
Equity in income of
equity investee
|
|
|
5,174
|
|
|
|
6,618
|
|
|
|
7,178
|
|
Gain on sale of real
property
|
|
|
4,057
|
|
|
|
—
|
|
|
|
—
|
|
Impairment of
Venezuela investment properties
|
|
|
—
|
|
|
|
(3,473)
|
|
|
|
—
|
|
Impairment of notes
receivable
|
|
|
—
|
|
|
|
(16,509)
|
|
|
|
—
|
|
Investment gain
(loss)
|
|
|
775
|
|
|
|
(530)
|
|
|
|
1,416
|
|
Other, net
|
|
|
2,078
|
|
|
|
577
|
|
|
|
(7,590)
|
|
Total other income
(expense), net
|
|
|
8,515
|
|
|
|
(17,766)
|
|
|
|
(5,005)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations before income taxes
|
|
|
(40,940)
|
|
|
|
(58,963)
|
|
|
|
(24,104)
|
|
Income tax expense
(benefit) from continuing operations
|
|
|
882
|
|
|
|
(6,131)
|
|
|
|
(17,445)
|
|
Net loss from
continuing operations
|
|
$
|
(41,822)
|
|
|
$
|
(52,832)
|
|
|
$
|
(6,659)
|
|
Net income from
discontinued operations, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
34,618
|
|
Net (loss)
income
|
|
$
|
(41,822)
|
|
|
$
|
(52,832)
|
|
|
$
|
27,959
|
|
Less: net loss
attributable to non-controlling interest
|
|
|
(15,379)
|
|
|
|
(6,741)
|
|
|
|
(7,345)
|
|
Net (loss) income
attributable to VOXX International Corporation
|
|
$
|
(26,443)
|
|
|
$
|
(46,091)
|
|
|
$
|
35,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
(1,517)
|
|
|
|
(3,195)
|
|
|
|
28,804
|
|
Derivatives designated
for hedging, net of tax
|
|
|
(505)
|
|
|
|
461
|
|
|
|
(698)
|
|
Pension plan
adjustments, net of tax
|
|
|
(89)
|
|
|
|
(12)
|
|
|
|
1,496
|
|
Unrealized holding
gain on available-for-sale investment securities arising during the
period, net of tax
|
|
|
-
|
|
|
|
24
|
|
|
|
74
|
|
Other comprehensive
(loss) income, net of tax
|
|
|
(2,111)
|
|
|
|
(2,722)
|
|
|
|
29,676
|
|
Comprehensive (loss)
income attributable to VOXX International Corporation
|
|
$
|
(28,554)
|
|
|
$
|
(48,813)
|
|
|
$
|
64,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share - basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
attributable to VOXX International Corporation
|
|
$
|
(1.08)
|
|
|
$
|
(1.89)
|
|
|
$
|
0.03
|
|
Discontinued
operations attributable to VOXX International
Corporation
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.43
|
|
Attributable to VOXX
International Corporation
|
|
$
|
(1.08)
|
|
|
$
|
(1.89)
|
|
|
$
|
1.45
|
|
(Loss) earnings per
share - diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
attributable to VOXX International Corporation
|
|
$
|
(1.08)
|
|
|
$
|
(1.89)
|
|
|
$
|
0.03
|
|
Discontinued
operations attributable to VOXX International
Corporation
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.41
|
|
Attributable to VOXX
International Corporation
|
|
$
|
(1.08)
|
|
|
$
|
(1.89)
|
|
|
$
|
1.44
|
|
Weighted-average
common shares outstanding (basic)
|
|
|
24,394,663
|
|
|
|
24,355,791
|
|
|
|
24,290,563
|
|
Weighted-average
common shares outstanding (diluted)
|
|
|
24,394,663
|
|
|
|
24,355,791
|
|
|
|
24,547,246
|
|
VOXX International
Corporation and Subsidiaries
|
Consolidated
Statements of Operations and Comprehensive (Loss)
Income
|
Three Months Ended
February 29, 2020, February 28, 2019 and
February 28, 2018
|
(In thousands,
except share and per share data)
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
February 29,
2020
|
|
February 28,
2019
|
|
February 28,
2018
|
Net sales
|
$
|
101,077
|
|
|
$
|
107,457
|
|
|
$
|
122,236
|
|
Cost of
sales
|
72,543
|
|
|
83,703
|
|
|
90,023
|
|
Gross
profit
|
28,534
|
|
|
23,754
|
|
|
32,213
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling
|
10,309
|
|
|
10,254
|
|
|
11,194
|
|
General and
administrative
|
17,032
|
|
|
17,303
|
|
|
19,862
|
|
Engineering and
technical support
|
5,701
|
|
|
6,038
|
|
|
6,142
|
|
Intangible asset
impairment charges
|
30,230
|
|
|
15,975
|
|
|
—
|
|
Restructuring
expense
|
-
|
|
|
4,588
|
|
|
—
|
|
Total operating
expenses
|
63,272
|
|
|
54,158
|
|
|
37,198
|
|
Operating
loss
|
(34,738)
|
|
|
(30,404)
|
|
|
(4,985)
|
|
Other (expense)
income:
|
|
|
|
|
|
Interest and bank
charges
|
(934)
|
|
|
(1,058)
|
|
|
(1,159)
|
|
Equity in income of
equity investee
|
1,502
|
|
|
1,472
|
|
|
1,444
|
|
Impairment of notes
receivable
|
-
|
|
|
(16,509)
|
|
|
—
|
|
Investment
loss
|
-
|
|
|
(530)
|
|
|
—
|
|
Other, net
|
209
|
|
|
(596)
|
|
|
182
|
|
Total other income
(expense), net
|
777
|
|
|
(17,221)
|
|
|
467
|
|
|
|
|
|
|
|
Loss from continuing
operations before income taxes
|
(33,961)
|
|
|
(47,625)
|
|
|
(4,518)
|
|
Income tax benefit
from continuing operations
|
(308)
|
|
|
(9,278)
|
|
|
(12,914)
|
|
Net loss from
continuing operations
|
$
|
(33,653)
|
|
|
$
|
(38,347)
|
|
|
$
|
8,396
|
|
|
|
|
|
|
|
Net income from
discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
2,276
|
|
Net (loss)
income
|
$
|
(33,653)
|
|
|
$
|
(38,347)
|
|
|
$
|
10,672
|
|
Less: net loss
attributable to non-controlling interest
|
(11,858)
|
|
|
(1,787)
|
|
|
(1,913)
|
|
Net (loss) income
attributable to VOXX International Corporation
|
$
|
(21,795)
|
|
|
$
|
(36,560)
|
|
|
$
|
12,585
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(196)
|
|
|
138
|
|
|
1,135
|
|
Derivatives
designated for hedging, net of tax
|
(234)
|
|
|
(81)
|
|
|
262
|
|
Pension Plan
adjustments, net of tax
|
(114)
|
|
|
(69)
|
|
|
(192)
|
|
Other comprehensive
(loss) income, net of tax
|
(544)
|
|
|
(12)
|
|
|
1,205
|
|
Comprehensive (loss)
income attributable to VOXX International Corporation
|
$
|
(22,339)
|
|
|
$
|
(36,572)
|
|
|
$
|
13,790
|
|
|
|
|
|
|
|
(Loss) earnings per
share - basic:
|
|
|
|
|
|
Continuing operations
attributable to VOXX International Corporation
|
$
|
(0.90)
|
|
|
$
|
(1.50)
|
|
|
$
|
0.42
|
|
Discontinued
operations attributable to VOXX International
Corporation
|
$
|
—
|
|
|
$
|
-
|
|
|
$
|
0.09
|
|
Attributable to VOXX
International Corporation
|
$
|
(0.90)
|
|
|
$
|
(1.50)
|
|
|
$
|
0.52
|
|
(Loss) earnings per
share - diluted:
|
|
|
|
|
|
Continuing operations
attributable to VOXX International Corporation
|
$
|
(0.90)
|
|
|
$
|
(1.50)
|
|
|
$
|
0.42
|
|
Discontinued
operations attributable to VOXX International
Corporation
|
$
|
—
|
|
|
$
|
-
|
|
|
$
|
0.09
|
|
Attributable to VOXX
International Corporation
|
$
|
(0.90)
|
|
|
$
|
(1.50)
|
|
|
$
|
0.51
|
|
Weighted-average
common shares outstanding (basic)
|
24,141,506
|
|
|
24,355,791
|
|
|
24,316,103
|
|
Weighted-average
common shares outstanding (diluted)
|
24,141,506
|
|
|
24,355,791
|
|
|
24,615,627
|
|
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
|
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
Net (loss) income
attributable to VOXX International Corporation
|
|
$
|
(26,443)
|
|
|
$
|
(46,091)
|
|
|
$
|
35,304
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
bank charges (1)
|
|
|
3,070
|
|
|
|
2,884
|
|
|
|
5,169
|
|
Depreciation and
amortization (1)
|
|
|
12,055
|
|
|
|
11,112
|
|
|
|
13,879
|
|
Income tax expense
(benefit)
|
|
|
882
|
|
|
|
(6,131)
|
|
|
|
(13,262)
|
|
EBITDA
|
|
|
(10,436)
|
|
|
|
(38,226)
|
|
|
|
41,090
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
2,282
|
|
|
|
551
|
|
|
|
552
|
|
Life insurance
proceeds
|
|
|
(1,000)
|
|
|
|
—
|
|
|
|
—
|
|
Gain on sale of real
property
|
|
|
(4,057)
|
|
|
|
—
|
|
|
|
—
|
|
Settlement of
Hirschmann working capital
|
|
|
804
|
|
|
|
—
|
|
|
|
—
|
|
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 (gain)
loss
|
|
|
(775)
|
|
|
|
530
|
|
|
|
(1,416)
|
|
Environmental
remediation charges
|
|
|
—
|
|
|
|
454
|
|
|
|
—
|
|
Restructuring
charges
|
|
|
—
|
|
|
|
4,588
|
|
|
|
—
|
|
Intangible asset
impairment charges (1)
|
|
|
19,543
|
|
|
|
25,789
|
|
|
|
—
|
|
Adjusted
EBITDA
|
|
$
|
6,361
|
|
|
$
|
13,668
|
|
|
$
|
10,726
|
|
Diluted (loss) income
per common share attributable to VOXX International
Corporation
|
|
$
|
(1.08)
|
|
|
$
|
(1.89)
|
|
|
$
|
1.44
|
|
Diluted Adjusted
EBITDA per common share attributable to VOXX International
Corporation
|
|
$
|
0.26
|
|
|
$
|
0.56
|
|
|
$
|
0.44
|
|
|
|
(1)
|
For purposes of
calculating Adjusted EBITDA for the Company, interest expense, bank
charges, depreciation and amortization, and intangible asset
impairment charges added back to net (loss) income 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
29, 2020
|
|
February
28, 2019
|
|
February
28, 2018
|
Net (loss) income
attributable to VOXX International Corporation
|
|
$
|
(21,795)
|
|
|
$
|
(36,560)
|
|
|
$
|
12,585
|
|
Adjustments:
|
|
|
|
|
|
|
Interest expense and
bank charges (1)
|
|
801
|
|
|
632
|
|
|
842
|
|
Depreciation and
amortization (1)
|
|
3,074
|
|
|
3,226
|
|
|
2,717
|
|
Income tax
benefit
|
|
(308)
|
|
|
(9,278)
|
|
|
(15,201)
|
|
EBITDA
|
|
(18,228)
|
|
|
(41,980)
|
|
|
943
|
|
Adjustments:
|
|
|
|
|
|
|
Stock-based compensation
attributable to stock options and restricted stock
|
|
466
|
|
|
158
|
|
|
107
|
|
Impairment of notes
receivable
|
|
-
|
|
|
16,509
|
|
|
—
|
|
Investment loss
|
|
-
|
|
|
530
|
|
|
—
|
|
Environmental remediation
charges
|
|
-
|
|
|
454
|
|
|
—
|
|
Restructuring
charges
|
|
-
|
|
|
4,588
|
|
|
—
|
|
Intangible asset impairment
charges (1)
|
|
19,543
|
|
|
15,975
|
|
|
—
|
|
Adjusted
EBITDA
|
|
$
|
1,781
|
|
|
$
|
(3,766)
|
|
|
$
|
1,050
|
|
Diluted (loss) income
per common share attributable to VOXX International
Corporation
|
|
$
|
(0.90)
|
|
|
$
|
(1.50)
|
|
|
$
|
0.51
|
|
Diluted Adjusted
EBITDA per common share attributable to VOXX International
Corporation
|
|
$
|
0.07
|
|
|
$
|
(0.15)
|
|
|
$
|
0.04
|
|
|
|
(1)
|
For purposes of
calculating Adjusted EBITDA for the Company, interest expense, bank
charges, depreciation and amortization expense, and intangible
asset impairment charges 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-2020-fourth-quarter-and-year-end-financial-results-301077114.html
SOURCE VOXX International Corporation