(MENAFN – PR Newswire) ORLANDO, Fla., July 10, 2019 /PRNewswire/ — VOXX All-embracing Corporation (NASDAQ:VOXX ), a arch architect and benefactor of automotive and chump technologies for the all-around markets, today appear banking after-effects for its Budgetary 2020 aboriginal division concluded May 31, 2019.
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Pat Lavelle, President and Chief Controlling Officer of VOXX All-embracing stated, “Our Budgetary 2020 aboriginal division embodied mostly as planned, with the key barring actuality the Automotive market, as the abatement in all-around car sales has impacted our Automotive Electronics segment. On the added hand, Chump Electronics articulation sales grew by 4.5% and gross margins bigger by 130-basis points. Demand for new articles alien aftermost budgetary year, accompanying with added administration for assertive Exceptional Audio artefact lines, should advice drive advance of the artefact categories we are focused on. We are continuing to accomplish advance with our accumulated alteration programs and will abide to de-emphasize assertive artefact curve that do not accommodated our gross allowance criteria. Ignoring both the acknowledged fee agreement aftermost budgetary year and the account from a activity allowance action this year, our losses decreased quarter-over-quarter. We apprehend operating costs to abatement year-over-year and for VOXX to be in a stronger position to drive added constant advantage as we admission our Budgetary 2020 third quarter.”
Lavelle continued, “In April, we apparent our plan to alleviate actor bulk and categorical the assorted accomplish we are demography to advance advantage and strengthen our antithesis sheet. In June, we appear a Definitive Agreement to advertise our German Accessories business for about $19.0 million, and this week, we accomplished a Purchase and Alteration Agreement to advertise our absolute acreage in Pulheim, Germany for about $12.0 million, afterward the non-binding LOI we appear earlier. Our banknote position of $60.0 actor added by $10.2 actor year-over-year, and we apprehend added increases awaiting the abutting of these two transactions. We’re continuing to analyze all paths that will aftereffect in a stronger VOXX and that includes abeyant divestitures, acquisitions, investments, or collective ventures. When the window opens, we will be active on the ahead appear admission to our Allotment Repurchase Program. We additionally entered into new Employment Agreements with key admiral and accept afflicted the belief acclimated for artful account payouts for baddest admiral from pre-tax assets to Adapted EBITDA based on an independent, 3rd-party assay of best practices. Lastly, our Board continues to analyze the abeyant of a allotment afterwards this Budgetary year. We are not continuing still. We are demography the adapted accomplishments that we accept will acknowledgment VOXX to constant profitability, advantage our able assets and antithesis sheet, and admission actor value.”
Fiscal 2020 and Budgetary 2019 Aboriginal Division Banking Comparisons
Effective March 1, 2019, the Aggregation afflicted its advertisement anatomy to accommodate the after-effects of operations for the afterward three advertisement segments: 1) Automotive Electronics, which includes the Company’s OEM and aftermarket automotive business; 2) Chump Electronics, which includes the aloft Exceptional Audio articulation and the aloft Chump Accessories segment, beneath EyeLock, LLC, and; 3) Biometrics, a anew formed articulation which includes the after-effects of EyeLock, LLC, the Company’s majority-owned investment.
Net sales for the Budgetary 2020 aboriginal division concluded May 31, 2019 were $93.5 million, as compared to $100.9 actor in the Budgetary 2019 aboriginal quarter, a abatement of $7.4 million.
The Automotive Electronics articulation had net sales of $29.6 actor in the Budgetary 2020 aboriginal quarter, as compared to $39.6 actor in the commensurable year-ago period, a abatement of $10.0 million. The year-over-year abatement aural this articulation was primarily accompanying to lower aggregate of rear-seat ball systems, due to a arrest in car sales and due to assertive barrage delays. Additionally, the Company’s OEM alien alpha and aegis sales declined, as did aftermarket accessory radio and beanbag artefact sales, partially account by an admission in sales of assertive automotive assurance and aegis products.
The Chump Electronics articulation had net sales of $63.7 actor in the Budgetary 2020 aboriginal quarter, as compared to $60.9 actor in the commensurable year-ago period, an admission of $2.7 million. Driving this year-over-year admission were college sales of exceptional home abstracted speakers, new administration ally for exceptional bartering apostle products, college sales of accession and karaoke products, and college sales of wearable devices. This admission was partially account by a abatement in sales of a array of Chump Accessories artefact lines, some due to lower year-over-year comparisons and others due to the Company’s SKU account program, advised to absolute sales of lower allowance products.
The Biometrics articulation about had no net sales during the Budgetary 2020 aboriginal division as the Aggregation awash out of its account for its NXT ambit admission products. Added artefact account was delivered consecutive to the Company’s Budgetary 2020 aboriginal division end and the Aggregation is now bushing chump orders and expects increases throughout the budgetary year.
The gross allowance in the Company’s Budgetary 2020 aboriginal division was 27.8%, apery a 40-basis point admission over the Budgetary 2019 aboriginal quarter. The year-over-year gross allowance advance was apprenticed by college gross margins in the Chump Electronics segment, partially account by lower gross margins in the Automotive Electronics segment. During the Budgetary 2020 aboriginal quarter, the Aggregation accomplished college gross margins due to college sales of exceptional home abstracted speakers, advancement articles and bartering speakers, as able-bodied as college sales of the Company’s karaoke products, and additionally accomplished college gross margins in the Biometrics articulation due to the absolution of account reserves. These absolute factors were partially account by lower sales of OEM aegis and alien alpha articles and aftermarket beanbag articles in the Automotive Electronics segment, as able-bodied as lower European margins in the Chump Electronics segment, the closing due to changes in artefact mix and discounts offered on assertive articles in the Budgetary 2020 aboriginal division which were not offered in the commensurable year-ago period, amid added factors.
Total operating costs in the Budgetary 2020 aboriginal division were $33.1 million, as compared to $32.7 actor in the commensurable year-ago period, an admission of $0.4 actor or 1.2%. During the Budgetary 2019 aboriginal quarter, the Aggregation had a agreement of acknowledged fees associated with a accusation of $2.1 actor which did not echo in the accepted Budgetary year period. Excluding this, absolute operating costs beneath $1.7 actor year-over-year.
Total added income, net for the Budgetary 2020 aboriginal division was $2.1 million, as compared to $1.4 actor in the Budgetary 2019 aboriginal quarter, an admission of $0.7 million. Absorption and coffer accuse beneath by $0.1 million; disinterestedness in assets of disinterestedness investee beneath by $0.4 million; and other, net added by $1.0 million. The admission in other, net is primarily accompanying to the account from a key man activity allowance action of $1.0 actor accompanying to a aloft agent of Klipsch Group, Inc. that VOXX became the almsman of in affiliation with the accretion of Klipsch in Budgetary 2012.
The Aggregation appear an operating accident of $7.1 actor in the Budgetary 2020 aboriginal quarter, as compared to an operating accident of $5.0 actor in the commensurable year-ago period. Net accident attributable to VOXX All-embracing Corporation (“VOXX”) was $1.1 actor in the Budgetary 2020 aboriginal quarter, as compared to a net accident attributable to VOXX of $0.9 actor in the Budgetary 2019 aboriginal quarter. Net accident attributable to the Company’s non-controlling absorption beneath from $1.6 actor in the Budgetary 2019 aboriginal division to $1.2 actor in the Budgetary 2020 aboriginal quarter. On a per allotment basis, the Aggregation appear a basal and adulterated accident per allotment attributable to VOXX of $0.05 in the Budgetary 2020 aboriginal quarter, as compared to a basal and adulterated accident per allotment attributable to VOXX of $0.04 in the Budgetary 2019 aboriginal quarter.
The Aggregation appear an Adapted Balance Afore Interest, Taxes, Abrasion and Acquittal (“Adjusted EBITDA”) accident in the Budgetary 2020 aboriginal division of $0.8 million, as compared to Adapted EBITDA of $1.5 actor in the commensurable Budgetary 2019 period.
Balance Area Update
For the aeon ended May 31, 2019, the Aggregation had banknote and banknote equivalents of $60.0 million, an admission of $1.8 million, as compared to February 28, 2019. When compared to the Budgetary 2019 aboriginal division concluded May 31, 2018, banknote and banknote equivalents added by $10.2 million. Absolute debt as of May 31, 2019 was $16.0 actor as compared to $17.6 actor as of February 28, 2019, a abatement of $1.6 million. The Company’s absolute debt consists of mortgages accompanying to its calm and all-embracing backdrop and a Euro asset-based lending obligation to abutment its German operations. Absolute abiding debt as of May 31, 2019 was $7.5 million, as compared to $7.6 actor as of February 28, 2019, a abatement of $0.1 million.
The Aggregation anticipates its net banknote position will admission awaiting the acknowledged auction of VOXX German Accessory Holdings GmbH and its absolute acreage captivation in Pulheim, Germany. Aloft the acknowledged achievement of both transactions, the Aggregation anticipates gross accretion of about $31.0 million. Additionally, the proposed auction of VOXX German Accessory Holdings GmbH has an Option Agreement which could aftereffect in the auction of added absolute acreage in Langenzenn for a net bulk of about $2.2 million.
New Employment Agreements
On July 8, 2019, the Board of Directors accustomed new Employment Agreements, able as of March 1, 2019, by and amid the Aggregation and Patrick M. Lavelle, President and Chief Controlling Officer; C. Michael Stoehr, Senior Vice President and Chief Banking Officer; and Loriann Shelton, Senior Vice President and Chief Operating Officer. The Aggregation additionally adapted its Employment Agreement with Thomas C. Malone, President, VOXX Advanced Solutions LLC.
All of the new Employment Agreements and the Amendment were accustomed by the Advantage Committee of VOXX All-embracing Corporation and the advantage agreement were formulated with the abetment of a global, arch controlling advantage allowances advising firm. In accession to the aloft Agreements, and as ahead announced, the Company’s Chairman John Shalam has agreed to abandon his anniversary banknote bonus.
Conference Alarm and Webcast InformationVOXX International will be hosting its appointment alarm on Thursday, July 11, 2019 at 10:00 a.m. Eastern. Interested parties can participate by visiting www.voxxintl.com , and beat on the webcast in the Investor Relations area or via teleconference (toll-free: 877-303-9079; international: 970-315-0461 / appointment ID: 2665908). A epitomize will be accessible on the Company’s website about one hour afterwards the achievement of the call.
Non-GAAP Measures EBITDA, Adapted EBITDA and Adulterated Adapted EBITDA per accepted allotment are not banking measures accustomed by GAAP. EBITDA represents net (loss) assets attributable to VOXX All-embracing Corporation, computed in accordance with GAAP, afore absorption bulk and coffer charges, taxes, and abrasion and amortization. Adapted EBITDA represents EBITDA adapted for stock-based advantage bulk and activity allowance proceeds. Depreciation, acquittal and stock-based advantage are non-cash items. Adulterated Adapted EBITDA per accepted allotment represents the Company’s adulterated balance per accepted allotment based on Adapted EBITDA.
We present EBITDA, Adapted EBITDA and Adulterated Adapted EBITDA per accepted allotment in this Form 10-Q because we accede them to be advantageous and adapted added measures of our performance. Adapted EBITDA and Adulterated Adapted EBITDA per accepted allotment advice us to appraise our achievement after the furnishings of assertive GAAP calculations that may not accept a absolute banknote appulse on our accepted operating performance. In addition, the exclusion of assertive costs or assets apropos to assertive contest allows for a added allusive allegory of our after-effects from period-to-period. These non-GAAP measures, as we ascertain them, are not necessarily commensurable to analogously advantaged measures of added companies and may not be an adapted admeasurement for achievement about to added companies. EBITDA, Adapted EBITDA and Adulterated Adapted EBITDA per accepted allotment should not be adjourned in abreast from, are not advised to represent, and should not be advised to be added allusive measures than, or alternatives to, measures of operating achievement as bent in accordance with GAAP.
About VOXX All-embracing Corporation
VOXX All-embracing Corporation (NASDAQ: VOXX) has developed into a accepted baton in abounding automotive and chump electronics and accessories categories, as able-bodied as exceptional high-end audio. Today, VOXX All-embracing is a all-around company, with an all-encompassing administration arrangement that includes adeptness retailers, accumulation merchandisers, 12-volt specialists and best of the world’s arch automotive manufacturers. The Aggregation has an all-embracing brand in Europe, Asia and Latin America, and a growing portfolio, which is comprised of over 30 trusted brands. For added information, amuse appointment our website at www.voxxintl.com .
Safe Harbor Statement
Except for absolute advice independent herein, statements fabricated in this absolution aggregate advanced statements and appropriately may absorb assertive risks and uncertainties. All advanced statements fabricated in this absolution are based on currently accessible advice and the Aggregation assumes no albatross to amend any such advanced statements. The afterward factors, amid others, may account absolute after-effects to alter materially from the after-effects appropriate in the advanced statements. The factors include, but are not bound to: statements with account to the advancing after-effects of the proposed transaction; the proposed transaction’s advancing allowances to the Company; the advancing closing of the proposed transaction; and, added accident factors declared in the Company’s anniversary address on Form 10-K for the budgetary year concluded February 28, 2019 which was filed with the SEC on May 14, 2019, as adapted on Form 10-K/A filed on May 30, 2019, and added filings fabricated by the Aggregation from time to time with the SEC. The factors declared in such SEC filings include, after limitation: the Company’s adeptness to apprehend the advancing after-effects of its business realignment; cybersecurity risks; risks that may aftereffect from changes in the Company’s business operations; our adeptness to accumulate clip with abstruse advances; cogent antagonism in the automotive, exceptional audio and chump accessories businesses; our relationships with key suppliers and customers; affection and chump accepting of newly introduced products; bazaar volatility; non-availability of product; balance inventory; amount and artefact competition; new artefact introductions; adopted bill fluctuations; and akin debt covenants.
Company Contact:Glenn Wiener, President / GW CommunicationsTel: 212-786-6011 / Email:
Tables to Follow
VOXX All-embracing Corporation and Subsidiaries
Consolidated Antithesis Sheets
(In thousands, except allotment and per allotment data)
Cash and banknote equivalents
Accounts receivable, net
Receivables from vendors
Prepaid costs and added accepted assets
Income tax receivable
Total accepted assets
Property, bulb and equipment, net
Operating lease, adapted of use asset
Intangible assets, net
Deferred assets tax assets
Liabilities and Stockholders’ Equity
Accrued costs and added accepted liabilities
Income taxes payable
Accrued sales incentives
Current allocation of abiding debt
Total accepted liabilities
Long-term debt, net of debt arising costs
Finance charter liabilities, beneath accepted portion
Operating charter liabilities, beneath accepted portion
Deferred assets tax liabilities
Other tax liabilities
Other abiding liabilities
Commitments and contingencies
No shares issued or outstanding
Class A, $.01 par value, 60,000,000 shares authorized, 24,106,194 shares issued and 21,938,100 shares outstanding at both May 31, 2019 and February 28, 2019
Class B Convertible, $.01 par value, 10,000,000 shares authorized, 2,260,954 shares issued and outstanding at both May 31, 2019 and February 28, 2019
Accumulated added absolute loss
Treasury stock, at cost, 2,168,094 shares of Class A Accepted Banal at both May 31, 2019 and February 28, 2019
Total VOXX All-embracing Corporation stockholders’ equity
Total stockholders’ equity
Total liabilities and stockholders’ equity
VOXX All-embracing Corporation and Subsidiaries
Unaudited Consolidated Statements of Operations and Absolute (Loss) Income
(In thousands, except allotment and per allotment data)
Three months ended
Cost of sales
General and administrative
Engineering and abstruse support
Total operating expenses
Other assets (expense):
Interest and coffer charges
Equity in assets of disinterestedness investee
Total added income, net
Loss afore assets taxes
Income tax benefit
Less: net accident attributable to non-controlling interest
Net accident attributable to VOXX All-embracing Corporation
Other absolute (loss) income:
Foreign bill adaptation adjustments
Derivatives appointed for hedging
Pension plan adjustments
Unrealized captivation accretion on available-for-sale advance securities, net of tax
Other absolute loss, net of tax
Comprehensive accident attributable to VOXX All-embracing Corporation
Loss per allotment – basic: Attributable to VOXX All-embracing Corporation
Loss per allotment – diluted: Attributable to VOXX All-embracing Corporation
Weighted-average accepted shares outstanding (basic)
Weighted-average accepted shares outstanding (diluted)
Reconciliation of GAAP Net Assets Attributable to VOXX All-embracing Corporation to EBITDA, Adapted EBITDA and Adulterated Adapted EBITDA per Accepted Share
Three months ended
Net accident attributable to VOXX All-embracing Corporation
Interest bulk and coffer accuse (1)
Depreciation and acquittal (1)
Income tax benefit
Life allowance benefit
Diluted accident per accepted allotment attributable to VOXX All-embracing Corporation
Diluted Adapted EBITDA per accepted allotment attributable to VOXX All-embracing Corporation
(1) For purposes of artful Adapted EBITDA for the Company, absorption bulk and coffer charges, as able-bodied as abrasion and amortization, accept been adapted in adjustment to exclude the non-controlling absorption allocation of these costs attributable to EyeLock LLC.
SOURCE VOXX All-embracing Corporation
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