VOXX International Corporation Reports its Fiscal 2024 Fourth Quarter and Year-end Financial Results
Commenting on the Company's results and market outlook,
Fiscal 2024 and Fiscal 2023 Fourth Quarter Comparisons
Net sales in the Fiscal 2024 fourth quarter ended
-
Automotive Electronics segment net sales in the Fiscal 2024 fourth quarter were$32.6 million as compared to$49.5 million in the comparable year-ago period, a decrease of$16.9 million or 34.1%. For the same comparable periods, OEM product sales were$11.7 million as compared to$21.9 million and aftermarket product sales were$20.9 million as compared to$27.6 million . The decline in OEM product sales was primarily related to lower sales of rear-seat entertainment products, partially offset by higher sales of remote start systems attributed to a new OEM program withFord that launched in the Fiscal 2024 fourth quarter. The decline in aftermarket product sales was across categories given the current state of the domestic retail and automotive markets compared to the prior year. - Consumer Electronics segment net sales in the Fiscal 2024 fourth quarter were
$75.2 million as compared to$86.7 million in the comparable year-ago period, a decrease of$11.4 million or 13.2%. For the same comparable periods, premium audio product sales were$57.2 million as compared to$61.9 million and other consumer electronics ("CE") product sales were$18.0 million as compared to$24.8 million . Sales of premium audio products increased domestically but declined internationally, particularly inEurope andAsia . Other CE product sales declined across various categories primarily due to retail softness and global economic challenges, partially offset by higher sales of the Company's RCA hearing aid products and remote product line. - Biometrics segment net sales in the Fiscal 2024 fourth quarter were
$0.1 million as compared to$0.4 million in the comparable year-ago period.
The gross margin in the Fiscal 2024 fourth quarter was 19.9% as compared to 25.4% in the Fiscal 2023 fourth quarter, a decrease of 550 basis points, with the decline primarily related to higher inventory provisions in the Fiscal 2024 fourth quarter versus the comparable Fiscal 2023 period. When comparing the Fiscal 2024 and Fiscal 2023 fourth quarters, the Company reported:
-
Automotive Electronics segment gross margin of 12.4% as compared to 25.4%. The year-over-year decline was primarily related to higher inventory provisions recorded in the Fiscal 2024 fourth quarter, as well as higher warehouse and assembly expenses, and product mix, which offset savings from the relocation of certain OEM manufacturing operations toMexico and other cost savings initiatives. - Consumer Electronics segment gross margin of 23.6% as compared to 25.3%. The year-over-year decline was primarily driven by product mix and increased competition in select categories which impacted pricing, predominantly in the receiver category, as well as higher warehouse expenses.
- Biometrics segment gross margin of 2.3% as compared to 39.9% in the comparable year-ago period.
Total operating expenses in the Fiscal 2024 fourth quarter were
- Selling expenses of
$10.9 million as compared to$11.4 million . The year-over-year improvement of$0.5 million was primarily driven by lower website, trade show and advertising expenses, as well as lower commissions and payroll benefits, partially offset by higher salaries. - General and administrative ("G&A") expenses of
$16.6 million as compared to$19.7 million . The year-over-year improvement of$3.1 million was driven by lower office salaries, office expenses, insurance costs, and professional fees, among other factors. - Engineering and technical support expenses of
$6.1 million as compared to$7.6 million . The year-over-year improvement of$1.5 million was primarily due to a decline in research and development expenses, lower labor expenses and a reduction in travel and entertainment expenses. - Acquisition credit of
$0.2 million associated with the acquisition of certain assets ofOnkyo Home Entertainment Corporation were incurred in the Fiscal 2023 fourth quarter and there were no related costs incurred in the comparable Fiscal 2024 period. -
Goodwill impairment charge of$7.4 million associated with one of the Company's reporting units in the Company'sAutomotive Electronics segment was incurred in the Fiscal 2023 fourth quarter and there were no related charges incurred in the comparable Fiscal 2024 period. - Intangible asset impairment charges of
$14.2 million as compared to$1.3 million . In connection with its annual impairment test, in Fiscal 2024 the Company determined that four of its trademarks in the Consumer Electronics segment were impaired as a result of increased competition and reductions in projected profit margins and volumes from customers. Fiscal 2023 intangible asset impairment charges related to the Company's OEM business within theAutomotive Electronics segment. - The Company incurred approximately
$0.3 million of restructuring charges in Fiscal 2023 related to the relocation of certain OEM production operations fromFlorida toMexico and there were no charges recorded in the comparable Fiscal 2024 period.
The Company reported an operating loss of
Total other income, net, in the Fiscal 2024 fourth quarter increased by
Net loss attributable to
The Company reported an Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") loss in the Fiscal 2024 fourth quarter of
Fiscal 2024 and Fiscal 2023 Comparisons
Net sales in the Fiscal 2024 twelve-month period ended
-
Automotive Electronics segment net sales in Fiscal 2024 were$142.3 million as compared to$174.8 million in Fiscal 2023, a decrease of$32.5 million or 18.6%. For the same comparable periods, OEM product sales were$58.3 million as compared to$73.0 million and aftermarket product sales were$84.1 million as compared to$101.8 million . The decline in OEM sales was primarily related to lower sales of OEM rear-seat entertainment ("RSE") products, partially offset by an increase in sales of OEM remote start products and safety products. The Company's OEM RSE business was impacted primarily by volume reductions within existing customer programs as well as theUnited Auto Workers strike. The decline in aftermarket sales was primarily related to lower sales of remote start and telematic products, partially offset by an increase in sales of satellite radio and collision avoidance products. - Consumer Electronics segment net sales in Fiscal 2024 were
$326.6 million as compared to$357.8 million in Fiscal 2023, a decrease of$31.1 million or 8.7%. For the same comparable periods, Premium Audio product sales were$237.9 million as compared to$274.5 million and other CE product sales were$88.7 million as compared to$83.2 million . The decline in Premium Audio product sales was primarily related to softness in the global economy and challenging retail, supply chain and consumer environments which led to lower sales of premium audio and receiving products when comparing the Fiscal year periods. Other CE product sales increased year-over-year, primarily driven by higher European accessory sales related to the Company's balcony solar power products that launched during the second half of the prior year. Domestically, general accessory product sales also increased when comparing the Fiscal year periods, aided by the launch of the Company's RCA hearing aid products. - Biometrics segment net sales in Fiscal 2024 were
$0.5 million as compared to$1.0 million in Fiscal 2023, with the decline primarily driven by sales made to certain customers during the prior year that did not repeat in the current Fiscal year.
The gross margin in Fiscal 2024 was 24.3% as compared to 25.1% in Fiscal 2023, a decline of 80 basis points. For the same comparable periods, the Company reported:
-
Automotive Electronics segment gross margin of 21.1% as compared to 24.3%. The 320-basis point decline in gross margin was primarily related to product mix, lower sales of higher margin products such as aftermarket security and aftermarket RSE products, and higher sales of satellite radio products, the latter of which carry lower gross margins. The Company also incurred an inventory write-down of$3.8 million in Fiscal 2024 related to inventory identified as either slow-moving or damaged in conjunction with the OEM manufacturing transition toMexico , among other factors. - Consumer Electronics segment gross margin of 25.6% as compared to 25.5%. The year-over-year improvement of 10 basis points was primarily driven by higher sales of new products, such as RCA Hearing Aids and balcony solar products in
Europe , as well as higher margins on newer premium audio products introduced and fewer promotions compared to the prior Fiscal year. The net decline in sales of the Company'sOnkyo and Pioneer products domestically negatively affected margins in Fiscal 2024, as did more aggressive market competition, among other factors. - Biometrics segment gross margin of 20.5% as compared to 34.2% in the comparable year-ago period.
Total operating expenses in the Fiscal 2024 twelve-month period were
- Selling expenses of
$43.1 million as compared to$47.0 million . The year-over-year improvement of$3.9 million or 8.3%, was primarily driven by lower employee salaries and related benefits and payroll taxes, lower advertising and website expenses, and lower commission expenses, among other factors. - General and administrative expenses of
$69.2 million as compared to$73.6 million . The year-over-year improvement of$4.4 million or 6.0%, was primarily due to lower salary and related payroll taxes, depreciation and amortization, professional fees and outside consulting services, as well as Employee Retention Credits which have offset payroll tax expenses, among other factors. This was partially offset by an increase in bad debt expense due to releases in the prior year that did not repeat, as well as higher travel expenses. - Engineering and technical support expenses of
$29.4 million as compared to$31.5 million . The year-over-year improvement of$2.1 million or 6.6%, was primarily due to lower research and development expenses, lower salary and payroll taxes and Employee Retention Credits which have offset payroll tax expenses, among other factors, partially offset by higher travel expense. - Intangible asset impairment charges of
$14.2 million were incurred in Fiscal 2024. In connection with its annual impairment test, the Company determined that four of its trademarks in the Consumer Electronics segment were impaired as a result of increased competition and reductions in projected profit margins and volumes from customers. This compares to intangible asset impairment charges of$1.3 million and a goodwill impairment charge of$7.4 million related to the Company's Automotive business in Fiscal 2023. - Restructuring expenses of
$2.1 million increased by$1.3 million as the Company initiated actions to lower its headcount and other expenses, as well as actions taken to relocate certain OEM production operations toMexico .
The Company reported an operating loss in the Fiscal 2024 twelve-month period of
Total other expense, net, in Fiscal 2024 was
Net loss attributable to
The Company reported an EBITDA loss in Fiscal 2024 of
Balance Sheet Update
As of
Seaguard Settlement
On
BioCenturion LLC Formation
On
Conference Call Information
The Company will be hosting its conference call and webcast on
- To attend the webcast: https://edge.media-server.com/mmc/p/upj4o2cn
- To access by phone: https://register.vevent.com/register/BIdf763076ee234beeb2692a8842b45885
Participants are requested to register a day in advance or at a minimum 15 minutes before the start of the call. Those wishing to ask questions following management's remarks should use the dial-in numbers provided.
- A replay of the webcast will be available approximately two hours after the call and archived under "Events and Presentations" in the Investor Relations section of the Company's website at https://investors.voxxintl.com/events-and-presentations
Non-GAAP Measures
EBITDA and Adjusted EBITDA are not financial measures recognized by GAAP. EBITDA represents net loss, computed in accordance with GAAP, before interest expense and bank charges, taxes, and depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted for stock-based compensation expense, foreign currency losses and gains, gains on the sale of certain assets, acquisition costs, certain non-recurring legal and professional fees, settlements and awards, non-recurring severance expense, restructuring expenses, and impairment charges. Depreciation, amortization, stock-based compensation, foreign currency losses (gains), and impairment charges are non-cash items.
We present EBITDA and Adjusted EBITDA in our Form 10-K because we consider them to be useful and appropriate supplemental measures of our performance. Adjusted EBITDA helps 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 and Adjusted EBITDA 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 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 35 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
Investor Relations Contact:
Email: gwiener@GWCco.com
Tables to Follow
Consolidated Balance Sheets
(In thousands, except share and per share data) |
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Assets |
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|
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|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
10,986 |
|
|
$ |
6,134 |
|
Accounts receivable, net |
|
|
71,066 |
|
|
|
82,753 |
|
Inventory, net |
|
|
128,471 |
|
|
|
175,129 |
|
Receivables from vendors |
|
|
1,192 |
|
|
|
112 |
|
Due from |
|
|
1,238 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
|
20,820 |
|
|
|
19,817 |
|
Income tax receivable |
|
|
2,095 |
|
|
|
1,076 |
|
Total current assets |
|
|
235,868 |
|
|
|
285,021 |
|
Investment securities |
|
|
828 |
|
|
|
1,053 |
|
Equity investments |
|
|
21,380 |
|
|
|
22,018 |
|
Property, plant and equipment, net |
|
|
45,070 |
|
|
|
47,044 |
|
Operating lease, right of use assets |
|
|
2,577 |
|
|
|
3,632 |
|
|
|
|
63,931 |
|
|
|
65,308 |
|
Intangible assets, net |
|
|
68,766 |
|
|
|
90,437 |
|
Due from |
|
|
1,340 |
|
|
|
— |
|
Deferred income tax assets |
|
|
1,452 |
|
|
|
1,218 |
|
Other assets |
|
|
2,794 |
|
|
|
3,720 |
|
Total assets |
|
$ |
444,006 |
|
|
$ |
519,451 |
|
Liabilities, Redeemable Equity, Redeemable Non-Controlling Interest, and Stockholders' Equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
35,076 |
|
|
$ |
35,099 |
|
Accrued expenses and other current liabilities |
|
|
38,238 |
|
|
|
41,856 |
|
Income taxes payable |
|
|
1,123 |
|
|
|
2,276 |
|
Accrued sales incentives |
|
|
18,236 |
|
|
|
21,778 |
|
Contingent consideration, current |
|
|
— |
|
|
|
4,500 |
|
Final arbitration award payable |
|
|
— |
|
|
|
43,388 |
|
Contract liabilities, current |
|
|
3,810 |
|
|
|
3,990 |
|
Current portion of long-term debt |
|
|
500 |
|
|
|
500 |
|
Total current liabilities |
|
|
96,983 |
|
|
|
153,387 |
|
Long-term debt, net of debt issuance costs |
|
|
71,881 |
|
|
|
37,513 |
|
Finance lease liabilities, less current portion |
|
|
644 |
|
|
|
63 |
|
Operating lease liabilities, less current portion |
|
|
1,884 |
|
|
|
2,509 |
|
Deferred compensation |
|
|
828 |
|
|
|
1,053 |
|
Deferred income tax liabilities |
|
|
2,690 |
|
|
|
4,855 |
|
Other tax liabilities |
|
|
809 |
|
|
|
966 |
|
Prepaid ownership interest in |
|
|
9,817 |
|
|
|
7,317 |
|
Other long-term liabilities |
|
|
2,170 |
|
|
|
2,947 |
|
Total liabilities |
|
|
187,706 |
|
|
|
210,610 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Redeemable equity: Class A, |
|
|
4,110 |
|
|
|
4,018 |
|
Redeemable non-controlling interest |
|
|
(3,203) |
|
|
|
(893) |
|
Stockholders' equity: |
|
|
|
|
|
|
||
Preferred stock: |
|
|
|
|
|
|
||
No shares issued or outstanding |
|
|
— |
|
|
|
— |
|
Common stock: |
|
|
|
|
|
|
||
Class A,
20,589,946 shares outstanding at |
|
|
241 |
|
|
|
240 |
|
Class |
|
|
22 |
|
|
|
22 |
|
Paid-in capital |
|
|
293,271 |
|
|
|
292,565 |
|
Retained earnings |
|
|
58,272 |
|
|
|
99,122 |
|
Accumulated other comprehensive loss |
|
|
(17,366) |
|
|
|
(18,680) |
|
Less:
|
|
|
(39,573) |
|
|
|
(30,285) |
|
|
|
|
294,867 |
|
|
|
342,984 |
|
Non-controlling interest |
|
|
(39,474) |
|
|
|
(37,268) |
|
Total stockholders' equity |
|
|
255,393 |
|
|
|
305,716 |
|
Total liabilities, redeemable equity, redeemable non-controlling interest, and stockholders' equity |
|
$ |
444,006 |
|
|
$ |
519,451 |
|
Consolidated Statements of Operations and Comprehensive Loss
Years Ended (In thousands, except share and per share data) |
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Year Ended |
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|
Year Ended |
|
|
Year Ended |
|
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|
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|
|
|
|
|
|
|
|||
Net sales |
|
$ |
468,911 |
|
|
$ |
534,014 |
|
|
$ |
635,920 |
|
Cost of sales |
|
|
354,892 |
|
|
|
399,715 |
|
|
|
466,442 |
|
Gross profit |
|
|
114,019 |
|
|
|
134,299 |
|
|
|
169,478 |
|
|
|
|
|
|
|
|
|
|
|
|||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|||
Selling |
|
|
43,090 |
|
|
|
46,967 |
|
|
|
50,507 |
|
General and administrative |
|
|
69,228 |
|
|
|
73,638 |
|
|
|
75,955 |
|
Engineering and technical support |
|
|
29,392 |
|
|
|
31,464 |
|
|
|
31,540 |
|
Acquisition costs |
|
|
— |
|
|
|
(36) |
|
|
|
3,552 |
|
|
|
|
— |
|
|
|
7,373 |
|
|
|
- |
|
Intangible asset impairment charges |
|
|
14,214 |
|
|
|
1,300 |
|
|
|
- |
|
Restructuring expenses |
|
|
2,136 |
|
|
|
870 |
|
|
|
- |
|
Total operating expenses |
|
|
158,060 |
|
|
|
161,576 |
|
|
|
161,554 |
|
Operating (loss) income |
|
|
(44,041) |
|
|
|
(27,277) |
|
|
|
7,924 |
|
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|||
Interest and bank charges |
|
|
(6,935) |
|
|
|
(4,643) |
|
|
|
(2,532) |
|
Equity in income of equity investee |
|
|
4,916 |
|
|
|
6,969 |
|
|
|
7,890 |
|
Final arbitration award |
|
|
763 |
|
|
|
(3,944) |
|
|
|
(39,444) |
|
Other, net |
|
|
(2,080) |
|
|
|
(2,055) |
|
|
|
323 |
|
Total other expense, net |
|
|
(3,336) |
|
|
|
(3,673) |
|
|
|
(33,763) |
|
|
|
|
|
|
|
|
|
|
|
|||
Loss before income taxes |
|
|
(47,377) |
|
|
|
(30,950) |
|
|
|
(25,839) |
|
Income tax (benefit) expense |
|
|
(1,785) |
|
|
|
(39) |
|
|
|
1,626 |
|
Net loss |
|
$ |
(45,592) |
|
|
$ |
(30,911) |
|
|
$ |
(27,465) |
|
Less: net loss attributable to non-controlling interest |
|
|
(4,742) |
|
|
|
(3,460) |
|
|
|
(5,132) |
|
Net loss attributable to |
|
$ |
(40,850) |
|
|
$ |
(27,451) |
|
|
$ |
(22,333) |
|
|
|
|
|
|
|
|
|
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|
|||
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|||
Foreign currency translation adjustments |
|
|
1,375 |
|
|
|
(1,876) |
|
|
|
(3,317) |
|
Derivatives designated for hedging, net of tax |
|
|
16 |
|
|
|
309 |
|
|
|
633 |
|
Pension plan adjustments, net of tax |
|
|
(77) |
|
|
|
390 |
|
|
|
158 |
|
Other comprehensive income (loss), net of tax |
|
|
1,314 |
|
|
|
(1,177) |
|
|
|
(2,526) |
|
Comprehensive loss attributable to |
|
$ |
(39,536) |
|
|
$ |
(28,628) |
|
|
$ |
(24,859) |
|
|
|
|
|
|
|
|
|
|
|
|||
Net loss per common share attributable to |
|
$ |
(1.74) |
|
|
$ |
(1.13) |
|
|
$ |
(0.92) |
|
|
|
|
|
|
|
|
|
|
|
|||
Net loss per common share attributable to |
|
$ |
(1.74) |
|
|
$ |
(1.13) |
|
|
$ |
(0.92) |
|
|
|
|
|
|
|
|
|
|
|
|||
Weighted-average common shares outstanding (basic) |
|
|
23,428,473 |
|
|
|
24,325,938 |
|
|
|
24,287,179 |
|
Weighted-average common shares outstanding (diluted) |
|
|
23,428,473 |
|
|
|
24,325,938 |
|
|
|
24,287,179 |
|
Consolidated Statements of Operations and Comprehensive (Loss) Income
Three Months Ended (In thousands, except share and per share data) |
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Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
||||||
|
|
|
|
|
|
||||||
Net sales |
$ |
108,083 |
|
|
$ |
136,522
|
|
|
$ |
163,880 |
|
Cost of sales |
86,611 |
|
|
101,856 |
|
|
119,987 |
|
|||
Gross profit |
21,472 |
|
|
34,666 |
|
|
43,893 |
|
|||
|
|
|
|
|
|
||||||
Operating expenses: |
|
|
|
|
|
||||||
Selling |
10,936 |
|
|
11,404 |
|
|
13,338 |
|
|||
General and administrative |
16,607 |
|
|
19,735 |
|
|
19,346 |
|
|||
Engineering and technical support |
6,135 |
|
|
7,620 |
|
|
7,716 |
|
|||
Acquisition costs |
- |
|
|
(172) |
|
|
273 |
|
|||
|
- |
|
|
7,373 |
|
|
- |
|
|||
Intangible asset impairment charges |
14,214 |
|
|
1,300 |
|
|
- |
|
|||
Restructuring charges |
(32) |
|
|
338 |
|
|
- |
|
|||
Total operating expenses |
47,860 |
|
|
47,598 |
|
|
40,673 |
|
|||
Operating (loss) income |
(26,388) |
|
|
(12,932) |
|
|
3,220 |
|
|||
Other (expense) income: |
|
|
|
|
|
||||||
Interest and bank charges |
(1,924) |
|
|
(1,542) |
|
|
(692) |
|
|||
Equity in income of equity investee |
958 |
|
|
1,596 |
|
|
926 |
|
|||
Final arbitration award |
4,113 |
|
|
(986) |
|
|
- |
|
|||
Other, net |
(583) |
|
|
1,114 |
|
|
(352) |
|
|||
Total other income (expense), net |
2,564 |
|
|
182 |
|
|
(118) |
|
|||
|
|
|
|
|
|
||||||
(Loss) income from before income taxes |
(23,824) |
|
|
(12,750) |
|
|
3,102 |
|
|||
Income tax (benefit) expense |
(1,731) |
|
|
5,749 |
|
|
2,000 |
|
|||
Net (loss) income |
$ |
(22,093) |
|
|
$ |
(18,499) |
|
|
$ |
1,102 |
|
|
|
|
|
|
|
||||||
Less: net loss attributable to non-controlling interest |
(1,133) |
|
|
(370) |
|
|
(1,659) |
|
|||
Net (loss) income attributable to |
$ |
(20,960) |
|
|
$ |
(18,129) |
|
|
$ |
2,761 |
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss): |
|
|
|
|
|
||||||
Foreign currency translation adjustments |
38 |
|
|
789 |
|
|
(520) |
|
|||
Derivatives designated for hedging, net of tax |
71 |
|
|
45 |
|
|
167 |
|
|||
Pension Plan adjustments, net of tax |
(70) |
|
|
337 |
|
|
99 |
|
|||
Other comprehensive income (loss), net of tax |
39 |
|
|
1,171 |
|
|
(254) |
|
|||
Comprehensive (loss) income attributable to |
$ |
(20,921) |
|
|
$ |
(16,958) |
|
|
$ |
2,507 |
|
|
|
|
|
|
|
||||||
Net (loss) income per common share attributable to |
$ |
(0.90) |
|
|
$ |
(0.75) |
|
|
$ |
0.11 |
|
Net (loss) income per common share attributable to |
$ |
(0.90) |
|
|
$ |
(0.75) |
|
|
$ |
0.11 |
|
Weighted-average common shares outstanding (basic) |
23,180,929 |
|
|
24,073,542 |
|
|
24,311,912 |
|
|||
Weighted-average common shares outstanding (diluted) |
23,180,929 |
|
|
24,073,542 |
|
|
24,044,833 |
|
Reconciliation of GAAP Net Loss Attributable to
|
||||||||||||
|
||||||||||||
|
|
Fiscal |
|
|
Fiscal |
|
|
Fiscal |
|
|||
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
|||
Net loss attributable to |
|
$ |
(40,850) |
|
|
$ |
(27,451) |
|
|
$ |
(22,333) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|||
Interest expense and bank charges (1) |
|
|
6,118 |
|
|
|
3,847 |
|
|
|
1,825 |
|
Depreciation and amortization (1) |
|
|
11,855 |
|
|
|
12,451 |
|
|
|
12,053 |
|
Income tax (benefit) expense (1) |
|
|
(1,785) |
|
|
|
(21) |
|
|
|
1,626 |
|
EBITDA |
|
|
(24,662) |
|
|
|
(11,174) |
|
|
|
(6,829) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|||
Stock-based compensation |
|
|
798 |
|
|
|
609 |
|
|
|
907 |
|
Foreign currency losses (1) |
|
|
3,133 |
|
|
|
3,615 |
|
|
|
635 |
|
Acquisition costs |
|
|
— |
|
|
|
(36) |
|
|
|
3,552 |
|
Non-routine legal fees |
|
|
1,584 |
|
|
|
2,452 |
|
|
|
1,912 |
|
Final arbitration award |
|
|
(763) |
|
|
|
3,944 |
|
|
|
39,444 |
|
Severance expense (2) |
|
|
863 |
|
|
|
864 |
|
|
|
- |
|
Gain on sale of tradename |
|
|
(700) |
|
|
|
(97) |
|
|
|
- |
|
Professional fees related to distribution agreement with |
|
|
- |
|
|
|
- |
|
|
|
325 |
|
Restructuring expenses |
|
|
2,136 |
|
|
|
870 |
|
|
|
- |
|
|
|
|
— |
|
|
|
7,373 |
|
|
|
- |
|
Intangible asset impairment charges |
|
|
14,214 |
|
|
|
1,300 |
|
|
|
- |
|
Adjusted EBITDA |
|
$ |
(3,397) |
|
|
$ |
9,720 |
|
|
$ |
39,946 |
|
|
|
(1) |
For purposes of calculating Adjusted EBITDA for the Company, interest expense and bank charges, depreciation and amortization, income tax expense (benefit), and foreign currency losses added back to Net loss attributable to |
|
|
(2) |
Includes severance expenses for employee terminations resulting from non-recurring events, such as the departure of Section 16(b) officers and certain other executive officers of the Company. |
Reconciliation of GAAP Net Income Attributable to
|
||||||||||||
|
||||||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
||||||
|
|
|
|
|
|
|
||||||
Net (loss) income attributable to |
|
$ |
(20,960) |
|
|
$ |
(18,129) |
|
|
$ |
2,761 |
|
Adjustments: |
|
|
|
|
|
|
||||||
Interest expense and bank charges (1) |
|
1,713 |
|
|
1,347 |
|
|
468 |
|
|||
Depreciation and amortization (1) |
|
2,852 |
|
|
3,045 |
|
|
3,162 |
|
|||
Income tax (benefit) expense |
|
(1,731) |
|
|
5,767 |
|
|
2,000 |
|
|||
EBITDA |
|
(18,126) |
|
|
(7,970) |
|
|
8,391 |
|
|||
Adjustments: |
|
|
|
|
|
|
||||||
Stock-based compensation |
|
155 |
|
|
202 |
|
|
213 |
|
|||
Foreign currency losses (gains) |
|
813 |
|
|
(252) |
|
|
367 |
|
|||
Acquisition costs |
|
- |
|
|
(172) |
|
|
273 |
|
|||
Non-routine legal fees |
|
35 |
|
|
1,566 |
|
|
443 |
|
|||
Final arbitration award |
|
(4,113) |
|
|
986 |
|
|
- |
|
|||
Severance expense (2) |
|
863 |
|
|
864 |
|
|
- |
|
|||
Gain on sale of tradename |
|
(250) |
|
|
(97) |
|
|
- |
|
|||
Restructuring expenses |
|
(32) |
|
|
338 |
|
|
- |
|
|||
|
|
- |
|
|
7,373 |
|
|
- |
|
|||
Intangible asset impairment charges |
|
14,214 |
|
|
1,300 |
|
|
- |
|
|||
Adjusted EBITDA |
|
$ |
(6,441) |
|
|
$ |
4,138 |
|
|
$ |
9,687 |
|
|
|
(1) |
For purposes of calculating Adjusted EBITDA for the Company, interest expense and bank charges, depreciation and amortization, income tax expense (benefit), and foreign currency losses (gains) added back to Net (loss) income attributable to |
|
|
(2) |
Includes severance expenses for employee terminations resulting from non-recurring events, such as the departure of Section 16(b) officers and certain other executive officers of the Company. |
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