VOXX International Corporation Reports Its Fiscal 2021 Third Quarter Financial Results

ORLANDO, Fla., Jan. 11, 2021 /PRNewswire/ — VOXX Worldwide Company (NASDAQ: VOXX), a number one producer and distributor of automotive and shopper applied sciences for the worldwide markets, at present introduced monetary outcomes for its Fiscal 2021 third quarter and 9 months ended November 30, 2020.

Commenting on the Firm’s outcomes, Pat Lavelle, President and Chief Government Officer of VOXX Worldwide Company said, “We delivered a really robust third quarter with all segments reporting increased gross sales and improved bottom-line efficiency. Inside Automotive, demand for our EVOLVE rear-seat leisure system with Amazon’s Hearth TV continues to develop, with new OEM packages beginning in our Fiscal 2022 second quarter, and the VSM and DEI acquisitions are absolutely built-in and performing effectively. Inside Shopper, our premium audio product gross sales proceed to extend considerably, as we’ve got expanded our retail distribution, added key manufacturers and enhanced our product providing. Additional, the formation of 11 Buying and selling Firm is resulting in new alternatives for us globally. Lastly, whereas the monetary influence has but to be felt, demand for EyeLock’s iris authentication options has elevated for the reason that begin of the pandemic, as are conversations with respect to the strategic course of. We’re on observe for top-of-the-line years in our Firm’s historical past from a profitability perspective and imagine that is the start of the subsequent wave of development.”

Fiscal 2021 and Fiscal 2020 Third Quarter Monetary Comparisons

Web gross sales within the Fiscal 2021 third quarter ended November 30, 2020 have been $201.1 million, a rise of $91.0 million or 82.6%, as in comparison with $110.1 million within the Fiscal 2020 third quarter ended November 30, 2019.

Shopper Electronics phase internet gross sales have been $139.0 million as in comparison with $79.9 million, a rise of $59.1 million or 74.0%. The year-over-year development was pushed by increased premium audio product gross sales, which elevated by $59.4 million or 111.6%. Greater gross sales of premium wi-fi pc speaker programs and premium mobility merchandise, expanded retail distribution, and gross sales from the brand new distribution settlement with Onkyo and Pioneer Company drove the numerous year-over-year improve. Different shopper electronics product gross sales of $26.4 million declined by $0.3 million or 1.1%, as in comparison with $26.7 million.
Automotive Electronics phase internet gross sales have been $61.5 million as in comparison with $30.0 million, a rise of $31.5 million or 105.1%. OEM product gross sales of $14.1 million elevated by $3.5 million or 32.6%. Aftermarket product gross sales of $47.4 million elevated by $28.0 million or 144.9%. The year-over-year development inside the phase was primarily pushed by the Automobile Security Holding Corp. (“VSM”) and Directed, LLC and Directed Electronics Canada Inc. (“Directed” or “DEI”) acquisitions, in addition to increased gross sales of OEM rear-seat leisure programs and aftermarket safety and distant begin merchandise.
Biometrics phase gross sales of $0.3 million have been up $0.2 million or 148.6% as a consequence of increased gross sales of EXT and NXT merchandise.

The gross margin within the Fiscal 2021 third quarter was 28.9%, up 30 foundation factors in comparison with the prior fiscal 12 months interval. Driving the year-over-year improve was a 560-basis level gross margin enchancment within the Automotive Electronics phase, primarily from the acquisitions of VSM and DEI, increased gross sales of upper margin aftermarket distant begin and safety merchandise, and a rise in gross sales of OEM rear-seat leisure programs. This was partially offset by a 180-basis level gross margin decline within the Shopper Electronics phase, primarily as a consequence of premium audio product combine, vacation promotions, and sure product line close-outs in mild of recent premium audio merchandise coming to market. Whereas Shopper Electronics phase gross margin declined year-over-year, gross revenue elevated by $16.5 million or 64.3%. Biometrics phase margins elevated for the comparable interval however the general influence was minimal.

Whole working bills within the Fiscal 2021 third quarter have been $39.6 million, as in comparison with $31.3 million within the comparable Fiscal 2020 interval, a rise of $8.2 million or 26.3%. The rise in working bills for the comparable durations was primarily associated to working bills of the beforehand acquired VSM and DEI companies, which accounted for roughly $4.7 million throughout the Fiscal 2021 third quarter. The remaining will increase have been primarily as a consequence of increased fee expense on account of increased gross sales, new hires, elevated salaries as a consequence of efficiency, increased skilled charges, and a rise in analysis and growth bills as a result of timing of recent product launches in comparison with the prior 12 months, amongst different elements. The Firm continues to observe its spending because it seems to be to decrease mounted bills and enhance bottom-line efficiency.

The Firm reported working earnings of $18.6 million within the Fiscal 2021 third quarter, as in comparison with working earnings of $0.1 million within the comparable year-ago interval, an enchancment of $18.4 million. Web earnings attributable to VOXX Worldwide Company was $18.3 million within the Fiscal 2021 third quarter, as in comparison with internet earnings attributable to VOXX Worldwide Company of $2.5 million within the Fiscal 2020 third quarter, an enchancment of $15.8 million. On a per share foundation, within the Fiscal 2021 third quarter, the Firm reported fundamental and diluted earnings per share attributable to VOXX Worldwide Company of $0.75 and $0.74, respectively, as in comparison with fundamental and diluted earnings per share attributable to VOXX Worldwide Company of $0.10 within the comparable year-ago interval.

Earnings Earlier than Curiosity, Taxes, Depreciation and Amortization (“EBITDA”) was $23.8 million within the Fiscal 2021 third quarter, as in comparison with EBITDA of $8.6 million within the Fiscal 2020 third quarter, an enchancment of $15.2 million. Adjusted EBITDA within the Fiscal 2021 third quarter was $24.5 million, as in comparison with Adjusted EBITDA of $5.8 million within the comparable year-ago interval, an enchancment of $18.7 million.

Fiscal 2021 and Fiscal 2020 9-Month Monetary Comparisons

Web gross sales within the Fiscal 2021 nine-month interval ended November 30, 2020 have been $401.1 million, a rise of $107.3 million or 36.5%, as in comparison with $293.8 million within the Fiscal 2020 nine-month interval ended November 30, 2019. On a phase foundation for the comparable Fiscal 2021 and Fiscal 2020 nine-month durations:

Shopper Electronics phase internet gross sales have been $288.5 million as in comparison with $206.6 million, a rise of $81.9 million or 39.7% year-over-year.
Automotive Electronics phase internet gross sales have been $111.4 million as in comparison with $86.5 million, a rise of $24.9 million or 28.8%.
Biometrics phase internet gross sales have been $0.7 million as in comparison with $0.4 million, a rise of $0.3 million or 76.6%.

The gross margin within the Fiscal 2021 nine-month interval was 29.0%, up 130 foundation factors in comparison with the prior fiscal 12 months interval. Driving the year-over-year improve was a 180-basis level gross margin enchancment within the Automotive Electronics phase and a 70-basis level gross margin enchancment within the Shopper Electronics phase.

Whole working bills within the Fiscal 2021 nine-month interval have been $96.8 million, as in comparison with $96.0 million within the comparable Fiscal 2020 interval, a rise of $0.8 million or 0.9%. Roughly $9.4 million of working bills have been associated to the VSM and DEI acquisitions that weren’t within the comparable Fiscal 2020 nine-month interval. Excluding the working bills related to acquisitions, whole working bills declined by $8.5 million or 8.9%.

For the Fiscal 2021 nine-month interval, the Firm reported working earnings of $19.4 million, as in comparison with an working lack of $14.7 million within the comparable year-ago interval, an enchancment of $34.1 million. Web earnings attributable to VOXX Worldwide Company was $17.3 million within the Fiscal 2021 nine-month interval, as in comparison with a internet loss attributable to VOXX Worldwide Company of $4.6 million within the comparable year-ago interval, an enchancment of $22.0 million. On a per share foundation, the Firm reported fundamental and diluted earnings per share attributable to VOXX Worldwide Company of $0.72 and $0.71 within the Fiscal 2021 nine-month interval, respectively, as in comparison with a fundamental and diluted loss per share attributable to VOXX Worldwide Company of $0.19 within the Fiscal 2020 nine-month interval.

For the Fiscal 2021 nine-month interval, EBITDA was $34.1 million, as in comparison with EBITDA of $7.1 million within the comparable Fiscal 2020 nine-month interval, an enchancment of $27.0 million. Adjusted EBITDA within the Fiscal 2021 nine-month interval was $35.1 million, as in comparison with Adjusted EBITDA of $3.9 million within the comparable year-ago interval, an enchancment of $31.2 million.

Steadiness Sheet Replace

As of November 30, 2020, the Firm had money and money equivalents of $21.3 million, as in comparison with money and money equivalents of $37.4 million as of February 29, 2020. The decline is as a result of reimbursement of $20.0 million excellent on the Firm’s Home Credit score Facility. There was nothing excellent as of November 30, 2020. Moreover, the decline was as a consequence of working capital wanted to help increased gross sales within the Firm’s Fiscal 2021 third quarter and anticipated will increase within the Firm’s Fiscal 2021 fourth quarter, in addition to the money used to fund the DEI acquisition. The Firm expects to finish Fiscal 2021 with a better money place in comparison with Fiscal 2020 year-end.

As of November 30, 2020, whole debt stood at $7.2 million as in comparison with $8.2 million as of February 29, 2020. The overall debt as of quarter-end relates solely to the Firm’s Florida mortgage. Whole long-term debt, internet of debt issuance prices stood at $6.0 million as of November 30, 2020 as in comparison with $6.1 million as of February 29, 2020.

Convention Name and Webcast Info

VOXX Worldwide will likely be internet hosting its convention name on Tuesday, January 12, 2021 at 10:00 a.m. Jap. events can take part by visiting www.voxxintl.com and clicking on the webcast within the Investor Relations part or by way of teleconference (toll-free: 877-303-9079; worldwide: 970-315-0461 / convention ID: 7656347). A replay will likely be obtainable on the Firm’s web site roughly one hour after the completion of the decision.

Non-GAAP Measures

EBITDA, Adjusted EBITDA, and Diluted Adjusted EBITDA per frequent share usually are not monetary measures acknowledged by GAAP. EBITDA represents internet earnings (loss) attributable to VOXX Worldwide Company, computed in accordance with GAAP, earlier than curiosity expense and financial institution prices, taxes, and depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted for stock-based compensation expense, sure settlements, beneficial properties, and life insurance coverage proceeds. Depreciation, amortization, and stock-based compensation are non-cash objects. Diluted Adjusted EBITDA per frequent share represents the Firm’s diluted earnings per frequent share based mostly on Adjusted EBITDA.

We current EBITDA, Adjusted EBITDA, and Diluted Adjusted EBITDA per frequent share on this Kind 10-Q as a result of we contemplate them to be helpful and applicable supplemental measures of our efficiency. Adjusted EBITDA and Diluted Adjusted EBITDA per frequent share assist us to guage our efficiency with out the results of sure GAAP calculations that will not have a direct money influence on our present working efficiency. As well as, the exclusion of sure prices or beneficial properties referring to sure occasions permits for a extra significant comparability of our outcomes from period-to-period. These non-GAAP measures, as we outline them, usually are not essentially akin to equally entitled measures of different corporations and will not be an applicable measure for efficiency relative to different corporations. EBITDA, Adjusted EBITDA, and Diluted Adjusted EBITDA per frequent share shouldn’t be assessed in isolation from, usually are not meant to signify, and shouldn’t be thought-about to be extra significant measures than, or options to, measures of working efficiency as decided in accordance with GAAP.

About VOXX Worldwide Company
VOXX Worldwide Company (NASDAQ: VOXX) has grown right into a worldwide chief in Automotive Electronics and Shopper Electronics, with rising Biometrics know-how to capitalize on the elevated want for superior safety. Over the previous a number of a long time, with a portfolio of roughly 35 trusted manufacturers, VOXX has constructed market-leading positions in in-vehicle leisure, automotive safety, reception merchandise, numerous premium audio market segments, and extra. VOXX is a worldwide firm, with an in depth distribution community that features energy retailers, mass merchandisers, 12-volt specialists and most of the world’s main automotive producers. For extra info, please go to our web site at www.voxxintl.com.

Protected Harbor Assertion
Apart from historic info contained herein, statements made on this launch represent forward-looking statements and thus might contain sure dangers and uncertainties. All forward-looking statements made on this launch are based mostly on at the moment obtainable info and the Firm assumes no duty to replace any such forward-looking statements. The next elements, amongst others, might trigger precise outcomes to vary materially from the outcomes steered within the forward-looking statements. The elements embody, however usually are not restricted to the: danger elements described within the Firm’s annual report on Kind 10-Ok for the fiscal 12 months ended February 29, 2020 and different filings made by the Firm on occasion with the SEC. The elements described in such SEC filings embody, with out limitation: the influence of the COVID-19 outbreak on the Firm’s outcomes of operations, the Firm’s capability to comprehend the anticipated outcomes of its enterprise realignment; cybersecurity dangers; dangers that will consequence from adjustments within the Firm’s enterprise operations; our capability to maintain tempo with technological advances; important competitors within the automotive electronics, shopper electronics and biometrics companies; {our relationships} with key suppliers and clients; high quality and shopper acceptance of newly launched merchandise; market volatility; non-availability of product; extra stock; value and product competitors; new product introductions; international forex fluctuations; and restrictive debt covenants. Most of the foregoing dangers and uncertainties are, and will likely be, exacerbated by the COVID-19 pandemic and any worsening of the worldwide enterprise and financial atmosphere because of this. The Firm assumes no obligation and doesn’t intend to replace these forward-looking statements.

Investor & Media Relations Contact:
Glenn Wiener, GW Communications (for VOXX)
E-mail: gwiener@GWCco.com

Tables to Comply with

VOXX Worldwide Company and Subsidiaries Consolidated Steadiness Sheets *(In hundreds, besides share and per share information)*

	November 30, 2020		February 29, 2020
	(unaudited)
Property
Present property:
Money and money equivalents	$	21,337	$	37,425
Accounts receivable, internet		155,322		69,714
Stock		138,607		99,110
Receivables from distributors		251		230
Pay as you go bills and different present property		17,880		10,885
Revenue tax receivable		454		456
Whole present property		333,851		217,820
Funding securities		1,827		2,282
Fairness funding		22,182		21,924
Property, plant and gear, internet		52,124		51,424
Working lease, proper of use asset		4,811		3,143
Goodwill		58,928		55,000
Intangible property, internet		92,797		88,288
Deferred earnings tax property		56		52
Different property		1,413		1,638
Whole property	$	567,989	$	441,571
Liabilities, Redeemable Fairness, and Stockholders’ Fairness
Present liabilities:
Accounts payable	$	80,177	$	22,096
Accrued bills and different present liabilities		55,695		34,046
Revenue taxes payable		3,166		1,523
Accrued gross sales incentives		27,883		12,250
Contract liabilities, present		3,396		—
Present portion of long-term debt		500		1,107
Whole present liabilities		170,817		71,022
Lengthy-term debt, internet of debt issuance prices		5,973		6,099
Finance lease liabilities, much less present portion		386		720
Working lease liabilities, much less present portion		3,813		2,391
Contract liabilities, much less present portion		1,016		—
Deferred compensation		1,827		2,282
Deferred earnings tax liabilities		7,975		3,828
Different tax liabilities		1,123		1,225
Different long-term liabilities		5,570		3,294
Whole liabilities		198,500		90,861
Commitments and contingencies
Redeemable fairness		2,959		2,481
Stockholders’ fairness:
Most well-liked inventory:
No shares issued or excellent		—		—
Widespread inventory:
Class A, $.01 par worth, 60,000,000 shares licensed, 24,416,194 and 24,306,194 shares issued and 21,666,976 and 21,556,976 shares excellent at November 30, 2020 and February 29, 2020, respectively		245		244
Class B Convertible, $.01 par worth, 10,000,000 shares licensed, 2,260,954 shares issued and excellent at each November 30, 2020 and February 29, 2020		22		22
Paid-in capital		300,107		299,228
Retained earnings		139,458		122,139
Gathered different complete loss		(16,046)		(19,055)
Much less: Treasury inventory, at price, 2,749,218 shares of Class A Widespread Inventory at each November 30, 2020 and February 29, 2020		(23,918)		(23,918)
Much less: Redeemable fairness		(2,959)		(2,481)
Whole VOXX Worldwide Company stockholders’ fairness		396,909		376,179
Non-controlling curiosity		(30,379)		(27,950)
Whole stockholders’ fairness		366,530		348,229
Whole liabilities, redeemable fairness, and stockholders’ fairness	$	567,989	$	441,571

VOXX Worldwide Company and Subsidiaries Unaudited Consolidated Statements of Operations and Complete Revenue (Loss) *(In hundreds, besides share and per share information)*

	Three months ended November 30,				9 months ended November 30,
	2020		2019		2020		2019
Web gross sales	$	201,065	$	110,112	$	401,084	$	293,812
Price of gross sales		142,937		78,648		284,905		212,570
Gross revenue		58,128		31,464		116,179		81,242
Working bills:
Promoting		12,761		9,580		30,190		28,162
Normal and administrative		21,128		16,689		51,668		51,896
Engineering and technical help		5,676		5,059		14,942		15,901
Whole working bills		39,565		31,328		96,800		95,959
Working earnings (loss)		18,563		136		19,379		(14,717)
Different (expense) earnings:
Curiosity and financial institution prices		(471)		(751)		(2,334)		(2,635)
Fairness in earnings of fairness investee		1,761		967		4,506		3,672
Achieve on sale of actual property		—		4,057		—		4,057
Funding achieve		42		—		42		775
Different, internet		(121)		(322)		21		1,869
Whole different earnings, internet		1,211		3,951		2,235		7,738
Revenue (loss) earlier than earnings taxes		19,774		4,087		21,614		(6,979)
Revenue tax expense		2,334		2,720		6,724		1,190
Web earnings (loss)		17,440		1,367		14,890		(8,169)
Much less: internet loss attributable to non-controlling curiosity		(811)		(1,097)		(2,429)		(3,521)
Web earnings (loss) attributable to VOXX Worldwide Company	$	18,251	$	2,464	$	17,319	$	(4,648)
Different complete earnings (loss):
Overseas forex translation changes		79		(295)		3,608		(1,321)
Derivatives designated for hedging		(43)		13		(514)		(271)
Pension plan changes		(6)		2		(85)		25
Different complete earnings (loss), internet of tax		30		(280)		3,009		(1,567)
Complete earnings (loss) attributable to VOXX Worldwide Company	$	18,281	$	2,184	$	20,328	$	(6,215)
Revenue (loss) per share – fundamental: Attributable to VOXX Worldwide Company	$	0.75	$	0.10	$	0.72	$	(0.19)
Revenue (loss) per share – diluted: Attributable to VOXX Worldwide Company	$	0.74	$	0.10	$	0.71	$	(0.19)
Weighted-average frequent shares excellent (fundamental)		24,197,786		24,418,313		24,196,393		24,458,926
Weighted-average frequent shares excellent (diluted)		24,677,525		24,625,410		24,532,329		24,458,926

Reconciliation of GAAP Web Revenue Attributable to VOXX Worldwide Company to EBITDA, Adjusted EBITDA, and Diluted Adjusted EBITDA per Widespread Share

	Three months ended November 30,				9 months ended November 30,
	2020		2019		2020		2019
Web earnings (loss) attributable to VOXX Worldwide Company	$	18,251	$	2,464	$	17,319	$	(4,648)
Changes:
Curiosity expense and financial institution prices (1)		325		625		1,907		2,269
Depreciation and amortization (1)		2,904		2,796		8,128		8,313
Revenue tax expense		2,334		2,720		6,724		1,190
EBITDA		23,814		8,605		34,078		7,124
Inventory-based compensation		768		471		1,454		1,816
Achieve on sale of actual property		—		(4,057)		—		(4,057)
Settlement of Hirschmann working capital		—		804		—		804
Funding achieve		(42)		—		(42)		(775)
Life insurance coverage proceeds		—		—		(420)		(1,000)
Adjusted EBITDA	$	24,540	$	5,823	$	35,070	$	3,912
Diluted earnings (loss) per frequent share attributable to VOXX Worldwide Company	$	0.74	$	0.10	$	0.71	$	(0.19)
Diluted Adjusted EBITDA per frequent share attributable to VOXX Worldwide Company	$	0.99	$	0.24	$	1.43	$	0.16


(1)	For functions of calculating Adjusted EBITDA for the Firm, curiosity expense and financial institution prices, in addition to depreciation and amortization, have been adjusted to be able to exclude the non-controlling curiosity portion of those bills attributable to EyeLock LLC.

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