Company profile

Ticker
VOXX
Exchange
CEO
Patrick Michael Lavelle
Employees
Incorporated in
Location
Fiscal year end
Former names
Audiovox Corp
SEC CIK
IRS number
131964841

VOXX stock data

(
)

Calendar

10 Oct 19
20 Oct 19
1 Mar 20

News

Company financial data Financial data

Quarter (USD) Aug 19 May 19 Feb 19 Nov 18
Revenue 90.25M 93.45M 107.46M 129.64M
Net income -5.96M -1.15M -36.56M 12.21M
Diluted EPS -0.24 -0.05 -1.5 0.5
Net profit margin -6.61% -1.23% -34.02% 9.42%
Operating income -7.75M -7.1M -30.4M 5.71M
Net change in cash -20.71M 1.77M 9.52M 4.53M
Cash on hand 39.29M 60M 58.24M 48.72M
Cost of revenue 66.48M 67.45M 83.7M 90.71M
Annual (USD) Feb 19 Feb 18 Feb 17 Feb 16
Revenue 446.82M 507.09M 514.53M 530.21M
Net income -46.09M 35.3M 4.42M -2.68M
Diluted EPS -1.89 1.44 0.18
Net profit margin -10.32% 6.96% 0.86% -0.51%
Operating income -41.2M -19.1M -8.17M -17.07M
Net change in cash 6.5M 50.78M -10.81M 3.32M
Cash on hand 58.24M 51.74M 956K 11.77M
Cost of revenue 325.4M 374.8M 370.5M 386.67M

Financial data from company earnings reports

Financial report summary

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Risks
  • Our businesses are highly competitive and face significant competition from Original Equipment Manufacturers (OEMs) and direct imports by our retail customers.
  • OEM sales are dependent on the economic success of the automotive industry.
  • Sales in our businesses are dependent on new products, product development and consumer acceptance.
  • The impact of future selling prices and technological advancements may cause price erosion and adversely impact our profitability and inventory value.
  • We purchase a significant amount of our products from suppliers in Pacific Rim countries and we are subject to the economic risks associated with inherent changes in the social, political, regulatory and economic conditions not only in these countries, but also in other countries we do business in, including our own.
  • A portion of our workforce is represented by labor unions. Collective bargaining agreements can increase our expenses. Labor disruptions could adversely affect our operations.
  • We depend on our suppliers to provide us with adequate quantities of high-quality competitive products and/or component parts on a timely basis.
  • We have few long-term sales contracts with our customers that contain guaranteed customer purchase commitments.
  • Our success will depend on a less diversified line of business.
  • We depend on a small number of key customers for a large percentage of our sales.
  • We plan to continue to expand the international marketing and distribution of our products, which will subject us to risks associated with international operations, including exposure to foreign currency fluctuations.
  • A decline in general economic conditions could lead to reduced consumer demand for the discretionary products we sell.
  • Conditions in the global economy, the geographic markets we serve, and the financial markets may adversely affect us.
  • Our stock price could fluctuate significantly.
  • We invest, from time to time, in marketable securities and other investments as part of our investing activities. These investments fluctuate in value based on economic, operational, competitive, political and technological factors. These investments could be subject to loss or impairment based on their performance.
  • From time to time, we provide funding to certain entities in the form of loans. Based on the performance of these entities, these loans may become partially or entirely uncollectible.
  • We are subject to governmental regulations.
  • The Tax Cuts and Jobs Act could adversely affect our business and financial condition.
  • A data privacy breach or failure to comply with data privacy laws could damage our reputation and customer relationships, expose us to litigation risk and potential fines and adversely affect our business.
  • We are responsible for product warranties and defects.
  • We must comply with restrictive covenants in our debt agreements.
  • We may be unable to collect amounts owed to us by our customers.
  • We provide financial support to one of our subsidiaries through an intercompany loan agreement and may need to secure additional financing for our own operations, but we cannot be sure that additional financing will be available.
  • Our capital resources may not be sufficient to meet our future capital and liquidity requirements.
  • We have recorded, and may record in the future, goodwill and other intangible assets as a result of acquisitions, and changes in future business conditions could cause these investments to become impaired, requiring substantial write-downs that would reduce our operating income.
  • Our cash and cash equivalents could be adversely affected if the financial institutions in which we hold our cash and cash equivalents fail.
  • If our sales during the holiday season fall below our expectations, our annual results could also fall below expectations.
  • Our business could be affected by unseasonal or severe weather-related factors.
  • Our products could infringe the intellectual property rights of others and we may be exposed to costly litigation.
  • Acquisitions and strategic investments may divert our resources and management attention; results may fall short of expectations.
  • We depend heavily on existing directors, management and key personnel and our ability to recruit and retain qualified personnel.
  • We exercise our option for the "controlled company" exemption under NASDAQ rules.
Management Discussion
  • As you read this discussion and analysis, refer to the accompanying Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income, which present the results of our operations for the three and six months ended August 31, 2019 and 2018.
  • Automotive sales represented 29.7% and 30.7% of the net sales for the three and six months ended August 31, 2019, respectively, compared to 36.7% and 38.0% in the respective prior year periods. Sales in this segment decreased during the three and six months ended August 31, 2019 as compared to the prior year due to various factors, including a decline in sales of the Company’s EVO rear seat entertainment product line, which was due in part to launch delays for certain vehicle models, as well as slower sales for certain programs that began in the prior year, which is attributable to a softening of global automotive industry sales in both periods. The Company’s OEM security and remote start sales also declined during the three and six months ended August 31, 2019 as a result of competition, as well as the discontinuation of passive entry programs with one of the Company’s customers. Additionally, sales of aftermarket satellite radio and headrest products have declined in the three and six months ended August 31, 2019, as compared to the prior year, as a result of an increase in standard factory equipped vehicles with these options, as well as due to price competition for aftermarket headrest products. Offsetting the sales declines in this segment for the three and six months ended August 31, 2019 were increases in sales of certain aftermarket safety and security products as compared to the prior year periods.
  • Consumer Electronics sales represented 69.8% and 69.0% of our net sales for the three and six months ended August 31, 2019, respectively, compared to 62.8% and 61.6% in the comparable prior year periods. Sales decreased for the three and six months ended August 31, 2019 as compared to the prior year due to several factors. The Company experienced decreases in sales of certain products, such as the its Project Nursery line, as a result of the elimination of baby video monitors, and in wireless and bluetooth speakers, due a reduction in product placement with one of the Company’s larger customers and the timing of purchases by another. The Company also continued to see a decline in sales of certain hook-up and power products, as well as headphones and remotes, as a result of changes in customer demand and technology, and due to the Company’s continuing rationalization of SKU’s with the goal of limiting sales of lower margin products. Within Europe, the Company experienced decreases in sales across all product lines, as well as in the DIY business during the three and six months ended August 31, 2019 as a result of a slowdown in the European market. For the three months ended August 31, 2019, there was also a decrease in sales of the Company’s premium home separate speaker products, as a result of prior year load-in sales of two new product lines that launched during the second quarter of Fiscal 2019 that did not repeat in the current year period. Offsetting these decreases, the Company had an increase in sales within both of its premium mobility and premium wireless and bluetooth speaker categories as a result of the launch of new lines of soundbars and wireless earbuds, as well as stronger sales of several existing products. Additional distribution partners for the Company’s premium commercial speaker products have also had a favorable impact on sales for the three and six months ended August 31, 2019. Both reception and karaoke product sales were up for the three and six months ended August 31, 2019 as a result of expanded SKU offerings with certain customers and stronger market share, and sales of the Company’s activity bands have increased year over year as a result of increased motion program participants, as well as additional product offerings for participants, including the Apple watch. For the six months ended August 31, 2019, the Company’s premium home separate speaker product sales increased as a result of the continued success of its new domestic product lines that launched during the second quarter of Fiscal 2019
Content analysis ?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Avg
New words: absorption, anniversary, announced, Carlo, certification, Disregarding, easier, Europe, EXT, gave, highest, inability, incentive, jurisdiction, larger, Modernization, Monte, movement, MSU, Nano, NNXT, notified, precedent, predetermined, publicly, redeem, redeemable, reliable, relocated, rescinding, rescission, resume, Rule, Simplification, simulation, slowdown, small, suspended, tariff, unissued, variety, warranty
Removed: anticipating, arise, backward, choose, complexity, discontinued, earliest, enactment, forecast, initially, lessee, mix, narrow, optional, profitable, prohibition, pronouncement, reclassify, simplify, stranded, TCJA, top, tracing, transitioned, treatment, unregistered

Patents

GRANT
Utility
Vehicle console capable of wireless reception and transmission of audio and video data
15 Oct 19
A console for a vehicle comprises an assembly housing capable of being mounted in an interior of the vehicle, a wireless receiver, houseable in the assembly housing, adapted to wirelessly receive audio and video data from at least one input device, a recording device, houseable in the assembly housing for recording the audio and video data received from the at least one input device, and a wireless transmitter, houseable in the assembly housing, adapted to wirelessly transmit the audio and video data to at least one receiving device.
GRANT
Design
Television antenna
8 Oct 19
Inventors: David Anthony Benedetti, Kevin Kei Kwan Lee
GRANT
Utility
Console
8 Oct 19
A vehicle passenger is provided with a console for mounting an entertainment apparatus, the console being coupled to the back of a more forwardly located seat by headrest retaining clips of the kind adapted to hold posts of a height adjustable headrest for the seat at a height selected position.
GRANT
Utility
Pivotable vehicle mounting system for mobile computing devices
1 Oct 19
A mounting device includes a cradle including a first recess and configured to be mounted in a vehicle, a pivotable hinge member coupled to the cradle, and a docking tray coupled to the pivotable hinge member.
GRANT
Utility
Interchangeable rear seat infotainment system
1 Oct 19
A rear seat entertainment system includes an access point and a second housing.