VOXX Q1 2021 Earnings Report
Key Takeaways
VOXX International Corporation reported a decrease in net sales for the first quarter of fiscal year 2021, primarily due to the COVID-19 pandemic's impact on the Automotive Electronics and Consumer Electronics segments. However, June sales increased over 30% year-over-year, and the company anticipates higher sales in July and August.
Net sales decreased by $21.5 million to $72.0 million compared to the same quarter last year.
Automotive Electronics segment net sales decreased by $12.4 million to $17.3 million due to OEM plant closures and retail shutdowns.
Consumer Electronics segment net sales decreased by $9.1 million to $54.5 million due to the COVID-19 pandemic and exit from certain product lines.
The company reported a net loss attributable to VOXX International Corporation of $8.3 million, compared to a net loss of $1.1 million in the prior year.
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VOXX Revenue by Segment
Forward Guidance
While projecting higher sales in July and August, the company remains cautious based on the spikes in COVID cases across the country.
Positive Outlook
- June sales increased over 30% year-over-year
- Gross margins improved in June.
- Expect to add approximately $50 million of annualized sales with the acquisition of Directed’s automotive electronics aftermarket business.
- Klipsch is poised for its best sales year ever and should see significant improvements in profitability.
- Fiscal 2021 should be a better year for VOXX and its shareholders.
Challenges Ahead
- The COVID-19 global pandemic affected the first quarter results.
- OEM customers were forced to shut their plants in March.
- Car dealerships and retail outlets were closed throughout most of the quarter.
- Retail stores were closed, both in the U.S. and Europe.
- The company remains cautious based on the spikes in COVID cases across the country.
Revenue & Expenses
Visualization of income flow from segment revenue to net income