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Nov 30, 2019
VOXX Q3 2020 Earnings Report
VOXX International experienced mixed results due to growth in premium audio, offset by challenges in the Automotive Electronics segment.
Key Takeaways
VOXX International reported net sales of $110.1 million, a decrease compared to the previous year, with operating income of $0.1 million and net income of $2.5 million. The company's premium audio business grew, but the automotive electronics segment faced challenges. New OEM programs are expected to drive future growth.
Net sales decreased to $110.1 million from $129.6 million year-over-year.
Automotive Electronics segment sales declined due to lower OEM product sales.
Premium audio product sales increased by $3.6 million.
Operating income was $0.1 million, down from $5.7 million in the prior year.
VOXX
VOXX
VOXX Revenue by Segment
Revenue by Segment
Automotive Electronics Revenue
CapyFin.comConsumer Electronics Revenue
CapyFin.comBiometrics Revenue
CapyFin.com Forward Guidance
VOXX International anticipates growth from new OEM programs and partnerships, while focusing on value creation through strategic initiatives.
Positive Outlook
- New OEM programs are slated to begin next fiscal year, which should drive year-over-growth.
- Significant new business has been awarded that begins in CY21 and will run for several years.
- Balance sheet remains strong.
- Executing on share repurchase program.
- Evaluating potential divestitures and acquisitions to improve earnings and cash flow.
Challenges Ahead
- Automotive Electronics segment has been impacted throughout the year.
- OEM business results have been less than anticipated.
- Gross margin in the Company’s Fiscal 2020 third quarter was 28.6%, representing a 140-basis point decline, as compared to 30.0% in the Fiscal 2019 third quarter.
- Biometrics segment gross margins were (28.3)% in the fiscal 2020 third quarter, as compared to 80.5% in the comparable year-ago period.
- Equity in income of equity investees declined by $0.7 million due to the impact of tariffs, higher warranty costs and other one-time expenses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income