VOXX Q3 2022 Earnings Report
Key Takeaways
VOXX International Corporation reported a decrease in net sales for the third quarter of fiscal year 2022, primarily due to global supply chain shortages and temporary production halts by OEM customers. The company saw growth in OEM product sales and completed the Onkyo Home Entertainment acquisition during the quarter.
Net sales decreased by 4.6% compared to the prior year, totaling $191.9 million.
Automotive Electronics segment net sales increased slightly by 0.2%, with OEM product sales up 31.6% and Aftermarket product sales down 9.2%.
Consumer Electronics segment net sales decreased by 6.7%, impacted by supply chain shortages and product backorders.
The company received an award from Stellantis for OEM rear-seat entertainment, estimated to be ~$125 million.
VOXX
VOXX
VOXX Revenue by Segment
Forward Guidance
The company expects top- and bottom-line improvements in fiscal year 2023, contingent on OEM customers meeting projected schedules, and anticipates a bigger impact from price increases in the coming quarter.
Positive Outlook
- Remains on track with prior outlook.
- Positioned for top- and bottom-line improvements Fiscal 2023.
- Price increases instituted last quarter helped drive sequential gross margin improvements.
- Increase in operating expenses is primary related to the Onkyo acquisition
- Increase in R&D associated with OEM programs
Challenges Ahead
- Global supply chain issues will persist.
- Several OEM customers temporarily halted production given their part and chip shortages
- Sales would have been in line with the prior year had it not been for this issue.
- Gross margin in the Fiscal 2022 third quarter was 26.9% as compared to 28.9% in the Fiscal 2021 third quarter, a decline of 200 basis points.
- The Company reported operating income in the Fiscal 2022 third quarter of $7.8 million as compared to operating income of $18.1 million in the comparable Fiscal 2021 third quarter, a decline of $10.4 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income