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Nov 30, 2024
VOXX Q3 2025 Earnings Report
VOXX International Corporation reported a decrease in revenue and net loss for the three months ended November 30, 2024.
Key Takeaways
VOXX International Corporation experienced a significant decline in net sales and reported a net loss for the three months ended November 30, 2024. The company's total net sales decreased by 22.2% compared to the prior year, primarily due to declines in both Automotive Electronics and Consumer Electronics segments, and a substantial net loss of $49,461,000 was recorded.
Net sales decreased by 22.2% to $105,175,000 for the three months ended November 30, 2024, compared to $135,260,000 in the same period last year.
The company reported a net loss of $49,461,000 for the current quarter, a significant increase from the $783,000 net income in the prior year period.
Operating loss for the quarter was $54,216,000, a substantial shift from the operating income of $2,267,000 in the comparable prior year period.
Goodwill impairment charges of $28,171,000 and intangible asset impairment charges of $16,093,000 significantly impacted operating expenses.
VOXX
VOXX
VOXX Revenue by Segment
Revenue by Segment
Automotive Electronics Revenue
CapyFin.comConsumer Electronics Revenue
CapyFin.comCorporate/Eliminations Revenue
CapyFin.com Forward Guidance
The company anticipates continued downward trends in sales within its Consumer Electronics segment for the remainder of the 2025 fiscal year. The transaction with Gentex Corporation is expected to close during the first six months of calendar year 2025.
Positive Outlook
- The company continues to focus on cash flow and anticipates having sufficient resources to operate for the coming twelve-month period.
- New product launches in OEM safety products and aftermarket accessories are expected to contribute positively to sales.
- Relocation of OEM manufacturing operations to Mexico is expected to generate cost savings and improve margins.
- Resurgence in cinema speaker sales is a positive trend for the Consumer Electronics segment.
- The pending merger with Gentex Corporation is expected to provide a cash payment of $7.50 per share to stockholders.
Challenges Ahead
- Continued decline in demand for many products due to macroeconomic headwinds, including slow start to remote start season, slower consumer spending, and inflated vehicle pricing.
- Supply chain challenges continue to affect material and shipping costs, negatively impacting gross margins.
- The company's stock price has stagnated following the merger announcement, and there is a risk of further decline if the merger is delayed or not completed.
- Goodwill and indefinite-lived intangible assets remain at risk for future impairment due to narrow differences between fair value and carrying value.
- Uncertainties related to the merger could impact relationships with customers, employees, and other third parties, potentially affecting business operations and financial condition.
Revenue & Expenses
Visualization of income flow from segment revenue to net income