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Feb 29, 2020
VOXX Q4 2020 Earnings Report
VOXX experienced a decrease in net sales but an increase in gross margin, with an operating loss reported due to non-cash impairment charges.
Key Takeaways
VOXX International Corporation reported a decrease in net sales for the fourth quarter of Fiscal 2020, primarily driven by a reduction in Automotive Electronics segment sales. However, the gross margin increased due to improved performance in the Consumer Electronics segment. The company reported an operating loss due to non-cash impairment charges, but Adjusted EBITDA showed improvement compared to the previous year.
Net sales decreased by $6.4 million to $101.1 million compared to Q4 2019.
Gross margin increased to 28.2%, a 610-basis point improvement year-over-year.
Operating loss was $34.7 million, primarily due to non-cash impairment charges.
Adjusted EBITDA improved to $1.8 million, compared to a loss of $3.8 million in Q4 2019.
Revenue by Segment
Forward Guidance
Fiscal 2021 will start slow due to COVID-19, but barring any further setbacks, with the contracts awarded and the additional steps taken to lower overhead, VOXX should see growth and profitability this year, with a strong balance sheet at our disposal to take advantage of opportunities that may be on the horizon.
Positive Outlook
- Contracts awarded.
- Additional steps taken to lower overhead.
- Expecting strong growth in the years to come.
- Strengthened premium audio offerings.
- Inbound interest for EyeLock solutions.
Challenges Ahead
- Fiscal 2021 will start slow due to COVID-19.
- Automotive net sales declined due to plant delays and end of life of a program.
- Car sales have fallen and are expected to decline further this year.
- Losses reported.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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