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Feb 28, 2023

VOXX Q4 2023 Earnings Report

VOXX International Corporation reported a net loss for Q4 2023 due to decreased sales and increased operating expenses.

Key Takeaways

VOXX International Corporation reported a decrease in net sales for the fourth quarter of fiscal 2023, with a net loss attributable to VOXX International Corporation of $19.3 million, compared to a net income of $2.8 million in the same period of fiscal 2022. The decline in sales was primarily due to lower sales in the Consumer Electronics segment. The company is implementing cost reduction measures and anticipates improved performance in the Automotive and Biometrics segments.

Net sales decreased by 16.7% to $136.5 million compared to the prior year's fourth quarter.

Automotive Electronics segment sales decreased slightly by 2.2%, while OEM product sales increased and aftermarket product sales decreased.

Consumer Electronics segment sales decreased by 23.4%, mainly due to lower domestic sales of premium home theater speakers and weaker European markets.

The Company reported an operating loss in the Fiscal 2023 fourth quarter of $12.9 million as compared to operating income of $3.2 million in the comparable Fiscal 2022 fourth quarter.

Total Revenue
$137M
Previous year: $164M
-16.7%
EPS
-$0.44
Previous year: $0.11
-500.0%
Gross Profit
$34.7M
Previous year: $43.9M
-21.0%
Cash and Equivalents
$6.13M
Previous year: $27.8M
-77.9%
Free Cash Flow
$9.47M
Previous year: $6.19M
+52.9%
Total Assets
$519M
Previous year: $587M
-11.5%

VOXX

VOXX

VOXX Revenue by Segment

Forward Guidance

VOXX anticipates continued softness in the global economy and at retail, though chip availability has improved which should positively impact their Automotive business. They continue to grow the Onkyo and Pioneer business and have plans to expand their footprint globally this year. Additionally, their Biometrics segment should show considerable improvement with new accounts awarded and several projects underway.

Positive Outlook

  • Chip availability has improved which should positively impact our Automotive business.
  • Continued growth in the Onkyo and Pioneer business.
  • Plans to expand Onkyo and Pioneer footprint globally this year.
  • Biometrics segment should show considerable improvement with new accounts awarded.
  • Biometrics segment should show considerable improvement with several projects underway.

Challenges Ahead

  • Anticipating continued softness in the global economy.
  • Anticipating continued softness at retail.
  • Results came in lower than expected.
  • Faced a myriad of roadblocks this year including inflation.
  • Faced a myriad of roadblocks this year including fears of recessions across the globe, the retail environment and ongoing supply chain constraints.

Revenue & Expenses

Visualization of income flow from segment revenue to net income