We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
VOXX International Corporation | NASDAQ:VOXX | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.15 | -2.44% | 6.00 | 5.50 | 6.16 | 6.30 | 5.82 | 6.16 | 54,518 | 22:30:38 |
Class
|
Outstanding
|
|
|
Class A common stock $.01 par value
|
21,938,100
|
Class B common stock $.01 par value
|
2,260,954
|
Table of Contents
|
||
|
|
|
PART I
|
||
|
|
|
Item 1
|
Business
|
|
Item 1A
|
Risk Factors
|
|
Item 1B
|
Unresolved Staff Comments
|
|
Item 2
|
Properties
|
|
Item 3
|
Legal Proceedings
|
|
Item 4
|
Removed and Reserved
|
|
|
|
|
PART II
|
||
|
|
|
Item 5
|
Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
|
Item 6
|
Selected Consolidated Financial Data
|
|
Item 7
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
|
Item 7A
|
Quantitative and Qualitative Disclosures About Market Risk
|
|
Item 8
|
Consolidated Financial Statements and Supplementary Data
|
|
Item 9
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
|
Item 9A
|
Controls and Procedures
|
|
Item 9B
|
Other Information
|
|
|
|
|
PART III
|
||
|
|
|
Item 10
|
Directors, Executive Officers and Corporate Governance
|
|
Item 11
|
Executive Compensation
|
|
Item 12
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
|
Item 13
|
Certain Relationships and Related Transactions, and Director Independence
|
|
Item 14
|
Principal Accounting Fees and Services
|
|
|
|
|
PART IV
|
||
|
|
|
Item 15
|
Exhibits, Financial Statement Schedules
|
|
|
|
|
SIGNATURES
|
▪
|
mobile multi-media infotainment products, including in-dash, overhead, seat-back, and headrest systems,
|
▪
|
autosound products including radios and amplifiers,
|
▪
|
satellite radios including plug and play models and direct connect models,
|
▪
|
smart phone telematics applications,
|
▪
|
automotive security, vehicle access, and remote start systems,
|
▪
|
automotive power accessories,
|
▪
|
rear observation and collision avoidance systems,
|
▪
|
driver distraction products, and
|
▪
|
power lift gates.
|
▪
|
premium loudspeakers,
|
▪
|
architectural speakers,
|
▪
|
commercial speakers,
|
▪
|
outdoor speakers,
|
▪
|
flat panel speakers,
|
▪
|
wireless speakers,
|
▪
|
Bluetooth speakers,
|
▪
|
home theater systems,
|
▪
|
business music systems,
|
▪
|
streaming music systems,
|
▪
|
on-ear and in-ear headphones,
|
▪
|
wireless and Bluetooth headphones,
|
▪
|
soundbars and sound bases, and
|
▪
|
DLNA (Digital Living Network Alliance) compatible devices.
|
▪
|
High-Definition Television ("HDTV") antennas,
|
▪
|
Wireless Fidelity ("WiFi") antennas,
|
▪
|
High-Definition Multimedia Interface ("HDMI") accessories,
|
▪
|
smart-home products,
|
▪
|
security and monitoring products,
|
▪
|
wired and wireless headphones and ear buds,
|
▪
|
wireless speakers,
|
▪
|
Bluetooth speakers,
|
▪
|
karaoke products,
|
▪
|
infant/nursery products,
|
▪
|
activity tracking bands,
|
▪
|
healthcare wearables,
|
▪
|
home electronic accessories such as cabling,
|
▪
|
other connectivity products,
|
▪
|
power cords,
|
▪
|
performance enhancing electronics,
|
▪
|
TV universal remotes,
|
▪
|
flat panel TV mounting systems,
|
▪
|
power supply systems and charging products,
|
▪
|
electronic equipment cleaning products,
|
▪
|
personal sound amplifiers,
|
▪
|
set-top boxes,
|
▪
|
home and portable stereos,
|
▪
|
digital multi-media products, such as personal video recorders and MP3 products,
|
▪
|
iris identification and biometric security related products, and
|
▪
|
public safety solutions.
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Automotive
|
$
|
161,647
|
|
|
$
|
155,480
|
|
|
$
|
170,729
|
|
Premium Audio
|
158,436
|
|
|
172,406
|
|
|
166,789
|
|
|||
Consumer Accessories
|
125,806
|
|
|
178,756
|
|
|
176,216
|
|
|||
Corporate/Eliminations
|
927
|
|
|
450
|
|
|
796
|
|
|||
Total net sales
|
$
|
446,816
|
|
|
$
|
507,092
|
|
|
$
|
514,530
|
|
|
|
|
|
|
|
||||||
Gross profit
|
$
|
121,417
|
|
|
$
|
132,297
|
|
|
$
|
144,030
|
|
Gross margin percentage
|
27.2
|
%
|
|
26.1
|
%
|
|
28.0
|
%
|
|||
|
|
|
|
|
|
||||||
Total assets
|
$
|
508,811
|
|
|
$
|
575,644
|
|
|
$
|
668,486
|
|
•
|
automotive and vehicle manufacturers,
|
•
|
OEM Tier 1, Tier 2 and secondary OEM manufacturers,
|
•
|
mass merchants,
|
•
|
regional chain stores,
|
•
|
distributors,
|
•
|
e-commerce platforms,
|
•
|
premium department stores,
|
•
|
lifestyle retailers,
|
•
|
specialty and internet retailers,
|
•
|
retail solutions manufacturers,
|
•
|
power retailers,
|
•
|
independent 12-volt retailers,
|
•
|
new car dealers,
|
•
|
healthcare equipment manufacturers,
|
•
|
healthcare providers,
|
•
|
system integrators,
|
•
|
communication network providers,
|
•
|
smart grid manufacturers,
|
•
|
banks,
|
•
|
the U.S. military,
|
•
|
cinema operators,
|
•
|
sporting goods equipment retailers,
|
•
|
cell phone carriers,
|
•
|
public safety sector, and
|
•
|
private security providers.
|
•
|
product design and development,
|
•
|
engineering and testing,
|
•
|
sales training and customer packaging,
|
•
|
in-store display design,
|
•
|
installation training and technical support,
|
•
|
product repair services and warranty,
|
•
|
consignment,
|
•
|
fulfillment,
|
•
|
warehousing, and
|
•
|
specialized manufacturing.
|
•
|
identifying consumer trends and potential demand,
|
•
|
responding to those trends through product design and feature integration, which includes software design, electrical engineering, industrial design and pre-production testing. In the case of OEM customers, the product development cycle may also include product validation to customer quality standards, and
|
•
|
evaluating and testing new products in our own facilities to ensure compliance with our design specifications and standards.
|
•
|
the cost, performance and reliability of our products and services and the products and services offered by our competitors;
|
•
|
the continued growth in demand for biometrics solutions within the government and law enforcement markets as well as the development and growth of demand for biometric solutions in markets outside of government and law enforcement;
|
•
|
customers’ perceptions regarding the benefits of biometrics solutions;
|
•
|
public perceptions regarding the intrusiveness of these solutions and the manner in which organizations use the biometric information collected;
|
•
|
public perceptions regarding the confidentiality of private information;
|
•
|
proposed or enacted legislation related to privacy of information;
|
•
|
customers’ satisfaction with biometrics solutions; and
|
•
|
marketing efforts and publicity regarding biometrics solutions.
|
•
|
our supplier relationships will continue as presently in effect;
|
•
|
our suppliers will be able to obtain the components necessary to produce high-quality, technologically-advanced products for us;
|
•
|
we will be able to obtain adequate alternatives to our supply sources, should they be interrupted;
|
•
|
if obtained, alternatively sourced products of satisfactory quality would be delivered on a timely basis, competitively priced, comparably featured or acceptable to our customers;
|
•
|
our suppliers have sufficient financial resources to fulfill their obligations;
|
•
|
our suppliers will be able to obtain raw materials and labor necessary for production;
|
•
|
shipments from our suppliers will not be affected by labor disputes within the shipping and transportation industries;
|
•
|
our suppliers would not be impacted by natural disasters directly or via their supply chains; and
|
•
|
as it relates to products we do not manufacture, our suppliers will not become our competitors.
|
•
|
the overall performance of the economy and discretionary consumer spending,
|
•
|
competition within key markets,
|
•
|
customer acceptance of newly developed products and services, and
|
•
|
the demand for other products and services.
|
•
|
changes in exchange rates for foreign countries, which may reduce the U.S. dollar value of revenues, profits and cash flows we receive from non-U.S. markets or increase our supply costs, as measured in U.S. dollars, in those markets;
|
•
|
exchange controls and other limits on our ability to import raw materials or finished product or to repatriate earnings from overseas;
|
•
|
political and economic instability, social or labor unrest or changing macroeconomic conditions in our markets;
|
•
|
foreign ownership restrictions and the potential for nationalization or expropriation of property or other resources; and
|
•
|
other foreign or domestic legal and regulatory requirements, including those resulting in potentially adverse tax consequences or other imposition of onerous trade restrictions, price controls or other government controls.
|
•
|
operating results being below market expectations,
|
•
|
announcements of technological innovations or new products by us or our competitors,
|
•
|
loss of a major customer or supplier,
|
•
|
changes in, or our failure to meet, financial estimates by securities analysts,
|
•
|
industry developments,
|
•
|
economic and other external factors,
|
•
|
general downgrading of our industry sector by securities analysts,
|
•
|
inventory write-downs, and
|
•
|
ability to integrate acquisitions.
|
•
|
market conditions change,
|
•
|
our business plans or assumptions change,
|
•
|
we make significant acquisitions,
|
•
|
we need to make significant increases in capital expenditures or working capital,
|
•
|
our restrictive covenants do not provide sufficient credit, or
|
•
|
we need to continue to provide financial support to EyeLock LLC for an extended period of time.
|
•
|
difficulties in the integration and assimilation of the operations, technologies, products and personnel of an acquired business;
|
•
|
diversion of management’s attention from other business concerns;
|
•
|
increased expenses associated with the acquisition, and
|
•
|
potential loss of key employees or customers of any acquired business.
|
•
|
additional changes in U.S. federal, state and local law,
|
•
|
our ability to implement operating cost structures that align with revenue growth,
|
•
|
additional trade sanctions against or for foreign countries,
|
•
|
successful integration of business acquisitions and new brands in our distribution network,
|
•
|
compliance with the Sarbanes-Oxley Act, and
|
•
|
compliance with complex financial accounting and tax standards, both foreign and domestic.
|
Year ended February 28, 2019
|
|
High
|
|
Low
|
||||
First Quarter
|
|
$
|
5.90
|
|
|
$
|
4.70
|
|
Second Quarter
|
|
5.90
|
|
|
5.10
|
|
||
Third Quarter
|
|
5.76
|
|
|
5.02
|
|
||
Fourth Quarter
|
|
5.29
|
|
|
3.94
|
|
||
|
|
|
|
|
||||
Year ended February 28, 2018
|
|
High
|
|
Low
|
||||
First Quarter
|
|
$
|
7.30
|
|
|
$
|
4.50
|
|
Second Quarter
|
|
8.90
|
|
|
6.00
|
|
||
Third Quarter
|
|
8.70
|
|
|
6.30
|
|
||
Fourth Quarter
|
|
6.85
|
|
|
5.15
|
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
||||||||||
|
February 28, 2019 (1),(3)
|
|
February 28, 2018 (4)
|
|
February 28, 2017
|
|
February 29, 2016 (1),(2)
|
|
February 28, 2015 (3)
|
||||||||||
Consolidated Statement of Operations Data
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
446,816
|
|
|
$
|
507,092
|
|
|
$
|
514,530
|
|
|
$
|
530,206
|
|
|
$
|
585,360
|
|
Operating (loss) income
|
(41,197
|
)
|
|
(19,099
|
)
|
|
(8,168
|
)
|
|
(17,067
|
)
|
|
8,604
|
|
|||||
Net loss from continuing operations
|
(52,832
|
)
|
|
(6,659
|
)
|
|
(9,268
|
)
|
|
(10,821
|
)
|
|
(7,087
|
)
|
|||||
Net income from discontinued operations, net of taxes
|
—
|
|
|
34,618
|
|
|
6,066
|
|
|
4,758
|
|
|
6,145
|
|
|||||
Net (loss) income attributable to VOXX International Corporation
|
(46,091
|
)
|
|
35,304
|
|
|
4,422
|
|
|
(2,682
|
)
|
|
(942
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Loss) earnings per share - basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
(1.89
|
)
|
|
$
|
0.03
|
|
|
$
|
(0.07
|
)
|
|
$
|
(0.31
|
)
|
|
$
|
(0.29
|
)
|
Discontinued operations
|
$
|
—
|
|
|
$
|
1.43
|
|
|
$
|
0.25
|
|
|
$
|
0.20
|
|
|
$
|
0.25
|
|
Attributable to VOXX International Corporation
|
$
|
(1.89
|
)
|
|
$
|
1.45
|
|
|
$
|
0.18
|
|
|
$
|
(0.11
|
)
|
|
$
|
(0.04
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Loss) earnings per share - diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
(1.89
|
)
|
|
$
|
0.03
|
|
|
$
|
(0.07
|
)
|
|
$
|
(0.31
|
)
|
|
$
|
(0.29
|
)
|
Discontinued operations
|
$
|
—
|
|
|
$
|
1.41
|
|
|
$
|
0.25
|
|
|
$
|
0.20
|
|
|
$
|
0.25
|
|
Attributable to VOXX International Corporation
|
$
|
(1.89
|
)
|
|
$
|
1.44
|
|
|
$
|
0.18
|
|
|
$
|
(0.11
|
)
|
|
$
|
(0.04
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
As of
|
|
As of
|
|
As of
|
|
As of
|
|
As of
|
||||||||||
|
February 28,
|
|
February 28,
|
|
February 28,
|
|
February 29,
|
|
February 28,
|
||||||||||
|
2019 (1),(3)
|
|
2018 (4)
|
|
2017
|
|
2016 (1),(2)
|
|
2015 (3)
|
||||||||||
Consolidated Balance Sheet Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
58,236
|
|
|
$
|
51,740
|
|
|
$
|
956
|
|
|
$
|
11,767
|
|
|
$
|
8,448
|
|
Total assets
|
508,811
|
|
|
575,644
|
|
|
668,486
|
|
|
667,190
|
|
|
677,513
|
|
|||||
Working capital
|
151,169
|
|
|
170,472
|
|
|
143,281
|
|
|
132,167
|
|
|
154,312
|
|
|||||
Long-term obligations (5)
|
18,494
|
|
|
30,139
|
|
|
147,104
|
|
|
139,412
|
|
|
133,970
|
|
|||||
Total stockholders' equity
|
395,101
|
|
|
450,118
|
|
|
391,315
|
|
|
395,894
|
|
|
396,140
|
|
(1)
|
Fiscal 2019 and Fiscal 2016 amounts reflect intangible asset impairment charges (See Note 1(k) of the Notes to the Consolidated Financial Statements for discussion of Fiscal 2019 impairment charges).
|
(2)
|
Fiscal 2016 amounts reflect the acquisition of a controlling interest in all of the assets and certain liabilities of EyeLock Inc. and EyeLock Corporation, including a gain on bargain purchase of $4,679.
|
(3)
|
Fiscal 2019 and Fiscal 2015 amounts include Venezuela currency devaluation and impairment charges related to Venezuela investment properties (see Note 1(p) of the Notes to the Consolidated Financial Statements for discussion of Fiscal 2019 impairment charges).
|
(4)
|
Fiscal 2018 reflects the effect of the sale of Hirschmann on the decrease in total assets. The gain recognized on the sale of Hirschmann is included in Discontinued Operations.
|
(5)
|
Long-term obligations include long-term debt, capital lease obligations, deferred compensation, deferred and other tax liabilities, as well as other long-term liabilities.
|
•
|
Volatility in core Automotive, Premium Audio and Consumer Accessories sales due to increased competition, lower selling prices, changes in technology and demand, and the volatility of the national and global economy;
|
•
|
the discontinuance and reduction of various high volume/low margin product lines such as clock radios, digital players, digital voice recorders, and portable DVD players;
|
•
|
decreased box office sales affecting the Company's cinema audio products;
|
•
|
weather factors resulting in a change in demand for aftermarket remote start products;
|
•
|
the transition of one of the Company's subsidiaries to a distributor model;
|
•
|
the sale of certain branded product inventory of the Company to a third party in order to license the brand name for a commission; and
|
•
|
Euro devaluation against the U.S. Dollar.
|
•
|
the introduction of new products and lines across the Automotive, Premium Audio and Consumer Accessories segments, such as: OEM rear seat entertainment; various Bluetooth and wireless speakers; multi-room streaming audio solutions; neckband, on-ear, in-ear and over-ear headphones; nursery products; and karaoke products,
|
•
|
the introduction of activity tracking band fulfillment programs,
|
•
|
international digital broadcasting upgrades necessitating the purchase of updated consumer accessory products,
|
•
|
successful marketing and promotional activity, and
|
•
|
the acquisition of Rosen Electronics LLC.
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Automotive
|
$
|
161,647
|
|
|
$
|
155,480
|
|
|
$
|
170,729
|
|
Premium Audio
|
158,436
|
|
|
172,406
|
|
|
166,789
|
|
|||
Consumer Accessories
|
125,806
|
|
|
178,756
|
|
|
176,216
|
|
|||
Corporate
|
927
|
|
|
450
|
|
|
796
|
|
|||
Total net sales
|
$
|
446,816
|
|
|
$
|
507,092
|
|
|
$
|
514,530
|
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Automotive
|
$
|
40,621
|
|
|
$
|
39,829
|
|
|
$
|
46,744
|
|
|
25.1
|
%
|
|
25.6
|
%
|
|
27.4
|
%
|
|||
Premium Audio
|
54,849
|
|
|
53,374
|
|
|
55,053
|
|
|||
|
34.6
|
%
|
|
31.0
|
%
|
|
33.0
|
%
|
|||
Consumer Accessories
|
26,299
|
|
|
38,867
|
|
|
41,537
|
|
|||
|
20.9
|
%
|
|
21.7
|
%
|
|
23.6
|
%
|
|||
Corporate
|
(352
|
)
|
|
227
|
|
|
696
|
|
|||
|
$
|
121,417
|
|
|
$
|
132,297
|
|
|
$
|
144,030
|
|
|
27.2
|
%
|
|
26.1
|
%
|
|
28.0
|
%
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Operating Expenses:
|
|
|
|
|
|
||||||
Selling
|
$
|
40,915
|
|
|
$
|
45,999
|
|
|
$
|
43,108
|
|
General and administrative
|
66,935
|
|
|
78,957
|
|
|
79,573
|
|
|||
Engineering and technical support
|
24,387
|
|
|
26,440
|
|
|
29,517
|
|
|||
Intangible asset impairment charges
|
25,789
|
|
|
—
|
|
|
—
|
|
|||
Restructuring expense
|
4,588
|
|
|
—
|
|
|
—
|
|
|||
Total Operating Expenses
|
$
|
162,614
|
|
|
$
|
151,396
|
|
|
$
|
152,198
|
|
|
|
|
|
|
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Interest and bank charges
|
$
|
(4,449
|
)
|
|
$
|
(6,009
|
)
|
|
$
|
(7,105
|
)
|
Equity in income of equity investee
|
6,618
|
|
|
7,178
|
|
|
6,797
|
|
|||
Impairment of Venezuela investment properties
|
(3,473
|
)
|
|
—
|
|
|
—
|
|
|||
Impairment of notes receivable
|
(16,509
|
)
|
|
—
|
|
|
—
|
|
|||
Investment (loss) gain
|
(530
|
)
|
|
1,416
|
|
|
—
|
|
|||
Other, net
|
577
|
|
|
(7,590
|
)
|
|
(454
|
)
|
|||
Total other (expense) income
|
$
|
(17,766
|
)
|
|
$
|
(5,005
|
)
|
|
$
|
(762
|
)
|
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net (loss) income attributable to VOXX International Corporation
|
|
$
|
(46,091
|
)
|
|
$
|
35,304
|
|
|
$
|
4,422
|
|
Adjustments:
|
|
|
|
|
|
|
||||||
Interest expense and bank charges (1)
|
|
2,884
|
|
|
5,169
|
|
|
6,860
|
|
|||
Depreciation and amortization (1)
|
|
11,112
|
|
|
13,879
|
|
|
17,064
|
|
|||
Income tax (benefit) expense
|
|
(6,131
|
)
|
|
(13,262
|
)
|
|
1,759
|
|
|||
EBITDA
|
|
(38,226
|
)
|
|
41,090
|
|
|
30,105
|
|
|||
Adjustments:
|
|
|
|
|
|
|
||||||
Stock-based compensation attributable to stock options and restricted stock
|
|
551
|
|
|
552
|
|
|
753
|
|
|||
Gain on sale of discontinued operations
|
|
—
|
|
|
(36,118
|
)
|
|
—
|
|
|||
Loss on forward contracts attributable to sale of business
|
|
—
|
|
|
6,618
|
|
|
—
|
|
|||
Impairment of investment properties in Venezuela
|
|
3,473
|
|
|
—
|
|
|
—
|
|
|||
Impairment of notes receivable
|
|
16,509
|
|
|
—
|
|
|
—
|
|
|||
Investment loss (gain)
|
|
530
|
|
|
(1,416
|
)
|
|
—
|
|
|||
Environmental remediation charges
|
|
454
|
|
|
—
|
|
|
—
|
|
|||
Restructuring charges
|
|
4,588
|
|
|
—
|
|
|
—
|
|
|||
Intangible asset impairment charges
|
|
25,789
|
|
|
—
|
|
|
—
|
|
|||
Adjusted EBITDA
|
|
$
|
13,668
|
|
|
$
|
10,726
|
|
|
$
|
30,858
|
|
Diluted (loss) income per common share attributable to VOXX International Corporation
|
|
$
|
(1.89
|
)
|
|
$
|
1.44
|
|
|
$
|
0.18
|
|
Diluted Adjusted EBITDA per common share attributable to VOXX International Corporation
|
|
$
|
0.56
|
|
|
$
|
0.44
|
|
|
$
|
1.28
|
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
||||||
|
February 28,
2019 |
|
February 28,
2018 |
|
February 28,
2017 |
||||||
Cash provided by (used in):
|
|
|
|
|
|
||||||
Operating activities
|
$
|
22,562
|
|
|
$
|
(25,539
|
)
|
|
$
|
(1,790
|
)
|
Investing activities
|
(11,037
|
)
|
|
161,360
|
|
|
(12,130
|
)
|
|||
Financing activities
|
(924
|
)
|
|
(92,247
|
)
|
|
9,695
|
|
|||
Effect of exchange rate changes on cash
|
(4,105
|
)
|
|
366
|
|
|
258
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
$
|
6,496
|
|
|
$
|
43,940
|
|
|
$
|
(3,967
|
)
|
|
|
Amount of Commitment Expiration per Period
|
||||||||||||||||||
|
|
|
|
Less than
|
|
1-3
|
|
4-5
|
|
After
|
||||||||||
Contractual Cash Obligations
|
|
Total
|
|
1 Year
|
|
Years
|
|
Years
|
|
5 Years
|
||||||||||
Capital lease obligation (1)
|
|
$
|
958
|
|
|
$
|
442
|
|
|
$
|
516
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Operating leases (2)
|
|
2,105
|
|
|
946
|
|
|
995
|
|
|
164
|
|
|
—
|
|
|||||
Total contractual cash obligations
|
|
$
|
3,063
|
|
|
$
|
1,388
|
|
|
$
|
1,511
|
|
|
$
|
164
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Commitments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank obligations (3)
|
|
$
|
6,699
|
|
|
$
|
6,699
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Stand-by letters of credit (4)
|
|
892
|
|
|
892
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other (5)
|
|
10,935
|
|
|
3,322
|
|
|
1,000
|
|
|
1,000
|
|
|
5,613
|
|
|||||
Contingent earn-out payments and other (6)
|
|
389
|
|
|
328
|
|
|
61
|
|
|
—
|
|
|
—
|
|
|||||
Pension obligation (7)
|
|
559
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
559
|
|
|||||
Unconditional purchase obligations (8)
|
|
56,900
|
|
|
56,900
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total commercial commitments
|
|
$
|
76,374
|
|
|
$
|
68,141
|
|
|
$
|
1,061
|
|
|
$
|
1,000
|
|
|
$
|
6,172
|
|
Total Commitments
|
|
$
|
79,437
|
|
|
$
|
69,529
|
|
|
$
|
2,572
|
|
|
$
|
1,164
|
|
|
$
|
6,172
|
|
(1)
|
Represents total principal payments due under capital lease obligations which have a current (included in other current liabilities) and long-term principal balance totaling
$442
and
$516
, respectively at
February 28, 2019
.
|
(2)
|
We enter into operating leases in the normal course of business.
|
(3)
|
Represents amounts outstanding under the Voxx Germany Euro asset-based lending facility at
February 28, 2019
.
|
(4)
|
We issue standby letters of credit to secure certain purchases and insurance requirements. These letters of credit are issued during the ordinary course of business through major domestic banks as requested by certain suppliers.
|
(5)
|
This amount includes balances outstanding under loans and mortgages for the construction of our manufacturing facility in Florida and for facilities purchased at Schwaiger and Voxx Germany.
|
(6)
|
Represents contingent consideration payments due in connection with the Rosen acquisition, as well as profit-sharing payments related to Invision.
|
(7)
|
Represents the liability for an employer defined benefit pension plan covering certain eligible employees of Voxx Germany.
|
(8)
|
Open purchase obligations represent inventory commitments. These obligations are not recorded in the consolidated financial statements until commitments are fulfilled and such obligations are subject to change based on negotiations with manufacturers.
|
•
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;
|
•
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
|
•
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
|
Financial Statements:
|
Page
|
Report of Independent Registered Public Accounting Firm
|
|
Consolidated Balance Sheets as of February 28, 2019 and February 28, 2018
|
|
Consolidated Statements of Operations and Comprehensive (Loss) Income for the years ended February 28, 2019, February 28, 2018 and February 28, 2017
|
|
Consolidated Statements of Stockholders’ Equity for the years ended February 28, 2019, February 28, 2018 and February 28, 2017
|
|
Consolidated Statements of Cash Flows for the years ended February 28, 2019, February 28, 2018 and February 28, 2017
|
|
Notes to Consolidated Financial Statements
|
|
Financial Statement Schedule:
|
|
Schedule II - Valuation and Qualifying Accounts
|
|
|||||||
|
February 28,
2019 |
|
February 28,
2018 |
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
58,236
|
|
|
$
|
51,740
|
|
Accounts receivable, net
|
73,391
|
|
|
81,116
|
|
||
Inventory, net
|
102,379
|
|
|
117,992
|
|
||
Receivables from vendors
|
1,009
|
|
|
493
|
|
||
Prepaid expenses and other current assets
|
10,449
|
|
|
14,007
|
|
||
Income tax receivable
|
921
|
|
|
511
|
|
||
Total current assets
|
246,385
|
|
|
265,859
|
|
||
Investment securities
|
2,858
|
|
|
4,167
|
|
||
Equity investments
|
21,885
|
|
|
21,857
|
|
||
Property, plant and equipment, net
|
60,493
|
|
|
65,259
|
|
||
Goodwill
|
54,785
|
|
|
54,785
|
|
||
Intangible assets, net
|
119,449
|
|
|
150,320
|
|
||
Deferred tax assets
|
79
|
|
|
24
|
|
||
Other assets
|
2,877
|
|
|
13,373
|
|
||
Total assets
|
$
|
508,811
|
|
|
$
|
575,644
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Accounts payable
|
$
|
31,143
|
|
|
$
|
34,700
|
|
Accrued expenses and other current liabilities
|
39,129
|
|
|
36,350
|
|
||
Income taxes payable
|
1,349
|
|
|
2,587
|
|
||
Accrued sales incentives
|
13,574
|
|
|
14,020
|
|
||
Current portion of long-term debt
|
10,021
|
|
|
7,730
|
|
||
Total current liabilities
|
95,216
|
|
|
95,387
|
|
||
Long-term debt, net of debt issuance costs
|
5,776
|
|
|
8,476
|
|
||
Capital lease obligation
|
516
|
|
|
699
|
|
||
Deferred compensation
|
2,605
|
|
|
3,369
|
|
||
Deferred tax liabilities
|
5,284
|
|
|
12,217
|
|
||
Other tax liabilities
|
1,332
|
|
|
2,191
|
|
||
Other long-term liabilities
|
2,981
|
|
|
3,187
|
|
||
Total liabilities
|
113,710
|
|
|
125,526
|
|
||
Commitments and contingencies
|
|
|
|
|
|
||
Stockholders' equity:
|
|
|
|
|
|
||
Preferred stock:
|
|
|
|
||||
No shares issued or outstanding (Note 9)
|
—
|
|
|
—
|
|
||
Common stock:
|
|
|
|
||||
Class A, $.01 par value; 60,000,000 shares authorized, 24,106,194 shares issued and 21,938,100 shares outstanding at both February 28, 2019 and February 28, 2018
|
242
|
|
|
256
|
|
||
Class B Convertible, $.01 par value, 10,000,000 shares authorized, 2,260,954 shares issued and outstanding
|
22
|
|
|
22
|
|
||
Paid-in capital
|
296,946
|
|
|
296,395
|
|
||
Retained earnings
|
148,582
|
|
|
194,673
|
|
||
Accumulated other comprehensive loss
|
(16,944
|
)
|
|
(14,222
|
)
|
||
Treasury stock, at cost, 2,168,094 shares of Class A Common Stock at both February 28, 2019 and February 28, 2018
|
(21,176
|
)
|
|
(21,176
|
)
|
||
Total VOXX International Corporation stockholders' equity
|
407,672
|
|
|
455,948
|
|
||
Non-controlling interest
|
(12,571
|
)
|
|
(5,830
|
)
|
||
Total stockholders' equity
|
395,101
|
|
|
450,118
|
|
||
Total liabilities and stockholders' equity
|
$
|
508,811
|
|
|
$
|
575,644
|
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
||||||
|
February 28,
2019 |
|
February 28,
2018 |
|
February 28,
2017 |
||||||
Net sales
|
$
|
446,816
|
|
|
$
|
507,092
|
|
|
$
|
514,530
|
|
Cost of sales
|
325,399
|
|
|
374,795
|
|
|
370,500
|
|
|||
Gross profit
|
121,417
|
|
|
132,297
|
|
|
144,030
|
|
|||
|
|
|
|
|
|
||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|||
Selling
|
40,915
|
|
|
45,999
|
|
|
43,108
|
|
|||
General and administrative
|
66,935
|
|
|
78,957
|
|
|
79,573
|
|
|||
Engineering and technical support
|
24,387
|
|
|
26,440
|
|
|
29,517
|
|
|||
Intangible asset impairment charges (Note 1(k))
|
25,789
|
|
|
—
|
|
|
—
|
|
|||
Restructuring expense
|
4,588
|
|
|
—
|
|
|
—
|
|
|||
Total operating expenses
|
162,614
|
|
|
151,396
|
|
|
152,198
|
|
|||
Operating loss
|
(41,197
|
)
|
|
(19,099
|
)
|
|
(8,168
|
)
|
|||
Other (expense) income:
|
|
|
|
|
|
|
|
|
|||
Interest and bank charges
|
(4,449
|
)
|
|
(6,009
|
)
|
|
(7,105
|
)
|
|||
Equity in income of equity investee
|
6,618
|
|
|
7,178
|
|
|
6,797
|
|
|||
Impairment of Venezuela investment properties (Note 1(p))
|
(3,473
|
)
|
|
—
|
|
|
—
|
|
|||
Impairment of notes receivable (Note 1(f))
|
(16,509
|
)
|
|
—
|
|
|
—
|
|
|||
Investment (loss) gain (Note 1(f))
|
(530
|
)
|
|
1,416
|
|
|
—
|
|
|||
Other, net
|
577
|
|
|
(7,590
|
)
|
|
(454
|
)
|
|||
Total other expense, net
|
(17,766
|
)
|
|
(5,005
|
)
|
|
(762
|
)
|
|||
|
|
|
|
|
|
||||||
Loss from continuing operations before income taxes
|
(58,963
|
)
|
|
(24,104
|
)
|
|
(8,930
|
)
|
|||
Income tax (benefit) expense from continuing operations
|
(6,131
|
)
|
|
(17,445
|
)
|
|
338
|
|
|||
Net loss from continuing operations
|
$
|
(52,832
|
)
|
|
$
|
(6,659
|
)
|
|
$
|
(9,268
|
)
|
|
|
|
|
|
|
||||||
Net income from discontinued operations, net of tax (Note 2)
|
—
|
|
|
34,618
|
|
|
6,066
|
|
|||
Net (loss) income
|
$
|
(52,832
|
)
|
|
$
|
27,959
|
|
|
$
|
(3,202
|
)
|
Less: net loss attributable to non-controlling interest
|
(6,741
|
)
|
|
(7,345
|
)
|
|
(7,624
|
)
|
|||
Net (loss) income attributable to VOXX International Corporation
|
$
|
(46,091
|
)
|
|
$
|
35,304
|
|
|
$
|
4,422
|
|
|
|
|
|
|
|
||||||
Other comprehensive (loss) income:
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
(3,195
|
)
|
|
28,804
|
|
|
(3,194
|
)
|
|||
Derivatives designated for hedging, net of tax
|
461
|
|
|
(698
|
)
|
|
210
|
|
|||
Pension plan adjustments, net of tax
|
(12
|
)
|
|
1,496
|
|
|
(180
|
)
|
|||
Unrealized holding gain (loss) on available-for-sale investment securities arising during the period, net of tax
|
24
|
|
|
74
|
|
|
(17
|
)
|
|||
Other comprehensive (loss) income, net of tax
|
(2,722
|
)
|
|
29,676
|
|
|
(3,181
|
)
|
|||
Comprehensive (loss) income attributable to VOXX International Corporation
|
$
|
(48,813
|
)
|
|
$
|
64,980
|
|
|
$
|
1,241
|
|
|
|
|
|
|
|
||||||
(Loss) earnings per share - basic:
|
|
|
|
|
|
||||||
Continuing operations attributable to VOXX International Corporation
|
$
|
(1.89
|
)
|
|
$
|
0.03
|
|
|
$
|
(0.07
|
)
|
Discontinued operations attributable to VOXX International Corporation
|
$
|
—
|
|
|
$
|
1.43
|
|
|
$
|
0.25
|
|
Attributable to VOXX International Corporation
|
$
|
(1.89
|
)
|
|
$
|
1.45
|
|
|
$
|
0.18
|
|
(Loss) earnings per share - diluted:
|
|
|
|
|
|
||||||
Continuing operations attributable to VOXX International Corporation
|
$
|
(1.89
|
)
|
|
$
|
0.03
|
|
|
$
|
(0.07
|
)
|
Discontinued operations attributable to VOXX International Corporation
|
$
|
—
|
|
|
$
|
1.41
|
|
|
$
|
0.25
|
|
Attributable to VOXX International Corporation
|
$
|
(1.89
|
)
|
|
$
|
1.44
|
|
|
$
|
0.18
|
|
Weighted-average common shares outstanding (basic)
|
24,355,791
|
|
|
24,290,563
|
|
|
24,160,324
|
|
|||
Weighted-average common shares outstanding (diluted)
|
24,355,791
|
|
|
24,547,246
|
|
|
24,160,324
|
|
|
|
Class A
and Class B
Common
Stock
|
|
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
(Loss) Income
|
|
Non-controlling Interests
|
|
Treasury
Stock
|
|
Total
Stock-
holders'
Equity
|
||||||||||||||
Balances at February 29, 2016
|
|
$
|
278
|
|
|
$
|
294,038
|
|
|
$
|
154,947
|
|
|
$
|
(40,717
|
)
|
|
$
|
8,524
|
|
|
$
|
(21,176
|
)
|
|
$
|
395,894
|
|
Net income (loss)
|
|
—
|
|
|
—
|
|
|
4,422
|
|
|
—
|
|
|
(7,624
|
)
|
|
—
|
|
|
(3,202
|
)
|
|||||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,181
|
)
|
|
—
|
|
|
—
|
|
|
(3,181
|
)
|
|||||||
Stock-based compensation expense
|
|
—
|
|
|
1,394
|
|
|
—
|
|
|
—
|
|
|
410
|
|
|
—
|
|
|
1,804
|
|
|||||||
Balances at February 28, 2017
|
|
278
|
|
|
295,432
|
|
|
159,369
|
|
|
(43,898
|
)
|
|
1,310
|
|
|
(21,176
|
)
|
|
391,315
|
|
|||||||
Net income (loss)
|
|
—
|
|
|
—
|
|
|
35,304
|
|
|
—
|
|
|
(7,345
|
)
|
|
—
|
|
|
27,959
|
|
|||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,676
|
|
|
—
|
|
|
—
|
|
|
29,676
|
|
|||||||
Exercise of stock options into 38,750 shares of common stock
|
|
—
|
|
|
300
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
300
|
|
|||||||
Stock-based compensation expense
|
|
—
|
|
|
663
|
|
|
—
|
|
|
—
|
|
|
205
|
|
|
—
|
|
|
868
|
|
|||||||
Balances at February 28, 2018
|
|
278
|
|
|
296,395
|
|
|
194,673
|
|
|
(14,222
|
)
|
|
(5,830
|
)
|
|
(21,176
|
)
|
|
450,118
|
|
|||||||
Net loss
|
|
—
|
|
|
—
|
|
|
(46,091
|
)
|
|
—
|
|
|
(6,741
|
)
|
|
—
|
|
|
(52,832
|
)
|
|||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,722
|
)
|
|
—
|
|
|
—
|
|
|
(2,722
|
)
|
|||||||
Adjustment to common stock
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|||||||
Stock-based compensation expense
|
|
—
|
|
|
551
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
551
|
|
|||||||
Balances at February 28, 2019
|
|
$
|
264
|
|
|
$
|
296,946
|
|
|
$
|
148,582
|
|
|
$
|
(16,944
|
)
|
|
$
|
(12,571
|
)
|
|
$
|
(21,176
|
)
|
|
$
|
395,101
|
|
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
||||||
|
|
February 28,
2019 |
|
February 28,
2018 |
|
February 28,
2017 |
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
||||||
Net loss from continuing operations
|
|
$
|
(52,832
|
)
|
|
$
|
(6,659
|
)
|
|
$
|
(9,268
|
)
|
Net income from discontinued operations
|
|
—
|
|
|
34,618
|
|
|
6,066
|
|
|||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization
|
|
12,344
|
|
|
15,112
|
|
|
18,294
|
|
|||
Amortization of deferred financing costs
|
|
822
|
|
|
822
|
|
|
820
|
|
|||
Intangible asset impairment charges
|
|
25,789
|
|
|
—
|
|
|
—
|
|
|||
Bad debt expense
|
|
507
|
|
|
929
|
|
|
2,126
|
|
|||
Impairment of notes receivable
|
|
16,509
|
|
|
—
|
|
|
—
|
|
|||
Loss (gain) on forward contracts
|
|
7
|
|
|
6,975
|
|
|
(947
|
)
|
|||
Loss on interest rate swap unwind
|
|
—
|
|
|
—
|
|
|
114
|
|
|||
Equity in income of equity investee
|
|
(6,618
|
)
|
|
(7,178
|
)
|
|
(6,797
|
)
|
|||
Distribution of income from equity investees
|
|
6,594
|
|
|
7,247
|
|
|
6,820
|
|
|||
Deferred income tax (benefit) expense, net
|
|
(7,110
|
)
|
|
(15,350
|
)
|
|
19
|
|
|||
Gain (loss) on disposal of property, plant and equipment
|
|
106
|
|
|
(11
|
)
|
|
7
|
|
|||
Non-cash compensation adjustment
|
|
(896
|
)
|
|
204
|
|
|
1,419
|
|
|||
Non-cash stock-based compensation expense
|
|
551
|
|
|
552
|
|
|
753
|
|
|||
Loss (gain) on investment
|
|
530
|
|
|
(1,416
|
)
|
|
—
|
|
|||
Gain on sale of Hirschmann
|
|
—
|
|
|
(36,118
|
)
|
|
—
|
|
|||
Impairment of Venezuela investment properties
|
|
3,473
|
|
|
—
|
|
|
—
|
|
|||
Changes in operating assets and liabilities (net of assets and liabilities) acquired):
|
|
|
|
|
|
|
|
|
|
|||
Accounts receivable
|
|
5,600
|
|
|
1,501
|
|
|
(6,684
|
)
|
|||
Inventory
|
|
13,912
|
|
|
7,150
|
|
|
(10,227
|
)
|
|||
Receivables from vendors
|
|
(521
|
)
|
|
474
|
|
|
2,287
|
|
|||
Prepaid expenses and other
|
|
4,917
|
|
|
(11,830
|
)
|
|
(1,973
|
)
|
|||
Investment securities-trading
|
|
762
|
|
|
474
|
|
|
(178
|
)
|
|||
Accounts payable, accrued expenses, accrued sales incentives and other current liabilities
|
|
480
|
|
|
(22,139
|
)
|
|
(1,564
|
)
|
|||
Income taxes receivable/payable
|
|
(2,364
|
)
|
|
(896
|
)
|
|
(2,877
|
)
|
|||
Net cash provided by (used in) operating activities
|
|
22,562
|
|
|
(25,539
|
)
|
|
(1,790
|
)
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|||
Purchases of property, plant and equipment
|
|
(4,761
|
)
|
|
(6,238
|
)
|
|
(12,177
|
)
|
|||
Proceeds from sale of property, plant and equipment
|
|
78
|
|
|
14
|
|
|
47
|
|
|||
Proceeds from sale of long-term investment
|
|
—
|
|
|
2,678
|
|
|
—
|
|
|||
Issuance of notes receivable
|
|
(6,354
|
)
|
|
(3,300
|
)
|
|
—
|
|
|||
Purchase of acquired businesses, less cash acquired (Note 2)
|
|
—
|
|
|
(1,814
|
)
|
|
—
|
|
|||
Proceeds from sale of Hirschmann, net of settlement of forward contracts
|
|
—
|
|
|
170,020
|
|
|
—
|
|
|||
Net cash (used in) provided by investing activities
|
|
(11,037
|
)
|
|
161,360
|
|
|
(12,130
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|||
Borrowings from bank obligations
|
|
1,958
|
|
|
37,603
|
|
|
60,672
|
|
|||
Repayments on bank obligations
|
|
(2,480
|
)
|
|
(129,585
|
)
|
|
(50,452
|
)
|
|||
Principal payments on capital lease obligation
|
|
(402
|
)
|
|
(565
|
)
|
|
(525
|
)
|
|||
Proceeds from exercise of stock options and warrants
|
|
—
|
|
|
300
|
|
|
—
|
|
|||
Net cash (used in) provided by financing activities
|
|
(924
|
)
|
|
(92,247
|
)
|
|
9,695
|
|
|||
Effect of exchange rate changes on cash
|
|
(4,105
|
)
|
|
366
|
|
|
258
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
6,496
|
|
|
43,940
|
|
|
(3,967
|
)
|
|||
Cash and cash equivalents at beginning of year
|
(a)
|
51,740
|
|
|
7,800
|
|
|
11,767
|
|
|||
Cash and cash equivalents at end of year
|
|
$
|
58,236
|
|
|
$
|
51,740
|
|
|
$
|
7,800
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
|
|
|
|
|
|||
Non-cash investing activities:
|
|
|
|
|
|
|
||||||
Capital lease obligations
|
|
$
|
360
|
|
|
$
|
—
|
|
|
$
|
1,041
|
|
Aquisition of patents
|
|
2,600
|
|
|
—
|
|
|
—
|
|
|||
Mortgage settlement funded by long-term obligation
|
|
—
|
|
|
—
|
|
|
5,590
|
|
|||
Deferred financing costs funded by long-term obligation
|
|
—
|
|
|
—
|
|
|
1,779
|
|
|||
Investment in equity security exchanged for note receivable
|
|
—
|
|
|
4,453
|
|
|
—
|
|
|||
Acquisition of long-term investment
|
|
—
|
|
|
547
|
|
|
—
|
|
|||
Cash paid during the period for:
|
|
|
|
|
|
|
|
|
|
|||
Interest, excluding bank charges
|
|
$
|
1,728
|
|
|
$
|
3,752
|
|
|
$
|
5,195
|
|
Income taxes (net of refunds)
|
|
3,212
|
|
|
2,908
|
|
|
4,409
|
|
1)
|
Description of Business and Summary of Significant Accounting Policies
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
||||||
Cash and cash equivalents:
|
|
|
|
|
|
||||||
Cash and money market funds
|
$
|
58,236
|
|
|
$
|
58,236
|
|
|
$
|
—
|
|
Derivatives
|
|
|
|
|
|
|
|
|
|||
Designated for hedging
|
$
|
88
|
|
|
$
|
—
|
|
|
$
|
88
|
|
|
|
|
|
|
|
||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|||
Mutual funds
|
$
|
2,858
|
|
|
$
|
2,858
|
|
|
$
|
—
|
|
Total investment securities
|
$
|
2,858
|
|
|
$
|
2,858
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
||||||
Cash and cash equivalents:
|
|
|
|
|
|
||||||
Cash and money market funds
|
$
|
51,740
|
|
|
$
|
51,740
|
|
|
$
|
—
|
|
Derivatives
|
|
|
|
|
|
|
|
|
|||
Designated for hedging
|
$
|
(262
|
)
|
|
$
|
—
|
|
|
$
|
(262
|
)
|
Investment securities:
|
|
|
|
|
|
|
|
|
|||
Trading securities
|
$
|
3,620
|
|
|
$
|
3,620
|
|
|
$
|
—
|
|
Other investments at amortized cost (a)
|
547
|
|
|
—
|
|
|
—
|
|
|||
Total investment securities
|
$
|
4,167
|
|
|
$
|
3,620
|
|
|
$
|
—
|
|
(a)
|
This balance represents an investment in a non-controlled corporation held at cost at
February 28, 2018
(See Note 1(f)). The fair value of this investment would be based upon Level 3 inputs and was not considered material to the Company's consolidated financial statements.
|
|
|
Derivative Assets and Liabilities
|
||||||||
|
|
|
|
Fair Value
|
||||||
|
|
Account
|
|
February 28, 2019
|
|
February 28, 2018
|
||||
Designated derivative instruments
|
|
|
|
|
|
|
||||
Foreign currency contracts
|
|
Accrued expenses and other current liabilities
|
|
$
|
—
|
|
|
$
|
(227
|
)
|
|
|
Prepaid expenses and other current assets
|
|
172
|
|
|
—
|
|
||
Interest rate swap
|
|
Other long-term liabilities
|
|
(84
|
)
|
|
(35
|
)
|
||
|
|
|
|
|
|
|
||||
Total derivatives
|
|
|
|
$
|
88
|
|
|
$
|
(262
|
)
|
|
February 28, 2019
|
|
February 28, 2018
|
||||||||||||||||||||
|
Gain (Loss) Recognized in Other Comprehensive Income
|
|
Gain (Loss) Reclassified into Cost of Sales
|
|
Gain (Loss) for Ineffectiveness in Other Income
|
|
Gain (Loss) Recognized in Other Comprehensive Income
|
|
Gain (Loss) Reclassified into Cost of Sales
|
|
Gain (Loss) for Ineffectiveness in Other Income
|
||||||||||||
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency contracts
|
$
|
708
|
|
|
$
|
(13
|
)
|
|
$
|
46
|
|
|
$
|
(1,635
|
)
|
|
$
|
(297
|
)
|
|
$
|
(48
|
)
|
Interest rate swaps
|
$
|
(49
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
263
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
February 28, 2019
|
||||||
|
|
|
|
|
|
Carrying Value
|
||||||
Investment Securities
|
|
|
|
|
|
|
||||||
Marketable Equity Securities
|
|
|
|
|
|
|
||||||
Mutual funds
|
|
|
|
|
|
$
|
2,858
|
|
||||
Total Marketable Equity Securities
|
|
|
|
|
|
2,858
|
|
|||||
Investment Held at Cost, Less Impairment
|
|
|
|
|
|
—
|
|
|||||
Total Investment Securities
|
|
|
|
|
|
$
|
2,858
|
|
||||
|
|
|
|
|
|
|
||||||
|
|
February 28, 2018
|
||||||||||
|
|
Cost
Basis
|
|
Unrealized
holding
gain/(loss)
|
|
Fair
Value
|
||||||
Investment Securities
|
|
|
|
|
|
|
|
|
|
|||
Marketable Securities
|
|
|
|
|
|
|
|
|
|
|||
Trading
|
|
|
|
|
|
|
|
|
|
|||
Mutual funds
|
|
$
|
3,620
|
|
|
$
|
—
|
|
|
$
|
3,620
|
|
Total Marketable Securities
|
|
3,620
|
|
|
—
|
|
|
3,620
|
|
|||
Other Long-Term Investments at Cost
|
|
547
|
|
|
—
|
|
|
547
|
|
|||
Total Investment Securities
|
|
$
|
4,167
|
|
|
$
|
—
|
|
|
$
|
4,167
|
|
|
February 28,
2019 |
|
February 28,
2018 |
||||
Trade accounts receivable
|
$
|
77,064
|
|
|
$
|
84,517
|
|
Less:
|
|
|
|
|
|
||
Allowance for doubtful accounts
|
2,548
|
|
|
2,196
|
|
||
Allowance for cash discounts
|
1,125
|
|
|
1,205
|
|
||
|
$
|
73,391
|
|
|
$
|
81,116
|
|
|
February 28,
2019 |
|
February 28,
2018 |
||||
Raw materials
|
$
|
27,518
|
|
|
$
|
28,071
|
|
Work in process
|
2,622
|
|
|
2,485
|
|
||
Finished goods
|
72,239
|
|
|
87,436
|
|
||
Inventory, net
|
$
|
102,379
|
|
|
$
|
117,992
|
|
|
February 28,
2019 |
|
February 28,
2018 |
||||
Land
|
$
|
10,110
|
|
|
$
|
9,522
|
|
Buildings
|
49,301
|
|
|
51,375
|
|
||
Property under capital lease
|
1,907
|
|
|
1,578
|
|
||
Furniture and fixtures
|
3,878
|
|
|
4,262
|
|
||
Machinery and equipment
|
8,618
|
|
|
10,373
|
|
||
Construction-in-progress
|
155
|
|
|
148
|
|
||
Computer hardware and software
|
37,591
|
|
|
37,408
|
|
||
Automobiles
|
808
|
|
|
921
|
|
||
Leasehold improvements
|
2,682
|
|
|
2,713
|
|
||
|
115,050
|
|
|
118,300
|
|
||
Less accumulated depreciation and amortization
|
54,557
|
|
|
53,041
|
|
||
|
$
|
60,493
|
|
|
$
|
65,259
|
|
Buildings and improvements
|
|
20
|
-
|
40 years
|
Furniture and fixtures
|
|
5
|
-
|
15 years
|
Machinery and equipment
|
|
5
|
-
|
10 years
|
Computer hardware and software
|
|
3
|
-
|
5 years
|
Automobiles
|
|
|
|
3 years
|
|
February 28, 2019
|
|
February 28, 2018
|
|
February 28, 2017
|
||||||
Beginning of period
|
$
|
54,785
|
|
|
$
|
53,905
|
|
|
$
|
53,905
|
|
Goodwill acquired (see Note 2)
|
—
|
|
|
880
|
|
|
—
|
|
|||
End of period
|
$
|
54,785
|
|
|
$
|
54,785
|
|
|
$
|
53,905
|
|
|
|
|
|
|
|
||||||
Gross carrying amount
|
$
|
86,948
|
|
|
$
|
86,948
|
|
|
$
|
86,068
|
|
Accumulated impairment charges
|
(32,163
|
)
|
|
(32,163
|
)
|
|
(32,163
|
)
|
|||
Net carrying amount
|
$
|
54,785
|
|
|
$
|
54,785
|
|
|
$
|
53,905
|
|
|
February 28, 2019
|
|
February 28, 2018
|
|
February 28, 2017
|
||||||
Automotive
|
|
|
|
|
|
||||||
Beginning of period
|
$
|
8,252
|
|
|
$
|
7,372
|
|
|
$
|
7,372
|
|
Goodwill acquired (see Note 2)
|
—
|
|
|
880
|
|
|
—
|
|
|||
End of period
|
$
|
8,252
|
|
|
$
|
8,252
|
|
|
$
|
7,372
|
|
|
|
|
|
|
|
||||||
Gross carrying amount
|
$
|
8,252
|
|
|
$
|
8,252
|
|
|
$
|
7,372
|
|
Accumulated impairment charge
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net carrying amount
|
$
|
8,252
|
|
|
$
|
8,252
|
|
|
$
|
7,372
|
|
|
|
|
|
|
|
||||||
Premium Audio
|
|
|
|
|
|
||||||
Beginning of period
|
$
|
46,533
|
|
|
$
|
46,533
|
|
|
$
|
46,533
|
|
Impairment charge
|
—
|
|
|
—
|
|
|
—
|
|
|||
End of period
|
$
|
46,533
|
|
|
$
|
46,533
|
|
|
$
|
46,533
|
|
|
|
|
|
|
|
||||||
Gross carrying amount
|
$
|
78,696
|
|
|
$
|
78,696
|
|
|
$
|
78,696
|
|
Accumulated impairment charge
|
(32,163
|
)
|
|
(32,163
|
)
|
|
(32,163
|
)
|
|||
Net carrying amount
|
$
|
46,533
|
|
|
$
|
46,533
|
|
|
$
|
46,533
|
|
|
|
|
|
|
|
||||||
Total goodwill, net
|
$
|
54,785
|
|
|
$
|
54,785
|
|
|
$
|
53,905
|
|
|
February 28, 2019
|
||||||||||
|
Gross
Carrying
Value
|
|
Accumulated
Amortization
|
|
Total Net
Book
Value
|
||||||
Finite-lived intangible assets:
|
|
|
|
|
|
||||||
Customer relationships (4-20 years)
|
$
|
49,743
|
|
|
$
|
29,746
|
|
|
$
|
19,997
|
|
Trademarks/Tradenames (3-12 years)
|
485
|
|
|
413
|
|
|
72
|
|
|||
Developed technology (11.5 years)
|
31,290
|
|
|
9,523
|
|
|
21,767
|
|
|||
Patents (4-13 years)
|
5,390
|
|
|
2,907
|
|
|
2,483
|
|
|||
License (5 years)
|
1,400
|
|
|
1,400
|
|
|
—
|
|
|||
Contracts (5 years)
|
2,141
|
|
|
1,966
|
|
|
175
|
|
|||
Total finite-lived intangible assets
|
$
|
90,449
|
|
|
$
|
45,955
|
|
|
44,494
|
|
|
Indefinite-lived intangible assets
|
|
|
|
|
|
||||||
Trademarks
|
|
|
|
|
74,955
|
|
|||||
Total net intangible assets
|
|
|
|
|
|
|
$
|
119,449
|
|
|
February 28, 2018
|
||||||||||
|
Gross
Carrying
Value
|
|
Accumulated
Amortization
|
|
Total Net
Book
Value
|
||||||
Finite-lived intangible assets:
|
|
|
|
|
|
||||||
Customer relationships (4-20 years)
|
$
|
50,249
|
|
|
$
|
26,807
|
|
|
$
|
23,442
|
|
Trademarks/Tradenames (3-12 years)
|
415
|
|
|
400
|
|
|
15
|
|
|||
Developed technology (11.5 years)
|
31,290
|
|
|
6,802
|
|
|
24,488
|
|
|||
Patents (4-13 years)
|
2,830
|
|
|
2,138
|
|
|
692
|
|
|||
License (5 years)
|
1,400
|
|
|
1,400
|
|
|
—
|
|
|||
Contracts (5 years)
|
2,141
|
|
|
1,849
|
|
|
292
|
|
|||
Total finite-lived intangible assets
|
$
|
88,325
|
|
|
$
|
39,396
|
|
|
48,929
|
|
|
Indefinite-lived intangible assets
|
|
|
|
|
|
||||||
Trademarks
|
|
|
|
|
101,391
|
|
|||||
Total net intangible assets
|
|
|
|
|
|
|
$
|
150,320
|
|
Fiscal Year
|
|
Amount
|
||
2020
|
|
$
|
6,931
|
|
2021
|
|
6,724
|
|
|
2022
|
|
6,596
|
|
|
2023
|
|
5,650
|
|
|
2024
|
|
5,436
|
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
||||||
|
February 28,
2019 |
|
February 28,
2018 |
|
February 28,
2017 |
||||||
Opening balance
|
$
|
14,020
|
|
|
$
|
13,154
|
|
|
$
|
12,439
|
|
Accruals
|
37,272
|
|
|
42,722
|
|
|
36,413
|
|
|||
Payments and credits
|
(37,516
|
)
|
|
(41,811
|
)
|
|
(35,590
|
)
|
|||
Reversals for unearned sales incentives
|
(202
|
)
|
|
(45
|
)
|
|
(108
|
)
|
|||
Ending balance
|
$
|
13,574
|
|
|
$
|
14,020
|
|
|
$
|
13,154
|
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
||||||
|
February 28,
2019 |
|
February 28,
2018 |
|
February 28,
2017 |
||||||
Beginning balance
|
$
|
6,233
|
|
|
$
|
5,608
|
|
|
$
|
7,608
|
|
Liabilities acquired during acquisitions
|
—
|
|
|
500
|
|
|
—
|
|
|||
Accrual for warranties issued during the year and repair cost
|
6,091
|
|
|
7,428
|
|
|
5,843
|
|
|||
Balances transferred (a)
|
(832
|
)
|
|
—
|
|
|
—
|
|
|||
Warranty claims settled during the year
|
(7,023
|
)
|
|
(7,303
|
)
|
|
(7,843
|
)
|
|||
Ending balance
|
$
|
4,469
|
|
|
$
|
6,233
|
|
|
$
|
5,608
|
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|||
|
February 28, 2019
|
|
February 28, 2018
|
|
February 28, 2017
|
|||
Weighted-average common shares outstanding (basic)
|
24,355,791
|
|
|
24,290,563
|
|
|
24,160,324
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
Stock options, warrants and restricted stock
|
—
|
|
|
256,683
|
|
|
—
|
|
Weighted-average common and potential common shares outstanding (diluted)
|
24,355,791
|
|
|
24,547,246
|
|
|
24,160,324
|
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
||||||
|
February 28, 2019
|
|
February 28, 2018
|
|
February 28, 2017
|
||||||
Foreign currency gain (loss)
|
$
|
220
|
|
|
$
|
(8,769
|
)
|
|
$
|
(509
|
)
|
Interest income
|
994
|
|
|
210
|
|
|
137
|
|
|||
Rental income
|
517
|
|
|
553
|
|
|
646
|
|
|||
Miscellaneous
|
(1,154
|
)
|
|
416
|
|
|
(728
|
)
|
|||
Total other, net
|
$
|
577
|
|
|
$
|
(7,590
|
)
|
|
$
|
(454
|
)
|
|
Number
of Shares
|
|
Weighted-
Average
Exercise
Price
|
|||
Outstanding and exercisable at February 28, 2017
|
116,250
|
|
|
$
|
7.76
|
|
Granted
|
—
|
|
|
—
|
|
|
Exercised
|
(38,750
|
)
|
|
7.76
|
|
|
Forfeited/expired
|
(77,500
|
)
|
|
7.76
|
|
|
Outstanding and exercisable at February 28, 2018
|
—
|
|
|
—
|
|
|
Number of shares
|
|
Weighted Average Grant Date Fair Value
|
|||
Outstanding at February 29, 2016
|
271,824
|
|
|
$
|
9.61
|
|
Granted
|
165,619
|
|
|
2.69
|
|
|
Forfeited
|
—
|
|
|
—
|
|
|
Outstanding at February 28, 2017
|
437,443
|
|
|
$
|
6.99
|
|
Granted
|
74,156
|
|
|
6.52
|
|
|
Vested and settled
|
(72,300
|
)
|
|
5.98
|
|
|
Forfeited
|
—
|
|
|
—
|
|
|
Outstanding at February 28, 2018
|
439,299
|
|
|
$
|
7.08
|
|
Granted
|
188,245
|
|
|
5.50
|
|
|
Vested and settled
|
—
|
|
|
—
|
|
|
Forfeited
|
—
|
|
|
—
|
|
|
Outstanding at February 28, 2019
|
627,544
|
|
|
$
|
6.60
|
|
Vested and unissued at February 28, 2019
|
156,737
|
|
|
$
|
9.96
|
|
|
Foreign Exchange Losses
|
|
Unrealized losses on investments, net of tax (a)
|
|
Pension plan adjustments, net of tax
|
|
Derivatives designated in a hedging relationship, net of tax
|
|
Total
|
||||||||||
Balance at February 29, 2016
|
$
|
(38,637
|
)
|
|
$
|
(81
|
)
|
|
$
|
(2,102
|
)
|
|
$
|
103
|
|
|
$
|
(40,717
|
)
|
Other comprehensive (loss) income before reclassifications
|
(3,194
|
)
|
|
(17
|
)
|
|
(180
|
)
|
|
742
|
|
|
(2,649
|
)
|
|||||
Reclassified from accumulated other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(532
|
)
|
|
(532
|
)
|
|||||
Net current-period other comprehensive (loss) income
|
(3,194
|
)
|
|
(17
|
)
|
|
(180
|
)
|
|
210
|
|
|
(3,181
|
)
|
|||||
Balance at February 28, 2017
|
$
|
(41,831
|
)
|
|
$
|
(98
|
)
|
|
$
|
(2,282
|
)
|
|
$
|
313
|
|
|
$
|
(43,898
|
)
|
Other comprehensive (loss) income before reclassifications
|
18,065
|
|
|
(15
|
)
|
|
(459
|
)
|
|
(1,358
|
)
|
|
16,233
|
|
|||||
Reclassified from accumulated other comprehensive loss
|
10,739
|
|
|
89
|
|
|
1,955
|
|
|
660
|
|
|
13,443
|
|
|||||
Net current-period other comprehensive (loss) income
|
28,804
|
|
|
74
|
|
|
1,496
|
|
|
(698
|
)
|
|
29,676
|
|
|||||
Balance at February 28, 2018
|
$
|
(13,027
|
)
|
|
$
|
(24
|
)
|
|
$
|
(786
|
)
|
|
$
|
(385
|
)
|
|
$
|
(14,222
|
)
|
Other comprehensive (loss) income before reclassifications
|
(3,195
|
)
|
|
—
|
|
|
(12
|
)
|
|
452
|
|
|
(2,755
|
)
|
|||||
Reclassified from accumulated other comprehensive loss
|
—
|
|
|
24
|
|
|
—
|
|
|
9
|
|
|
33
|
|
|||||
Net current-period other comprehensive (loss) income
|
(3,195
|
)
|
|
24
|
|
|
(12
|
)
|
|
461
|
|
|
(2,722
|
)
|
|||||
Balance at February 28, 2019
|
$
|
(16,222
|
)
|
|
$
|
—
|
|
|
$
|
(798
|
)
|
|
$
|
76
|
|
|
$
|
(16,944
|
)
|
|
April 18, 2017 (as originally reported)
|
|
Measurement Period Adjustments
|
|
April 18, 2017 (as adjusted)
|
||||||
Assets acquired:
|
|
|
|
|
|
||||||
Inventory
|
$
|
2,314
|
|
|
(870
|
)
|
|
1,444
|
|
||
Goodwill
|
10
|
|
|
870
|
|
|
880
|
|
|||
Intangible assets including trademarks and customer relationships
|
520
|
|
|
—
|
|
|
520
|
|
|||
Total assets acquired
|
$
|
2,844
|
|
|
$
|
—
|
|
|
$
|
2,844
|
|
|
|
|
|
|
|
||||||
Liabilities assumed:
|
|
|
|
|
|
||||||
Warranty accrual
|
500
|
|
|
—
|
|
|
500
|
|
|||
Total
|
$
|
500
|
|
|
$
|
—
|
|
|
$
|
500
|
|
Total purchase price
|
$
|
2,344
|
|
|
$
|
—
|
|
|
$
|
2,344
|
|
|
|
Year ended February 28, 2018
|
|
Year ended February 28, 2017
|
||||
|
|
|
|
|
||||
Net sales
|
|
$
|
91,824
|
|
|
$
|
166,512
|
|
Cost of sales
|
|
63,610
|
|
|
109,027
|
|
||
Gross profit
|
|
28,214
|
|
|
57,485
|
|
||
|
|
|
|
|
||||
Operating expenses:
|
|
|
|
|
||||
Selling
|
|
2,778
|
|
|
5,097
|
|
||
General and administrative
|
|
14,699
|
|
|
28,309
|
|
||
Engineering and technical support
|
|
7,920
|
|
|
16,083
|
|
||
Total operating expenses
|
|
25,397
|
|
|
49,489
|
|
||
Operating income from discontinued operations
|
|
2,817
|
|
|
7,996
|
|
||
|
|
|
|
|
||||
Other (expense) income:
|
|
|
|
|
||||
Interest and bank charges (a)
|
|
(279
|
)
|
|
(383
|
)
|
||
Other, net
|
|
145
|
|
|
(126
|
)
|
||
Total other expense of discontinued operations, net
|
|
(134
|
)
|
|
(509
|
)
|
||
|
|
|
|
|
||||
Gain on sale of discontinued operations before taxes
|
|
36,118
|
|
|
—
|
|
||
Total income from discontinued operations before taxes
|
|
38,801
|
|
|
7,487
|
|
||
Income tax expense on discontinued operations (b)
|
|
4,183
|
|
|
1,421
|
|
||
Income from discontinued operations, net of taxes
|
|
$
|
34,618
|
|
|
$
|
6,066
|
|
Income per share - basic
|
|
$
|
1.43
|
|
|
$
|
0.25
|
|
Income per share - diluted
|
|
$
|
1.41
|
|
|
$
|
0.25
|
|
|
Year ended February 28, 2018
|
|
Year ended February 28, 2017
|
||||
Operating activities:
|
|
|
|
||||
Depreciation and amortization expense
|
$
|
2,939
|
|
|
$
|
5,908
|
|
Stock-based compensation expense
|
50
|
|
|
84
|
|
||
|
|
|
|
||||
Investing activities:
|
|
|
|
||||
Capital expenditures
|
2,652
|
|
|
5,122
|
|
||
|
|
|
|
||||
Non-cash investing and financing activities:
|
|
|
|
||||
Capital expenditures funded by long-term obligations
|
1,916
|
|
|
—
|
|
3)
|
Variable Interest Entities
|
|
|
February 28, 2019
|
|
February 28, 2018
|
||||
Assets
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
3
|
|
|
$
|
—
|
|
Accounts receivable, net
|
|
363
|
|
|
128
|
|
||
Inventory, net
|
|
(27
|
)
|
|
(119
|
)
|
||
Prepaid expenses and other current assets
|
|
322
|
|
|
117
|
|
||
Total current assets
|
|
661
|
|
|
126
|
|
||
Property, plant and equipment, net
|
|
120
|
|
|
186
|
|
||
Intangible assets, net
|
|
33,064
|
|
|
36,126
|
|
||
Other assets
|
|
253
|
|
|
119
|
|
||
Total assets
|
|
$
|
34,098
|
|
|
$
|
36,557
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
||||
Accounts payable
|
|
$
|
1,122
|
|
|
$
|
1,292
|
|
Interest payable to VOXX
|
|
8,729
|
|
|
4,734
|
|
||
Accrued expenses and other current liabilities
|
|
1,030
|
|
|
1,242
|
|
||
Due to VOXX
|
|
44,937
|
|
|
33,722
|
|
||
Total current liabilities
|
|
55,818
|
|
|
40,990
|
|
||
Other long-term liabilities
|
|
1,200
|
|
|
1,200
|
|
||
Total liabilities
|
|
57,018
|
|
|
42,190
|
|
||
Commitments and contingencies
|
|
|
|
|
||||
Partners' deficit:
|
|
|
|
|
||||
Capital
|
|
41,416
|
|
|
41,416
|
|
||
Retained losses
|
|
(64,336
|
)
|
|
(47,049
|
)
|
||
Total partners' deficit
|
|
(22,920
|
)
|
|
(5,633
|
)
|
||
Total liabilities and partners' deficit
|
|
$
|
34,098
|
|
|
$
|
36,557
|
|
|
|
Year ended February 28, 2019
|
|
Year ended February 28, 2018
|
|
Year ended February 28, 2017
|
||||||
Net sales
|
|
$
|
668
|
|
|
$
|
335
|
|
|
$
|
243
|
|
Cost of sales
|
|
309
|
|
|
455
|
|
|
301
|
|
|||
Gross profit
|
|
359
|
|
|
(120
|
)
|
|
(58
|
)
|
|||
Operating expenses:
|
|
|
|
|
|
|
||||||
Selling
|
|
1,160
|
|
|
1,893
|
|
|
2,227
|
|
|||
General and administrative
|
|
4,986
|
|
|
6,792
|
|
|
6,956
|
|
|||
Engineering and technical support
|
|
7,487
|
|
|
7,159
|
|
|
8,698
|
|
|||
Total operating expenses
|
|
13,633
|
|
|
15,844
|
|
|
17,881
|
|
|||
Operating loss
|
|
(13,274
|
)
|
|
(15,964
|
)
|
|
(17,939
|
)
|
|||
Interest and bank charges
|
|
(4,013
|
)
|
|
(2,869
|
)
|
|
(1,609
|
)
|
|||
Other, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Loss before income taxes
|
|
(17,287
|
)
|
|
(18,833
|
)
|
|
(19,548
|
)
|
|||
Income tax expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net loss
|
|
$
|
(17,287
|
)
|
|
$
|
(18,833
|
)
|
|
$
|
(19,548
|
)
|
4)
|
Receivables from Vendors
|
5)
|
Equity Investment
|
6)
|
Accrued Expenses and Other Current Liabilities
|
|
February 28,
2019 |
|
February 28,
2018 |
||||
Commissions
|
$
|
640
|
|
|
$
|
711
|
|
Employee compensation
|
14,552
|
|
|
17,429
|
|
||
Professional fees and accrued settlements
|
2,172
|
|
|
1,427
|
|
||
Future warranty
|
3,090
|
|
|
4,261
|
|
||
Return liability
|
4,415
|
|
|
—
|
|
||
Freight and duty
|
2,427
|
|
|
1,880
|
|
||
Royalties, advertising and other
|
11,833
|
|
|
10,642
|
|
||
Total accrued expenses and other current liabilities
|
$
|
39,129
|
|
|
$
|
36,350
|
|
7)
|
Financing Arrangements
|
|
|
February 28,
2019 |
|
February 28,
2018 |
||||
Domestic credit facility (a)
|
|
$
|
—
|
|
|
$
|
—
|
|
Florida mortgage (b)
|
|
8,112
|
|
|
8,613
|
|
||
Euro asset-based lending obligation (c)
|
|
6,699
|
|
|
6,119
|
|
||
Schwaiger mortgage (d)
|
|
235
|
|
|
468
|
|
||
VOXX Germany mortgage (e)
|
|
2,588
|
|
|
3,665
|
|
||
Total debt
|
|
17,634
|
|
|
18,865
|
|
||
Less: current portion of long-term debt
|
|
10,021
|
|
|
7,730
|
|
||
Long-term debt before debt issuance costs
|
|
7,613
|
|
|
11,135
|
|
||
Debt issuance costs
|
|
(1,837
|
)
|
|
(2,659
|
)
|
||
Total long-term debt
|
|
$
|
5,776
|
|
|
$
|
8,476
|
|
2020
|
$
|
10,021
|
|
2021
|
500
|
|
|
2022
|
500
|
|
|
2023
|
500
|
|
|
2024
|
500
|
|
|
Thereafter
|
5,613
|
|
|
Total
|
$
|
17,634
|
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
||||||
|
February 28,
2019 |
|
February 28,
2018 |
|
February 28,
2017 |
||||||
Domestic Operations
|
$
|
(49,984
|
)
|
|
$
|
(27,214
|
)
|
|
$
|
(12,834
|
)
|
Foreign Operations
|
(8,979
|
)
|
|
3,110
|
|
|
3,904
|
|
|||
|
$
|
(58,963
|
)
|
|
$
|
(24,104
|
)
|
|
$
|
(8,930
|
)
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
||||||
|
February 28,
2019 |
|
February 28,
2018 |
|
February 28,
2017 |
||||||
Current provision (benefit)
|
|
|
|
|
|
||||||
Federal
|
$
|
(54
|
)
|
|
$
|
(1,451
|
)
|
|
$
|
(2,118
|
)
|
State
|
(401
|
)
|
|
150
|
|
|
238
|
|
|||
Foreign
|
1,392
|
|
|
1,814
|
|
|
1,580
|
|
|||
Total current provision (benefit)
|
$
|
937
|
|
|
$
|
513
|
|
|
$
|
(300
|
)
|
Deferred (benefit) provision
|
|
|
|
|
|
|
|
|
|||
Federal
|
$
|
(4,772
|
)
|
|
$
|
(17,198
|
)
|
|
$
|
658
|
|
State
|
(392
|
)
|
|
(827
|
)
|
|
279
|
|
|||
Foreign
|
(1,904
|
)
|
|
67
|
|
|
(299
|
)
|
|||
Total deferred (benefit) provision
|
$
|
(7,068
|
)
|
|
$
|
(17,958
|
)
|
|
$
|
638
|
|
Total (benefit) provision
|
|
|
|
|
|
|
|
|
|||
Federal
|
$
|
(4,826
|
)
|
|
$
|
(18,649
|
)
|
|
$
|
(1,460
|
)
|
State
|
(793
|
)
|
|
(677
|
)
|
|
517
|
|
|||
Foreign
|
(512
|
)
|
|
1,881
|
|
|
1,281
|
|
|||
Total (benefit) provision
|
$
|
(6,131
|
)
|
|
$
|
(17,445
|
)
|
|
$
|
338
|
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|||||||||||||||
|
February 28,
2019 |
|
February 28,
2018 |
|
February 28,
2017 |
|||||||||||||||
Tax benefit at Federal statutory rates
|
$
|
(12,383
|
)
|
|
21.0
|
%
|
|
$
|
(7,891
|
)
|
|
32.7
|
%
|
|
$
|
(3,123
|
)
|
|
35.0
|
%
|
State income taxes, net of Federal benefit
|
(809
|
)
|
|
1.4
|
|
|
(249
|
)
|
|
1.0
|
|
|
(788
|
)
|
|
8.8
|
|
|||
Change in valuation allowance
|
6,164
|
|
|
(10.5
|
)
|
|
(2,546
|
)
|
|
10.6
|
|
|
6,588
|
|
|
(73.8
|
)
|
|||
Change in tax reserves
|
(697
|
)
|
|
1.2
|
|
|
(2,443
|
)
|
|
10.1
|
|
|
(5,974
|
)
|
|
66.9
|
|
|||
Non-controlling interest
|
1,416
|
|
|
(2.4
|
)
|
|
2,404
|
|
|
(10.0
|
)
|
|
2,668
|
|
|
(29.9
|
)
|
|||
US effects of foreign operations
|
53
|
|
|
(0.1
|
)
|
|
614
|
|
|
(2.5
|
)
|
|
556
|
|
|
(6.2
|
)
|
|||
Permanent differences and other
|
636
|
|
|
(1.1
|
)
|
|
1,190
|
|
|
(4.9
|
)
|
|
589
|
|
|
(6.6
|
)
|
|||
Foreign exchange loss
|
—
|
|
|
—
|
|
|
(3,376
|
)
|
|
14.0
|
|
|
—
|
|
|
—
|
|
|||
NOL carryback
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,413
|
|
|
(15.8
|
)
|
|||
Change in tax rate
|
55
|
|
|
(0.1
|
)
|
|
(2,462
|
)
|
|
10.2
|
|
|
(110
|
)
|
|
1.2
|
|
|||
Research & development credits
|
(566
|
)
|
|
1.0
|
|
|
(524
|
)
|
|
2.2
|
|
|
(625
|
)
|
|
7.0
|
|
|||
Tax credits
|
—
|
|
|
—
|
|
|
(2,162
|
)
|
|
9.0
|
|
|
(856
|
)
|
|
9.6
|
|
|||
Effective tax rate
|
$
|
(6,131
|
)
|
|
10.4
|
%
|
|
$
|
(17,445
|
)
|
|
72.4
|
%
|
|
$
|
338
|
|
|
(3.8
|
)%
|
|
February 28,
2019 |
|
February 28,
2018 |
||||
Deferred tax assets:
|
|
|
|
||||
Accounts receivable
|
$
|
357
|
|
|
$
|
52
|
|
Inventory
|
2,374
|
|
|
2,011
|
|
||
Property, plant and equipment
|
1,900
|
|
|
479
|
|
||
Accruals and reserves
|
4,008
|
|
|
2,375
|
|
||
Deferred compensation
|
632
|
|
|
806
|
|
||
Warranty reserves
|
699
|
|
|
976
|
|
||
Unrealized gains and losses
|
4,179
|
|
|
1,335
|
|
||
Partnership investments
|
496
|
|
|
—
|
|
||
Net operating losses
|
12,267
|
|
|
13,191
|
|
||
Foreign tax credits
|
3,805
|
|
|
4,501
|
|
||
Other tax credits
|
4,752
|
|
|
3,530
|
|
||
Deferred tax assets before valuation allowance
|
35,469
|
|
|
29,256
|
|
||
Less: valuation allowance
|
(22,026
|
)
|
|
(15,881
|
)
|
||
Total deferred tax assets
|
13,443
|
|
|
13,375
|
|
||
Deferred tax liabilities:
|
|
|
|
|
|
||
Intangible assets
|
(17,145
|
)
|
|
(23,157
|
)
|
||
Partnership investments
|
—
|
|
|
(100
|
)
|
||
Prepaid expenses
|
(1,286
|
)
|
|
(1,995
|
)
|
||
Deferred financing fees
|
(217
|
)
|
|
(316
|
)
|
||
Total deferred tax liabilities
|
(18,648
|
)
|
|
(25,568
|
)
|
||
Net deferred tax liability
|
$
|
(5,205
|
)
|
|
$
|
(12,193
|
)
|
Balance at February 29, 2016
|
$
|
14,472
|
|
Additions based on tax positions taken in the current and prior years
|
3,147
|
|
|
Settlements
|
—
|
|
|
Decreases based on tax positions taken in the prior years
|
(6,470
|
)
|
|
Other
|
(305
|
)
|
|
Balance at February 28, 2017
|
$
|
10,844
|
|
Additions based on tax positions taken in the current and prior years
|
630
|
|
|
Settlements
|
—
|
|
|
Decreases based on tax positions taken in the prior years
|
(2,945
|
)
|
|
Other
|
578
|
|
|
Balance at February 28, 2018
|
$
|
9,107
|
|
Additions based on tax positions taken in the current and prior years
|
2,125
|
|
|
Settlements
|
—
|
|
|
Decreases based on tax positions taken in prior years
|
(1,923
|
)
|
|
Other
|
(227
|
)
|
|
Balance at February 28, 2019
|
$
|
9,082
|
|
Jurisdiction
|
|
Tax Year
|
|
|
|
U.S.
|
|
2015
|
Netherlands
|
|
2015
|
Germany
|
|
2015
|
9)
|
Capital Structure
|
|
|
|
|
Shares Authorized
|
|
Shares Outstanding
|
|
|
|
|
|||||||||||
Security
|
|
Par
Value
|
|
February 28,
2019 |
|
February 28,
2018 |
|
February 28,
2019 |
|
February 28,
2018 |
|
Voting
Rights per
Share
|
|
Liquidation
Rights
|
|||||||
Preferred Stock
|
|
$
|
50.00
|
|
|
50,000
|
|
|
50,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$50 per share
|
Series Preferred Stock
|
|
$
|
0.01
|
|
|
1,500,000
|
|
|
1,500,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Class A Common Stock
|
|
$
|
0.01
|
|
|
60,000,000
|
|
|
60,000,000
|
|
|
21,938,100
|
|
|
21,938,100
|
|
|
one
|
|
Ratably with Class B
|
|
Class B Common Stock
|
|
$
|
0.01
|
|
|
10,000,000
|
|
|
10,000,000
|
|
|
2,260,954
|
|
|
2,260,954
|
|
|
ten
|
|
Ratably with Class A
|
10)
|
Other Stock and Retirement Plans
|
11)
|
Lease Obligations
|
|
|
Operating
Leases
|
||
2020
|
|
$
|
946
|
|
2021
|
|
604
|
|
|
2022
|
|
391
|
|
|
2023
|
|
154
|
|
|
2024
|
|
10
|
|
|
Thereafter
|
|
—
|
|
|
Total minimum lease payments
|
|
$
|
2,105
|
|
12)
|
Financial Instruments
|
13)
|
Financial and Product Information About Foreign and Domestic Operations
|
|
Automotive
|
|
Premium Audio
|
|
Consumer Accessories
|
|
Corporate/ Eliminations
|
|
Total
|
||||||||||
Fiscal Year Ended February 28, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
161,647
|
|
|
$
|
158,436
|
|
|
$
|
125,806
|
|
|
$
|
927
|
|
|
$
|
446,816
|
|
Equity in income of equity investees
|
6,618
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,618
|
|
|||||
Interest expense and bank charges
|
868
|
|
|
7,263
|
|
|
7,602
|
|
|
(11,284
|
)
|
|
4,449
|
|
|||||
Depreciation and amortization expense
|
1,002
|
|
|
3,318
|
|
|
4,259
|
|
|
3,765
|
|
|
12,344
|
|
|||||
Income (loss) before income taxes (a)
|
13,842
|
|
|
6,759
|
|
|
(55,035
|
)
|
|
(24,529
|
)
|
|
(58,963
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Fiscal Year Ended February 28, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
155,480
|
|
|
$
|
172,406
|
|
|
$
|
178,756
|
|
|
$
|
450
|
|
|
$
|
507,092
|
|
Equity in income of equity investees
|
7,178
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,178
|
|
|||||
Interest expense and bank charges
|
967
|
|
|
7,979
|
|
|
7,113
|
|
|
(10,050
|
)
|
|
6,009
|
|
|||||
Depreciation and amortization expense
|
1,027
|
|
|
3,492
|
|
|
4,663
|
|
|
2,992
|
|
|
12,174
|
|
|||||
Income (loss) before income taxes
|
13,922
|
|
|
1,137
|
|
|
(23,841
|
)
|
|
(15,322
|
)
|
|
(24,104
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Fiscal Year Ended February 28, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
170,729
|
|
|
$
|
166,789
|
|
|
$
|
176,216
|
|
|
$
|
796
|
|
|
$
|
514,530
|
|
Equity in income of equity investees
|
6,797
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,797
|
|
|||||
Interest expense and bank charges
|
3,109
|
|
|
5,295
|
|
|
4,716
|
|
|
(6,015
|
)
|
|
7,105
|
|
|||||
Depreciation and amortization expense
|
1,322
|
|
|
3,688
|
|
|
4,702
|
|
|
2,674
|
|
|
12,386
|
|
|||||
Income (loss) before income taxes
|
13,871
|
|
|
8,316
|
|
|
(20,300
|
)
|
|
(10,817
|
)
|
|
(8,930
|
)
|
(a)
|
Included in income (loss) before income taxes for the year ended February 28, 2019 are intangible asset impairment charges totaling
$25,789
(
25,629
within the Consumer Accessories segment and
$160
within the Automotive segment) (see Note 1(k)), an impairment charge of
$3,473
related to investment properties in Venezuela within the Automotive
|
|
United States
|
|
Germany
|
|
Other
|
|
Total
|
||||||||
Fiscal Year Ended February 28, 2019
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
393,834
|
|
|
$
|
49,970
|
|
|
$
|
3,012
|
|
|
$
|
446,816
|
|
Long-lived assets
|
48,870
|
|
|
11,553
|
|
|
70
|
|
|
60,493
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Fiscal Year Ended February 28, 2018
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
446,262
|
|
|
$
|
57,447
|
|
|
$
|
3,383
|
|
|
$
|
507,092
|
|
Long-lived assets
|
48,571
|
|
|
12,979
|
|
|
3,709
|
|
|
65,259
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Fiscal Year Ended February 28, 2017
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
449,865
|
|
|
$
|
59,856
|
|
|
$
|
4,809
|
|
|
$
|
514,530
|
|
Long-lived assets
|
49,937
|
|
|
11,688
|
|
|
3,964
|
|
|
65,589
|
|
14)
|
Revenue from Contracts with Customers
|
|
Year ended February 28, 2019
|
|
Year ended February 28, 2018
|
|
Year ended February 28, 2017
|
||||||
|
|
|
|
|
|
||||||
Automotive Segment
|
|
|
|
|
|
||||||
Original Equipment Manufacturers
|
$
|
90,844
|
|
|
$
|
77,902
|
|
|
$
|
88,999
|
|
Aftermarket
|
70,803
|
|
|
77,578
|
|
|
81,730
|
|
|||
Total Automotive Segment
|
161,647
|
|
|
155,480
|
|
|
170,729
|
|
|||
|
|
|
|
|
|
||||||
Premium Audio Segment
|
|
|
|
|
|
||||||
Retail
|
153,123
|
|
|
166,594
|
|
|
156,772
|
|
|||
Commercial
|
5,313
|
|
|
5,812
|
|
|
10,017
|
|
|||
Total Premium Audio Segment
|
158,436
|
|
|
172,406
|
|
|
166,789
|
|
|||
|
|
|
|
|
|
||||||
Consumer Accessories Segment
|
|
|
|
|
|
||||||
Retail
|
125,806
|
|
|
178,756
|
|
|
176,216
|
|
|||
Total Consumer Accessories Segment
|
125,806
|
|
|
178,756
|
|
|
176,216
|
|
|||
|
|
|
|
|
|
||||||
Corporate/Eliminations
|
927
|
|
|
450
|
|
|
796
|
|
|||
|
|
|
|
|
|
||||||
Total Net Sales
|
$
|
446,816
|
|
|
$
|
507,092
|
|
|
$
|
514,530
|
|
|
|
|
|
|
|
15)
|
Contingencies
|
16)
|
Unaudited Quarterly Financial Data
|
|
|
Quarters Ended
|
||||||||||||||
|
|
Feb 28, 2019
|
|
Nov 30, 2018
|
|
Aug 31, 2018
|
|
May 31, 2018
|
||||||||
2019
|
|
(a)
|
|
|
|
(b)
|
|
|
||||||||
Net sales
|
|
$
|
107,457
|
|
|
$
|
129,637
|
|
|
$
|
108,867
|
|
|
$
|
100,855
|
|
Gross profit
|
|
23,754
|
|
|
38,923
|
|
|
31,063
|
|
|
27,677
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income from continuing operations
|
|
$
|
(38,347
|
)
|
|
$
|
10,569
|
|
|
$
|
(22,502
|
)
|
|
$
|
(2,552
|
)
|
Net income from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net (loss) income attributable to Voxx International Corporation
|
|
(36,560
|
)
|
|
12,211
|
|
|
(20,803
|
)
|
|
(939
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share - basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Continuing operations attributable to VOXX International Corporation
|
|
$
|
(1.50
|
)
|
|
$
|
0.50
|
|
|
$
|
(0.85
|
)
|
|
$
|
(0.04
|
)
|
Discontinued operations attributable to VOXX International Corporation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Attributable to VOXX International Corporation
|
|
(1.50
|
)
|
|
0.50
|
|
|
(0.85
|
)
|
|
(0.04
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share - diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Continuing operations attributable to VOXX International Corporation
|
|
$
|
(1.50
|
)
|
|
$
|
0.50
|
|
|
$
|
(0.85
|
)
|
|
$
|
(0.04
|
)
|
Discontinued operations attributable to VOXX International Corporation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Attributable to VOXX International Corporation
|
|
(1.50
|
)
|
|
0.50
|
|
|
(0.85
|
)
|
|
(0.04
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Quarters Ended
|
||||||||||||||
|
|
Feb 28, 2018
|
|
Nov 30, 2017
|
|
Aug 31, 2017
|
|
May 31, 2017
|
||||||||
2018
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|||||
Net sales
|
|
$
|
122,236
|
|
|
$
|
156,563
|
|
|
$
|
113,470
|
|
|
$
|
114,823
|
|
Gross profit
|
|
32,213
|
|
|
41,519
|
|
|
28,421
|
|
|
30,144
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations
|
|
$
|
8,396
|
|
|
$
|
7,477
|
|
|
$
|
(19,848
|
)
|
|
$
|
(2,684
|
)
|
Net income (loss) from discontinued operations
|
|
2,276
|
|
|
(368
|
)
|
|
34,931
|
|
|
(2,221
|
)
|
||||
Net income (loss) attributable to Voxx International Corporation
|
|
12,585
|
|
|
8,644
|
|
|
17,106
|
|
|
(3,031
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings (loss) per share - basic:
|
|
|
|
|
|
|
|
|
||||||||
Continuing operations attributable to VOXX International Corporation
|
|
$
|
0.42
|
|
|
$
|
0.37
|
|
|
$
|
(0.74
|
)
|
|
$
|
(0.03
|
)
|
Discontinued operations attributable to VOXX International Corporation
|
|
0.09
|
|
|
(0.02
|
)
|
|
1.45
|
|
|
(0.09
|
)
|
||||
Attributable to VOXX International Corporation
|
|
0.52
|
|
|
0.36
|
|
|
0.71
|
|
|
(0.13
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share - diluted:
|
|
|
|
|
|
|
|
|
||||||||
Continuing operations attributable to VOXX International Corporation
|
|
$
|
0.42
|
|
|
$
|
0.37
|
|
|
$
|
(0.74
|
)
|
|
$
|
(0.03
|
)
|
Discontinued operations attributable to VOXX International Corporation
|
|
0.09
|
|
|
(0.02
|
)
|
|
1.45
|
|
|
(0.09
|
)
|
||||
Attributable to VOXX International Corporation
|
|
0.51
|
|
|
0.35
|
|
|
0.71
|
|
|
(0.13
|
)
|
17)
|
Subsequent Events
|
Column A
|
|
Column B
|
|
Column C
|
|
Column D (b)
|
|
Column E
|
||||||||||||
Description
|
|
Balance at
Beginning
of Year
|
|
Gross
Amount
Charged to
Costs and
Expenses
|
|
Reversals of
Previously
Established Accruals
|
|
Deductions (a)
|
|
Balance
at End
of Year
|
||||||||||
Year ended February 28, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
|
$
|
2,196
|
|
|
$
|
858
|
|
|
$
|
—
|
|
|
$
|
506
|
|
|
$
|
2,548
|
|
Cash discount allowances
|
|
1,205
|
|
|
6,112
|
|
|
—
|
|
|
6,192
|
|
|
1,125
|
|
|||||
Sales return reserve (c)
|
|
3,779
|
|
|
10,391
|
|
|
—
|
|
|
9,755
|
|
|
4,415
|
|
|||||
Accrued sales incentives
|
|
14,020
|
|
|
37,272
|
|
|
(202
|
)
|
|
37,516
|
|
|
13,574
|
|
|||||
Reserve for warranties and product repair costs
|
|
6,233
|
|
|
6,091
|
|
|
—
|
|
|
7,855
|
|
|
4,469
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year ended February 28, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
|
$
|
4,495
|
|
|
$
|
667
|
|
|
$
|
—
|
|
|
$
|
2,966
|
|
|
$
|
2,196
|
|
Cash discount allowances
|
|
1,233
|
|
|
6,407
|
|
|
—
|
|
|
6,435
|
|
|
1,205
|
|
|||||
Sales return reserve
|
|
1,516
|
|
|
5,450
|
|
|
—
|
|
|
5,306
|
|
|
1,660
|
|
|||||
Accrued sales incentives
|
|
13,154
|
|
|
42,722
|
|
|
(45
|
)
|
|
41,811
|
|
|
14,020
|
|
|||||
Reserve for warranties and product repair costs
|
|
5,608
|
|
|
7,428
|
|
|
—
|
|
|
6,803
|
|
|
6,233
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year ended February 28, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
|
$
|
3,917
|
|
|
$
|
1,299
|
|
|
$
|
—
|
|
|
$
|
721
|
|
|
$
|
4,495
|
|
Cash discount allowances
|
|
1,077
|
|
|
6,457
|
|
|
—
|
|
|
6,301
|
|
|
1,233
|
|
|||||
Sales return reserve
|
|
2,256
|
|
|
5,294
|
|
|
—
|
|
|
6,034
|
|
|
1,516
|
|
|||||
Accrued sales incentives
|
|
12,439
|
|
|
36,413
|
|
|
(108
|
)
|
|
35,590
|
|
|
13,154
|
|
|||||
Reserve for warranties and product repair costs
|
|
7,608
|
|
|
5,843
|
|
|
—
|
|
|
7,843
|
|
|
5,608
|
|
(a)
|
For the allowance for doubtful accounts, cash discount allowances, and accrued sales incentives, deductions represent currency effects, chargebacks and payments made or credits issued to customers. For the reserve for warranties and product repair costs, deductions represent currency effects and payments for labor and parts made to service centers and vendors for the repair of units returned under warranty.
|
(b)
|
Within the reserve for warranties and product repair costs, Column D includes
$500
of liabilities acquired during our Rosen acquisition in Fiscal 2018 and
$832
that was reclassified to the return asset established in conjunction with the implementation of ASC Topic 606 in Fiscal 2019.
|
(c)
|
As a result of the implementation of ASC 606 on March 1, 2018, the accounting treatment for the reserve for sales returns was changed from a net to a gross basis. Under the previous revenue guidance, we recorded a net return reserve. Under the new guidance, we record estimated sales returns at the gross sales price with a corresponding adjustment to inventory for the estimated cost of the product. The difference between the balance at the end of the fiscal year ended February 28, 2018 and the beginning of the year ended February 28, 2019 reflects this change in accounting policy.
|
Exhibit
Number
|
|
Description
|
|
|
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
3.3
|
|
|
|
|
|
21
|
|
|
|
|
|
23
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
99.1
|
|
|
|
|
|
99.2
|
|
|
|
|
|
101
|
|
The following materials from VOXX International Corporation's Annual Report on Form 10-K for the period ended February 28, 2019, formatted in eXtensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets, (ii), the Consolidated Statements of Operations and Comprehensive Income (Loss), (iii) the Consolidated Statements of Stockholders' Equity, (iv) the Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements.
|
|
VOXX INTERNATIONAL CORPORATION
|
|
|
|
|
May 14, 2019
|
By:
/s/ Patrick M. Lavelle
|
|
Patrick M. Lavelle,
|
|
President and Chief Executive Officer
|
Signature
|
Title
|
Date
|
/s/ Patrick M. Lavelle
Patrick M. Lavelle
|
President; Chief Executive Officer
(Principal Executive Officer) and Director
|
May 14, 2019
|
/s/ Charles M. Stoehr
Charles M. Stoehr
|
Senior Vice President,
Chief Financial Officer (Principal
Financial and Accounting Officer) and Director
|
May 14, 2019
|
/s/ John J. Shalam
John J. Shalam
|
Chairman of the Board of Directors
|
May 14, 2019
|
/s/ John Adamovich, Jr.
John Adamovich, Jr.
|
Director
|
May 14, 2018
|
/s/ Denise Gibson
Denise Gibson
|
Director
|
May 14, 2019
|
/s/ Peter A. Lesser
Peter A. Lesser
|
Director
|
May 14, 2019
|
/s/ Ari Shalam
Ari Shalam
|
Director
|
May 14, 2019
|
1 Year VOXX Chart |
1 Month VOXX Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions