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 | |
---|---|---|---|---|---|---|---|---|---|---|
-0.01 | -0.27% | 3.74 | 3.72 | 4.00 | 3.8699 | 3.68 | 3.76 | 120,192 | 01:00:00 |
Delaware
(State or other jurisdiction of
incorporation or organization)
|
13-1964841
(IRS Employer Identification No.)
|
2351 J Lawson Blvd., Orlando, Florida
(Address of principal executive offices)
|
32824
(Zip Code)
|
(800) 654-7750
(Registrant's telephone number, including area code)
|
|
|
Class
|
As of October 9, 2018
|
||
Class A Common Stock
|
21,938,100
|
|
Shares
|
Class B Common Stock
|
2,260,954
|
|
Shares
|
Table of Contents
|
||
|
|
Page
|
PART I
|
FINANCIAL INFORMATION
|
|
|
|
|
Item 1
|
FINANCIAL STATEMENTS
|
|
|
Consolidated Balance Sheets at August 31, 2018 (unaudited) and February 28, 2018
|
|
|
Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income for the Three and Six Months Ended August 31, 2018 and 2017
|
|
|
Unaudited Consolidated Statements of Cash Flows for the Six Months Ended August 31, 2018 and 2017
|
|
|
Notes to Unaudited Consolidated Financial Statements
|
|
Item 2
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
Item 3
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
Item 4
|
CONTROLS AND PROCEDURES
|
|
|
|
|
PART II
|
OTHER INFORMATION
|
|
|
|
|
Item 1
|
LEGAL PROCEEDINGS
|
|
Item 1A
|
RISK FACTORS
|
|
Item 2
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
|
Item 6
|
EXHIBITS
|
|
SIGNATURES
|
|
|
|
August 31, 2018
|
|
February 28, 2018
|
||||
Assets
|
|
(
unaudited
)
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
44,191
|
|
|
$
|
51,740
|
|
Accounts receivable, net
|
|
70,600
|
|
|
81,116
|
|
||
Inventory, net
|
|
124,415
|
|
|
117,992
|
|
||
Receivables from vendors
|
|
353
|
|
|
493
|
|
||
Prepaid expenses and other current assets
|
|
30,041
|
|
|
14,007
|
|
||
Income tax receivable
|
|
650
|
|
|
511
|
|
||
Total current assets
|
|
270,250
|
|
|
265,859
|
|
||
Investment securities
|
|
3,649
|
|
|
4,167
|
|
||
Equity investment
|
|
22,049
|
|
|
21,857
|
|
||
Property, plant and equipment, net
|
|
59,467
|
|
|
65,259
|
|
||
Goodwill
|
|
54,785
|
|
|
54,785
|
|
||
Intangible assets, net
|
|
136,839
|
|
|
150,320
|
|
||
Deferred income tax assets
|
|
24
|
|
|
24
|
|
||
Other assets
|
|
3,165
|
|
|
13,373
|
|
||
Total assets
|
|
$
|
550,228
|
|
|
$
|
575,644
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
38,657
|
|
|
$
|
34,700
|
|
Accrued expenses and other current liabilities
|
|
30,318
|
|
|
36,350
|
|
||
Income taxes payable
|
|
1,718
|
|
|
2,587
|
|
||
Accrued sales incentives
|
|
12,628
|
|
|
14,020
|
|
||
Current portion of long-term debt
|
|
8,153
|
|
|
7,730
|
|
||
Total current liabilities
|
|
91,474
|
|
|
95,387
|
|
||
Long-term debt, net of debt issuance costs
|
|
7,974
|
|
|
8,476
|
|
||
Capital lease obligation
|
|
742
|
|
|
699
|
|
||
Deferred compensation
|
|
2,986
|
|
|
3,369
|
|
||
Deferred income tax liabilities
|
|
18,380
|
|
|
12,217
|
|
||
Other tax liabilities
|
|
1,887
|
|
|
2,191
|
|
||
Other long-term liabilities
|
|
3,018
|
|
|
3,187
|
|
||
Total liabilities
|
|
126,461
|
|
|
125,526
|
|
||
Commitments and contingencies
|
|
|
|
|
||||
Stockholders' equity:
|
|
|
|
|
|
|
||
Preferred stock:
|
|
|
|
|
||||
No shares issued or outstanding (see Note 20)
|
|
—
|
|
|
—
|
|
||
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 August 31, 2018 and February 28, 2018
|
|
242
|
|
|
256
|
|
||
Class B Convertible, $.01 par value, 10,000,000 shares authorized, 2,260,954 shares issued and outstanding at both August 31, 2018 and February 28, 2018
|
|
22
|
|
|
22
|
|
||
Paid-in capital
|
|
296,629
|
|
|
296,395
|
|
||
Retained earnings
|
|
172,931
|
|
|
194,673
|
|
||
Accumulated other comprehensive loss
|
|
(15,739
|
)
|
|
(14,222
|
)
|
||
Treasury stock, at cost, 2,168,094 shares of Class A Common Stock at both August 31, 2018 and February 28, 2018
|
|
(21,176
|
)
|
|
(21,176
|
)
|
||
Total VOXX International Corporation stockholders' equity
|
|
432,909
|
|
|
455,948
|
|
||
Non-controlling interest
|
|
(9,142
|
)
|
|
(5,830
|
)
|
||
Total stockholders' equity
|
|
423,767
|
|
|
450,118
|
|
||
Total liabilities and stockholders' equity
|
|
$
|
550,228
|
|
|
$
|
575,644
|
|
|
|
Three Months Ended
August 31, |
|
Six Months Ended
August 31, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net sales
|
|
$
|
108,867
|
|
|
$
|
113,470
|
|
|
$
|
209,722
|
|
|
$
|
228,293
|
|
Cost of sales
|
|
77,804
|
|
|
85,049
|
|
|
150,982
|
|
|
169,728
|
|
||||
Gross profit
|
|
31,063
|
|
|
28,421
|
|
|
58,740
|
|
|
58,565
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling
|
|
9,604
|
|
|
10,652
|
|
|
20,298
|
|
|
23,061
|
|
||||
General and administrative
|
|
17,038
|
|
|
20,640
|
|
|
33,150
|
|
|
40,837
|
|
||||
Engineering and technical support
|
|
6,070
|
|
|
7,383
|
|
|
11,981
|
|
|
14,037
|
|
||||
Intangible asset impairment charges (see Note 11)
|
|
9,814
|
|
|
—
|
|
|
9,814
|
|
|
—
|
|
||||
Total operating expenses
|
|
42,526
|
|
|
38,675
|
|
|
75,243
|
|
|
77,935
|
|
||||
Operating loss
|
|
(11,463
|
)
|
|
(10,254
|
)
|
|
(16,503
|
)
|
|
(19,370
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other (expense) income:
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest and bank charges
|
|
(1,117
|
)
|
|
(1,843
|
)
|
|
(2,217
|
)
|
|
(3,635
|
)
|
||||
Equity in income of equity investee
|
|
1,637
|
|
|
1,927
|
|
|
3,451
|
|
|
3,730
|
|
||||
Investment gain (see Note 4)
|
|
—
|
|
|
1,416
|
|
|
—
|
|
|
1,416
|
|
||||
Impairment of Venezuela investment properties (see Note 18)
|
|
(3,473
|
)
|
|
—
|
|
|
(3,473
|
)
|
|
—
|
|
||||
Other, net
|
|
252
|
|
|
(7,629
|
)
|
|
913
|
|
|
(8,636
|
)
|
||||
Total other expense, net
|
|
(2,701
|
)
|
|
(6,129
|
)
|
|
(1,326
|
)
|
|
(7,125
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Loss from continuing operations before income taxes
|
|
(14,164
|
)
|
|
(16,383
|
)
|
|
(17,829
|
)
|
|
(26,495
|
)
|
||||
Income tax expense (benefit) from continuing operations
|
|
8,338
|
|
|
3,465
|
|
|
7,225
|
|
|
(3,963
|
)
|
||||
Net loss from continuing operations
|
|
(22,502
|
)
|
|
(19,848
|
)
|
|
(25,054
|
)
|
|
(22,532
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net income from discontinued operations, net of tax (see Note 2)
|
|
—
|
|
|
34,931
|
|
|
—
|
|
|
32,710
|
|
||||
Net (loss) income
|
|
(22,502
|
)
|
|
15,083
|
|
|
(25,054
|
)
|
|
10,178
|
|
||||
Less: net loss attributable to non-controlling interest
|
|
(1,699
|
)
|
|
(2,023
|
)
|
|
(3,312
|
)
|
|
(3,898
|
)
|
||||
Net (loss) income attributable to VOXX International Corporation
|
|
$
|
(20,803
|
)
|
|
$
|
17,106
|
|
|
$
|
(21,742
|
)
|
|
$
|
14,076
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
|
(50
|
)
|
|
20,480
|
|
|
(2,070
|
)
|
|
27,839
|
|
||||
Derivatives designated for hedging
|
|
50
|
|
|
(134
|
)
|
|
492
|
|
|
(1,186
|
)
|
||||
Pension plan adjustments
|
|
1
|
|
|
1,810
|
|
|
37
|
|
|
1,690
|
|
||||
Unrealized holding gain on available-for-sale investment securities, net of tax
|
|
—
|
|
|
81
|
|
|
24
|
|
|
77
|
|
||||
Other comprehensive income (loss), net of tax
|
|
1
|
|
|
22,237
|
|
|
(1,517
|
)
|
|
28,420
|
|
||||
Comprehensive (loss) income attributable to VOXX International Corporation
|
|
$
|
(20,802
|
)
|
|
$
|
39,343
|
|
|
$
|
(23,259
|
)
|
|
$
|
42,496
|
|
|
|
|
|
|
|
|
|
|
||||||||
(Loss) income per share - basic:
|
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
|
$
|
(0.85
|
)
|
|
$
|
(0.74
|
)
|
|
$
|
(0.89
|
)
|
|
$
|
(0.77
|
)
|
Discontinued operations
|
|
$
|
—
|
|
|
$
|
1.45
|
|
|
$
|
—
|
|
|
$
|
1.35
|
|
Attributable to VOXX International Corporation
|
|
$
|
(0.85
|
)
|
|
$
|
0.71
|
|
|
$
|
(0.89
|
)
|
|
$
|
0.58
|
|
|
|
|
|
|
|
|
|
|
||||||||
(Loss) income per share - diluted:
|
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
|
$
|
(0.85
|
)
|
|
$
|
(0.74
|
)
|
|
$
|
(0.89
|
)
|
|
$
|
(0.77
|
)
|
Discontinued operations
|
|
$
|
—
|
|
|
$
|
1.45
|
|
|
$
|
—
|
|
|
$
|
1.35
|
|
Attributable to VOXX International Corporation
|
|
$
|
(0.85
|
)
|
|
$
|
0.71
|
|
|
$
|
(0.89
|
)
|
|
$
|
0.58
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding (basic)
|
|
24,355,791
|
|
|
24,160,680
|
|
|
24,355,791
|
|
|
24,160,502
|
|
||||
Weighted-average common shares outstanding (diluted)
|
|
24,355,791
|
|
|
24,160,680
|
|
|
24,355,791
|
|
|
24,160,502
|
|
|
|
Six Months Ended
August 31, |
||||||
|
|
2018
|
|
2017
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net loss from continuing operations
|
|
$
|
(25,054
|
)
|
|
$
|
(22,532
|
)
|
Net income from discontinued operations
|
|
—
|
|
|
32,710
|
|
||
|
|
|
|
|
||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
|
|
|
|
|
|
|
||
Depreciation and amortization
|
|
5,925
|
|
|
9,093
|
|
||
Amortization of debt discount
|
|
411
|
|
|
411
|
|
||
Intangible asset impairment charges
|
|
9,814
|
|
|
—
|
|
||
Bad debt expense
|
|
103
|
|
|
179
|
|
||
Loss (gain) on forward contracts
|
|
218
|
|
|
6,389
|
|
||
Equity in income of equity investees
|
|
(3,451
|
)
|
|
(3,730
|
)
|
||
Distribution of income from equity investees
|
|
3,263
|
|
|
4,316
|
|
||
Deferred income tax expense (benefit)
|
|
6,080
|
|
|
1,347
|
|
||
Non-cash compensation adjustment
|
|
(383
|
)
|
|
370
|
|
||
Stock based compensation expense
|
|
234
|
|
|
299
|
|
||
Impairment of Venezuela investment properties
|
|
3,473
|
|
|
—
|
|
||
Gain (loss) on sale of property, plant and equipment
|
|
13
|
|
|
(10
|
)
|
||
Gain on sale of RxNetworks
|
|
—
|
|
|
(1,416
|
)
|
||
Gain on sale of Hirschmann
|
|
—
|
|
|
(36,118
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
||
Accounts receivable
|
|
9,285
|
|
|
11,331
|
|
||
Inventory
|
|
(7,644
|
)
|
|
(16,783
|
)
|
||
Receivables from vendors
|
|
136
|
|
|
240
|
|
||
Prepaid expenses and other
|
|
699
|
|
|
(18,032
|
)
|
||
Investment securities-trading
|
|
508
|
|
|
345
|
|
||
Accounts payable, accrued expenses, accrued sales incentives and other liabilities
|
|
(2,225
|
)
|
|
480
|
|
||
Income taxes payable
|
|
(1,225
|
)
|
|
(1,096
|
)
|
||
Net cash provided by (used in) operating activities
|
|
180
|
|
|
(32,207
|
)
|
||
Cash flows (used in) provided by investing activities:
|
|
|
|
|
|
|
||
Purchases of property, plant and equipment
|
|
(685
|
)
|
|
(4,842
|
)
|
||
Proceeds from sale of property, plant and equipment
|
|
51
|
|
|
10
|
|
||
Issuance of notes receivable
|
|
(3,164
|
)
|
|
(2,000
|
)
|
||
Proceeds from sale of long-term investment
|
|
—
|
|
|
2,617
|
|
||
Purchase of business
|
|
—
|
|
|
(1,814
|
)
|
||
Proceeds from sale of Hirschmann, net of settlement of forward contracts
|
|
—
|
|
|
170,020
|
|
||
Net cash (used in) provided by investing activities
|
|
(3,798
|
)
|
|
163,991
|
|
||
Cash flows used in financing activities:
|
|
|
|
|
|
|
||
Principal payments on capital lease obligation
|
|
(190
|
)
|
|
(419
|
)
|
||
Repayment of bank obligations
|
|
(1,490
|
)
|
|
(127,915
|
)
|
||
Borrowings on bank obligations
|
|
1,487
|
|
|
36,057
|
|
||
Proceeds from exercise of stock options
|
|
—
|
|
|
5
|
|
||
Net cash used in financing activities
|
|
(193
|
)
|
|
(92,272
|
)
|
||
Effect of exchange rate changes on cash
|
|
(3,738
|
)
|
|
(1,491
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
|
(7,549
|
)
|
|
38,021
|
|
||
Cash and cash equivalents at beginning of period
|
(a)
|
51,740
|
|
(a)
|
7,800
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
44,191
|
|
(a)
|
$
|
45,821
|
|
|
|
Three Months Ended
August 31, |
|
Six Months Ended
August 31, |
||||
|
|
2017
|
|
2017
|
||||
Net sales
|
|
$
|
47,545
|
|
|
$
|
91,824
|
|
Cost of sales
|
|
32,925
|
|
|
63,610
|
|
||
Gross profit
|
|
14,620
|
|
|
28,214
|
|
||
|
|
|
|
|
||||
Operating expenses:
|
|
|
|
|
||||
Selling
|
|
1,396
|
|
|
2,778
|
|
||
General and administrative
|
|
7,680
|
|
|
14,676
|
|
||
Engineering and technical support
|
|
3,982
|
|
|
7,920
|
|
||
Total operating expenses
|
|
13,058
|
|
|
25,374
|
|
||
Operating income of discontinued operations
|
|
1,562
|
|
|
2,840
|
|
||
|
|
|
|
|
||||
Other (expense) income:
|
|
|
|
|
||||
Interest and bank charges (a)
|
|
(157
|
)
|
|
(279
|
)
|
||
Other, net
|
|
150
|
|
|
138
|
|
||
Total other expense of discontinued operations, net
|
|
(7
|
)
|
|
(141
|
)
|
||
|
|
|
|
|
||||
Gain on sale of discontinued operations before taxes
|
|
36,118
|
|
|
36,118
|
|
||
Total income from discontinued operations before taxes
|
|
37,673
|
|
|
38,817
|
|
||
Income tax expense on discontinued operations (b)
|
|
2,742
|
|
|
6,107
|
|
||
Income from discontinued operations, net of taxes
|
|
$
|
34,931
|
|
|
$
|
32,710
|
|
Income per share - basic
|
|
$
|
1.45
|
|
|
$
|
1.35
|
|
Income per share - diluted
|
|
$
|
1.45
|
|
|
$
|
1.35
|
|
|
|
Six Months Ended
August 31, |
||
|
|
2017
|
||
Operating activities:
|
|
|
||
Depreciation and amortization expense
|
|
$
|
2,939
|
|
Stock-based compensation expense
|
|
50
|
|
|
|
|
|
||
Investing activities:
|
|
|
||
Capital expenditures
|
|
$
|
2,652
|
|
|
|
|
||
Non-cash investing and financing activities:
|
|
|
||
Capital expenditures funded by long-term obligations
|
|
$
|
1,910
|
|
|
|
Three Months Ended
August 31, |
|
Six Months Ended
August 31, |
||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Weighted-average common shares outstanding (basic)
|
|
24,355,791
|
|
|
24,160,680
|
|
|
24,355,791
|
|
|
24,160,502
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options, warrants and restricted stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Weighted-average common shares and potential common shares outstanding (diluted)
|
|
24,355,791
|
|
|
24,160,680
|
|
|
24,355,791
|
|
|
24,160,502
|
|
|
|
|
|
|
August 31, 2018
|
||||||
|
|
|
|
|
Carrying Value
|
||||||
Investment Securities
|
|
|
|
|
|
|
|
||||
Marketable Equity Securities
|
|
|
|
|
|
|
|
||||
Mutual funds
|
|
|
|
|
$
|
3,112
|
|
||||
Total Marketable Equity Securities
|
|
|
|
|
3,112
|
|
|||||
Investment Held at Cost, Less Impairment
|
|
|
|
|
537
|
|
|||||
Total Investment Securities
|
|
|
|
|
$
|
3,649
|
|
||||
|
|
|
|
|
|
||||||
|
February 28, 2018
|
||||||||||
|
Cost
Basis
|
|
Unrealized
Holding
Gain/(Loss)
|
|
Fair
Value
|
||||||
Investment Securities
|
|
|
|
|
|
||||||
Marketable Equity Securities
|
|
|
|
|
|
||||||
Trading
|
|
|
|
|
|
||||||
Mutual funds
|
$
|
3,620
|
|
|
$
|
—
|
|
|
$
|
3,620
|
|
Total Marketable Securities
|
3,620
|
|
|
—
|
|
|
3,620
|
|
|||
Other Long-Term Investment at Cost
|
547
|
|
|
—
|
|
|
547
|
|
|||
Total Investment Securities
|
$
|
4,167
|
|
|
$
|
—
|
|
|
$
|
4,167
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
||||||
Cash and cash equivalents:
|
|
|
|
|
|
||||||
Cash and money market funds
|
$
|
44,191
|
|
|
$
|
44,191
|
|
|
$
|
—
|
|
Derivatives:
|
|
|
|
|
|
|
|
|
|||
Designated for hedging
|
$
|
122
|
|
|
$
|
—
|
|
|
$
|
122
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|||
Mutual funds
|
$
|
3,112
|
|
|
$
|
3,112
|
|
|
$
|
—
|
|
Investment held at cost, less impairment (a)
|
537
|
|
|
—
|
|
|
—
|
|
|||
Total investment securities
|
$
|
3,649
|
|
|
$
|
3,112
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||
|
Total
|
|
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 investment at cost (a)
|
547
|
|
|
—
|
|
|
—
|
|
|||
Total investment securities
|
$
|
4,167
|
|
|
$
|
3,620
|
|
|
$
|
—
|
|
(a)
|
This balance represents an investment in a non-controlled corporation held at cost, less impairment (see Note 4). The fair value of this investment would be based upon Level 3 inputs and is not considered material to the Company's consolidated financial statements.
|
|
|
Derivative Assets and Liabilities
|
||||||||
|
|
|
|
Fair Value
|
||||||
|
|
Account
|
|
August 31, 2018
|
|
February 28, 2018
|
||||
Designated derivative instruments
|
|
|
|
|
|
|
||||
Foreign currency contracts
|
|
Prepaid expenses and other current assets
|
|
$
|
119
|
|
|
$
|
—
|
|
|
|
Accrued expenses and other current liabilities
|
|
—
|
|
|
(227
|
)
|
||
|
|
|
|
|
|
|
||||
Interest rate swap agreements
|
|
Other assets
|
|
3
|
|
|
—
|
|
||
|
|
Other long-term liabilities
|
|
—
|
|
|
(35
|
)
|
||
|
|
|
|
|
|
|
||||
Total derivatives
|
|
|
|
$
|
122
|
|
|
$
|
(262
|
)
|
|
Three months ended
|
|
Six months ended
|
||||||||||||||||||||
|
August 31, 2018
|
|
August 31, 2018
|
||||||||||||||||||||
|
Pretax Gain(Loss) Recognized in Other Comprehensive Income
|
|
Pretax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income
|
|
(Loss) Gain for Ineffectiveness in Other Income
|
|
Pretax Gain (Loss) Recognized in Other Comprehensive Income
|
|
Pretax (Loss) Gain Reclassified from Accumulated Other Comprehensive Income
|
|
Gain (Loss) for Ineffectiveness in Other Income
|
||||||||||||
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency contracts
|
$
|
56
|
|
|
$
|
21
|
|
|
$
|
(8
|
)
|
|
$
|
422
|
|
|
$
|
(214
|
)
|
|
$
|
25
|
|
Interest rate swaps
|
27
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three months ended
|
|
Six months ended
|
||||||||||||||||||||
|
August 31, 2017
|
|
August 31, 2017
|
||||||||||||||||||||
|
Pretax (Loss) Gain Recognized in Other Comprehensive Income
|
|
Pretax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income
|
|
(Loss) Gain for Ineffectiveness in Other Income
|
|
Pretax (Loss) Gain Recognized in Other Comprehensive Income
|
|
Pretax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income
|
|
(Loss) Gain for Ineffectiveness in Other Income
|
||||||||||||
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency contracts
|
$
|
(533
|
)
|
|
$
|
42
|
|
|
$
|
(52
|
)
|
|
$
|
(1,266
|
)
|
|
$
|
317
|
|
|
$
|
(95
|
)
|
Interest rate swaps
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
(69
|
)
|
|
—
|
|
|
—
|
|
|
|
Foreign Currency Translation (Losses) Gains
|
|
Unrealized (losses) gains 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 28, 2018
|
|
$
|
(13,027
|
)
|
|
$
|
(24
|
)
|
|
$
|
(786
|
)
|
|
$
|
(385
|
)
|
|
$
|
(14,222
|
)
|
Other comprehensive (loss) income before reclassifications
|
|
(2,070
|
)
|
|
—
|
|
|
37
|
|
|
344
|
|
|
(1,689
|
)
|
|||||
Reclassified from accumulated other comprehensive income (loss)
|
|
—
|
|
|
24
|
|
|
—
|
|
|
148
|
|
|
172
|
|
|||||
Net current-period other comprehensive (loss) income
|
|
(2,070
|
)
|
|
24
|
|
|
37
|
|
|
492
|
|
|
(1,517
|
)
|
|||||
Balance at August 31, 2018
|
|
$
|
(15,097
|
)
|
|
$
|
—
|
|
|
$
|
(749
|
)
|
|
$
|
107
|
|
|
$
|
(15,739
|
)
|
|
|
Six Months Ended
August 31, |
||||||
|
|
2018
|
|
2017
|
||||
Non-cash investing and financing activities:
|
|
|
|
|
||||
Capital expenditures funded by long-term obligations
|
|
$
|
360
|
|
|
$
|
1,917
|
|
Cash paid during the period:
|
|
|
|
|
||||
Interest (excluding bank charges)
|
|
$
|
764
|
|
|
$
|
2,430
|
|
Income taxes (net of refunds)
|
|
2,305
|
|
|
2,001
|
|
|
Number of Shares
|
|
Weighted Average Grant Date Fair Value
|
|||
Balance at February 28, 2018
|
439,299
|
|
$
|
7.08
|
|
|
Granted
|
188,245
|
|
|
5.50
|
|
|
Forfeited
|
—
|
|
|
—
|
|
|
Balance at August 31, 2018
|
627,544
|
|
|
$
|
6.60
|
|
Vested and unissued at August 31, 2018
|
156,737
|
|
|
$
|
9.96
|
|
Automotive:
|
Amount
|
||
Beginning balance at March 1, 2018
|
$
|
8,252
|
|
Activity during the period
|
—
|
|
|
Balance at August 31, 2018
|
$
|
8,252
|
|
|
|
||
Gross carrying amount at August 31, 2018
|
$
|
8,252
|
|
Accumulated impairment charge
|
—
|
|
|
Net carrying amount at August 31, 2018
|
$
|
8,252
|
|
|
|
||
Premium Audio:
|
|
||
Beginning balance at March 1, 2018
|
$
|
46,533
|
|
Activity during the period
|
—
|
|
|
Balance at August 31, 2018
|
$
|
46,533
|
|
|
|
||
Gross carrying amount at August 31, 2018
|
$
|
78,696
|
|
Accumulated impairment charge
|
(32,163
|
)
|
|
Net carrying amount at August 31, 2018
|
$
|
46,533
|
|
|
|
||
Total Goodwill, net
|
$
|
54,785
|
|
|
|
Gross
Carrying
Value
|
|
Accumulated
Amortization
|
|
Total Net
Book
Value
|
||||||
Finite-lived intangible assets:
|
|
|
|
|
|
|
|
|||||
Customer relationships
|
|
$
|
49,905
|
|
|
$
|
28,209
|
|
|
$
|
21,696
|
|
Trademarks/Tradenames
|
|
415
|
|
|
403
|
|
|
12
|
|
|||
Developed technology
|
|
31,290
|
|
|
8,163
|
|
|
23,127
|
|
|||
Patents
|
|
2,803
|
|
|
2,193
|
|
|
610
|
|
|||
License
|
|
1,400
|
|
|
1,400
|
|
|
—
|
|
|||
Contract
|
|
2,141
|
|
|
1,907
|
|
|
234
|
|
|||
Total finite-lived intangible assets
|
|
$
|
87,954
|
|
|
$
|
42,275
|
|
|
45,679
|
|
|
Indefinite-lived intangible assets
|
|
|
|
|
|
|
||||||
Trademarks
|
|
|
|
|
|
91,160
|
|
|||||
Total net intangible assets
|
|
|
|
|
|
$
|
136,839
|
|
|
|
Gross
Carrying
Value
|
|
Accumulated
Amortization
|
|
Total Net
Book
Value
|
||||||
Finite-lived intangible assets:
|
|
|
|
|
|
|
||||||
Customer relationships
|
|
$
|
50,249
|
|
|
$
|
26,807
|
|
|
$
|
23,442
|
|
Trademarks/Tradenames
|
|
415
|
|
|
400
|
|
|
15
|
|
|||
Developed technology
|
|
31,290
|
|
|
6,802
|
|
|
24,488
|
|
|||
Patents
|
|
2,830
|
|
|
2,138
|
|
|
692
|
|
|||
License
|
|
1,400
|
|
|
1,400
|
|
|
—
|
|
|||
Contract
|
|
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
|
|
Year
|
|
Amount
|
||
2019
|
|
$
|
6,306
|
|
2020
|
|
6,213
|
|
|
2021
|
|
5,994
|
|
|
2022
|
|
5,831
|
|
|
2023
|
|
5,520
|
|
|
|
August 31,
2018 |
|
February 28,
2018 |
||||
Current assets
|
|
$
|
44,901
|
|
|
$
|
42,318
|
|
Non-current assets
|
|
6,638
|
|
|
7,095
|
|
||
Liabilities
|
|
7,441
|
|
|
5,699
|
|
||
Members' equity
|
|
44,098
|
|
|
43,714
|
|
||
|
|
|
|
|
||||
|
|
Six Months Ended
August 31, |
||||||
|
|
2018
|
|
2017
|
||||
Net sales
|
|
$
|
50,560
|
|
|
$
|
49,477
|
|
Gross profit
|
|
16,509
|
|
|
16,137
|
|
||
Operating income
|
|
6,806
|
|
|
7,391
|
|
||
Net income
|
|
6,902
|
|
|
7,460
|
|
|
|
August 31,
2018 |
|
February 28,
2018 |
||||
Raw materials
|
|
$
|
29,165
|
|
|
$
|
28,071
|
|
Work in process
|
|
3,212
|
|
|
2,485
|
|
||
Finished goods
|
|
92,038
|
|
|
87,436
|
|
||
Inventory, net
|
|
$
|
124,415
|
|
|
$
|
117,992
|
|
|
Three Months Ended
August 31, |
|
Six Months Ended
August 31, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Opening balance
|
$
|
4,925
|
|
|
$
|
5,927
|
|
|
$
|
6,233
|
|
|
$
|
5,608
|
|
Liabilities acquired during acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|
500
|
|
||||
Liabilities accrued for warranties accrued during the period
|
1,366
|
|
|
2,077
|
|
|
2,866
|
|
|
4,109
|
|
||||
Balances transferred (a)
|
—
|
|
|
—
|
|
|
(832
|
)
|
|
—
|
|
||||
Warranties paid during the period
|
(1,436
|
)
|
|
(2,038
|
)
|
|
(3,412
|
)
|
|
(4,251
|
)
|
||||
Ending balance
|
$
|
4,855
|
|
|
$
|
5,966
|
|
|
$
|
4,855
|
|
|
$
|
5,966
|
|
|
|
August 31,
2018 |
|
February 28,
2018 |
||||
Debt
|
|
|
|
|
||||
Domestic credit facility (a)
|
|
$
|
—
|
|
|
$
|
—
|
|
Florida mortgage (b)
|
|
8,365
|
|
|
8,613
|
|
||
Euro asset-based lending obligation (c)
|
|
6,595
|
|
|
6,119
|
|
||
Schwaiger mortgage (d)
|
|
360
|
|
|
468
|
|
||
Voxx Germany mortgage (e)
|
|
3,056
|
|
|
3,665
|
|
||
Total debt
|
|
18,376
|
|
|
18,865
|
|
||
Less: current portion of long-term debt
|
|
8,153
|
|
|
7,730
|
|
||
Long-term debt
|
|
10,223
|
|
|
11,135
|
|
||
Less: debt issuance costs
|
|
2,249
|
|
|
2,659
|
|
||
Total long-term debt, net of debt issuance costs
|
|
$
|
7,974
|
|
|
$
|
8,476
|
|
|
|
Three Months Ended
August 31, |
|
Six Months Ended
August 31, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Foreign currency (loss) gain
|
|
$
|
(131
|
)
|
|
$
|
(7,387
|
)
|
|
$
|
204
|
|
|
$
|
(8,219
|
)
|
Interest income
|
|
269
|
|
|
16
|
|
|
475
|
|
|
31
|
|
||||
Rental income
|
|
132
|
|
|
131
|
|
|
253
|
|
|
275
|
|
||||
Miscellaneous
|
|
(18
|
)
|
|
(389
|
)
|
|
(19
|
)
|
|
(723
|
)
|
||||
Total other, net
|
|
$
|
252
|
|
|
$
|
(7,629
|
)
|
|
$
|
913
|
|
|
$
|
(8,636
|
)
|
|
Operating
Leases
|
||
2019
|
$
|
1,268
|
|
2020
|
558
|
|
|
2021
|
410
|
|
|
2022
|
334
|
|
|
2023
|
197
|
|
|
Thereafter
|
192
|
|
|
Total minimum lease payments
|
$
|
2,959
|
|
|
|
|
|
Shares Authorized
|
|
Shares Outstanding
|
|
|
|
|
||||||||||||
Security
|
|
Par
Value
|
|
August 31,
2018 |
|
February 28,
2018 |
|
August 31,
2018 |
|
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
|
|
|
1
|
|
Ratably with Class B
|
||
Class B Common Stock
|
|
$
|
0.01
|
|
|
10,000,000
|
|
|
10,000,000
|
|
|
2,260,954
|
|
|
2,260,954
|
|
|
10
|
|
Ratably with Class A
|
||
Treasury Stock at cost
|
|
at cost
|
|
|
2,168,094
|
|
|
2,168,094
|
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
August 31, 2018
|
|
February 28, 2018
|
|
|||
Assets
|
|
(
unaudited
)
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
—
|
|
|
$
|
—
|
|
Accounts receivable, net
|
|
271
|
|
|
128
|
|
||
Inventory, net
|
|
198
|
|
|
(119
|
)
|
||
Receivables from vendors
|
|
—
|
|
|
—
|
|
||
Prepaid expenses and other current assets
|
|
122
|
|
|
117
|
|
||
Total current assets
|
|
591
|
|
|
126
|
|
||
Property, plant and equipment, net
|
|
144
|
|
|
186
|
|
||
Intangible assets, net
|
|
34,595
|
|
|
36,126
|
|
||
Other assets
|
|
242
|
|
|
119
|
|
||
Total assets
|
|
$
|
35,572
|
|
|
$
|
36,557
|
|
Liabilities and Partners' Equity
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
||||
Accounts payable
|
|
$
|
6,643
|
|
|
$
|
4,711
|
|
Accrued expenses and other current liabilities
|
|
2,456
|
|
|
2,557
|
|
||
Current portion of debt
|
|
39,398
|
|
|
—
|
|
||
Total current liabilities
|
|
48,497
|
|
|
7,268
|
|
||
Long-term debt
|
|
—
|
|
|
33,722
|
|
||
Other long-term liabilities
|
|
1,200
|
|
|
1,200
|
|
||
Total liabilities
|
|
49,697
|
|
|
42,190
|
|
||
Commitments and contingencies
|
|
|
|
|
||||
Partners' equity:
|
|
|
|
|
||||
Capital
|
|
41,416
|
|
|
41,416
|
|
||
Retained earnings
|
|
(55,541
|
)
|
|
(47,049
|
)
|
||
Total partners' equity
|
|
(14,125
|
)
|
|
(5,633
|
)
|
||
Total liabilities and partners' equity
|
|
$
|
35,572
|
|
|
$
|
36,557
|
|
|
|
Three Months Ended
August 31, |
|
Six Months Ended
August 31, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net sales
|
|
$
|
93
|
|
|
$
|
150
|
|
|
$
|
216
|
|
|
$
|
214
|
|
Cost of sales
|
|
26
|
|
|
79
|
|
|
36
|
|
|
57
|
|
||||
Gross profit
|
|
67
|
|
|
71
|
|
|
180
|
|
|
157
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Selling
|
|
296
|
|
|
762
|
|
|
624
|
|
|
1,355
|
|
||||
General and administrative
|
|
1,317
|
|
|
2,019
|
|
|
2,543
|
|
|
3,677
|
|
||||
Engineering and technical support
|
|
1,828
|
|
|
1,785
|
|
|
3,618
|
|
|
3,818
|
|
||||
Total operating expenses
|
|
3,441
|
|
|
4,566
|
|
|
6,785
|
|
|
8,850
|
|
||||
Operating loss
|
|
(3,374
|
)
|
|
(4,495
|
)
|
|
(6,605
|
)
|
|
(8,693
|
)
|
||||
Interest and bank charges
|
|
(982
|
)
|
|
(694
|
)
|
|
(1,887
|
)
|
|
(1,303
|
)
|
||||
Loss before income taxes
|
|
(4,356
|
)
|
|
(5,189
|
)
|
|
(8,492
|
)
|
|
(9,996
|
)
|
||||
Income tax expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net loss
|
|
$
|
(4,356
|
)
|
|
$
|
(5,189
|
)
|
|
$
|
(8,492
|
)
|
|
$
|
(9,996
|
)
|
|
Automotive
|
|
Premium Audio
|
|
Consumer Accessories
|
|
Corporate/ Eliminations
|
|
Total
|
||||||||||
Three Months Ended August 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
40,006
|
|
|
$
|
39,652
|
|
|
$
|
28,860
|
|
|
$
|
349
|
|
|
$
|
108,867
|
|
Equity in income of equity investees
|
1,637
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,637
|
|
|||||
Interest expense and bank charges
|
239
|
|
|
1,818
|
|
|
1,885
|
|
|
(2,825
|
)
|
|
1,117
|
|
|||||
Depreciation and amortization expense
|
224
|
|
|
834
|
|
|
1,113
|
|
|
790
|
|
|
2,961
|
|
|||||
Income (loss) before income taxes (a)
|
1,011
|
|
|
1,482
|
|
|
(16,249
|
)
|
|
(408
|
)
|
|
(14,164
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended August 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
32,685
|
|
|
$
|
39,941
|
|
|
$
|
40,587
|
|
|
$
|
257
|
|
|
$
|
113,470
|
|
Equity in income of equity investees
|
1,927
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,927
|
|
|||||
Interest expense and bank charges
|
202
|
|
|
1,991
|
|
|
1,735
|
|
|
(2,085
|
)
|
|
1,843
|
|
|||||
Depreciation and amortization expense
|
283
|
|
|
910
|
|
|
1,172
|
|
|
750
|
|
|
3,115
|
|
|||||
Income (loss) before income taxes
|
1,877
|
|
|
(844
|
)
|
|
(8,274
|
)
|
|
(9,142
|
)
|
|
(16,383
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended August 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
79,652
|
|
|
$
|
72,041
|
|
|
$
|
57,603
|
|
|
$
|
426
|
|
|
$
|
209,722
|
|
Equity in income of equity investees
|
3,451
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,451
|
|
|||||
Interest expense and bank charges
|
484
|
|
|
3,609
|
|
|
3,676
|
|
|
(5,552
|
)
|
|
2,217
|
|
|||||
Depreciation and amortization expense
|
463
|
|
|
1,672
|
|
|
2,225
|
|
|
1,564
|
|
|
5,924
|
|
|||||
Income (loss) before income taxes (a)
|
5,524
|
|
|
3,128
|
|
|
(23,717
|
)
|
|
(2,764
|
)
|
|
(17,829
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended August 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
69,708
|
|
|
$
|
77,668
|
|
|
$
|
80,515
|
|
|
$
|
402
|
|
|
$
|
228,293
|
|
Equity in income of equity investees
|
3,730
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,730
|
|
|||||
Interest expense and bank charges
|
288
|
|
|
3,936
|
|
|
3,447
|
|
|
(4,036
|
)
|
|
3,635
|
|
|||||
Depreciation and amortization expense
|
552
|
|
|
1,792
|
|
|
2,337
|
|
|
1,473
|
|
|
6,154
|
|
|||||
Income (loss) before income taxes
|
5,423
|
|
|
(4,715
|
)
|
|
(15,399
|
)
|
|
(11,804
|
)
|
|
(26,495
|
)
|
|
Three Months Ended
August 31, |
|
Six Months Ended
August 31, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Automotive Segment
|
|
|
|
|
|
|
|
||||||||
Original Equipment Manufacturers
|
$
|
23,225
|
|
|
$
|
15,057
|
|
|
$
|
46,310
|
|
|
$
|
34,866
|
|
Aftermarket
|
16,781
|
|
|
17,628
|
|
|
33,342
|
|
|
34,842
|
|
||||
Total Automotive Segment
|
40,006
|
|
|
32,685
|
|
|
79,652
|
|
|
69,708
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Premium Audio Segment
|
|
|
|
|
|
|
|
||||||||
Retail
|
38,043
|
|
|
38,382
|
|
|
69,247
|
|
|
74,465
|
|
||||
Commercial
|
1,609
|
|
|
1,559
|
|
|
2,794
|
|
|
3,203
|
|
||||
Total Premium Audio Segment
|
39,652
|
|
|
39,941
|
|
|
72,041
|
|
|
77,668
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Consumer Accessories Segment
|
|
|
|
|
|
|
|
||||||||
Retail
|
28,860
|
|
|
40,587
|
|
|
57,603
|
|
|
80,515
|
|
||||
Total Consumer Accessories Segment
|
28,860
|
|
|
40,587
|
|
|
57,603
|
|
|
80,515
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Corporate/Eliminations
|
349
|
|
|
257
|
|
|
426
|
|
|
402
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total Net Sales
|
$
|
108,867
|
|
|
$
|
113,470
|
|
|
$
|
209,722
|
|
|
$
|
228,293
|
|
|
|
|
|
|
|
|
|
▪
|
mobile multi-media video products, including in-dash, overhead 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 and remote start systems,
|
▪
|
automotive power accessories,
|
▪
|
rear observation and collision avoidance systems, 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 security and safety related products,
|
▪
|
home electronic accessories such as cabling,
|
▪
|
other connectivity products,
|
▪
|
power cords,
|
▪
|
performance enhancing electronics,
|
▪
|
TV universal remotes,
|
▪
|
flat panel TV mounting systems,
|
▪
|
iPad/iPod specialized products,
|
▪
|
wireless headphones,
|
▪
|
wireless speakers,
|
▪
|
Bluetooth speakers,
|
▪
|
action cameras,
|
▪
|
karaoke products,
|
▪
|
infant/nursery products,
|
▪
|
activity tracking bands,
|
▪
|
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, and
|
▪
|
iris identification and biometric security related products.
|
|
|
Six Months Ended
August 31, |
||
|
|
2017
|
||
Net sales of discontinued operations
|
|
$
|
91,824
|
|
Income from discontinued operations, net of tax
|
|
32,710
|
|
|
Income from discontinued operations per diluted share
|
|
$
|
1.35
|
|
|
|
August 31,
|
|
|
|
|
|||||||||
|
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
|||||||
Three Months Ended:
|
|
|
|
|
|
|
|
|
|||||||
Automotive
|
|
$
|
40,006
|
|
|
$
|
32,685
|
|
|
$
|
7,321
|
|
|
22.4
|
%
|
Premium Audio
|
|
39,652
|
|
|
39,941
|
|
|
(289
|
)
|
|
(0.7
|
)
|
|||
Consumer Accessories
|
|
28,860
|
|
|
40,587
|
|
|
(11,727
|
)
|
|
(28.9
|
)
|
|||
Corporate
|
|
349
|
|
|
257
|
|
|
92
|
|
|
35.8
|
|
|||
Total net sales
|
|
$
|
108,867
|
|
|
$
|
113,470
|
|
|
$
|
(4,603
|
)
|
|
(4.1
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
Six Months Ended:
|
|
|
|
|
|
|
|
|
|||||||
Automotive
|
|
$
|
79,652
|
|
|
$
|
69,708
|
|
|
$
|
9,944
|
|
|
14.3
|
%
|
Premium Audio
|
|
72,041
|
|
|
77,668
|
|
|
(5,627
|
)
|
|
(7.2
|
)
|
|||
Consumer Accessories
|
|
57,603
|
|
|
80,515
|
|
|
(22,912
|
)
|
|
(28.5
|
)
|
|||
Corporate
|
|
426
|
|
|
402
|
|
|
24
|
|
|
6.0
|
|
|||
Total net sales
|
|
$
|
209,722
|
|
|
$
|
228,293
|
|
|
$
|
(18,571
|
)
|
|
(8.1
|
)%
|
|
|
August 31,
|
|
|
|
|
|||||||||
|
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
|||||||
Three Months Ended:
|
|
|
|
|
|
|
|
|
|||||||
Automotive
|
|
$
|
10,070
|
|
|
$
|
8,396
|
|
|
$
|
1,674
|
|
|
19.9
|
%
|
|
|
25.2
|
%
|
|
25.7
|
%
|
|
|
|
|
|
|
|||
Premium Audio
|
|
13,945
|
|
|
12,433
|
|
|
1,512
|
|
|
12.2
|
|
|||
|
|
35.2
|
%
|
|
31.1
|
%
|
|
|
|
|
|||||
Consumer Accessories
|
|
6,695
|
|
|
7,560
|
|
|
(865
|
)
|
|
(11.4
|
)
|
|||
|
|
23.2
|
%
|
|
18.6
|
%
|
|
|
|
|
|||||
Corporate
|
|
353
|
|
|
32
|
|
|
321
|
|
|
1,003.1
|
|
|||
|
|
$
|
31,063
|
|
|
$
|
28,421
|
|
|
$
|
2,642
|
|
|
9.3
|
%
|
|
|
28.5
|
%
|
|
25.0
|
%
|
|
|
|
|
|||||
Six Months Ended:
|
|
|
|
|
|
|
|
|
|||||||
Automotive
|
|
$
|
20,069
|
|
|
$
|
18,713
|
|
|
$
|
1,356
|
|
|
7.2
|
%
|
|
|
25.2
|
%
|
|
26.8
|
%
|
|
|
|
|
|
|
|||
Premium Audio
|
|
24,974
|
|
|
22,608
|
|
|
2,366
|
|
|
10.5
|
|
|||
|
|
34.7
|
%
|
|
29.1
|
%
|
|
|
|
|
|||||
Consumer Accessories
|
|
13,258
|
|
|
17,063
|
|
|
(3,805
|
)
|
|
(22.3
|
)
|
|||
|
|
23.0
|
%
|
|
21.2
|
%
|
|
|
|
|
|||||
Corporate
|
|
439
|
|
|
181
|
|
|
258
|
|
|
142.5
|
|
|||
|
|
$
|
58,740
|
|
|
$
|
58,565
|
|
|
$
|
175
|
|
|
0.3
|
%
|
|
|
28.0
|
%
|
|
25.7
|
%
|
|
|
|
|
|
|
August 31,
|
|
|
|
|
|||||||||
|
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
|||||||
Three Months Ended:
|
|
|
|
|
|
|
|
|
|||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|||||||
Selling
|
|
$
|
9,604
|
|
|
$
|
10,652
|
|
|
$
|
(1,048
|
)
|
|
(9.8
|
)%
|
General and administrative
|
|
17,038
|
|
|
20,640
|
|
|
(3,602
|
)
|
|
(17.5
|
)
|
|||
Engineering and technical support
|
|
6,070
|
|
|
7,383
|
|
|
(1,313
|
)
|
|
(17.8
|
)
|
|||
Intangible asset impairment charges
|
|
9,814
|
|
|
—
|
|
|
9,814
|
|
|
100.0
|
|
|||
Total operating expenses
|
|
$
|
42,526
|
|
|
$
|
38,675
|
|
|
$
|
3,851
|
|
|
10.0
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Six Months Ended:
|
|
|
|
|
|
|
|
|
|||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|||||||
Selling
|
|
$
|
20,298
|
|
|
$
|
23,061
|
|
|
$
|
(2,763
|
)
|
|
(12.0
|
)%
|
General and administrative
|
|
33,150
|
|
|
40,837
|
|
|
(7,687
|
)
|
|
(18.8
|
)
|
|||
Engineering and technical support
|
|
11,981
|
|
|
14,037
|
|
|
(2,056
|
)
|
|
(14.6
|
)
|
|||
Intangible asset impairment charges
|
|
9,814
|
|
|
—
|
|
|
9,814
|
|
|
100.0
|
|
|||
Total operating expenses
|
|
$
|
75,243
|
|
|
$
|
77,935
|
|
|
$
|
(2,692
|
)
|
|
(3.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
August 31,
|
|
|
|
|
|||||||||
|
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
|||||||
Three Months Ended:
|
|
|
|
|
|
|
|
|
|||||||
Interest and bank charges
|
|
$
|
(1,117
|
)
|
|
$
|
(1,843
|
)
|
|
$
|
726
|
|
|
(39.4
|
)%
|
Equity in income of equity investee
|
|
1,637
|
|
|
1,927
|
|
|
(290
|
)
|
|
(15.0
|
)
|
|||
Investment gain
|
|
—
|
|
|
1,416
|
|
|
(1,416
|
)
|
|
(100.0
|
)
|
|||
Impairment of Venezuela investment properties
|
|
(3,473
|
)
|
|
—
|
|
|
(3,473
|
)
|
|
100.0
|
|
|||
Other, net
|
|
252
|
|
|
(7,629
|
)
|
|
7,881
|
|
|
(103.3
|
)
|
|||
Total other (expense) income
|
|
$
|
(2,701
|
)
|
|
$
|
(6,129
|
)
|
|
$
|
3,428
|
|
|
(55.9
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
Six Months Ended:
|
|
|
|
|
|
|
|
|
|||||||
Interest and bank charges
|
|
$
|
(2,217
|
)
|
|
$
|
(3,635
|
)
|
|
$
|
1,418
|
|
|
(39.0
|
)%
|
Equity in income of equity investee
|
|
3,451
|
|
|
3,730
|
|
|
(279
|
)
|
|
(7.5
|
)
|
|||
Investment gain
|
|
—
|
|
|
1,416
|
|
|
(1,416
|
)
|
|
(100.0
|
)
|
|||
Impairment of Venezuela investment properties
|
|
(3,473
|
)
|
|
—
|
|
|
(3,473
|
)
|
|
100.0
|
|
|||
Other, net
|
|
913
|
|
|
(8,636
|
)
|
|
9,549
|
|
|
(110.6
|
)
|
|||
Total other (expense) income
|
|
$
|
(1,326
|
)
|
|
$
|
(7,125
|
)
|
|
$
|
5,799
|
|
|
(81.4
|
)%
|
|
|
Three Months Ended
August 31, |
|
Six Months Ended
August 31, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net (loss) income attributable to VOXX International Corporation
|
|
$
|
(20,803
|
)
|
|
$
|
17,106
|
|
|
$
|
(21,742
|
)
|
|
$
|
14,076
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
||||||||
Interest expense and bank charges (1)
|
|
735
|
|
|
1,730
|
|
|
1,482
|
|
|
3,406
|
|
||||
Depreciation and amortization (1)
|
|
2,652
|
|
|
4,340
|
|
|
5,306
|
|
|
8,477
|
|
||||
Income tax expense
|
|
8,338
|
|
|
6,207
|
|
|
7,225
|
|
|
2,144
|
|
||||
EBITDA
|
|
(9,078
|
)
|
|
29,383
|
|
|
(7,729
|
)
|
|
28,103
|
|
||||
Stock-based compensation
|
|
127
|
|
|
157
|
|
|
234
|
|
|
299
|
|
||||
Intangible asset impairment charges
|
|
9,814
|
|
|
—
|
|
|
9,814
|
|
|
—
|
|
||||
Impairment of Venezuela investment properties
|
|
3,473
|
|
|
—
|
|
|
3,473
|
|
|
—
|
|
||||
Gain on sale of discontinued operation
|
|
—
|
|
|
(36,118
|
)
|
|
—
|
|
|
(36,118
|
)
|
||||
Loss on forward contracts attributable to sale of business
|
|
—
|
|
|
6,618
|
|
|
—
|
|
|
6,618
|
|
||||
Investment gain
|
|
—
|
|
|
(1,416
|
)
|
|
—
|
|
|
(1,416
|
)
|
||||
Adjusted EBITDA
|
|
$
|
4,336
|
|
|
$
|
(1,376
|
)
|
|
$
|
5,792
|
|
|
$
|
(2,514
|
)
|
Diluted (loss) income per common share attributable to VOXX International Corporation
|
|
$
|
(0.85
|
)
|
|
$
|
0.71
|
|
|
$
|
(0.89
|
)
|
|
$
|
0.58
|
|
Diluted Adjusted EBITDA per common share attributable to VOXX International Corporation
|
|
$
|
0.18
|
|
|
$
|
(0.06
|
)
|
|
$
|
0.24
|
|
|
$
|
(0.10
|
)
|
|
|
Amount of Commitment Expiration per Period (9)
|
||||||||||||||||||
|
|
|
|
Less than
|
|
2-3
|
|
4-5
|
|
After
|
||||||||||
Contractual Cash Obligations
|
|
Total
|
|
1 Year
|
|
Years
|
|
Years
|
|
5 Years
|
||||||||||
Capital lease obligation (1)
|
|
$
|
1,173
|
|
|
$
|
431
|
|
|
$
|
700
|
|
|
$
|
42
|
|
|
$
|
—
|
|
Operating leases (2)
|
|
2,959
|
|
|
1,268
|
|
|
968
|
|
|
531
|
|
|
192
|
|
|||||
Total contractual cash obligations
|
|
$
|
4,132
|
|
|
$
|
1,699
|
|
|
$
|
1,668
|
|
|
$
|
573
|
|
|
$
|
192
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Commitments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank obligations (3)
|
|
$
|
6,595
|
|
|
$
|
6,595
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Stand-by and commercial letters of credit (4)
|
|
1,082
|
|
|
1,082
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other (5)
|
|
11,781
|
|
|
1,558
|
|
|
3,358
|
|
|
1,000
|
|
|
5,865
|
|
|||||
Contingent earn-out payments and other (6)
|
|
389
|
|
|
246
|
|
|
143
|
|
|
—
|
|
|
—
|
|
|||||
Pension obligation (7)
|
|
664
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
664
|
|
|||||
Unconditional purchase obligations (8)
|
|
73,849
|
|
|
73,849
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total other commitments
|
|
94,360
|
|
|
83,330
|
|
|
3,501
|
|
|
1,000
|
|
|
6,529
|
|
|||||
Total commitments
|
|
$
|
98,492
|
|
|
$
|
85,029
|
|
|
$
|
5,169
|
|
|
$
|
1,573
|
|
|
$
|
6,721
|
|
1.
|
Represents total principal payments due under capital lease obligations which have a total current (included in other current liabilities) and long-term principal balance of
$431
and
$742
, respectively, at
August 31, 2018
.
|
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
August 31, 2018
.
|
4.
|
We issue standby and commercial letters of credit to secure certain purchases and insurance requirements.
|
5.
|
This amount includes balances outstanding under loans and mortgages for our manufacturing facility in Florida and for facilities 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 given that such obligations are subject to change based on negotiations with manufacturers.
|
Exhibit Number
|
|
Description
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
101
|
|
The following materials from VOXX International Corporation's Quarterly Report on Form 10-Q for the period ended August 31, 2018, formatted in eXtensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets, (ii), the Consolidated Statements of Operations and Comprehensive (Loss) Income, (iii) the Consolidated Statements of Cash Flows, and (iv) Notes to the Unaudited Consolidated Financial Statements.
|
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