Tue, May 14, 8:14 PM (73 days ago)
VOXX International Corporation's Form 10-K for the fiscal year ended February 29, 2024, reports a decline in net sales and gross profit across its segments. Key financial highlights include: 1. **Revenue**: Total net sales decreased to $468.9 million from $534.0 million in the prior year, driven by declines in both the Automotive Electronics and Consumer Electronics segments. Automotive Electronics sales fell by $32.5 million, primarily due to reduced OEM rear seat entertainment product sales and aftermarket security products. Consumer Electronics sales decreased by $31.1 million, impacted by lower sales of Onkyo and Pioneer receiver products and premium home theater speakers. 2. **Net Income**: The company recorded a net loss of $40.9 million, compared to a net loss of $27.5 million in the previous year. The net loss was influenced by lower sales, higher interest expenses, and impairment charges. 3. **Operating Expenses**: Total operating expenses slightly decreased to $158.1 million from $161.6 million. This includes a significant intangible asset impairment charge of $14.2 million and restructuring expenses of $2.1 million. 4. **Gross Margin**: The overall gross margin decreased to 24.3% from 25.1%, with Automotive Electronics margins declining due to lower sales of higher-margin products and increased inventory write-downs. 5. **Future Outlook**: The company continues to focus on mitigating supply chain challenges and driving operational improvements. Strategic initiatives include relocating OEM production to Mexico to reduce costs and expanding product offerings in new markets. 6. **Risk Factors**: The report highlights risks such as economic downturns, inflation, supply chain disruptions, and geopolitical tensions that could adversely impact the business. 7. **Financial Condition**: As of February 29, 2024, VOXX had working capital of $138.9 million, including cash and cash equivalents of $11.0 million, compared to $131.6 million and $6.1 million, respectively, in the prior year. This summary provides a snapshot of VOXX International Corporation's financial performance, strategic initiatives, and potential risk factors for the fiscal year ended February 29, 2024.