Hauppauge, N.Y. – Audiovox posted
its fiscal year financials reporting lower sales, but higher net income in its
fiscal fourth quarter ended February 28.
Net income for the quarter was $17.4 million as compared
to net income of $6.6 million year-on-year.
Net income for the 2011 fiscal fourth quarter was positively impacted by a net
tax benefit of $12.3 million compared to
a net tax benefit of $1.0 million in the
comparable fiscal fourth quarter.
Net sales for the quarter were $138.9 million, a decrease
of 7.6 percent compared to net sales of $150.3 million reported in the comparable three-month period.
Electronics sales, which includes
both mobile and consumer electronics products, were $102.8 million in the
quarter as compared to $107.3 million for the prior year’s final quarter, a decrease of 4.2
percent. Electronics sales were positively impacted by the acquisition of
Invision, as well as higher sales of mobile electronics products in most
categories. The increases in mobile electronics were partially offset by
declines in mobile audio, lower margin consumer electronics business and sales
of FLO TV products which were included in fiscal 2010 comparisons.
Accessory sales were $36.1 million in the quarter as compared to $43.1 million for the prior year, a decrease of 16.1 percent. The
Accessories group was impacted by the continued slowdown in consumer
electronics sales at retail, particularly video-related products which
correlate to the company’s accessories offering.
In the fiscal year net sales were $561.7 million, an
increase of 2 percent compared to net sales of $550.7 million reported in the comparable year ago period.
Electronics sales, which include
both mobile and consumer electronics products, were $415.2 million for the
2011 fiscal year as compared to $375 million for the 2010 fiscal year, an increase of 10.7 percent.
Audiovox said it experienced sales increases in its security and video
businesses.
Offsetting the increase was the
lack of FY11 sales of FLO TV as that product line was discontinued, lower
fulfillment sales, and lower volumes of consumer goods products at retail.
Accessory sales were $146.5 million as compared
to $175.7 million in the
comparable year-ago period. This decline of 16.6 percent was directly related
to slower retail sales for products utilizing our accessory products at the
retail level, primarily in the Audio/Video category. While a more diverse group
of customers were added in FY11, continued weakness in consumer spending for
non-essential items, such as flat-panel TV’s, adversely impacted Accessory
sales. Offsetting the decline, were increased accessory sales in the company’s
European operations.
Operating income for the fiscal
year was $9 million compared to
operating income of $3.8 million in the
comparable year ago period. Net income for the fiscal year 2011 period was $23 million compared to
net income of $22.5 million n the prior year. Net income for fiscal year 2011 was positively impacted by
a $10.5 million tax benefit
compared to an $11.3 million tax benefit
in the comparable fiscal year.
The Audiovox acquisition of
Klipsch Group for $167.6 million was completed on March 1, 2011 and its
performance will be included in fiscal year 2012 results.
In its year-end report Audiovox did say on a pro forma
basis, had the Klipsch acquisition taken place on March 1, 2009, the company
would have reported net sales of $728.3 million for the fiscal year-ended
February 28, 2011 as compared to net sales of $706.7 million for the fiscal
year-ended February 28, 2010.
Net income for the year ended Feb. 28, 2011 would have been $31.4
million compared to the prior year’s net income of $31.4 million.
