Voxx Hurt By Weather, Soft Retail In Fiscal Q4

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HAUPPAUGE, N.Y. – Voxx International reported lower sales and a net loss in its fiscal fourth quarter, ended Feb. 28, due to harsh weather conditions in the U.S. and softness at retail.

During the fiscal 2014 fourth quarter, after reviewing goodwill and both tangible and intangible assets, Voxx took a $57.6 million non-cash impairment charge.

Pat Lavelle, Voxx International’s president and CEO, stated, “Through the first nine months of the year, we were tracking in line with our plan and had very strong loadin’s for the holiday season. While we lowered our top-line guidance based on softness in December, severe weather conditions throughout the country impacted the entire retail industry and had a big effect on our fourth-quarter performance. Retail was the primary reason for our miss, and our story has not changed.”

He added, “New products coming to market, our growing OEM platform, sales from new and exciting biometrics, imagery and action cameras, and our expanding retail distribution are the drivers for our optimism. I believe we are well positioned to drive meaningful growth over the next few years and deliver long-term sustainable value for our shareholders.”

Net sales in quarter were $187.1 million, compared year on year to $206.8 million.

Net loss for the quarter with impairment charges was $49 million. Excluding those charges, the net income for the quarter was $8.6 million compared with a net income in the prior year’s quarter of $10.3 million.

Operating loss for the quarter was $59.6 million, but excluding those charges operating income was $2 million, compared with operating income of $12 million for the prior year.

Automotive sales for the quarter were down 13.3 percent to $93.9 million; premium audio sales for the quarter were $42.7 million, down 13.3 percent from the prior year; and consumer accessories sales for the quarter were $50.2 million, down 5.3 percent compared with the prior year’s final quarter.

For the year, net sales were $809.7 million, down 3.1 percent from the prior year. The net loss with impairment charges was $26.6 million. Excluding those charges, net income was $31.0 million, compared with the prior year’s net income of $22.5 million.

The operating loss with impairment charges was $37.4 million. Without those charges, operating income was $20.2 million, compared with the prior year’s $41.7 million operating income.

Voxx management anticipates fiscal-year 2015 sales of $825 million to $830 million, with gross margins increasing to more than 29 percent; EBITDA guidance of $54 million to $55 million in line with fiscal-year 2014 as Voxx continues to invest in its infrastructure and in new sales categories, the company said.

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