{"id":511970,"date":"2021-07-12T16:04:14","date_gmt":"2021-07-12T20:04:14","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/voxx-international-corporation-reports-its-fiscal-2022-first-quarter-financial-results\/"},"modified":"2021-07-12T16:04:14","modified_gmt":"2021-07-12T20:04:14","slug":"voxx-international-corporation-reports-its-fiscal-2022-first-quarter-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/voxx-international-corporation-reports-its-fiscal-2022-first-quarter-financial-results\/","title":{"rendered":"VOXX International Corporation Reports Its Fiscal 2022 First Quarter Financial Results"},"content":{"rendered":"
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– Fiscal 2022 first quarter net sales increased $65.1 million or 90.4% year-over-year.<\/h2>\n

– Fiscal 2022 first quarter operating loss of $0.4 million, a $7.7 million year-over-year improvement.<\/h2>\n

– Fiscal 2022 net income attributable to VOXX of $2.7 million, an $11.0 million year-over improvement.<\/h2>\n

– Fiscal 2022 Adjusted EBITDA of $8.3 million, an $11.5 million year-over-year improvement.<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n ORLANDO, Fla.<\/span>, July 12, 2021<\/span> \/PRNewswire\/ —\u00a0VOXX International Corporation (NASDAQ: VOXX), a leading manufacturer and distributor of automotive and consumer technologies for the global markets, today announced its financial results for its Fiscal 2022 first quarter ended May 31, 2021<\/span>.<\/p>\n

Commenting on the Company’s Fiscal 2022 first quarter results and business momentum, Pat Lavelle<\/span>, President and Chief Executive Officer stated, “We reported strong top-line growth with all of our business segments up year-over-year. We also generated positive net income and Adjusted EBITDA compared to losses in last year’s fiscal first quarter, up $11.0 million<\/span> and $11.5 million<\/span>, respectively. This was in spite of higher supply chain expenses given industry-wide shortages and delays. We expect higher supply chain costs and shipping delays to impact the fiscal second quarter, and we still anticipate growth, but less than initially anticipated. We instituted price increases to offset the cost of doing business and we will start to realize the positive impact in our fiscal 2022 second quarter, and more so in the second half of the year. We believe we’ve taken the right steps to ensure we have the inventory on hand to meet customer demand in our all-important fiscal third quarter and our positive outlook for the second half of the year has not changed.”<\/p>\n

Lavelle continued, “There has been a lot of positive activity in Fiscal 2022. We reached an agreement to acquire Onkyo’s Home Entertainment A\/V business, set up a joint venture with Sharp to close this transaction, and signed a new licensing agreement with Pioneer Corporation to manufacture and distribute the Pioneer and Pioneer Elite brands for home audio\/video products. These are big milestones for our Premium Audio Company and if all closes as planned, we should generate approximately $50 million<\/span> in sales this fiscal year, with significant growth opportunities in the coming years. We also won smaller automotive OEM awards with Nissan and Volvo, and we were advised by Stellantis that we should receive awards for a newly designed in-vehicle entertainment system and displays shortly. These programs we are working on could generate over $75\u00a0 million in new, incremental business over a three-year period. Our distribution agreement with GalvanEyes will be presented to stockholders at our Annual Meeting later this month and if approved, would strengthen EyeLock’s distribution and reach, and its financial performance.”<\/p>\n

\n Onkyo Home Entertainment Corporation Transaction<\/u>\n <\/p>\n

On April 29, 2021<\/span>, the Company signed a Letter of Intent to acquire the home audio\/video business of Onkyo Home Entertainment Corporation (“Onkyo”), along with Sharp Corporation (“Sharp”) as its partner. On May 28, 2021<\/span>, the Company and Sharp signed an asset purchase agreement to jointly acquire Onkyo’s home a\/v business for a total purchase price of $30.8 million<\/span>, plus the assumption of certain liabilities. The agreement was approved at Onkyo’s ordinary general meeting of shareholders on June 25, 2021<\/span>, and on June 28, 2021<\/span>, the Company announced that it had entered into a joint venture with Sharp to execute the transaction. Finalization of the proposed transaction is subject to customary and regulatory closing conditions and is expected to be completed by August 30, 2021<\/span>.<\/p>\n

\n Distribution Agreement with GalvanEyes LLC<\/u>\n <\/p>\n

On April 29, 2021<\/span>, EyeLock LLC entered into a three-year exclusive distribution agreement (the “Agreement”) with GalvanEyes LLC (“GalvanEyes”), a Florida LLC managed by the Company’s largest stockholder, Mr. Beat Kahli<\/span>. The Agreement provides that GalvanEyes will become the exclusive distributor of EyeLock products in the EU, Switzerland<\/span>, Puerto Rico<\/span>, Malaysia<\/span>, and Singapore<\/span> with the exception of any existing customer relationships. GalvanEyes was also granted exclusive distribution rights in the United States<\/span> for the residential real estate market and specific U.S. Government agencies, and non-exclusive distribution rights in all other territories and verticals with the Company’s consent. In consideration of the grant of exclusivity, GalvanEyes has agreed to pay EyeLock $10.0 million<\/span> in the form of an annual fee of up to $5.0 million<\/span>, with payments made on a quarterly basis. Any gross profit generated by GalvanEyes on the sale of EyeLock LLC products by GalvanEyes will be deducted from the annual fee. <\/p>\n

The transaction is subject to certain closing conditions, including formal approval by the Board of Directors and approval by the Company’s stockholders at the Annual Meeting of Stockholders to be held on July 29, 2021<\/span>.<\/p>\n

\n Fiscal 2022 and Fiscal 2021 First Quarter Comparisons<\/u>\n <\/p>\n

Net sales in the Fiscal 2022 first quarter ended May 31, 2021<\/span>, were $137.1 million<\/span> as compared to net sales of $72.0 million<\/span> in the Fiscal 2021 first quarter ended May 31, 2020<\/span>, an increase of $65.1 million<\/span> or 90.4%. The Company reported year-over-year increases in all reporting segments for the comparable Fiscal periods.<\/p>\n