Voxx International Corp has a market cap of $175.5 million; its shares were traded at around $7.75 with a P/E ratio of 5.5 and P/S ratio of 0.2.
Highlight of Business Operations:Effective December 1, 2011, Audiovox Corporation changed its name to VOXX International Corporation ("Voxx," "We," "Our," "Us" or the "Company"). The Company believes that the name VOXX International would be a name that better represents the widely diversified interests of the Company, and the more than 30 global brands it has acquired and grown throughout the years, achieving a powerful international corporate image and creating a vehicle for each of these respective brands to emerge with its own identity. Voxx is a leading international distributor in the accessory, mobile and consumer electronics industries. On March 14, 2012, the Company acquired Car Communication Holding GmbH and its worldwide subsidiaries, a recognized tier-1 supplier of communications and infotainment solutions, primarily to the automotive industry. We conduct our business through nineteen wholly-owned subsidiaries: American Radio Corp., Audiovox Electronics Corporation (“AEC”), VOXX Accessories Corp., Audiovox Consumer Electronics, Inc. (“ACE”), Audiovox German Holdings GmbH (“Audiovox Germany”), Audiovox Venezuela, C.A., Audiovox Canada Limited, Audiovox Hong Kong Ltd., Audiovox International Corp., Audiovox Mexico, S. de R.L. de C.V. (“Audiovox Mexico”), Technuity, Inc., Code Systems, Inc., Oehlbach Kabel GmbH ("Oehlbach"), Schwaiger GmbH (“Schwaiger”), Invision Automotive Systems, Inc. (“Invision”), Klipsch Holding LLC ("Klipsch"), Car Communication Holding GmbH ("Hirschmann"), Omega Research and Development, LLC ("Omega") and Audiovox Websales LLC. We market our products under the Audiovox® brand name, other brand names and licensed brands, such as Acoustic Research®, Advent®, Car Link®, Code-Alarm®, Energy®, Excalibur®, Heco®, Hirschmann Car Communication®, Incaar™, Invision®, Jamo®, Jensen®, Klipsch®, Mac Audio™, Magnat®, Mirage®, Oehlbach®, Prestige®, RCA®, Schwaiger®, and Terk®, as well as private labels through a large domestic and international distribution network. We also function as an OEM ("Original Equipment Manufacturer") supplier to several customers and presently have one reportable segment (the "Electronics Group"), which is organized by product category.
Electronic sales represented 82.9% and 81.2% of the net sales for the three and nine months ended November 30, 2012, respectively, compared to 80.2% and 80.1% in the respective prior year periods. For the three and nine months ended November 30, 2012, approximately $39,465 and $115,658, respectively of the increase in sales from this product group was the result of our recent acquisition of Hirschmann. In addition, the electronics group experienced increases in its OEM manufacturing lines in the three and nine months ended November 30, 2012 due to the launch of new programs with Ford and Nissan in the second quarter of Fiscal 2013, increased sales of on-ear and in-ear headphones and soundbars, as well as new product offerings, such as the Tagg™ GPS pet tracker. OEM increases were partially offset during the nine months ended November 30, 2012 by decreases due to remote start sales, which were affected early in the fiscal year by a warmer winter, as well as by the conclusion of Ford's production program for headrest DVD systems in the first quarter of Fiscal 2013. Electronic sales increases were also offset during the three and nine months ended November 30, 2012 by a decline in sales of consumer electronics products including camcorders and digital players as a result of declines in demand and the exiting of certain products; a decline in satellite fulfillment sales; slower car speaker sales in Europe; and a decline in our audio product line. The audio decline is partially offset by sales related to new product introductions, such as sales of slot machine speakers and mobile iPod and iPad interfaces.
Accessory sales represented 17.1% and 18.8% of our net sales for the three and nine months ended November 30, 2012, respectively, compared to 19.8% and 19.9% in the respective prior year periods. The increase in the accessories group was primarily related to sales of new wireless speaker products, increased sales of antennas as a result of the Summer Olympics as well as changes in consumer demand and increased sales of portable power lines and power supply systems due to the growing predominance of electronic devices in consumer homes. These increases were partially offset by a decrease in sales in our international markets due primarily to the effect of European market conditions during the fiscal year, which continued to slow down.
Operating expenses increased $8,753 and $28,114 for the three and nine months ended November 30, 2012, respectively, from $41,406 and $117,328 in the comparable prior year periods. As a percentage of net sales, operating expenses increased to 20.6% and 23.1% as compared to 20.0% and 22.1% for the comparable prior year period. The increase in total operating expenses was due primarily to our recent acquisition of Hirschmann which accounted for $10,872 and $32,106 during the three and nine months ended November 30, 2012, respectively, as well as increases in advertising expense Company-wide of approximately $200 and $900 for the three and nine months ended November 30, 2012, respectively, not including Hirschmann. Not taking into account
Net income for the three months ended November 30, 2012 increased versus the prior year period as a result of the addition of our Hirschmann acquisition, as well as due to charges related to a patent lawsuit that were incurred during the third quarter of Fiscal 2012. Net income for the nine months ended November 30, 2012 decreased versus the prior year period primarily as a result of additional expenses associated with the patent lawsuit incurred during the first quarter of Fiscal 2013, as well as losses on forward exchange contracts and a decrease in sales in the European markets, partially offset by decreased tax provisions, the addition of our Hirschmann acquisition and an increase in sales in domestic markets.
Read the The complete Report