The following is a summary of the VOXX International Corporation (VOXX) Q3 2024 Earnings Call Transcript:
Financial Performance:
VOXX reported a 5.4% decline in net sales and a steady operating income at $2.3 million for both fiscal '24 and '23 third quarters.
Net income for VOXX was $1.9 million, a decrease of approximately $5.5 million due to a significant income tax benefit reported in the previous fiscal year.
EBITDA stood at $6.5 million compared to $7.7 million from the same period in the previous year.
Gross margins for the nine-month period came in at 24.6%, compared to 25.1% from the same period in the prior year.
Total operating expenses improved by $3.8 million or 3.3%, excluding acquisition and restructuring costs.
The company's net loss for the nine-month period was $19.9 million, compared to a net loss of $9.3 million in the previous year.
Long-term debt, net of debt issuance costs, subtotalled to $47.1 million.
Business Progress:
The company's Automotive business suffered due to industrial strikes and issues with production lines but expects normalization in future quarters.
VOXX expects improved performance from its Premium Audio and accessories categories due to new product launches.
The company has relocated production to Mexico as part of its efforts to enhance its supply chain and reduce overall costs.
VOXX focuses on cost-cutting measures, including lower overhead and better inventory management, to mitigate economic softness.
The company has reached a settlement agreement with Seaguard, agreeing to a total settlement payment of $42 million.
Despite declination in APAC sales, significant growth was observed in the North American market owing to the success of home speakers, wireless speaker systems, and new lines of party speaker systems.
New partnerships have been forged, like the collaboration with Panasonic Automotive and new product launches, indicating potential for future growth.
The company anticipates significant opportunities for its fiscal '25 through new business awards that may help offset challenges within the supply chain and production.
More detailed: VOXX International IR
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