Universal Electronics Reports First Quarter 2012 Financial Results
May 3, 2012
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“Market share growth has been driven by broadening our existing
relationships as well as forming new affiliations, including with a
major Korean TV manufacturer and with several new customers in
Financial Results for the Three Months Ended
-
Net sales were
$103.7 million , compared to net sales of$105.7 million .-
Business Category revenue was
$92.4 million , compared to$95.3 million .
The Business Category contributed 89.1% of total net sales, compared to 90.2%. -
Consumer Category revenue was
$11.3 million , compared to$10.4 million .
The Consumer Category contributed 10.9% of total net sales, compared to 9.8%.
-
Business Category revenue was
- Adjusted pro forma gross margins were 27.6%, compared to gross margins of 26.4%.
-
Adjusted pro forma operating expenses were
$24.8 million , compared to operating expenses of$24.4 million . -
Adjusted pro forma operating income was
$3.8 million , compared to operating income of$3.4 million . -
Adjusted pro forma net income was
$2.8 million , or$0.19 per diluted share, compared to net income of$2.6 million , or$0.17 per diluted share. -
At
March 31, 2012 , cash and cash equivalents was$24.3 million .
Financial Outlook
For the second quarter of 2012, the company expects net sales to range
between
For the full 2012 year, the company expects net sales to range between
Conference Call Information
UEI’s management team will hold a conference call today,
Use of Non-GAAP Financial Metrics
Non-GAAP gross margins, Non-GAAP operating expenses, and Non-GAAP net income and earnings per share are supplemental measures of the company's performance that are not required by, and are not presented in accordance with GAAP. The non-GAAP information does not substitute for any performance measure derived in accordance with GAAP. Non-GAAP gross profit is defined as gross profit excluding charges related to the write-up of inventory and depreciation related to the acquisition. Non-GAAP operating expenses is defined as cash operating expenses excluding acquisition costs, amortization of intangibles and other employee related restructuring costs. Non-GAAP net income is net income from operations excluding the aforementioned items. A reconciliation of Non-GAAP financial results to GAAP results is included at the end of this press release.
About
Founded in 1986,
Safe Harbor Statement
This press release contains forward-looking statements that are made
pursuant to the Safe-Harbor provisions of the Private Securities
Litigation Reform Act of 1995. Words and expressions reflecting
something other than historical fact are intended to identify
forward-looking statements. These forward-looking statements involve a
number of risks and uncertainties, including the benefits anticipated by
the Company due to the Company’s ability to gain market share; the
Company’s ability to attract new customers and retain and expand our
relationships with its existing customers; general economic conditions;
the strength and growth prospects of the consumer electronics and
broader retail industries; and other factors described in the Company's
filings with the
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UNIVERSAL ELECTRONICS INC. |
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| CONSOLIDATED BALANCE SHEETS | ||||||||
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(In thousands, except share-related data) |
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(Unaudited) |
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March 31, |
December 31, |
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| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 24,312 | $ | 29,372 | ||||
| Accounts receivable, net | 73,817 | 82,184 | ||||||
| Inventories, net | 85,131 | 90,904 | ||||||
| Prepaid expenses and other current assets | 3,892 | 3,045 | ||||||
| Deferred income taxes | 6,502 | 6,558 | ||||||
| Total current assets | 193,654 | 212,063 | ||||||
| Property, plant, and equipment, net | 78,990 | 80,449 | ||||||
| Goodwill | 30,882 | 30,820 | ||||||
| Intangible assets, net | 32,005 | 32,814 | ||||||
| Other assets | 5,225 | 5,350 | ||||||
| Deferred income taxes | 8,085 | 7,992 | ||||||
| Total assets | $ | 348,841 | $ | 369,488 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 40,224 | $ | 55,430 | ||||
| Line of credit | 2,000 | 2,000 | ||||||
| Notes payable | 12,200 | 14,400 | ||||||
| Accrued sales discounts, rebates and royalties | 5,314 | 6,544 | ||||||
| Accrued income taxes | 3,388 | 5,707 | ||||||
| Accrued compensation | 29,111 | 29,204 | ||||||
| Deferred income taxes | 61 | 50 | ||||||
| Other accrued expenses | 9,481 | 13,967 | ||||||
| Total current liabilities | 101,779 | 127,302 | ||||||
| Long-term liabilities: | ||||||||
| Deferred income taxes | 11,206 | 11,056 | ||||||
| Income tax payable | 1,136 | 1,136 | ||||||
| Other long-term liabilities | 3 | 5 | ||||||
| Total liabilities | 114,124 | 139,499 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding | — | — | ||||||
| Common stock, $0.01 par value, 50,000,000 shares authorized; 21,263,655 and 21,142,915 shares issued on March 31, 2012 and December 31, 2011, respectively | 213 | 211 | ||||||
| Paid-in capital | 176,069 | 173,701 | ||||||
| Accumulated other comprehensive income | 1,866 | 938 | ||||||
| Retained earnings | 155,648 | 154,016 | ||||||
| 333,796 | 328,866 | |||||||
| Less cost of common stock in treasury, 6,362,796 and 6,353,035 shares on March 31, 2012 and December 31, 2011, respectively | (99,079 | ) | (98,877 | ) | ||||
| Total stockholders’ equity | 234,717 | 229,989 | ||||||
| Total liabilities and stockholders’ equity | $ | 348,841 | $ | 369,488 | ||||
| UNIVERSAL ELECTRONICS INC. | ||||||||
| CONSOLIDATED INCOME STATEMENTS | ||||||||
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(In thousands, except per share amounts) |
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(Unaudited) |
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Three Months Ended |
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| 2012 | 2011 | |||||||
| Net sales | $ | 103,732 | $ | 105,712 | ||||
| Cost of sales | 75,405 | 78,133 | ||||||
| Gross profit | 28,327 | 27,579 | ||||||
| Research and development expenses | 3,463 | 3,257 | ||||||
| Selling, general and administrative expenses | 22,552 | 21,787 | ||||||
| Operating income | 2,312 | 2,535 | ||||||
| Interest expense, net | (37 | ) | (85 | ) | ||||
| Other expense, net | (324 | ) | (34 | ) | ||||
| Income before provision for income taxes | 1,951 | 2,416 | ||||||
| Provision for income taxes | (319 | ) | (589 | ) | ||||
| Net income | $ | 1,632 | $ | 1,827 | ||||
| Earnings per share: | ||||||||
| Basic | $ | 0.11 | $ | 0.12 | ||||
| Diluted | $ | 0.11 | $ | 0.12 | ||||
| Shares used in computing earnings per share: | ||||||||
| Basic | 14,871 | 14,976 | ||||||
| Diluted | 15,108 | 15,383 | ||||||
| UNIVERSAL ELECTRONICS INC. | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
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(In thousands) |
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(Unaudited) |
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Three Months Ended |
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| 2012 | 2011 | |||||||
| Cash (used for) provided by operating activities: | ||||||||
| Net income | $ | 1,632 | $ | 1,827 | ||||
| Adjustments to reconcile net income to net cash (used for) provided by operating activities: | ||||||||
| Depreciation and amortization | 4,260 | 4,309 | ||||||
| Provision for doubtful accounts | (17 | ) | 6 | |||||
| Provision for inventory write-downs | 894 | 882 | ||||||
| Deferred income taxes | 124 | 124 | ||||||
| Tax benefit from exercise of stock options and vested restricted stock | 8 | 34 | ||||||
| Excess tax benefit from stock-based compensation | (30 | ) | (158 | ) | ||||
| Shares issued for employee benefit plan | 121 | 156 | ||||||
| Stock-based compensation | 1,197 | 1,032 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 8,934 | 10,559 | ||||||
| Inventories | 5,387 | 1,129 | ||||||
| Prepaid expenses and other assets | (681 | ) | (83 | ) | ||||
| Accounts payable and accrued expenses | (21,511 | ) | (15,739 | ) | ||||
| Accrued income taxes | (2,343 | ) | (3,930 | ) | ||||
| Net cash (used for) provided by operating activities | (2,025 | ) | 148 | |||||
| Cash used for investing activities: | ||||||||
| Acquisition of property, plant, and equipment | (1,712 | ) | (2,338 | ) | ||||
| Acquisition of intangible assets | (216 | ) | (283 | ) | ||||
| Net cash used for investing activities | (1,928 | ) | (2,621 | ) | ||||
| Cash used for financing activities: | ||||||||
| Issuance of debt | 5,000 | — | ||||||
| Payment of debt | (7,200 | ) | (7,200 | ) | ||||
| Proceeds from stock options exercised | 1,151 | 101 | ||||||
| Treasury stock purchased | (309 | ) | (371 | ) | ||||
| Excess tax benefit from stock-based compensation | 30 | 158 | ||||||
| Net cash used for financing activities | (1,328 | ) | (7,312 | ) | ||||
| Effect of exchange rate changes on cash | 221 | 624 | ||||||
| Net decrease in cash and cash equivalents | (5,060 | ) | (9,161 | ) | ||||
| Cash and cash equivalents at beginning of period | 29,372 | 54,249 | ||||||
| Cash and cash equivalents at end of period | $ | 24,312 | $ | 45,088 | ||||
Supplemental Cash Flow Information — The Company had income tax
payments of $1.1 million and
| UNIVERSAL ELECTRONICS INC. | |||||||||||||||||||||||||
| RECONCILIATION OF ADJUSTED PRO FORMA FINANCIAL RESULTS | |||||||||||||||||||||||||
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(In thousands, except share-related data) |
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(Unaudited) |
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| Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
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March 31, 2012 |
March 31, 2011 |
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| GAAP | Adjustments |
Adjusted |
GAAP | Adjustments |
Adjusted |
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| Net sales | $ | 103,732 | $ | - | $ | 103,732 | $ | 105,712 | $ | - | $ | 105,712 | |||||||||||||
| Cost of sales(1) | 75,405 | (277 | ) | 75,128 | 78,133 | (277 | ) | 77,856 | |||||||||||||||||
| Gross profit | 28,327 | 277 | 28,604 | 27,579 | 277 | 27,856 | |||||||||||||||||||
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Research and development expenses |
3,463 |
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3,463 |
3,257 |
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3,257 |
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| Selling, general and administrative expenses(2) | 22,552 | (1,232 | ) | 21,320 |
21,787 |
(633 | ) | 21,154 | |||||||||||||||||
| Operating income | 2,312 | 1,509 | 3,821 | 2,535 | 910 | 3,445 | |||||||||||||||||||
| Interest expense, net | (37 | ) | - | (37 | ) | (85 | ) | - | (85 | ) | |||||||||||||||
| Other expense, net | (324 | ) | - | (324 | ) | (34 | ) | - | (34 | ) | |||||||||||||||
| Income before provision for income taxes | 1,951 | 1,509 | 3,460 | 2,416 | 910 | 3,326 | |||||||||||||||||||
| Provision for income taxes(3) | (319 | ) | (304 | ) | (623 | ) | (589 | ) | (145 | ) | (734 | ) | |||||||||||||
| Net income | $ | 1,632 | $ | 1,205 | $ | 2,837 | $ | 1,827 | $ | 765 | $ | 2,592 | |||||||||||||
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Earnings per diluted share |
$ | 0.11 | $ | 0.08 | $ | 0.19 | $ | 0.12 | $ | 0.05 | $ | 0.17 | |||||||||||||
(1) To reflect depreciation expense of
(2) To reflect amortization expense for the three months ended
(3) To reflect the tax effect of the adjustments.
Source:
UEI
Paul Arling, 714-820-1000
or
IR Agency
Becky
Herrick, 415-433-3777