VOXX International: Financial Performance and New Product Launches

2024-01-24

VOXX International, a leading manufacturer and distributor of consumer electronics and automotive products, recently held its Q3 2024 Earnings Call on January 10, 2024. The conference call was attended by Pat Lavelle, the CEO of VOXX International, and Michael Stoehr, the CFO of the company. The purpose of the call was to discuss the company's fiscal 2024 third quarter nine-month results.

During the call, the speakers highlighted the three primary areas of focus for VOXX International, which were protecting and growing sales, improving gross margins, and lowering expenses. They mentioned that gross margins had grown by 90 basis points, operating expenses had improved by over 2%, and sales had declined by approximately 5.4%.

In the consumer segment, the Premium Audio business had a strong quarter with good growth in North America and Europe, although sales in the APAC region declined. The company introduced several new products at CES, including the Klipsch Plexus sound system powered by Onkyo and the Klipsch Gig series of party speakers.

In the automotive segment, the company faced challenges due to the UAW strike, which resulted in a significant decrease in OEM business. Sales for CE products were essentially flat, except for a growth in sales of recently launched RCA hearing aids products. The aftermarket business was down due to the general economy and lower inventories at new car dealers.

The speakers also discussed the current state of the economy and the steps taken by the company to address economic softness. They expected the Fed to start cutting rates and stimulating the economy. The launch of new products, especially within the consumer segment, was expected to help offset some of the economic softness. The company had also taken steps to reduce overhead and manage inventory tightly.

In terms of financials, the company saw improvements in operating expenses, with total operating expenses improving by 4.7%. Selling expenses declined by 9.6% and G&A expenses declined by 2.4%. The operating loss for the fiscal 2024 nine-month period was 17.7 million, and the net loss attributable to VOXX was 19.9 million. The EBITDA was a loss of 6.5 million, while the adjusted EBITDA was 3 million.

Looking ahead, the company expressed optimism about its outlook for 2024 and mentioned that it had a lot of new products scheduled for next year. The speakers expressed their gratitude to the participants for joining the call and mentioned that there were no questions in the queue at that time.

Overall, the VOXX International Q3 2024 Earnings Call covered various topics, including the company's financial performance, new product launches, challenges in different business segments, and the outlook for the future.