[ACCESSWIRE]
LONDON, UK / ACCESSWIRE / October 13, 2016 / Active Wall St. announces its post-earnings coverage on VOXX International Corporation (NASDAQ: VOXX). The company reported its financial results for the second quarter fiscal 2017 (Q2 FY17) and first half fiscal 2017 (H1 FY17) on September 27, 2016. The Hauppauge, New York-based company reported a 3.3% y-o-y growth in net sales with a positive earnings during Q2 FY17. Register with us now for your free membership at: http://www.activewallst.com/register/.
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Earnings Reviewed
For the three months ended on August 31, 2016, VOXX' net sales were $159.26 million, up from $154.17 million reported in the prior year's corresponding quarter. However, net sales numbers missed analysts' forecasts by $1.70 million. Earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q2 FY17 came in at $6.73 million compared to an EBITDA loss of $1.66 million recorded in the year ago quarter.
Net income attributable to VOXX for Q2 FY17 stood at $3.02 million, or $0.12 per diluted share, compared to net loss attributable to VOXX of $4.39 million, or $0.18 loss per diluted share, in Q2 FY16. Net income attributable to VOXX has outperformed analysts' expectations, who were expecting the company to report a net loss of $0.01 per diluted share.
During H1 FY17, the automotive industry consumer electronic products manufacturer saw its net sales fall by 1.2% to $314.72 million from $318.56 million recorded in the comparable year ago period. VOXX reported net loss attributable to the company of $1.29 million, or $0.05 loss per diluted share, in H1 FY17 compared to net loss of $5.11 million, or $0.21 loss per diluted share, in H1 FY16.
Operating Metrics
In Q2 FY17, VOXX's gross profit was $46.49 million, or 29.2% of net sales, compared to gross profit of $44.98 million in the year ago quarter. Operating expenses during Q2 FY17 improved by $4.54 million, or 8.7% y-o-y to $47.31 million from $51.85 million in the previous year's comparable quarter. The company reported operating loss of $0.82 million in Q2 FY17 compared to an operating loss of $6.87 million in Q2 FY16. Furthermore, adjusted EBITDA increased to $6.92 million during Q2 FY17 from $4.80 million in Q2 FY16.
Segment-wise
VOXX's Automotive segment's sales declined $4.4 million, or 5.3%, y-o-y to $161.3 million in Q2 FY17 from $84.3 million in the prior year's same period. The company attributed this decline to lower OEM North American sales, partially offset by an increase in international sales of tuner and antenna at VOXX's "Hirschmann" brand. The segment's gross margins improved by 60 basis points to 31.3%, primarily due to a shift in product mix.
Its Premium Audio segment's sales grew 4.7 million, or 15.5%, y-o-y to $34.9 million in Q2 FY17 from $30.2 million in Q2 FY16. The improved quarterly sales are attributed to the introduction of new products in the market during the period. Due to introduction of new product lines, the segment's gross margins improved by 30 basis points to 32.9% in Q2 FY17.
The company's Consumer Accessories segment's sales also grew by 5.1 million, or 13.2%, y-o-y to $44.3 million in Q2 FY17 from $39.1 million in the comparative quarter of fiscal 2016. This segment's sales improved during the quarter due to increased sales of reception products, introduction of new products and higher international sales. However, this segments' gross margin declined by 80 basis points to 22.2% in the reported quarter.
Balance Sheet
VOXX reported net inventory of $160.83 million as on August 31, 2016, versus $144.03 million as on the close of books on February 29, 2016. As on August 31, 2016, the company had $4.85 million in cash and cash equivalents compared to a balance of $11.77 million as on February 29, 2016. Additionally, the company reported long-term debt of $92.94 million in its books as on August 31, 2016 up from $88.17 million as on February 29, 2016.
Stock Performance
At the closing bell, on Wednesday, October 12, 2016, VOXX International's stock rocketed 49.02%, ending the trading session at $3.80 from its previous close of $2.55. A total volume of 3.11 million shares were traded at the end of the day, which was higher than the 3-month average volume of 182.08 thousand shares. Shares of the company have surged 22.58% in the last month and 39.19% in the past three quarters, respectively. The stock currently has a market cap of $98.80 million.
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