Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Aug. 31, 2021 | Sep. 08, 2021 | |
Document Information [Line Items] | ||
Entity Registrant Name | VOXX International Corporation | |
Title of 12(b) Security | Class A Common Stock $.01 par value | |
Entity Trading Symbol | VOXX | |
Security Exchange Name | NASDAQ | |
Entity Central Index Key | 0000807707 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --02-28 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Aug. 31, 2021 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Address, State or Province | FL | |
Entity File Number | 0-28839 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-1964841 | |
Entity Address, Address Line One | 2351 J Lawson Blvd | |
Entity Address, City or Town | Orlando | |
Entity Address, Postal Zip Code | 32824 | |
City Area Code | 800 | |
Local Phone Number | 645-7750 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 21,614,629 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,260,954 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2021 | Feb. 28, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 41,051 | $ 59,404 |
Accounts receivable, net | 90,346 | 106,165 |
Inventory | 145,711 | 130,793 |
Receivables from vendors | 362 | 277 |
Due from Onkyo (see Note 2) | 8,390 | 0 |
Prepaid expenses and other current assets | 24,149 | 22,266 |
Income tax receivable | 435 | 434 |
Total current assets | 310,444 | 319,339 |
Investment securities | 1,544 | 1,777 |
Equity investment | 22,457 | 23,267 |
Property, plant and equipment, net | 51,022 | 52,026 |
Operating lease, right of use asset | 4,309 | 4,572 |
Goodwill | 56,958 | 58,311 |
Intangible assets, net | 87,192 | 90,104 |
Deferred income tax assets | 98 | 99 |
Other assets | 798 | 1,323 |
Total assets | 534,822 | 550,818 |
Current liabilities: | ||
Accounts payable | 58,006 | 61,826 |
Accrued expenses and other current liabilities | 47,742 | 53,392 |
Income taxes payable | 1,390 | 1,587 |
Accrued sales incentives | 21,648 | 25,313 |
Contract liabilities, current | 3,698 | 4,178 |
Current portion of long-term debt | 1,328 | 500 |
Total current liabilities | 133,812 | 146,796 |
Long-term debt, net of debt issuance costs | 5,192 | 5,962 |
Finance lease liabilities, less current portion | 155 | 302 |
Operating lease liabilities, less current portion | 3,327 | 3,582 |
Deferred compensation | 1,544 | 1,777 |
Deferred income tax liabilities | 6,910 | 6,645 |
Other tax liabilities | 1,007 | 1,170 |
Other long-term liabilities | 4,701 | 5,255 |
Total liabilities | 156,648 | 171,489 |
Commitments and contingencies (see Note 24) | ||
Redeemable equity (see Note 8) | 3,345 | 3,260 |
Stockholders' equity: | ||
Preferred stock: | 0 | 0 |
Paid-in capital | 300,019 | 300,402 |
Retained earnings | 151,933 | 148,906 |
Accumulated other comprehensive loss | (15,634) | (14,977) |
Less: Treasury stock, at cost, 2,862,218 and 2,749,218 shares of Class A Common Stock at August 31, 2021 and February 28, 2021, respectively | (25,138) | (23,918) |
Less: Redeemable equity | (3,345) | (3,260) |
Total VOXX International Corporation stockholders' equity | 408,102 | 407,420 |
Non-controlling interest | (33,273) | (31,351) |
Total stockholders' equity | 374,829 | 376,069 |
Total liabilities, redeemable equity, and stockholders' equity | 534,822 | 550,818 |
Common Class A [Member] | ||
Stockholders' equity: | ||
Common stock | 245 | 245 |
Common Class B [Member] | ||
Stockholders' equity: | ||
Common stock | $ 22 | $ 22 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 31, 2021 | Feb. 28, 2021 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 2,862,218 | 2,749,218 |
Common Class A [Member] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 24,476,847 | 24,416,194 |
Common stock, shares outstanding | 21,614,629 | 21,666,976 |
Treasury stock, shares | 2,862,218 | 2,749,218 |
Common Class B [Member] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 2,260,954 | 2,260,954 |
Common stock, shares outstanding | 2,260,954 | 2,260,954 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 143,109 | $ 128,032 | $ 280,169 | $ 200,019 |
Cost of sales | 105,923 | 89,956 | 206,288 | 141,968 |
Gross profit | 37,186 | 38,076 | 73,881 | 58,051 |
Operating expenses: | ||||
Selling | 11,838 | 9,233 | 23,305 | 17,801 |
General and administrative | 17,884 | 15,424 | 36,560 | 30,294 |
Engineering and technical support | 7,886 | 4,781 | 14,118 | 9,266 |
Acquisition costs | 2,316 | 121 | 2,992 | 246 |
Total operating expenses | 39,924 | 29,559 | 76,975 | 57,607 |
Operating (loss) income | (2,738) | 8,517 | (3,094) | 444 |
Other (expense) income: | ||||
Interest and bank charges | (582) | (1,010) | (1,110) | (1,809) |
Equity in income of equity investee | 2,035 | 1,883 | 4,758 | 2,745 |
Other, net | 376 | (226) | 818 | 460 |
Total other income, net | 1,829 | 647 | 4,466 | 1,396 |
(Loss) income before income taxes | (909) | 9,164 | 1,372 | 1,840 |
Income tax (benefit) expense | (217) | 2,609 | 267 | 4,390 |
Net (loss) income | (692) | 6,555 | 1,105 | (2,550) |
Less: net loss attributable to non-controlling interest | (1,003) | (785) | (1,922) | (1,618) |
Net income (loss) attributable to VOXX International Corporation | 311 | 7,340 | 3,027 | (932) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (1,334) | 3,025 | (962) | 3,529 |
Derivatives designated for hedging | 163 | (294) | 282 | (471) |
Pension plan adjustments | 22 | (65) | 23 | (79) |
Other comprehensive (loss) income, net of tax | (1,149) | 2,666 | (657) | 2,979 |
Comprehensive (loss) income attributable to VOXX International Corporation | $ (838) | $ 10,006 | $ 2,370 | $ 2,047 |
Income (loss) per share - basic: Attributable to VOXX International Corporation | $ 0.01 | $ 0.30 | $ 0.12 | $ (0.04) |
Income (loss) per share - diluted: Attributable to VOXX International Corporation | $ 0.01 | $ 0.30 | $ 0.12 | $ (0.04) |
Weighted-average common shares outstanding (basic) | 24,281,220 | 24,224,478 | 24,273,731 | 24,223,935 |
Weighted-average common shares outstanding (diluted) | 24,855,307 | 24,552,064 | 24,890,641 | 24,223,935 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interests [Member] | Treasury Stock [Member] | Redeemable Equity [Member] |
Stockholders equity, beginning of period at Feb. 29, 2020 | $ 348,229 | $ 266 | $ 299,228 | $ 122,139 | $ (19,055) | $ (27,950) | $ (23,918) | $ (2,481) |
Net income (loss) | (9,105) | 0 | 0 | (8,272) | 0 | (833) | 0 | 0 |
Other comprehensive income, net of tax | 313 | 0 | 0 | 0 | 313 | 0 | 0 | 0 |
Stock-based compensation expense | 151 | 1 | 351 | 0 | 0 | 0 | 0 | (201) |
Stockholders equity, end of period at May. 31, 2020 | 339,588 | 267 | 299,579 | 113,867 | (18,742) | (28,783) | (23,918) | (2,682) |
Stockholders equity, beginning of period at Feb. 29, 2020 | 348,229 | 266 | 299,228 | 122,139 | (19,055) | (27,950) | (23,918) | (2,481) |
Net income (loss) | (2,550) | |||||||
Other comprehensive income, net of tax | 2,979 | |||||||
Stockholders equity, end of period at Aug. 31, 2020 | 348,484 | 267 | 299,339 | 121,207 | (16,076) | (29,568) | (23,918) | (2,767) |
Stockholders equity, beginning of period at May. 31, 2020 | 339,588 | 267 | 299,579 | 113,867 | (18,742) | (28,783) | (23,918) | (2,682) |
Net income (loss) | 6,555 | 0 | 0 | 7,340 | 0 | (785) | 0 | 0 |
Other comprehensive income, net of tax | 2,666 | 0 | 0 | 0 | 2,666 | 0 | 0 | 0 |
Settlement of SERP restricted stock units | (575) | 0 | (575) | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation expense | 250 | 0 | 335 | 0 | 0 | 0 | 0 | (85) |
Stockholders equity, end of period at Aug. 31, 2020 | 348,484 | 267 | 299,339 | 121,207 | (16,076) | (29,568) | (23,918) | (2,767) |
Stockholders equity, beginning of period at Feb. 28, 2021 | 376,069 | 267 | 300,402 | 148,906 | (14,977) | (31,351) | (23,918) | (3,260) |
Net income (loss) | 1,797 | 0 | 0 | 2,716 | 0 | (919) | 0 | 0 |
Other comprehensive income, net of tax | 492 | 0 | 0 | 0 | 492 | 0 | 0 | 0 |
Net settlement of 60,693 shares of common stock upon vesting of stock awards | (856) | 0 | (856) | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation expense | 270 | 0 | 236 | 0 | 0 | 0 | 0 | 34 |
Stockholders equity, end of period at May. 31, 2021 | 377,772 | 267 | 299,782 | 151,622 | (14,485) | (32,270) | (23,918) | (3,226) |
Stockholders equity, beginning of period at Feb. 28, 2021 | 376,069 | 267 | 300,402 | 148,906 | (14,977) | (31,351) | (23,918) | (3,260) |
Net income (loss) | 1,105 | |||||||
Other comprehensive income, net of tax | (657) | |||||||
Repurchase of 113,000 shares of Class A common stock | (1,220) | |||||||
Stockholders equity, end of period at Aug. 31, 2021 | 374,829 | 267 | 300,019 | 151,933 | (15,634) | (33,273) | (25,138) | (3,345) |
Stockholders equity, beginning of period at May. 31, 2021 | 377,772 | 267 | 299,782 | 151,622 | (14,485) | (32,270) | (23,918) | (3,226) |
Net income (loss) | (692) | 0 | 0 | 311 | 0 | (1,003) | 0 | 0 |
Other comprehensive income, net of tax | (1,149) | 0 | 0 | 0 | (1,149) | 0 | 0 | 0 |
Repurchase of 113,000 shares of Class A common stock | (1,220) | 0 | 0 | 0 | 0 | 0 | (1,220) | 0 |
Stock-based compensation expense | 118 | 0 | 237 | 0 | 0 | 0 | 0 | (119) |
Stockholders equity, end of period at Aug. 31, 2021 | $ 374,829 | $ 267 | $ 300,019 | $ 151,933 | $ (15,634) | $ (33,273) | $ (25,138) | $ (3,345) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) (Unaudited) - shares | 3 Months Ended | |
Aug. 31, 2021 | May 31, 2021 | |
Repurchase of shares of common stock | 113,000 | |
Common Stock [Member] | ||
Shares issued upon vesting of stock awards | 60,693 | |
Common Class A [Member] | ||
Repurchase of shares of common stock | 113,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 31, 2021 | Aug. 31, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 1,105 | $ (2,550) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 5,572 | 5,290 |
Amortization of debt discount | 147 | 395 |
Bad debt expense | 153 | |
Reduction in the carrying amount of the right of use asset | 683 | 508 |
Loss (gain) on forward contracts | 203 | (54) |
Equity in income of equity investees | (4,758) | (2,745) |
Distribution of income from equity investees | 5,568 | 2,364 |
Deferred income tax expense | 188 | 2,969 |
Non-cash compensation adjustment | (233) | (443) |
Stock based compensation expense | 473 | 686 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 15,301 | (27,932) |
Inventory | (14,515) | (18,714) |
Receivables from vendors | (86) | (336) |
Prepaid expenses and other | (1,407) | (3,064) |
Investment securities-trading | 233 | 443 |
Accounts payable, accrued expenses, accrued sales incentives, contract liabilities, and other liabilities | (13,833) | 42,400 |
Income taxes payable | (323) | 693 |
Net cash used in operating activities | (5,529) | (90) |
Cash flows from investing activities: | ||
Purchases of property, plant, and equipment | (1,838) | (1,104) |
Issuance of promissory notes | (8,390) | |
Purchase of acquired business, less cash received | (11,000) | |
Net cash used in investing activities | (10,228) | (12,104) |
Cash flows from financing activities: | ||
Principal payments on finance lease obligation | (218) | (329) |
Repayment of bank obligations | (250) | (250) |
Borrowings on bank obligations | 836 | 20,335 |
Deferred financing costs | (667) | (260) |
Withholding taxes paid on net issuance of stock award | (856) | |
Purchase of treasury stock | (1,220) | |
Net cash (used in) provided by financing activities | (2,375) | 19,496 |
Effect of exchange rate changes on cash | (221) | 1,162 |
Net (decrease) increase in cash and cash equivalents | (18,353) | 8,464 |
Cash and cash equivalents at beginning of period | 59,404 | 37,425 |
Cash and cash equivalents at end of period | $ 41,051 | $ 45,889 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Aug. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | (1) Basis of Presentation The accompanying unaudited interim consolidated financial statements of VOXX International Corporation and Subsidiaries ("Voxx" or the "Company") have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission as defined in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 270 for interim financial information, and in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and include all adjustments (consisting of normal recurring adjustments), which, in the opinion of management, are necessary to present fairly the consolidated financial position, results of operations, changes in stockholders’ equity, and cash flows for all periods presented. The results of operations are not necessarily indicative of the results to be expected for the full fiscal year or any interim period. These unaudited consolidated financial statements do not include all disclosures associated with audited consolidated financial statements prepared in accordance with GAAP. Accordingly, these statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto contained in the Company's Form 10-K for the fiscal year ended February 28, 2021. Certain amounts in the prior year have been reclassified to conform to the current year presentation. We operate in three reportable segments: Automotive Electronics, Consumer Electronics, and Biometrics. See Note 22 for the Company's segment reporting disclosures. |
Acquisition and Pending Acquisi
Acquisition and Pending Acquisition Transaction | 6 Months Ended |
Aug. 31, 2021 | |
Acquisitions And Dispositions [Abstract] | |
Acquisition and Pending Acquisition Transaction | (2) Acquisition and Pending Acquisition Transaction Directed LLC and Directed Electronics Canada, Inc. Acquisition On July 1, 2020, the Company completed the acquisition of certain assets and liabilities, which comprise the aftermarket vehicle remote start and security systems and connected car solutions (telematics) businesses of Directed LLC and Directed Electronics Canada Inc. (collectively, with Directed LLC, “Directed”) via an asset purchase agreement. The acquired assets included inventory, accounts receivable, certain fixed assets, IT systems, and intellectual property. The cash purchase price was $11,000. Net sales from the Company’s newly formed subsidiaries, VOXX DEI LLC and VOXX DEI Canada, Ltd. (collectively, with VOXX DEI LLC, “DEI”), included in our consolidated results for the three and six months ended August 31, 2021, represented approximately 9.5% and 9.1% of our consolidated net sales, respectively, as compared to 3.7% and 2.4% for the three and six months ended August 31, 2020, respectively. DEI’s results of operations are included in the consolidated financial statements of Voxx in our Automotive Electronics segment. The purpose of this acquisition was to expand the Company’s market share within the automotive electronics industry. The following summarizes the allocation of the purchase price based upon the fair value of the assets acquired and liabilities assumed at the date of acquisition: July 1, 2020 Measurement Period Adjustments July 1, 2020 (as adjusted) Assets acquired: Inventory $ 7,054 956 8,010 Accounts receivable 5,173 357 5,530 Other current assets 160 - 160 Property and equipment 2,815 - 2,815 Operating lease, right of use asset 1,771 - 1,771 Customer relationships 2,600 (100 ) 2,500 Trademarks 4,500 - 4,500 Patented technology 1,030 - 1,030 Goodwill 3,290 (1,690 ) 1,600 Total assets acquired $ 28,393 $ (477 ) $ 27,916 Liabilities assumed: Accounts payable 8,144 - 8,144 Accrued expenses 1,406 (136 ) 1,270 Contract liabilities 4,872 11 4,883 Warranty accrual 1,200 (352 ) 848 Operating lease liability 1,771 - 1,771 Total $ 17,393 $ (477 ) $ 16,916 Total purchase price $ 11,000 $ - $ 11,000 During Fiscal 2021 and during the three and six months ended August 31, 2021, the Company recorded a cumulative net measurement period adjustment that decreased goodwill by $1,690, as presented in the table above. The measurement period adjustment would have resulted in an insignificant decrease in amortization expense related to the customer relationships in the prior year. The Company made these measurement period adjustments to reflect facts and circumstances that existed as of the acquisition date and did not result from intervening events subsequent to such date. Goodwill was determined as the excess of the purchase price over the fair value of the assets acquired (including the identifiable intangible assets) and represents synergies expected. Onkyo Home Entertainment Corporation On April 29, 2021, the Company’s subsidiary, Premium Audio Company LLC (“PAC”), signed a Letter of Intent to acquire the home audio/video business of Onkyo Home Entertainment Corporation (“Onkyo”), along with Sharp Corporation (“Sharp”) as PAC’s partner. On May 26, 2021, PAC and Sharp signed an asset purchase agreement to jointly acquire the home audio/video business of Onkyo through a joint venture entity for a total purchase price of approximately $30,800, plus the assumption of certain liabilities. The agreement was approved by Onkyo’s shareholders at its ordinary general meeting of shareholders on June 25, 2021 and on June 28, 2021, the Company announced that PAC had entered into a joint venture with Sharp in order to execute the transaction. PAC owns approximately 77% of the joint venture and Sharp owns approximately 23%. In conjunction with the signing of the Letter of Intent on April 29, 2021, Onkyo signed a promissory note with the Company in the amount of $3,000 for the purpose of funding certain operating requirements of the business, including compensation related expenses and the payment of accounts payable during the negotiation process and through the completion date of the transaction. The note was amended on July 26, 2021 to provide for additional borrowings of $5,390. The note bore interest at 4.00% and matured on August 30, 2021. As of August 31, 2021, the outstanding balance of the note was $8,390 and is presented as Due from Onkyo on the Consolidated Balance Sheet. As collateral for the amounts borrowed under the promissory note, Onkyo granted a security interest in certain of its trademarks and other assets included in the asset purchase agreement, as defined in the Security Agreement signed on April 29, 2021 and amended on June 22, 2021. On September 8 , 2021, PAC completed the transaction to acquire the home audio/video business of Onkyo with its partner Sharp through the newly formed joint venture, Onkyo Technology KK (the “ JV”) . Total consideration paid by the JV on the date of the transaction was $ 30,737 , with $ 23,723 contributed by PAC and $ 7,014 contributed by Sharp. $ 8,390 of PAC’s total contribution was satisfied through settlement of the loans made to Onkyo in June and July 2021 which were due and payable to Voxx on September 8, 2021 . The joint venture owns the Onkyo and Integra brands and will market, and sell a variety of products under the Onkyo, Pioneer, and Integra brands. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 6 Months Ended |
Aug. 31, 2021 | |
Net Income Per Common Share [Abstract] | |
Net Income (Loss) Per Common Share | ( 3 ) Net Income (Loss) Per Common Share Basic net income (loss) per common share, net of non-controlling interest, is based upon the weighted-average common shares outstanding during the period. Diluted net income (loss) per common share, net of non-controlling interest, reflects the potential dilution that would occur if common stock equivalent securities or other contracts to issue common stock were exercised or converted into common stock. There are no reconciling items which impact the numerator of basic and diluted net income (loss) per common share. A reconciliation between the denominator of basic and diluted net income (loss) per common share is as follows: Three months ended August 31, Six months ended August 31, 2021 2020 2021 2020 Weighted-average common shares outstanding (basic) 24,281,220 24,224,478 24,273,731 24,223,935 Effect of dilutive securities: Restricted stock and stock grants 574,087 327,586 616,910 — Weighted-average common shares and potential common shares outstanding (diluted) 24,855,307 24,552,064 24,890,641 24,223,935 Restricted stock and stock grants of 0 and 15,666 for the three months ended August 31, 2021 and 2020, respectively, and 0 and 593,632 for the six months ended August 31, 2021 and 2020, respectively, were not included in the net income (loss) per diluted share calculation because the grant price of the restricted stock and stock grants was greater than the average market price of the Company’s common stock during these periods, or the inclusion of these components would have been anti-dilutive. |
Investment Securities
Investment Securities | 6 Months Ended |
Aug. 31, 2021 | |
Investment Securities [Abstract] | |
Investment Securities | ( 4 ) Investment Securities As of August 31, 2021, and February 28, 2021, the Company had the following investments: August 31, 2021 Fair Value Investment Securities Marketable Equity Securities Mutual funds $ 1,544 Total Marketable Equity Securities 1,544 Total Investment Securities $ 1,544 February 28, 2021 Fair Value Investment Securities Marketable Equity Securities Mutual funds $ 1,777 Total Marketable Securities 1,777 Total Investment Securities $ 1,777 Equity Securities Mutual Funds The Company’s mutual funds are held in connection with its deferred compensation plan. Changes in the carrying value of these securities are offset by changes in the corresponding deferred compensation liability. |
Fair Value Measurements and Der
Fair Value Measurements and Derivatives | 6 Months Ended |
Aug. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Derivatives | ( 5 ) Fair Value Measurements and Derivatives The Company applies the authoritative guidance on “Fair Value Measurements," which among other things, requires enhanced disclosures about assets and liabilities that are measured and reported at fair value. This guidance establishes a hierarchal disclosure framework that prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices, or for which fair value can be measured from actively quoted prices, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Investments measured and reported at fair value are classified and disclosed in one of the following categories: Level 1 - Quoted market prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 inputs that are either directly or indirectly observable. Level 3 - Unobservable inputs developed using the Company's estimates and assumptions, which reflect those that market participants would use. At August 31, 2021 and February 28, 2021, the Company did not have any assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). The following table presents financial assets and liabilities measured at fair value on a recurring basis at August 31, 2021: Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash and cash equivalents: Cash and money market funds $ 41,051 $ 41,051 $ — Derivatives: Designated for hedging $ (385) $ — $ (385) Investment securities: Mutual funds $ 1,544 $ 1,544 $ — The following table presents financial assets and liabilities measured at fair value on a recurring basis at February 28, 2021: Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash and cash equivalents: Cash and money market funds $ 59,404 $ 59,404 $ — Derivatives: Designated for hedging $ (765 ) $ — $ (765 ) Investment securities: Mutual funds $ 1,777 $ 1,777 $ — At August 31, 2021, the carrying value of the Company's accounts receivable, short-term debt, accounts payable, accrued expenses, bank obligations, and long-term debt approximates fair value because of either (i) the short-term nature of the financial instrument; (ii) the interest rate on the financial instrument being reset every quarter to reflect current market rates; or (iii) the stated or implicit interest rate approximates the current market rates or are not materially different from market rates. Derivative Instruments The Company’s derivative instruments include forward foreign currency contracts and an interest rate swap agreement. The forward foreign currency contracts are utilized to hedge a portion of the Company’s foreign currency inventory purchases. The forward foreign currency derivatives qualifying for hedge accounting are designated as cash flow hedges and valued using observable forward rates for the same or similar instruments (Level 2). The duration of open forward foreign currency contracts ranges from 1 month to 6 months and are classified in the balance sheet according to their terms. The Company’s interest rate swap agreement hedges interest rate exposure related to the outstanding balance of its Florida Mortgage, with monthly payments due through March 2026. The swap agreement locks the interest rate on the debt at 3.48% (inclusive of credit spread) through the maturity date of the loan. Interest rate swap agreements qualifying for hedge accounting are designated as cash flow hedges and valued based on a comparison of the change in fair value of the actual swap contracts designated as the hedging instruments and the change in fair value of a hypothetical swap contract (Level 2). We calculate the fair value of our interest rate swap agreement quarterly based on the quoted market price for the same or similar financial instruments. Interest rate swaps are classified in the balance sheet as either assets or liabilities based on the fair value of the instruments at the end of the period. Financial Statement Classification The following table discloses the fair value as of August 31, 2021 and February 28, 2021 of the Company’s derivative instruments: Derivative Assets and Liabilities Fair Value Account August 31, 2021 February 28, 2021 Designated derivative instruments Foreign currency contracts Prepaid expenses and other current assets $ 592 $ 412 Accrued expenses and other current liabilities (568 ) (731 ) Interest rate swap agreement Other long-term liabilities (409 ) (446 ) Total derivatives $ (385 ) $ (765 ) Cash Flow Hedges The Company's policy is to enter into derivative instrument contracts with terms that coincide with the underlying exposure being hedged. As such, the Company’s derivative instruments are expected to be highly effective. For derivative instruments that are designated and qualify as cash flow hedges, the entire change in fair value of the hedging instrument included in the assessment of the hedge ineffectiveness is recorded to Other comprehensive (loss) income. When the amounts recorded in Other comprehensive (loss) income are reclassified to earnings, they are presented in the same income statement line item as the effect of the hedged item. During Fiscal 2021, the Company entered into forward foreign currency contracts, which have a current outstanding notional value of $5,400 and are designated as cash flow hedges at August 31, 2021. The current outstanding notional value of the Company's interest rate swap at August 31, 2021 is $6,866. For cash flow hedges, the gain or loss is reported as a component of Other comprehensive (loss) income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The net (loss) income recognized in Other comprehensive (loss) income for foreign currency contracts is expected to be recognized in Cost of sales during the next nine months. No amounts were excluded from the assessment of hedge effectiveness during the respective periods. The gain or loss on the Company’s interest rate swap is recorded in Other comprehensive (loss) income and subsequently reclassified into Interest and bank charges in the period in which the hedged transaction affects earnings. As of August 31, 2021, no interest rate swaps originally designated for hedge accounting were de-designated or terminated. Activity related to cash flow hedges recorded during the three and six months ended August 31, 2021 and 2020 was as follows: Three months ended Six months ended August 31, 2021 August 31, 2021 Pretax Gain (Loss) Recognized in Other Comprehensive Income Pretax Loss Reclassified from Accumulated Other Comprehensive Income Pretax Gain (Loss) Recognized in Other Comprehensive Income Pretax Loss Reclassified from Accumulated Other Comprehensive Income Cash flow hedges Foreign currency contracts $ 172 $ (29 ) $ 144 $ (205 ) Interest rate swaps 19 — 37 — Three months ended Six months ended August 31, 2020 August 31, 2020 Pretax (Loss) Gain Recognized in Other Comprehensive Income Pretax Loss Reclassified from Accumulated Other Comprehensive Income Pretax Loss Recognized in Other Comprehensive Income Pretax Gain Reclassified from Accumulated Other Comprehensive Income Cash flow hedges Foreign currency contracts $ (465 ) $ (16 ) $ (465 ) $ 52 Interest rate swaps 15 — (115 ) — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Aug. 31, 2021 | |
Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Loss | ( 6 ) Accumulated Other Comprehensive Loss The Company’s accumulated other comprehensive loss consists of the following: Foreign Currency Translation Losses Pension plan adjustments, net of tax Derivatives designated in a hedging relationship, net of tax Total Balance at February 28, 2021 $ (13,374 ) $ (869 ) $ (734 ) $ (14,977 ) Other comprehensive income (loss) before reclassifications (962 ) 23 141 (798 ) Reclassified from accumulated other comprehensive loss — — 141 141 Net current-period other comprehensive income (962 ) 23 282 (657 ) Balance at August 31, 2021 $ (14,336 ) $ (846 ) $ (452 ) $ (15,634 ) During the three and six months ended August 31, 2021, the Company recorded other comprehensive income (loss), net of the associated tax impact of $63 and $108, respectively, related to derivatives designated in a hedging relationship, and $0 in both periods related to pension plan adjustments. The other comprehensive income (loss) before reclassification of $(962) includes the remeasurement of intercompany transactions of a long-term investment nature of $152 with certain subsidiaries whose functional currency is not the U.S. dollar, and $(1,114) from translating the financial statements of the Company's non-U.S. dollar functional currency subsidiaries into our reporting currency, which is the U.S. dollar. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Aug. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | ( 7 ) Supplemental Cash Flow Information The following is supplemental information relating to the Unaudited Consolidated Statements of Cash Flows: Six months ended August 31, 2021 2020 Non-cash investing and financing activities: Change in redeemable equity $ 85 $ 286 Change in goodwill due to measurement period adjustments, net (1,353 ) - Right of use assets obtained in exchange for operating lease obligations - 347 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 677 $ 508 Operating cash flows from finance leases 7 17 Finance cash flows from finance leases 218 329 Cash paid during the period: Interest (excluding bank charges) $ 310 $ 569 Income taxes (net of refunds) 402 742 |
Accounting for Stock-Based Comp
Accounting for Stock-Based Compensation | 6 Months Ended |
Aug. 31, 2021 | |
Accounting For Stock Based Compensation [Abstract] | |
Accounting for Stock-Based Compensation | ( 8 ) Accounting for Stock-Based Compensation The Company has various stock-based compensation plans, which are more fully described in Note 1 of the Notes to the Consolidated Financial Statements contained in the Company’s Form 10-K for the fiscal year ended February 28, 2021. Restricted stock awards are granted pursuant to the Company's 2012 Equity Incentive Plan (the "2012 Plan"). A restricted stock award is an award of common stock that is subject to certain restrictions during a specified period. Restricted stock awards are independent of option grants and are subject to forfeiture if employment terminates for a reason other than death, disability, or retirement prior to the release of the restrictions. The Company's Omnibus Equity Incentive Plan was established in 2014 (the "2014 Plan"). Pursuant to the 2014 Plan, Restricted Stock Units ("RSUs") may be awarded by the Company to any individual who is employed by, provides services to, or serves as a director of the Company or its affiliates. RSUs vest on the later of three years from the date of grant, or the grantee reaching the age of 65 years. The RSU awards will also vest upon the sale of all of the Company's issued and outstanding stock, the sale of all, or substantially all, of the assets of a subsidiary of which the grantee serves as CEO and/or President, or the termination of the grantee's employment without cause, provided that the grantee, at the time of termination, has been employed for at least 10 years. When vested, RSU awards may be settled in shares of Class A Common Stock or in cash, at the Company's sole option. There are no market conditions inherent in an RSU award, only the employee performance requirement for performance awards, and the service requirement that the respective employee continues employment with the Company through the vesting date. In July 2021, the Company granted 48,527 RSU awards to employees under the 2014 Plan. The Company expenses the cost of RSU awards on a straight-line basis over the requisite service period of each grantee. For these purposes, the fair market value of each RSU is determined based on the mean of the high and low price of the Company's common stock on the grant date. The fair market value of each RSU granted in July 2021 was $13.59. Grant of Shares to Chief Executive Officer On July 8, 2019, the Board of Directors approved a five-year - An initial stock grant of 200,000 fully vested shares of Class A Common Stock issued in July 2019 under the 2012 Plan. - Additional stock grants of 100,000 shares of Class A Common Stock to be issued on each of March 1, 2020, March 1, 2021, and March 1, 2022. Compensation expense of $38 and $78 was recognized during the three and six months ended August 31, 2021, respectively, compared to $103 and $206 for the three and six months ended August 31, 2020, respectively, based upon the grant fair value of $4.15 per share using the graded vesting attribution method. On March 1, 2020, 100,000 of these stock grants vested, resulting in 100,000 shares of the Company’s Class A Common Stock being issued to Mr. Lavelle. On March 1, 2021, an additional 100,000 of these stock grants vested, resulting in shares of Class A Common Stock being issued to Mr. Lavelle and 39,347 shares being withheld for taxes. - Grant of market stock units (“MSU’s”) up to a maximum value of $5,000, based upon the achievement of a 90-calendar day average stock price of no less than $5.49 over the performance period ending on the third and fifth anniversary of the effective date of the Employment Agreement. The value of the MSU award increases based upon predetermined targeted 90-calendar day average stock prices with a maximum of $5,000 if the 90-calendar day average high stock price equals or exceeds $15.00. The number of shares to be issued related to the MSUs based upon achievement of the maximum award value of $5,000, and if issued at $15.00 per share, is estimated at 333,333 shares. Actual results may differ based upon when the high average stock price is achieved and settled. We recognized stock-based compensation expense of $61 and $122, during both the three and six months ended August 31, 2021 and August 31, 2020, respectively, related to these MSU’s using the graded vesting attribution method over the performance period. As of August 31, 2021, all of the MSU’s remain outstanding. All stock grants under the Employment Agreement are subject to a hold requirement as specified in the Employment Agreement. The Employment Agreement gave Mr. Lavelle, in certain limited change of control situations, the right to require the Company to purchase shares issued in connection with the Employment Agreement, shares personally acquired by Mr. Lavelle, and shares issued to him under other incentive compensation arrangements. Accordingly, the stock awards issued in connection with the Employment Agreement are presented as redeemable equity on the Consolidated Balance Sheets at grant-date fair value. RSUs previously held by Mr. Lavelle under the 2014 Plan and shares personally purchased by Mr. Lavelle have been reclassified from permanent equity to redeemable equity. As the contingent events that would allow Mr. Lavelle to redeem the shares are not probable at this time, remeasurement of the amounts in redeemable equity have not been recorded. The Employment Agreement contains certain restrictive and non-solicitation covenants. The following table presents a summary of the activity related to the initial stock grant, additional stock grants under the Employment Agreement, and RSU grants under the 2014 Plan for the six months ended August 31, 2021: Number of Shares Weighted Average Grant Date Fair Value Unvested award balance at February 28, 2021 603,724 $ 5.18 Granted 48,527 13.59 Vested (136,008 ) 5.50 Vested and settled (100,000 ) 4.15 Unvested award balance at August 31, 2021 416,243 $ 6.30 At August 31, 2021, there were 414,326 vested and unsettled stock grants and RSU awards under the Company’s 2014 Plan with a weighted average fair value of $6.98. During the three and six months ended August 31, 2021 and August 31, 2020, the Company recorded $237 and $473, respectively, compared to $335 and $686, respectively, in total stock-based compensation related to the 2014 Plan, as well as additional stock grants and MSU’s under the Employment Agreement. As of August 31, 2021, there was approximately $1,656 of unrecognized stock-based compensation expense related to unvested RSU awards, stock grants, and MSU’s. |
Supply Chain Financing
Supply Chain Financing | 6 Months Ended |
Aug. 31, 2021 | |
Supply Chain Financing [Abstract] | |
Supply Chain Financing | ( 9 ) Supply Chain Financing The Company has supply chain financing agreements and factoring agreements that were entered into for the purpose of accelerating receivable collection and better managing cash flow. The balances under the agreements are sold without recourse and are accounted for as sales of accounts receivable. Total receivable balances sold for the three and six months ended August 31, 2021, net of discounts, were $29,975 and $42,176, respectively, compared to $19,320 and $39,184 for the three and six months ended August 31, 2020, respectively. |
Research and Development
Research and Development | 6 Months Ended |
Aug. 31, 2021 | |
Research And Development [Abstract] | |
Research and Development | ( 10 ) Research and Development Expenditures for research and development are charged to expense as incurred. Such expenditures amounted to $3,624 and $5,945 for the three and six months ended August 31, 2021, respectively, compared to $1,666 and $3,521 for the three and six months ended August 31, 2020, respectively. All amounts are net of customer reimbursements and are included within E ngineering and technical support expenses on the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Aug. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | (1 1 ) Goodwill and Intangible Assets The change in goodwill by segment is as follows: Automotive Electronics: Amount Beginning balance at March 1, 2021 $ 11,778 Activity during the period (1,353 ) Balance at August 31, 2021 $ 10,425 Gross carrying value at August 31, 2021 $ 10,425 Accumulated impairment charge — Net carrying value at August 31, 2021 $ 10,425 Consumer Electronics: Beginning balance at March 1, 2021 $ 46,533 Activity during the period — Balance at August 31, 2021 $ 46,533 Gross carrying value at August 31, 2021 $ 78,696 Accumulated impairment charge (32,163 ) Net carrying value at August 31, 2021 $ 46,533 Total Goodwill, net $ 56,958 The Company's Biometrics segment did not carry a goodwill balance at August 31, 2021 or February 28, 2021. At August 31, 2021, intangible assets consisted of the following: Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships $ 54,511 $ 38,170 $ 16,341 Trademarks/Tradenames 5,545 1,071 4,474 Developed technology 14,144 12,651 1,493 Patents 6,735 5,095 1,640 License 1,400 1,400 — Contracts 1,556 1,556 — Total finite-lived intangible assets $ 83,891 $ 59,943 23,948 Indefinite-lived intangible assets Trademarks 63,244 Total intangible assets, net $ 87,192 At February 28, 2021, intangible assets consisted of the following: Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships $ 54,688 $ 36,412 $ 18,276 Trademarks/Tradenames 5,545 811 4,734 Developed technology 14,144 12,516 1,628 Patents 6,736 4,629 2,107 License 1,400 1,400 — Contracts 1,556 1,556 — Total finite-lived intangible assets $ 84,069 $ 57,324 26,745 Indefinite-lived intangible assets Trademarks 63,359 Total intangible assets, net $ 90,104 The Company recorded amortization expense of $1,375 and $2,786 for the three and six months ended August 31, 2021, respectively, compared to $1,327 and $2,496 for the three and six months ended August 31, 2020, respectively. The estimated aggregate amortization expense for all amortizable intangibles for August 31 of each of the succeeding years is as follows: Year Amount 2022 $ 5,171 2023 4,432 2024 4,167 2025 4,035 2026 2,710 |
Equity Investment
Equity Investment | 6 Months Ended |
Aug. 31, 2021 | |
Equity Method Investment Summarized Financial Information [Abstract] | |
Equity Investment | (1 2 ) Equity Investment As of August 31, 2021 and February 28, 2021, the Company had a 50% non-controlling ownership interest in ASA Electronics, LLC and Subsidiary (“ASA") which acts as a distributor of mobile electronics specifically designed for niche markets within the automotive industry, including RV's; buses; and commercial, heavy duty, agricultural, construction, powersport, and marine vehicles. The following presents summary financial information for ASA. Such summary financial information has been provided herein based upon the individual significance of ASA to the consolidated financial information of the Company. August 31, 2021 February 28, 2021 Current assets $ 49,881 $ 49,956 Non-current assets 4,901 4,757 Liabilities 9,868 8,179 Members' equity 44,914 46,534 Six months ended August 31, 2021 2020 Net sales $ 61,560 $ 40,858 Gross profit 15,769 10,593 Operating income 9,488 5,345 Net income 9,516 5,490 The Company's share of income from ASA was $2,035 and $4,758 for the three and six months ended August 31, 2021, respectively, compared to $1,883 and $2,745 for the three and six months ended August 31, 2020, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Aug. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (1 3 ) Income Taxes The Company’s provision for income taxes consists of federal, foreign, and state taxes necessary to align the Company’s year-to-date tax provision with the annual effective rate that it expects to achieve for the full year. At each interim period, the Company updates its estimate of the annual effective tax rate and records cumulative adjustments, as necessary. For the three months ended August 31, 2021, the Company recorded an income tax benefit of $217, which includes a discrete income tax benefit of $70 related primarily to the reversal of uncertain tax position liabilities as a result of the lapse of the applicable statute of limitations. For the three months ended August 31, 2020, the Company recorded an income tax provision of $2,609, which includes a discrete income tax benefit of $142 related primarily to the reversal of uncertain tax provision liabilities as a result of the lapse of the applicable statute of limitations. The effective tax rates for the three months ended August 31, 2021 and 2020 were an income tax benefit of 23.9% on a pre-tax loss of $909 and an income tax provision of 28.5% on pre-tax income of $9,164, respectively. The effective tax rate for the three months ended August 31, 2021 differs from the U.S. statutory rate of 21% as a result of a number of factors, including the non-controlling interest related to EyeLock LLC, state and local income taxes, nondeductible permanent differences, income taxed in foreign jurisdictions at varying tax rates, and a tax benefit related to the decrease in the valuation allowance based on current year forecasted earnings. The effective tax rate for the three months ended August 31, 2020 differed from the statutory rate of 21% primarily due to the anticipated reversal of a portion of the U.S. valuation allowance based on projected current year earnings, immediate U.S. taxation of foreign earnings, non-controlling interest related to EyeLock LLC, state and local income taxes, nondeductible permanent differences, and income taxed in foreign jurisdictions at varying tax rates. For the six months ended August 31, 2021, the Company recorded an income tax provision of $267, which includes a discrete income tax benefit of $144 related primarily to the reversal of uncertain tax position liabilities as a result of the lapse of the applicable statute of limitations. For the six months ended August 31, 2020, the Company recorded an income tax provision of $4,390, which includes a discrete income tax provision of $4,151. The Company recorded a discrete tax provision of $4,275 related to an increase in valuation allowance as a result of the technical correction to net operating losses as provided in the CARES Act and a discrete tax benefit of $155 related to the reversal of uncertain tax provision liabilities as a result of the lapse of the applicable statute of limitations, offset with a discrete tax provision of $31 related to the accrual of interest for unrecognized tax benefits. The effective tax rates for the six months ended August 31, 2021 and 2020 were an income tax provision of 19.5% on pre-tax income of $1,372 and an income tax provision of 238.6% on pre-tax income of $1,840, respectively. The effective tax rate for the six months ended August 31, 2021 differs from the U.S. statutory rate of 21% as a result of a number of factors, including the non-controlling interest related to EyeLock LLC, state and local income taxes, nondeductible permanent differences, income taxed in foreign jurisdictions at varying tax rates, and a tax benefit related to the decrease in the valuation allowance based on current year forecasted earnings. The effective tax rate for the six months ended August 31, 2020 differed from the statutory rate of 21% primarily due to the anticipated reversal of a portion of the U.S. valuation allowance based on projected current year earnings, immediate U.S. taxation of foreign earnings, non-controlling interest related to EyeLock LLC, state and local income taxes, nondeductible permanent differences, and income taxed in foreign jurisdictions at varying tax rates. At August 31, 2021, the Company had an uncertain tax position liability of $1,007, including interest and penalties. The unrecognized tax benefits include amounts related to various U.S. federal, state, and local, and foreign tax issues. |
Inventory
Inventory | 6 Months Ended |
Aug. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | (1 4 ) Inventory Inventories by major category are as follows: August 31, 2021 February 28, 2021 Raw materials $ 21,944 $ 21,228 Work in process 1,717 1,732 Finished goods 122,050 107,833 Inventory $ 145,711 $ 130,793 |
Product Warranties and Product
Product Warranties and Product Repair Costs | 6 Months Ended |
Aug. 31, 2021 | |
Payables And Accruals Warranties [Abstract] | |
Product Warranties and Product Repair Costs | (1 5 ) Product Warranties and Product Repair Costs The following table provides a summary of the activity with respect to product warranties and product repair costs. The liability for product warranties is included within Accrued expenses and other current liabilities and the reserve for product repair costs is recorded as a reduction of Inventory on the Consolidated Balance Sheets. Three months ended August 31, Six months ended August 31, 2021 2020 2021 2020 Opening balance $ 5,390 $ 4,566 $ 5,290 $ 4,748 Liabilities for warranties accrued during the period 537 684 1,237 1,475 Liabilities (adjusted) acquired during acquisition (352 ) 1,200 (352 ) 1,200 Warranty claims settled during the period (1,080 ) (930 ) (1,680 ) (1,903 ) Ending balance $ 4,495 $ 5,520 $ 4,495 $ 5,520 |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Aug. 31, 2021 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | (16) Financing Arrangements The Company has the following financing arrangements: August 31, 2021 February 28, 2021 Debt Domestic credit facility (a) $ — $ — Florida mortgage (b) 6,866 7,114 Euro asset-based lending obligation - VOXX Germany (c) 828 — Total debt 7,694 7,114 Less: current portion of long-term debt 1,328 500 Long-term debt 6,366 6,614 Less: debt issuance costs 1,174 652 Total long-term debt, net of debt issuance costs $ 5,192 $ 5,962 (a) Domestic Credit Facility The Company has a senior secured credit facility (the "Credit Facility"), which was amended on April 19, 2021 to provide for a revolving credit facility with committed availability of up to $140,000. The Credit Facility also includes a $30,000 sublimit for letters of credit and a $15,000 sublimit for swingline loans. The availability under the revolving credit line within the Credit Facility is subject to a borrowing base, which is based on eligible accounts receivable, eligible inventory and certain real estate, subject to reserves as determined by the lender, and is also limited by amounts outstanding under the Florida Mortgage (see Note 16(b)). The availability under the revolving credit line of the Credit Facility was $107,422 as of August 31, 2021. All amounts outstanding under the Credit Facility will mature and become due on April 19, 2026; however, it is subject to acceleration upon the occurrence of an Event of Default as defined in the Second Amended and Restated Credit Agreement (“the Agreement”). The Company may prepay any amounts outstanding at any time, subject to payment of certain breakage and redeployment costs relating to LIBOR Rate Loans. The commitments under the Credit Facility may be irrevocably reduced at any time, without premium or penalty as set forth in the Agreement. Generally, the Company may designate specific borrowings under the Credit Facility as either Base Rate Loans or LIBOR Rate Loans, except that swingline loans may only be designated as Base Rate Loans. Loans designated as LIBOR Rate Loans bear interest at a rate equal to the then applicable LIBOR rate plus a range of 1.75 – 2.25% (2.00% at August 31, 2021). Loans designated as Base Rate loans bear interest at a rate equal to the applicable margin for Base Rate Loans plus a range of 0.75 - 1.25% as defined in the Agreement and shall not be lower than 1.75% ( 4% at August 31, 2021). The amendment to the Credit Facility in April 2021 provided for a Benchmark Replacement that will replace the LIBOR rate for all revolver usage. The Benchmark Replacement is subject to the occurrence of a Benchmark Transition Event, as defined in the Second Amended and Restated Credit Agreement and becomes effective after a five-day transition period following the event. Provided that the Company is in a Compliance Period (the period commencing on that day in which Excess Availability is less than 15% of the Maximum Revolver Amount and ending on a day in which Excess Availability is equal to or greater than 15% for any consecutive 30-day period thereafter), the Credit Facility requires compliance with a financial covenant calculated as of the last day of each month, consisting of a Fixed Charge Coverage Ratio. The Credit Facility also contains covenants, subject to defined carveouts, that limit the ability of the loan parties and certain of their subsidiaries which are not loan parties to, among other things: (i) incur additional indebtedness; (ii) incur liens; (iii) merge, consolidate or dispose of a substantial portion of their business; (iv) transfer or dispose of assets; (v) change their name, organizational identification number, state or province of organization or organizational identity; (vi) make any material change in their nature of business; (vii) prepay or otherwise acquire indebtedness; (viii) cause any change of control; (ix) make any restricted junior payment; (x) change their fiscal year or method of accounting; (xi) make advances, loans or investments; (xii) enter into or permit any transaction with an affiliate of any borrower or any of their subsidiaries; (xiii) use proceeds for certain items; (xiv) issue or sell any of their stock; or (xv) consign or sell any of their inventory on certain terms. In addition, if excess availability under the Credit Facility were to fall below certain specified levels, as defined in the Agreement, the lenders would have the right to assume dominion and control over the Company's cash. As of August 31, 2021, the Company was not in a Compliance Period. The obligations under the Credit Facility documents are secured by a general lien on, and security interest in, substantially all of the assets of the borrowers and certain of the guarantors, including accounts receivable, equipment, real estate, general intangibles, and inventory. The Company has guaranteed the obligations of the borrowers under the Agreement. Charges incurred on the unused portion of the Credit Facility during the three and six months ended August 31, 2021 totaled $190 and $323, respectively, compared to $125 and $241 during the three and six months ended August 31, 2020, respectively. These charges are included within Interest and bank charges on the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company has deferred financing costs related to the Credit Facility and previous amendments and modifications of the Credit Facility. In conjunction with the amendment to its Credit Facility on April 19, 2021, the Company incurred additional financing fees of $667 that will be amortized over the remaining term of the facility. The Company accounted for the April 2021 amendment to the Credit Facility as a modification of debt. Deferred financing costs are included in Long-term debt on the accompanying Consolidated Balance Sheets as a contra-liability balance and are amortized through Interest and bank charges in the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income over the term of the Credit Facility, which expires on April 19, 2026. During the three and six months ended August 31, 2021, the Company amortized $56 and $131 of these costs, respectively, as compared to $128 and $326 during the three and six months ended August 31, 2020, respectively. The net unamortized balance of these deferred financing costs as of August 31, 2021 was $1,033. (b) Florida Mortgage On July 6, 2015, VOXX HQ LLC, the Company’s wholly owned subsidiary, closed on a $9,995 industrial development revenue tax exempt bond under a loan agreement in favor of the Orange County Industrial Development Authority (the “Authority”) to finance the construction of the Company's manufacturing facility and executive offices in Lake Nona, Florida. Wells Fargo Bank, N.A. ("Wells Fargo") was the purchaser of the bond and U.S. Bank National Association is the trustee under an Indenture of Trust with the Authority. Voxx borrowed the proceeds of the bond purchase from the Authority during construction as a revolving loan, which converted to a permanent mortgage upon completion of the facility in January 2016 (the "Florida Mortgage"). The Company makes principal and interest payments to Wells Fargo, which began March 1, 2016 and will continue through March of 2026. The Florida Mortgage bears interest at 70% of 1-month LIBOR plus 1.54% (1.62% at August 31, 2021) and is secured by a first mortgage on the property, a collateral assignment of leases and rents and a guaranty by the Company. The financial covenants of the Florida Mortgage are as defined in the Company’s Credit Facility with Wells Fargo dated April 26, 2016. The Company incurred debt financing costs totaling approximately $332 as a result of obtaining the Florida Mortgage, which are recorded as deferred financing costs and included in Long-term debt as a contra-liability balance on the accompanying Consolidated Balance Sheets and are being amortized through Interest and bank charges in the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income over the ten-year On July 20, 2015, the Company entered into an interest rate swap agreement in order to hedge interest rate exposure related to the Florida Mortgage and pays a fixed rate of 3.48% under the swap agreement (See Note 5). (c) Euro Asset-Based Lending Obligation – VOXX Germany Foreign bank obligations include a Euro Asset-Based Lending ("ABL") credit facility, which has a credit limit of €8,000 for the Company's subsidiary, VOXX Germany, which expires on July 31, 2023. The rate of interest for the ABL is the three-month Euribor plus 2.30% (2.30% at August 31, 2021). |
Other Income (Expense)
Other Income (Expense) | 6 Months Ended |
Aug. 31, 2021 | |
Other Income And Expenses [Abstract] | |
Other Income (Expense) | (17) Other Income (Expense) Other income (expense) is comprised of the following: Three months ended August 31, Six months ended August 31, 2021 2020 2021 2020 Foreign currency (loss) gain $ (2 ) $ (363 ) $ 114 $ (479 ) Interest income 5 (15 ) 12 71 Rental income 197 182 361 368 Miscellaneous 176 (30 ) 331 500 Total other, net $ 376 $ (226 ) $ 818 $ 460 |
Foreign Currency
Foreign Currency | 6 Months Ended |
Aug. 31, 2021 | |
Foreign Currency [Abstract] | |
Foreign Currency | (1 8 ) Foreign Currency The Company has a subsidiary in Venezuela. Venezuela has experienced significant political and civil unrest, as well as economic instability for several years, and has implemented various foreign currency and price controls. The Company accounts for its Venezuela subsidiary as hyper-inflationary in accordance with the guidelines in ASC 830, "Foreign Currency." A hyper-inflationary economy designation occurs when a country has experienced cumulative inflation of approximately 100 percent or more over a 3-year period. The hyper-inflationary designation requires the local subsidiary in Venezuela to record all transactions as if they were denominated in U.S. dollars. The Company’s operations in Venezuela are suspended and net currency exchange gains and losses for the three and six months ended August 31, 2021 were not significant. The Company has certain long-lived assets in Venezuela, which are held for investment purposes. These properties had no value at August 31, 2021. |
Lease Obligations
Lease Obligations | 6 Months Ended |
Aug. 31, 2021 | |
Leases [Abstract] | |
Lease Obligations | ( 19 ) Lease Obligations We account for leases in accordance with ASC 842 “Leases” (“ASC 842”). We determine whether an arrangement is a lease at inception. This determination generally depends on whether the arrangement conveys the right to control the use of an identified fixed asset explicitly or implicitly for a period of time in exchange for consideration. We have operating leases for office equipment, as well as offices, warehouses, and other facilities used for our operations. We also have finance leases comprised primarily of computer hardware and machinery and equipment. Our leases have remaining lease terms of less than 1 year to 10 years, some of which include renewal options. We consider these renewal options in determining the lease term used to establish our right-of-use assets and lease liabilities when it is determined that it is reasonably certain that the renewal option will be exercised. The Company had no short-term leases during the three and six months ended August 31, 2021. Refer to Note 7 for supplemental cash flow information related to leases. The components of lease cost for the three and six months ended August 31, 2021 and 2020 were as follows: Three months ended August 31, Six months ended August 31, 2021 2020 2021 2020 Operating lease cost (a) (c) $ 342 $ 265 $ 683 $ 508 Finance lease cost: Amortization of right of use assets (a) 101 161 222 326 Interest on lease liabilities (b) 3 8 7 17 Total finance lease cost $ 104 $ 169 $ 229 $ 343 (a) Recorded within Selling, General and administrative, Engineering and technical support, and Cost of sales on the Unaudited Consolidated Statement of Operations and Comprehensive Income. (b) Recorded within Interest and bank charges on the Unaudited Consolidated Statement of Operations and Comprehensive Income. (c) Includes immaterial amounts related to variable rent expense. Supplemental balance sheet information related to leases is as follows: August 31, 2021 February 28, 2021 Operating Leases Operating lease, right of use assets $ 4,309 $ 4,572 Total operating lease right of use assets $ 4,309 $ 4,572 Accrued expenses and other current liabilities $ 1,101 $ 1,119 Operating lease liabilities, less current portion 3,327 3,582 Total operating lease liabilities $ 4,428 $ 4,701 Finance Leases Property, plant, and equipment, gross $ 2,503 $ 2,503 Accumulated depreciation (2,028 ) (1,805 ) Total finance lease right of use assets $ 475 $ 698 Accrued expenses and other current liabilities $ 335 $ 418 Finance lease liabilities, less current portion 155 302 Total finance lease liabilities $ 490 $ 720 Weighted Average Remaining Lease Term Operating leases 6.1 years 6.0 years Finance leases 1.6 years 1.8 years Weighted Average Discount Rate Operating leases 4.24 % 4.49 % Finance leases 3.87 % 3.87 % Maturities of lease liabilities on August 31 of each of the succeeding years are as follows: Operating Leases Finance Leases 2021 $ 1,241 342 2022 920 157 2023 696 — 2024 492 — 2025 347 — Thereafter 1,243 — Total lease payments 4,939 499 Less imputed interest 511 9 Total $ 4,428 490 As of August 31, 2021, the Company has not entered into any lease agreements that have not yet commenced. The Company owns and occupies buildings as part of its operations. Certain space within these buildings may, from time to time, be leased to third parties from which the Company earns rental income as lessor. This leased space is recorded within property, plant, and equipment and was not material to the Company's Consolidated Balance Sheets at August 31, 2021 and February 28, 2021. Rental income earned by the Company for the three and six months ended August 31, 2021 and 2020 was $197 and $361, respectively, compared to $182 and $368, respectively, and is recorded within Other income (expense). |
Capital Structure
Capital Structure | 6 Months Ended |
Aug. 31, 2021 | |
Equity [Abstract] | |
Capital Structure | ( 2 0 ) Capital Structure The Company's capital structure is as follows: Shares Authorized Shares Outstanding Security Par Value August 31, 2021 February 28, 2021 August 31, 2021 February 28, 2021 Voting Rights per Share Liquidation Rights Preferred Stock $ 50.00 — 50,000 — — — $50 per share Series Preferred Stock $ 0.01 — 1,500,000 — — — — Class A Common Stock $ 0.01 60,000,000 60,000,000 21,614,629 21,666,976 1 Ratably with Class B Class B Common Stock $ 0.01 10,000,000 10,000,000 2,260,954 2,260,954 10 Ratably with Class A Treasury Stock at cost at cost 2,862,218 2,749,218 N/A N/A N/A During the three and six months ended August 31, 2021, the Company repurchased 113,000 shares of common stock for an aggregate cost of $1,220. As of August 31, 2021, 2,305,876 shares of the Company’s Class A common stock are authorized to be repurchased in the open market. |
Variable Interest Entity
Variable Interest Entity | 6 Months Ended |
Aug. 31, 2021 | |
Variable Interest Entity [Abstract] | |
Variable Interest Entity | (2 1 ) Variable Interest Entity A variable interest entity ("VIE") is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support, or (ii) has equity investors who lack the characteristics of a controlling financial interest. Under ASC 810 – “Consolidation,” an entity that holds a variable interest in a VIE and meets certain requirements would be considered to be the primary beneficiary of the VIE and required to consolidate the VIE in its consolidated financial statements. In order to be considered the primary beneficiary of a VIE, an entity must hold a variable interest in the VIE and have both: • the power to direct the activities that most significantly impact the economic performance of the VIE; and • the right to receive benefits from, or the obligation to absorb losses of, the VIE that could be potentially significant to the VIE. On September 1, 2015, Voxx acquired a majority voting interest in substantially all of the assets and certain specified liabilities of EyeLock, Inc. and EyeLock Corporation, a market leader of iris-based identity authentication solutions, through a newly formed entity, EyeLock LLC. The Company issued EyeLock LLC a promissory note for the purposes of repaying protective advances and funding working capital requirements of the entity. On August 29, 2021, this promissory note was amended and restated to allow EyeLock LLC to borrow up to $60,600. Through March 1, 2019, interest on the outstanding principal of the loan accrued at 10%. From March 1, 2019 forward, interest accrues at 2.5%. The amended and restated promissory note is due on December 31, 2022. The outstanding principal balance of this promissory note is convertible at the sole option of Voxx into units of EyeLock LLC. If Voxx chooses not to convert into equity, the outstanding loan principal of the amended and restated promissory note will be repaid at a multiple of 1.50 based on the repayment date. The agreement includes customary events of default and is collateralized by all of the property of EyeLock LLC. We determined that we hold a variable interest in EyeLock LLC as a result of: • our majority voting interest and ownership of substantially all of the assets and certain liabilities of the entity; and • the loan agreement with EyeLock LLC, which has a total outstanding balance of $65,231 as of August 31, 2021. We concluded that we became the primary beneficiary of EyeLock LLC on September 1, 2015 in conjunction with the acquisition. This was the first date on which we had the power to direct the activities that most significantly impact the economic performance of the entity because we acquired a majority interest in substantially all of the assets and certain liabilities of EyeLock, Inc. and EyeLock Corporation on this date, as well as obtained a majority voting interest as a result of this transaction. Although we are considered to have control over EyeLock LLC under ASC 810, due to our majority ownership interest, the assets of EyeLock LLC can only be used to satisfy the obligations of EyeLock LLC. As a result of our majority ownership interest in the entity and our primary beneficiary conclusion, we consolidated EyeLock LLC within our consolidated financial statements beginning on September 1, 2015. On April 29, 2021, EyeLock LLC entered into a three-year two-year Assets and Liabilities of EyeLock LLC The following table sets forth the carrying values of assets and liabilities of EyeLock LLC that were included on our Consolidated Balance Sheets as of August 31, 2021 and February 28, 2021: August 31, 2021 February 28, 2021 Assets (unaudited) Current assets: Cash and cash equivalents $ — $ — Accounts receivable, net 102 167 Inventory, net 2,251 2,245 Prepaid expenses and other current assets 88 30 Total current assets 2,441 2,442 Property, plant and equipment, net 45 39 Intangible assets, net 2,193 2,329 Other assets 59 60 Total assets $ 4,738 $ 4,870 Liabilities and Partners' Deficit Current liabilities: Accounts payable $ 1,386 $ 1,396 Interest payable to VOXX 12,261 11,453 Accrued expenses and other current liabilities 606 824 Due to VOXX 65,231 61,072 Total current liabilities 79,484 74,745 Other long-term liabilities 1,257 1,200 Total liabilities 80,741 75,945 Commitments and contingencies Partners' deficit: Capital 41,416 41,416 Retained losses (117,419 ) (112,491 ) Total partners' deficit (76,003 ) (71,075 ) Total liabilities and partners' deficit $ 4,738 $ 4,870 Revenues and Expenses of EyeLock LLC The following table sets forth the revenues and expenses of EyeLock LLC that were included in our Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income for the three and six months ended August 31, 2021 and 2020: For the three months ended August 31, For the six months ended August 31, 2021 2020 2021 2020 Net sales $ 253 $ 263 $ 458 $ 360 Cost of sales 177 262 340 381 Gross profit 76 1 118 (21 ) Operating expenses: Selling 163 125 326 302 General and administrative 432 428 776 857 Engineering and technical support 1,641 1,094 3,128 2,249 Total operating expenses 2,236 1,647 4,230 3,408 Operating loss (2,160 ) (1,646 ) (4,112 ) (3,429 ) Other expense: Interest and bank charges (415 ) (368 ) (816 ) (722 ) Other, net — — — — Total other expense, net (415 ) (368 ) (816 ) (722 ) Loss before income taxes (2,575 ) (2,014 ) (4,928 ) (4,151 ) Income tax expense — — — — Net loss $ (2,575 ) $ (2,014 ) $ (4,928 ) $ (4,151 ) |
Segment Reporting
Segment Reporting | 6 Months Ended |
Aug. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | (2 2 ) Segment Reporting The Company operates in three distinct segments based on our products and our internal organizational structure. The three operating segments, which are also the Company’s reportable segments, are Automotive Electronics, Consumer Electronics, and Biometrics. Our Automotive Electronics segment designs, manufactures, markets and distributes rear-seat entertainment devices, remote start systems, automotive security, vehicle access systems, mobile interface modules, mobile multimedia devices, aftermarket/OE-styled radios, car link-smartphone telematics applications, driver distraction products, collision avoidance systems, location-based services, turn signal switches, automotive lighting products, automotive sensing and camera systems, USB ports, cruise control systems, heated seats, and satellite radio products. Our Consumer Electronics segment designs, manufactures, markets and distributes Our Biometrics segment designs, manufactures, markets, and distributes iris identification and biometric security related products. The accounting principles applied at the consolidated financial statement level are generally the same as those applied at the operating segment level and there are no material intersegment sales. The segments are allocated interest expense, based upon a pre-determined formula, which utilizes a percentage of each operating segment's intercompany balance, which is offset in Corporate/Eliminations. Segment data for each of the Company's segments is presented below: Automotive Electronics Consumer Electronics Biometrics Corporate/ Eliminations Total Three Months Ended August 31, 2021 Net sales $ 45,761 $ 96,959 $ 253 $ 136 $ 143,109 Equity in income of equity investees 2,035 — — — 2,035 Interest expense and bank charges 309 1,911 415 (2,053 ) 582 Depreciation and amortization expense 755 1,003 75 932 2,765 Income (loss) before income taxes 926 2,439 (2,575 ) (1,699 ) (909 ) Three Months Ended August 31, 2020 Net sales $ 32,633 $ 94,992 $ 263 $ 144 $ 128,032 Equity in income of equity investees 1,883 — — — 1,883 Interest expense and bank charges 353 2,106 367 (1,816 ) 1,010 Depreciation and amortization expense 708 954 86 999 2,747 Income (loss) before income taxes 239 12,789 (2,014 ) (1,850 ) 9,164 Six Months Ended August 31, 2021 Net sales $ 88,418 $ 191,072 $ 458 $ 221 $ 280,169 Equity in income of equity investees 4,758 — — — 4,758 Interest expense and bank charges 682 3,886 816 (4,274 ) 1,110 Depreciation and amortization expense 1,538 2,004 151 1,879 5,572 Income (loss) before income taxes 4,156 7,907 (4,928 ) (5,763 ) 1,372 Six Months Ended August 31, 2020 Net sales $ 49,909 $ 149,506 $ 360 $ 244 $ 200,019 Equity in income of equity investees 2,745 — — — 2,745 Interest expense and bank charges 521 4,240 722 (3,674 ) 1,809 Depreciation and amortization expense 1,174 1,919 172 2,025 5,290 (Loss) income before income taxes (2,871 ) 12,736 (4,151 ) (3,874 ) 1,840 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Aug. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | (2 3 ) Revenue from Contracts with Customers The Company recognizes revenue in accordance with ASC Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. We apply the FASB’s guidance on revenue recognition, which requires us to recognize the amount of revenue and consideration that we expect to receive in exchange for goods and services transferred to our customers. To do this, the Company applies the five-step model prescribed by the FASB, which requires us to: (i) identify the contract with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, we satisfy a performance obligation. Within our Automotive Electronics segment, while the majority of the contracts we enter into with Original Equipment Manufacturers (“OEMs”) are long-term supply arrangements, the performance obligations are established by the enforceable contract, which is generally considered to be the purchase order. The purchase orders are of durations less than one year. As such, the Company applies the practical expedient in ASC paragraph 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less for which work has not yet been performed. Performance Obligations The Company’s primary source of revenue is derived from the manufacture and distribution of consumer electronic, automotive electronic, and biometric products. Our consumer electronic products primarily consist of finished goods sold to retail and commercial customers, consisting of premium audio products and other consumer electronic products. Our automotive electronic products, some of which are manufactured by the Company, are sold both to OEM and aftermarket customers. Our biometric products , primarily consisting of finished goods, are sold to retail and commercial customers. We recognize revenue for sales to our customers when transfer of control of the related good or service has occurred. The majority of our revenue was recognized under the point in time approach for the three and six months ended August 31, 2021 . Certain telematic subscription revenues generated by our Automotive Electronics segment are recognized over time. Contract terms with certain of our OEM customers could result in additional products and services being transferred over time as a result of the customized nature of some of our products, together with contractual provisions in the customer contracts that provide us with an enforceable right to payment for performance completed to date; however, under typical terms, we do not have the right to consideration until the time of shipment from our manufacturing facilities or distribution centers, or until the time of delivery to our customers. If certain contracts in the future provide the Company with this enforceable right of payment, the timing of revenue recognition from products transferred to customers over time may be slightly accelerated compared to our right to consideration at the time of shipment or delivery. Under ASC 606, we are required to present a refund liability and a return asset within the Consolidated Balance Sheets. The changes in the refund liability are reported in Net sales, and the changes in the return asset are reported in Cost of sales in the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income. As of August 31, 2021 and February 28, 2021, the balance of the return asset was $1,873 and $2,404, respectively, and the balance of the refund liability was $3,928 and $5,145, respectively, and are presented within Prepaid expenses and other current assets and Accrued expenses and other current liabilities, respectively, on the Consolidated Balance Sheets. We warrant our products against certain defects in material and workmanship when used as designed, which primarily range from 30 days to 3 years. We offer limited lifetime warranties on certain products, which limit the customer’s remedy to the repair or replacement of the defective product or part for the designated lifetime of the product, or for the life of the vehicle for the original owner, if it is an automotive product. We do not sell extended warranties. Contract Balances Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the reporting date on contracts with customers. Contract assets are transferred to receivables when the rights become unconditional. Contract liabilities primarily relate to contracts where advance payments or deposits have been received, but performance obligations have not yet been met, and therefore, revenue has not been recognized. The Company had current and non-current contract liability balances totaling $4,641 at August 31, 2021 related to telematic subscription services of the Company’s DEI subsidiary established in connection with the Company’s acquisition of DEI in July 2020 (see Note 2). Revenue recognized for the six months ended August 31, 2021 that was included in the contract liability balance of $3,766 at February 28, 2021 was $1,847. The Company had no contract asset balances at August 31, 2021 or February 28, 2021. Disaggregation of Revenue The Company operates in three reportable segments: Automotive Electronics, Consumer Electronics, and Biometrics. ASC 606 requires further disaggregation of an entity’s revenue. In the following table, the Company's net sales are disaggregated by segment and product type for the three and six months ended August 31, 2021 and 2020: Three months ended August 31, Six months ended August 31, 2021 2020 2021 2020 Automotive Electronics Segment OEM Products $ 16,403 $ 10,714 $ 31,317 $ 18,373 Aftermarket Products 29,358 21,919 57,101 31,536 Total Automotive Segment 45,761 32,633 88,418 49,909 Consumer Electronics Segment Premium Audio Products 76,140 69,282 147,733 103,820 Other Consumer Electronic Products 20,819 25,710 43,339 45,686 Total Consumer Electronics Segment 96,959 94,992 191,072 149,506 Biometrics Segment Biometric Products 253 263 458 360 Total Biometrics Segment 253 263 458 360 Corporate/Eliminations 136 144 221 244 Total Net Sales $ 143,109 $ 128,032 $ 280,169 $ 200,019 |
Contingencies
Contingencies | 6 Months Ended |
Aug. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | (2 4 ) Contingencies The Company is currently, and has in the past, been a party to various routine legal proceedings incident to the ordinary course of business. If management determines, based on the underlying facts and circumstances of each matter, that it is probable a loss will result from a litigation contingency and the amount of the loss can be reasonably estimated, the estimated loss is accrued for. The Company does not believe that any current outstanding litigation matters will have a material adverse effect on the Company's financial statements, individually, or in the aggregate. The products the Company sells are continually changing as a result of improved technology. As a result, although the Company and its suppliers attempt to avoid infringing known proprietary rights, the Company may be subject to legal proceedings and claims for alleged infringement by patent, trademark, or other intellectual property owners. Any claims relating to the infringement of third-party proprietary rights, even if not meritorious, could result in costly litigation, divert management’s attention and resources, or require the Company to either enter into royalty or license agreements that are not advantageous to the Company, or pay material amounts of damages. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Aug. 31, 2021 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | (2 5 ) New Accounting Pronouncements In March 2020 and January 2021, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” and ASU No. 2021-01, “Reference Rate Reform: Scope,” respectively. Together, these ASU’s provide optional expedients and exceptions for applying U.S. GAAP to contract modifications and hedging relationships that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 provides, among other things, guidance that modifications of contracts within the scope of Topic 470, Debt, should be accounted for by prospectively adjusting the effective interest rate; modifications of contracts within the scope of Topic 840, Leases, should be accounted for as a continuation of the existing contract; and, changes in the critical terms of hedging relationships caused by reference rate reform should not result in the de-designation of the instrument, provided certain criteria are met. ASU 2021-01 clarifies the scope and application of ASU 2020-04 and among other things, permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows. The Company’s exposure to LIBOR rates includes its Credit Facility, as well as its Florida Mortgage and related interest swap agreement. These optional expedients and exceptions are effective as of March 12, 2020 through December 31, 2022. Adoption is permitted at any time. The Company is currently evaluating the impact this update may have on its consolidated financial statements. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Aug. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | (2 6 ) Subsequent Events The Company evaluated subsequent events and transactions that occurred after the Unaudited Balance Sheet date of August 31, 2021 up to the issuance date of the Company’s Unaudited Consolidated Financial Statements. Except as disclosed in Note 2 related to the acquisition of Onkyo Home Entertainment Corporation on September 8, 2021, there have been no events that have occurred that would require adjustments to the disclosures in the Unaudited Consolidated Financial Statements. |
Acquisition and Pending Acqui_2
Acquisition and Pending Acquisition Transaction (Tables) | 6 Months Ended |
Aug. 31, 2021 | |
Directed LLC and Directed Electronics Canada Inc [Member] | |
Summary of Allocation of Purchase Price for Fair Value of Assets Acquired and Liabilities Assumed | The following summarizes the allocation of the purchase price based upon the fair value of the assets acquired and liabilities assumed at the date of acquisition: July 1, 2020 Measurement Period Adjustments July 1, 2020 (as adjusted) Assets acquired: Inventory $ 7,054 956 8,010 Accounts receivable 5,173 357 5,530 Other current assets 160 - 160 Property and equipment 2,815 - 2,815 Operating lease, right of use asset 1,771 - 1,771 Customer relationships 2,600 (100 ) 2,500 Trademarks 4,500 - 4,500 Patented technology 1,030 - 1,030 Goodwill 3,290 (1,690 ) 1,600 Total assets acquired $ 28,393 $ (477 ) $ 27,916 Liabilities assumed: Accounts payable 8,144 - 8,144 Accrued expenses 1,406 (136 ) 1,270 Contract liabilities 4,872 11 4,883 Warranty accrual 1,200 (352 ) 848 Operating lease liability 1,771 - 1,771 Total $ 17,393 $ (477 ) $ 16,916 Total purchase price $ 11,000 $ - $ 11,000 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Aug. 31, 2021 | |
Net Income Per Common Share [Abstract] | |
Reconciliation Between Denominator of Basic and Diluted Net Income (Loss) Per Common Share | There are no reconciling items which impact the numerator of basic and diluted net income (loss) per common share. A reconciliation between the denominator of basic and diluted net income (loss) per common share is as follows: Three months ended August 31, Six months ended August 31, 2021 2020 2021 2020 Weighted-average common shares outstanding (basic) 24,281,220 24,224,478 24,273,731 24,223,935 Effect of dilutive securities: Restricted stock and stock grants 574,087 327,586 616,910 — Weighted-average common shares and potential common shares outstanding (diluted) 24,855,307 24,552,064 24,890,641 24,223,935 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Aug. 31, 2021 | |
Investment Securities [Abstract] | |
Unrealized Gain (Loss) on Investments | As of August 31, 2021, and February 28, 2021, the Company had the following investments: August 31, 2021 Fair Value Investment Securities Marketable Equity Securities Mutual funds $ 1,544 Total Marketable Equity Securities 1,544 Total Investment Securities $ 1,544 February 28, 2021 Fair Value Investment Securities Marketable Equity Securities Mutual funds $ 1,777 Total Marketable Securities 1,777 Total Investment Securities $ 1,777 |
Fair Value Measurements and D_2
Fair Value Measurements and Derivatives (Tables) | 6 Months Ended |
Aug. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured on Recurring Basis | The following table presents financial assets and liabilities measured at fair value on a recurring basis at August 31, 2021: Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash and cash equivalents: Cash and money market funds $ 41,051 $ 41,051 $ — Derivatives: Designated for hedging $ (385) $ — $ (385) Investment securities: Mutual funds $ 1,544 $ 1,544 $ — The following table presents financial assets and liabilities measured at fair value on a recurring basis at February 28, 2021: Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash and cash equivalents: Cash and money market funds $ 59,404 $ 59,404 $ — Derivatives: Designated for hedging $ (765 ) $ — $ (765 ) Investment securities: Mutual funds $ 1,777 $ 1,777 $ — |
Fair Value, by Balance Sheet Grouping | The following table discloses the fair value as of August 31, 2021 and February 28, 2021 of the Company’s derivative instruments: Derivative Assets and Liabilities Fair Value Account August 31, 2021 February 28, 2021 Designated derivative instruments Foreign currency contracts Prepaid expenses and other current assets $ 592 $ 412 Accrued expenses and other current liabilities (568 ) (731 ) Interest rate swap agreement Other long-term liabilities (409 ) (446 ) Total derivatives $ (385 ) $ (765 ) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | Activity related to cash flow hedges recorded during the three and six months ended August 31, 2021 and 2020 was as follows: Three months ended Six months ended August 31, 2021 August 31, 2021 Pretax Gain (Loss) Recognized in Other Comprehensive Income Pretax Loss Reclassified from Accumulated Other Comprehensive Income Pretax Gain (Loss) Recognized in Other Comprehensive Income Pretax Loss Reclassified from Accumulated Other Comprehensive Income Cash flow hedges Foreign currency contracts $ 172 $ (29 ) $ 144 $ (205 ) Interest rate swaps 19 — 37 — Three months ended Six months ended August 31, 2020 August 31, 2020 Pretax (Loss) Gain Recognized in Other Comprehensive Income Pretax Loss Reclassified from Accumulated Other Comprehensive Income Pretax Loss Recognized in Other Comprehensive Income Pretax Gain Reclassified from Accumulated Other Comprehensive Income Cash flow hedges Foreign currency contracts $ (465 ) $ (16 ) $ (465 ) $ 52 Interest rate swaps 15 — (115 ) — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Aug. 31, 2021 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The Company’s accumulated other comprehensive loss consists of the following: Foreign Currency Translation Losses Pension plan adjustments, net of tax Derivatives designated in a hedging relationship, net of tax Total Balance at February 28, 2021 $ (13,374 ) $ (869 ) $ (734 ) $ (14,977 ) Other comprehensive income (loss) before reclassifications (962 ) 23 141 (798 ) Reclassified from accumulated other comprehensive loss — — 141 141 Net current-period other comprehensive income (962 ) 23 282 (657 ) Balance at August 31, 2021 $ (14,336 ) $ (846 ) $ (452 ) $ (15,634 ) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Aug. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following is supplemental information relating to the Unaudited Consolidated Statements of Cash Flows: Six months ended August 31, 2021 2020 Non-cash investing and financing activities: Change in redeemable equity $ 85 $ 286 Change in goodwill due to measurement period adjustments, net (1,353 ) - Right of use assets obtained in exchange for operating lease obligations - 347 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 677 $ 508 Operating cash flows from finance leases 7 17 Finance cash flows from finance leases 218 329 Cash paid during the period: Interest (excluding bank charges) $ 310 $ 569 Income taxes (net of refunds) 402 742 |
Accounting for Stock-Based Co_2
Accounting for Stock-Based Compensation (Tables) | 6 Months Ended |
Aug. 31, 2021 | |
Share Based Compensation [Abstract] | |
Summary of Activity Related to Initial Stock Grant Additional Stock Grants under Employment Agreement and RSU Grants under 2014 Plan | The following table presents a summary of the activity related to the initial stock grant, additional stock grants under the Employment Agreement, and RSU grants under the 2014 Plan for the six months ended August 31, 2021: Number of Shares Weighted Average Grant Date Fair Value Unvested award balance at February 28, 2021 603,724 $ 5.18 Granted 48,527 13.59 Vested (136,008 ) 5.50 Vested and settled (100,000 ) 4.15 Unvested award balance at August 31, 2021 416,243 $ 6.30 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Aug. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in goodwill by segment is as follows: Automotive Electronics: Amount Beginning balance at March 1, 2021 $ 11,778 Activity during the period (1,353 ) Balance at August 31, 2021 $ 10,425 Gross carrying value at August 31, 2021 $ 10,425 Accumulated impairment charge — Net carrying value at August 31, 2021 $ 10,425 Consumer Electronics: Beginning balance at March 1, 2021 $ 46,533 Activity during the period — Balance at August 31, 2021 $ 46,533 Gross carrying value at August 31, 2021 $ 78,696 Accumulated impairment charge (32,163 ) Net carrying value at August 31, 2021 $ 46,533 Total Goodwill, net $ 56,958 The Company's Biometrics segment did not carry a goodwill balance at August 31, 2021 or February 28, 2021. |
Schedule of Intangible Assets, Excluding Goodwill | At August 31, 2021, intangible assets consisted of the following: Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships $ 54,511 $ 38,170 $ 16,341 Trademarks/Tradenames 5,545 1,071 4,474 Developed technology 14,144 12,651 1,493 Patents 6,735 5,095 1,640 License 1,400 1,400 — Contracts 1,556 1,556 — Total finite-lived intangible assets $ 83,891 $ 59,943 23,948 Indefinite-lived intangible assets Trademarks 63,244 Total intangible assets, net $ 87,192 At February 28, 2021, intangible assets consisted of the following: Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships $ 54,688 $ 36,412 $ 18,276 Trademarks/Tradenames 5,545 811 4,734 Developed technology 14,144 12,516 1,628 Patents 6,736 4,629 2,107 License 1,400 1,400 — Contracts 1,556 1,556 — Total finite-lived intangible assets $ 84,069 $ 57,324 26,745 Indefinite-lived intangible assets Trademarks 63,359 Total intangible assets, net $ 90,104 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate amortization expense for all amortizable intangibles for August 31 of each of the succeeding years is as follows: Year Amount 2022 $ 5,171 2023 4,432 2024 4,167 2025 4,035 2026 2,710 |
Equity Investment (Tables)
Equity Investment (Tables) | 6 Months Ended |
Aug. 31, 2021 | |
Equity Method Investment Summarized Financial Information [Abstract] | |
Equity Method Investment, Summarized Financial Information | The following presents summary financial information for ASA. Such summary financial information has been provided herein based upon the individual significance of ASA to the consolidated financial information of the Company. August 31, 2021 February 28, 2021 Current assets $ 49,881 $ 49,956 Non-current assets 4,901 4,757 Liabilities 9,868 8,179 Members' equity 44,914 46,534 Six months ended August 31, 2021 2020 Net sales $ 61,560 $ 40,858 Gross profit 15,769 10,593 Operating income 9,488 5,345 Net income 9,516 5,490 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Aug. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories by major category are as follows: August 31, 2021 February 28, 2021 Raw materials $ 21,944 $ 21,228 Work in process 1,717 1,732 Finished goods 122,050 107,833 Inventory $ 145,711 $ 130,793 |
Product Warranties and Produc_2
Product Warranties and Product Repair Costs (Tables) | 6 Months Ended |
Aug. 31, 2021 | |
Payables And Accruals Warranties [Abstract] | |
Schedule of Product Warranty Liability | The following table provides a summary of the activity with respect to product warranties and product repair costs. The liability for product warranties is included within Accrued expenses and other current liabilities and the reserve for product repair costs is recorded as a reduction of Inventory on the Consolidated Balance Sheets. Three months ended August 31, Six months ended August 31, 2021 2020 2021 2020 Opening balance $ 5,390 $ 4,566 $ 5,290 $ 4,748 Liabilities for warranties accrued during the period 537 684 1,237 1,475 Liabilities (adjusted) acquired during acquisition (352 ) 1,200 (352 ) 1,200 Warranty claims settled during the period (1,080 ) (930 ) (1,680 ) (1,903 ) Ending balance $ 4,495 $ 5,520 $ 4,495 $ 5,520 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 6 Months Ended |
Aug. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company has the following financing arrangements: August 31, 2021 February 28, 2021 Debt Domestic credit facility (a) $ — $ — Florida mortgage (b) 6,866 7,114 Euro asset-based lending obligation - VOXX Germany (c) 828 — Total debt 7,694 7,114 Less: current portion of long-term debt 1,328 500 Long-term debt 6,366 6,614 Less: debt issuance costs 1,174 652 Total long-term debt, net of debt issuance costs $ 5,192 $ 5,962 (a) Domestic Credit Facility The Company has a senior secured credit facility (the "Credit Facility"), which was amended on April 19, 2021 to provide for a revolving credit facility with committed availability of up to $140,000. The Credit Facility also includes a $30,000 sublimit for letters of credit and a $15,000 sublimit for swingline loans. The availability under the revolving credit line within the Credit Facility is subject to a borrowing base, which is based on eligible accounts receivable, eligible inventory and certain real estate, subject to reserves as determined by the lender, and is also limited by amounts outstanding under the Florida Mortgage (see Note 16(b)). The availability under the revolving credit line of the Credit Facility was $107,422 as of August 31, 2021. All amounts outstanding under the Credit Facility will mature and become due on April 19, 2026; however, it is subject to acceleration upon the occurrence of an Event of Default as defined in the Second Amended and Restated Credit Agreement (“the Agreement”). The Company may prepay any amounts outstanding at any time, subject to payment of certain breakage and redeployment costs relating to LIBOR Rate Loans. The commitments under the Credit Facility may be irrevocably reduced at any time, without premium or penalty as set forth in the Agreement. Generally, the Company may designate specific borrowings under the Credit Facility as either Base Rate Loans or LIBOR Rate Loans, except that swingline loans may only be designated as Base Rate Loans. Loans designated as LIBOR Rate Loans bear interest at a rate equal to the then applicable LIBOR rate plus a range of 1.75 – 2.25% (2.00% at August 31, 2021). Loans designated as Base Rate loans bear interest at a rate equal to the applicable margin for Base Rate Loans plus a range of 0.75 - 1.25% as defined in the Agreement and shall not be lower than 1.75% ( 4% at August 31, 2021). The amendment to the Credit Facility in April 2021 provided for a Benchmark Replacement that will replace the LIBOR rate for all revolver usage. The Benchmark Replacement is subject to the occurrence of a Benchmark Transition Event, as defined in the Second Amended and Restated Credit Agreement and becomes effective after a five-day transition period following the event. Provided that the Company is in a Compliance Period (the period commencing on that day in which Excess Availability is less than 15% of the Maximum Revolver Amount and ending on a day in which Excess Availability is equal to or greater than 15% for any consecutive 30-day period thereafter), the Credit Facility requires compliance with a financial covenant calculated as of the last day of each month, consisting of a Fixed Charge Coverage Ratio. The Credit Facility also contains covenants, subject to defined carveouts, that limit the ability of the loan parties and certain of their subsidiaries which are not loan parties to, among other things: (i) incur additional indebtedness; (ii) incur liens; (iii) merge, consolidate or dispose of a substantial portion of their business; (iv) transfer or dispose of assets; (v) change their name, organizational identification number, state or province of organization or organizational identity; (vi) make any material change in their nature of business; (vii) prepay or otherwise acquire indebtedness; (viii) cause any change of control; (ix) make any restricted junior payment; (x) change their fiscal year or method of accounting; (xi) make advances, loans or investments; (xii) enter into or permit any transaction with an affiliate of any borrower or any of their subsidiaries; (xiii) use proceeds for certain items; (xiv) issue or sell any of their stock; or (xv) consign or sell any of their inventory on certain terms. In addition, if excess availability under the Credit Facility were to fall below certain specified levels, as defined in the Agreement, the lenders would have the right to assume dominion and control over the Company's cash. As of August 31, 2021, the Company was not in a Compliance Period. The obligations under the Credit Facility documents are secured by a general lien on, and security interest in, substantially all of the assets of the borrowers and certain of the guarantors, including accounts receivable, equipment, real estate, general intangibles, and inventory. The Company has guaranteed the obligations of the borrowers under the Agreement. Charges incurred on the unused portion of the Credit Facility during the three and six months ended August 31, 2021 totaled $190 and $323, respectively, compared to $125 and $241 during the three and six months ended August 31, 2020, respectively. These charges are included within Interest and bank charges on the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company has deferred financing costs related to the Credit Facility and previous amendments and modifications of the Credit Facility. In conjunction with the amendment to its Credit Facility on April 19, 2021, the Company incurred additional financing fees of $667 that will be amortized over the remaining term of the facility. The Company accounted for the April 2021 amendment to the Credit Facility as a modification of debt. Deferred financing costs are included in Long-term debt on the accompanying Consolidated Balance Sheets as a contra-liability balance and are amortized through Interest and bank charges in the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income over the term of the Credit Facility, which expires on April 19, 2026. During the three and six months ended August 31, 2021, the Company amortized $56 and $131 of these costs, respectively, as compared to $128 and $326 during the three and six months ended August 31, 2020, respectively. The net unamortized balance of these deferred financing costs as of August 31, 2021 was $1,033. (b) Florida Mortgage On July 6, 2015, VOXX HQ LLC, the Company’s wholly owned subsidiary, closed on a $9,995 industrial development revenue tax exempt bond under a loan agreement in favor of the Orange County Industrial Development Authority (the “Authority”) to finance the construction of the Company's manufacturing facility and executive offices in Lake Nona, Florida. Wells Fargo Bank, N.A. ("Wells Fargo") was the purchaser of the bond and U.S. Bank National Association is the trustee under an Indenture of Trust with the Authority. Voxx borrowed the proceeds of the bond purchase from the Authority during construction as a revolving loan, which converted to a permanent mortgage upon completion of the facility in January 2016 (the "Florida Mortgage"). The Company makes principal and interest payments to Wells Fargo, which began March 1, 2016 and will continue through March of 2026. The Florida Mortgage bears interest at 70% of 1-month LIBOR plus 1.54% (1.62% at August 31, 2021) and is secured by a first mortgage on the property, a collateral assignment of leases and rents and a guaranty by the Company. The financial covenants of the Florida Mortgage are as defined in the Company’s Credit Facility with Wells Fargo dated April 26, 2016. The Company incurred debt financing costs totaling approximately $332 as a result of obtaining the Florida Mortgage, which are recorded as deferred financing costs and included in Long-term debt as a contra-liability balance on the accompanying Consolidated Balance Sheets and are being amortized through Interest and bank charges in the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income over the ten-year On July 20, 2015, the Company entered into an interest rate swap agreement in order to hedge interest rate exposure related to the Florida Mortgage and pays a fixed rate of 3.48% under the swap agreement (See Note 5). (c) Euro Asset-Based Lending Obligation – VOXX Germany Foreign bank obligations include a Euro Asset-Based Lending ("ABL") credit facility, which has a credit limit of €8,000 for the Company's subsidiary, VOXX Germany, which expires on July 31, 2023. The rate of interest for the ABL is the three-month Euribor plus 2.30% (2.30% at August 31, 2021). |
Other Income (Expense) (Tables)
Other Income (Expense) (Tables) | 6 Months Ended |
Aug. 31, 2021 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | Other income (expense) is comprised of the following: Three months ended August 31, Six months ended August 31, 2021 2020 2021 2020 Foreign currency (loss) gain $ (2 ) $ (363 ) $ 114 $ (479 ) Interest income 5 (15 ) 12 71 Rental income 197 182 361 368 Miscellaneous 176 (30 ) 331 500 Total other, net $ 376 $ (226 ) $ 818 $ 460 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 6 Months Ended |
Aug. 31, 2021 | |
Leases [Abstract] | |
Schedule of Components of Lease Cost | The components of lease cost for the three and six months ended August 31, 2021 and 2020 were as follows: Three months ended August 31, Six months ended August 31, 2021 2020 2021 2020 Operating lease cost (a) (c) $ 342 $ 265 $ 683 $ 508 Finance lease cost: Amortization of right of use assets (a) 101 161 222 326 Interest on lease liabilities (b) 3 8 7 17 Total finance lease cost $ 104 $ 169 $ 229 $ 343 (a) Recorded within Selling, General and administrative, Engineering and technical support, and Cost of sales on the Unaudited Consolidated Statement of Operations and Comprehensive Income. (b) Recorded within Interest and bank charges on the Unaudited Consolidated Statement of Operations and Comprehensive Income. (c) Includes immaterial amounts related to variable rent expense. |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows: August 31, 2021 February 28, 2021 Operating Leases Operating lease, right of use assets $ 4,309 $ 4,572 Total operating lease right of use assets $ 4,309 $ 4,572 Accrued expenses and other current liabilities $ 1,101 $ 1,119 Operating lease liabilities, less current portion 3,327 3,582 Total operating lease liabilities $ 4,428 $ 4,701 Finance Leases Property, plant, and equipment, gross $ 2,503 $ 2,503 Accumulated depreciation (2,028 ) (1,805 ) Total finance lease right of use assets $ 475 $ 698 Accrued expenses and other current liabilities $ 335 $ 418 Finance lease liabilities, less current portion 155 302 Total finance lease liabilities $ 490 $ 720 Weighted Average Remaining Lease Term Operating leases 6.1 years 6.0 years Finance leases 1.6 years 1.8 years Weighted Average Discount Rate Operating leases 4.24 % 4.49 % Finance leases 3.87 % 3.87 % |
Schedule of Maturities of Leases Liabilities | Maturities of lease liabilities on August 31 of each of the succeeding years are as follows: Operating Leases Finance Leases 2021 $ 1,241 342 2022 920 157 2023 696 — 2024 492 — 2025 347 — Thereafter 1,243 — Total lease payments 4,939 499 Less imputed interest 511 9 Total $ 4,428 490 |
Capital Structure (Tables)
Capital Structure (Tables) | 6 Months Ended |
Aug. 31, 2021 | |
Equity [Abstract] | |
Schedule of Capital Units | The Company's capital structure is as follows: Shares Authorized Shares Outstanding Security Par Value August 31, 2021 February 28, 2021 August 31, 2021 February 28, 2021 Voting Rights per Share Liquidation Rights Preferred Stock $ 50.00 — 50,000 — — — $50 per share Series Preferred Stock $ 0.01 — 1,500,000 — — — — Class A Common Stock $ 0.01 60,000,000 60,000,000 21,614,629 21,666,976 1 Ratably with Class B Class B Common Stock $ 0.01 10,000,000 10,000,000 2,260,954 2,260,954 10 Ratably with Class A Treasury Stock at cost at cost 2,862,218 2,749,218 N/A N/A N/A |
Variable Interest Entity (Table
Variable Interest Entity (Tables) - Variable Interest Entity, Primary Beneficiary [Member] | 6 Months Ended |
Aug. 31, 2021 | |
Variable Interest Entity [Line Items] | |
Summary of Carrying Values of Assets and Liabilities Included in Consolidated Balance Sheets | The following table sets forth the carrying values of assets and liabilities of EyeLock LLC that were included on our Consolidated Balance Sheets as of August 31, 2021 and February 28, 2021: August 31, 2021 February 28, 2021 Assets (unaudited) Current assets: Cash and cash equivalents $ — $ — Accounts receivable, net 102 167 Inventory, net 2,251 2,245 Prepaid expenses and other current assets 88 30 Total current assets 2,441 2,442 Property, plant and equipment, net 45 39 Intangible assets, net 2,193 2,329 Other assets 59 60 Total assets $ 4,738 $ 4,870 Liabilities and Partners' Deficit Current liabilities: Accounts payable $ 1,386 $ 1,396 Interest payable to VOXX 12,261 11,453 Accrued expenses and other current liabilities 606 824 Due to VOXX 65,231 61,072 Total current liabilities 79,484 74,745 Other long-term liabilities 1,257 1,200 Total liabilities 80,741 75,945 Commitments and contingencies Partners' deficit: Capital 41,416 41,416 Retained losses (117,419 ) (112,491 ) Total partners' deficit (76,003 ) (71,075 ) Total liabilities and partners' deficit $ 4,738 $ 4,870 |
Summary of Revenues and Expenses Included in Consolidated Statements of Operations and Comprehensive Income | The following table sets forth the revenues and expenses of EyeLock LLC that were included in our Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income for the three and six months ended August 31, 2021 and 2020: For the three months ended August 31, For the six months ended August 31, 2021 2020 2021 2020 Net sales $ 253 $ 263 $ 458 $ 360 Cost of sales 177 262 340 381 Gross profit 76 1 118 (21 ) Operating expenses: Selling 163 125 326 302 General and administrative 432 428 776 857 Engineering and technical support 1,641 1,094 3,128 2,249 Total operating expenses 2,236 1,647 4,230 3,408 Operating loss (2,160 ) (1,646 ) (4,112 ) (3,429 ) Other expense: Interest and bank charges (415 ) (368 ) (816 ) (722 ) Other, net — — — — Total other expense, net (415 ) (368 ) (816 ) (722 ) Loss before income taxes (2,575 ) (2,014 ) (4,928 ) (4,151 ) Income tax expense — — — — Net loss $ (2,575 ) $ (2,014 ) $ (4,928 ) $ (4,151 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Aug. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segments | Segment data for each of the Company's segments is presented below: Automotive Electronics Consumer Electronics Biometrics Corporate/ Eliminations Total Three Months Ended August 31, 2021 Net sales $ 45,761 $ 96,959 $ 253 $ 136 $ 143,109 Equity in income of equity investees 2,035 — — — 2,035 Interest expense and bank charges 309 1,911 415 (2,053 ) 582 Depreciation and amortization expense 755 1,003 75 932 2,765 Income (loss) before income taxes 926 2,439 (2,575 ) (1,699 ) (909 ) Three Months Ended August 31, 2020 Net sales $ 32,633 $ 94,992 $ 263 $ 144 $ 128,032 Equity in income of equity investees 1,883 — — — 1,883 Interest expense and bank charges 353 2,106 367 (1,816 ) 1,010 Depreciation and amortization expense 708 954 86 999 2,747 Income (loss) before income taxes 239 12,789 (2,014 ) (1,850 ) 9,164 Six Months Ended August 31, 2021 Net sales $ 88,418 $ 191,072 $ 458 $ 221 $ 280,169 Equity in income of equity investees 4,758 — — — 4,758 Interest expense and bank charges 682 3,886 816 (4,274 ) 1,110 Depreciation and amortization expense 1,538 2,004 151 1,879 5,572 Income (loss) before income taxes 4,156 7,907 (4,928 ) (5,763 ) 1,372 Six Months Ended August 31, 2020 Net sales $ 49,909 $ 149,506 $ 360 $ 244 $ 200,019 Equity in income of equity investees 2,745 — — — 2,745 Interest expense and bank charges 521 4,240 722 (3,674 ) 1,809 Depreciation and amortization expense 1,174 1,919 172 2,025 5,290 (Loss) income before income taxes (2,871 ) 12,736 (4,151 ) (3,874 ) 1,840 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Aug. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenue | In the following table, the Company's net sales are disaggregated by segment and product type for the three and six months ended August 31, 2021 and 2020: Three months ended August 31, Six months ended August 31, 2021 2020 2021 2020 Automotive Electronics Segment OEM Products $ 16,403 $ 10,714 $ 31,317 $ 18,373 Aftermarket Products 29,358 21,919 57,101 31,536 Total Automotive Segment 45,761 32,633 88,418 49,909 Consumer Electronics Segment Premium Audio Products 76,140 69,282 147,733 103,820 Other Consumer Electronic Products 20,819 25,710 43,339 45,686 Total Consumer Electronics Segment 96,959 94,992 191,072 149,506 Biometrics Segment Biometric Products 253 263 458 360 Total Biometrics Segment 253 263 458 360 Corporate/Eliminations 136 144 221 244 Total Net Sales $ 143,109 $ 128,032 $ 280,169 $ 200,019 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) | 6 Months Ended |
Aug. 31, 2021Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of reportable segments | 3 |
Acquisition and Pending Acqui_3
Acquisition and Pending Acquisition Transaction - Additional Information (Details) - USD ($) $ in Thousands | Sep. 08, 2021 | May 26, 2021 | Jul. 01, 2020 | Jul. 31, 2021 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | Jul. 26, 2021 | Apr. 29, 2021 | Feb. 28, 2021 |
Business Acquisition [Line Items] | |||||||||||
Decrease in goodwill by cumulative net measurement period adjustment | $ (1,353) | ||||||||||
Long-term debt, net of debt issuance costs | $ 5,192 | 5,192 | $ 5,962 | ||||||||
Total consideration paid | $ 11,000 | ||||||||||
Directed LLC and Directed Electronics Canada Inc [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash purchase price | $ 11,000 | ||||||||||
Decrease in goodwill by cumulative net measurement period adjustment | $ (1,690) | $ (1,690) | $ (1,690) | ||||||||
Directed LLC and Directed Electronics Canada Inc [Member] | VOXX DEI LLC and VOXX DEI Canada, Ltd. [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of net sales from consolidated net sales | 9.50% | 3.70% | 9.10% | 2.40% | |||||||
Onkyo Home Entertainment Corporation [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business combination, consideration transferred | $ 30,800 | ||||||||||
Long-term debt, net of debt issuance costs | $ 3,000 | ||||||||||
Line of credit facility additional borrowing capacity | $ 5,390 | ||||||||||
Business combination bear interest rate | 4.00% | ||||||||||
Long-term debt, maturity date | Aug. 30, 2021 | ||||||||||
Outstanding balance | $ 8,390 | $ 8,390 | |||||||||
Onkyo Home Entertainment Corporation [Member] | Subsequent Event [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Total consideration paid | $ 30,737 | ||||||||||
Onkyo Home Entertainment Corporation [Member] | Premium Audio Company LLC [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business acquisition, percentage of interests acquired | 77.00% | ||||||||||
Total contribution was satisfied through settlement of loans made | $ 8,390 | ||||||||||
Onkyo Home Entertainment Corporation [Member] | Premium Audio Company LLC [Member] | Subsequent Event [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Total consideration paid | 23,723 | ||||||||||
Onkyo Home Entertainment Corporation [Member] | Sharp Corporation [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business acquisition, percentage of interests acquired | 23.00% | ||||||||||
Onkyo Home Entertainment Corporation [Member] | Sharp Corporation [Member] | Subsequent Event [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Total consideration paid | $ 7,014 |
Acquisition and Pending Acqui_4
Acquisition and Pending Acquisition Transaction - Summary of Allocation of Purchase Price for Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jul. 01, 2020 | Aug. 31, 2021 | Aug. 31, 2021 | Feb. 28, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill, measurement period adjustments | $ (1,353) | |||
Goodwill | $ 56,958 | 56,958 | $ 58,311 | |
Directed LLC and Directed Electronics Canada Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Inventory | $ 7,054 | |||
Accounts receivable | 5,173 | |||
Other current assets | 160 | |||
Property and equipment | 2,815 | |||
Operating lease, right of use asset | 1,771 | |||
Goodwill | 3,290 | |||
Total assets acquired | 28,393 | |||
Accounts payable | 8,144 | |||
Accrued expenses | 1,406 | |||
Contract liabilities | 4,872 | |||
Warranty accrual | 1,200 | |||
Operating lease liability | 1,771 | |||
Total | 17,393 | |||
Total purchase price | 11,000 | |||
Inventory, measurement period adjustments | 956 | |||
Accounts receivable, measurement period adjustments | 357 | |||
Goodwill, measurement period adjustments | (1,690) | $ (1,690) | $ (1,690) | |
Total assets acquired, measurement period adjustments | (477) | |||
Accrued expenses, right of use asset, measurement period adjustments | (136) | |||
Contract liabilities, measurement period adjustments | 11 | |||
Warranty accrual, measurement period adjustments | (352) | |||
Liabilities assumed, measurement period adjustments | (477) | |||
Inventory | 8,010 | |||
Accounts receivable | 5,530 | |||
Other current assets | 160 | |||
Property and equipment | 2,815 | |||
Operating lease, right of use asset | 1,771 | |||
Goodwill | 1,600 | |||
Total assets acquired | 27,916 | |||
Accounts payable | 8,144 | |||
Accrued expenses | 1,270 | |||
Contract liabilities | 4,883 | |||
Warranty accrual | 848 | |||
Operating lease liability | 1,771 | |||
Total | 16,916 | |||
Total purchase price | 11,000 | |||
Directed LLC and Directed Electronics Canada Inc [Member] | Trademarks [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets other than goodwill | 4,500 | |||
Intangible assets other than goodwill | 4,500 | |||
Directed LLC and Directed Electronics Canada Inc [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets other than goodwill | 2,600 | |||
Intangible assets other than goodwill, measurement period adjustments | (100) | |||
Intangible assets other than goodwill | 2,500 | |||
Directed LLC and Directed Electronics Canada Inc [Member] | Patented Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets other than goodwill | 1,030 | |||
Intangible assets other than goodwill | $ 1,030 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2021shares | Aug. 31, 2020shares | Aug. 31, 2021shares | Aug. 31, 2020shares | |
Net Income Per Common Share [Abstract] | ||||
Reconciling Items to basic and diluted EPS | 0 | |||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 15,666 | 0 | 593,632 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Reconciliation Between Denominator of Basic and Diluted Net Income (Loss) Per Common Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | |
Net Income Per Common Share [Abstract] | ||||
Weighted-average common shares outstanding (basic) | 24,281,220 | 24,224,478 | 24,273,731 | 24,223,935 |
Restricted stock and stock grants | 574,087 | 327,586 | 616,910 | 0 |
Weighted-average common shares and potential common shares outstanding (diluted) | 24,855,307 | 24,552,064 | 24,890,641 | 24,223,935 |
Investment Securities - Unreali
Investment Securities - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Feb. 28, 2021 |
Gain (Loss) on Securities [Line Items] | ||
Marketable Equity Securities | $ 1,544 | $ 1,777 |
Investments, Fair Value Disclosure | 1,544 | 1,777 |
Mutual Funds [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Marketable Equity Securities | $ 1,544 | $ 1,777 |
Fair Value Measurements and D_3
Fair Value Measurements and Derivatives - Additional Information (Details) | 6 Months Ended | ||
Aug. 31, 2021USD ($) | Feb. 28, 2021USD ($) | Jul. 20, 2015 | |
Derivative Instruments Gain Loss [Line Items] | |||
Derivative, Fixed Interest Rate | 3.48% | ||
Amount excluded from assessment of hedge effectiveness | $ 0 | ||
Foreign currency contracts terminated | 0 | ||
Foreign Exchange Forward [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Current outstanding notional value | $ 5,400,000 | ||
Interest Rate Swap [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Current outstanding notional value | $ 6,866,000 | ||
Minimum [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Forward foreign currency contracts, range | 1 month | ||
Maximum [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Forward foreign currency contracts, range | 6 months | ||
Fair Value Measurements Recurring [Member] | Level 3 [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Asset measured at fair value | $ 0 | $ 0 | |
Liabilities measured at fair value | $ 0 | $ 0 |
Fair Value Measurements and D_4
Fair Value Measurements and Derivatives - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Feb. 28, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 41,051 | $ 59,404 |
Foreign Currency Contract, Asset, Fair Value Disclosure | (385) | (765) |
Investments, Fair Value Disclosure | 1,544 | 1,777 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 1,544 | 1,777 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 41,051 | 59,404 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 1,544 | 1,777 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Foreign Currency Contract, Asset, Fair Value Disclosure | (385) | (765) |
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value Measurements and D_5
Fair Value Measurements and Derivatives - Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Feb. 28, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid expenses and other current assets | $ 24,149 | $ 22,266 |
Accrued expenses and other current liabilities | (47,742) | (53,392) |
Derivative Assets and Liabilities | (385) | (765) |
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid expenses and other current assets | 592 | 412 |
Accrued expenses and other current liabilities | (568) | (731) |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term liabilities | $ (409) | $ (446) |
Fair Value Measurements and D_6
Fair Value Measurements and Derivatives - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | |
Foreign Exchange Forward [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 172 | $ (465) | $ 144 | $ (465) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (29) | (16) | (205) | 52 |
Interest Rate Swap [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 19 | 15 | 37 | (115) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 0 | $ 0 | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Aug. 31, 2021 | May 31, 2021 | Aug. 31, 2020 | May 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Stockholders equity, beginning of period | $ 377,772 | $ 376,069 | $ 339,588 | $ 348,229 | $ 376,069 | $ 348,229 |
Other comprehensive income (loss) before reclassifications | (798) | |||||
Reclassified from accumulated other comprehensive loss | 141 | |||||
Other comprehensive (loss) income, net of tax | (1,149) | 492 | 2,666 | 313 | (657) | 2,979 |
Stockholders equity, end of period | 374,829 | 377,772 | 348,484 | 339,588 | 374,829 | 348,484 |
Foreign Currency Translation Losses [Member] | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Stockholders equity, beginning of period | (13,374) | (13,374) | ||||
Other comprehensive income (loss) before reclassifications | (962) | |||||
Reclassified from accumulated other comprehensive loss | 0 | |||||
Other comprehensive (loss) income, net of tax | (962) | |||||
Stockholders equity, end of period | (14,336) | (14,336) | ||||
Pension Plan Adjustments, Net of Tax [Member] | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Stockholders equity, beginning of period | (869) | (869) | ||||
Other comprehensive income (loss) before reclassifications | 23 | |||||
Reclassified from accumulated other comprehensive loss | 0 | |||||
Other comprehensive (loss) income, net of tax | 23 | |||||
Stockholders equity, end of period | (846) | (846) | ||||
Derivatives Designated in a Hedging Relationship, Net of Tax [Member] | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Stockholders equity, beginning of period | (734) | (734) | ||||
Other comprehensive income (loss) before reclassifications | 141 | |||||
Reclassified from accumulated other comprehensive loss | 141 | |||||
Other comprehensive (loss) income, net of tax | 282 | |||||
Stockholders equity, end of period | (452) | (452) | ||||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Stockholders equity, beginning of period | (14,485) | (14,977) | (18,742) | (19,055) | (14,977) | (19,055) |
Other comprehensive (loss) income, net of tax | (1,149) | 492 | 2,666 | 313 | ||
Stockholders equity, end of period | $ (15,634) | $ (14,485) | $ (16,076) | $ (18,742) | $ (15,634) | $ (16,076) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Aug. 31, 2021 | Aug. 31, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | $ 63 | $ 108 |
Other Comprehensive Income (Loss), Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 0 | 0 |
Other comprehensive income (loss) before reclassifications | (798) | |
Foreign Currency Translation Losses [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive income (loss) before reclassifications | (962) | |
Foreign Currency Translation Losses [Member] | Intercompany Transactions Of Long Term Investment Nature [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive income (loss) before reclassifications | 152 | |
Foreign Currency Translation Losses [Member] | Translating Financial Statements [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive income (loss) before reclassifications | $ (1,114) |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 31, 2021 | Aug. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | ||
Change in redeemable equity | $ 85 | $ 286 |
Change in goodwill due to measurement period adjustments, net | (1,353) | |
Right of use assets obtained in exchange for operating lease obligations | 347 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 677 | 508 |
Operating cash flows from finance leases | 7 | 17 |
Finance cash flows from finance leases | 218 | 329 |
Non-cash investing activities: | ||
Interest (excluding bank charges) | 310 | 569 |
Income taxes (net of refunds) | $ 402 | $ 742 |
Accounting for Stock-Based Co_3
Accounting for Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 01, 2021 | Mar. 01, 2020 | Jul. 08, 2019 | Jul. 31, 2021 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | Feb. 28, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock based compensation expense | $ 473 | $ 686 | |||||||
Stock grants vested | 100,000 | 100,000 | |||||||
Shares withheld for taxes | 39,347 | ||||||||
Patrick M. Lavelle [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Annual salary and cash bonus | $ 1,000 | ||||||||
Stock based compensation expense | $ 61 | $ 61 | $ 122 | $ 122 | |||||
Grant of market stock units maximum amount | $ 5,000 | ||||||||
Maximum average stock price of grant market stock units | $ 5.49 | ||||||||
Maximum increase amount of market stock units award | $ 5,000 | ||||||||
Maximum threshold share price increases in value of award | $ 15 | ||||||||
Estimated Maximum threshold share increases in value of award | 333,333 | ||||||||
Patrick M. Lavelle [Member] | Common Class A [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.15 | $ 4.15 | $ 4.15 | $ 4.15 | |||||
Award vesting period | 5 years | ||||||||
Grant of initial shares under employment agreement | 60,653 | 100,000 | |||||||
Stock based compensation expense | $ 38 | $ 103 | $ 78 | $ 206 | |||||
Patrick M. Lavelle [Member] | Common Class A [Member] | March 1, 2021 [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Additional grant of shares under employment agreement | 100,000 | ||||||||
Patrick M. Lavelle [Member] | Common Class A [Member] | March 1, 2020 [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Additional grant of shares under employment agreement | 100,000 | ||||||||
Patrick M. Lavelle [Member] | Common Class A [Member] | March 1, 2022 [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Additional grant of shares under employment agreement | 100,000 | ||||||||
Restricted Stock [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Allocated Share-based Compensation Expense | 237 | $ 335 | 473 | $ 686 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 1,656 | $ 1,656 | |||||||
2014 Plan [Member] | Restricted Stock Units [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 3 years | ||||||||
Share-based payment award vesting age of employee | 65 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 13.59 | ||||||||
Stock grants vested | 136,008 | ||||||||
Vested and unsettled awards, weighted average fair value | $ 5.50 | ||||||||
2014 Plan [Member] | Restricted Stock Units [Member] | Employees [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 48,527 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 13.59 | ||||||||
2014 Plan [Member] | Restricted Stock Units [Member] | Minimum [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share-based payment award vesting required service period | 10 years | ||||||||
2014 Plan [Member] | Unsettled Stock Grants and RSU Awards [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock grants vested | 414,326 | ||||||||
Vested and unsettled awards, weighted average fair value | $ 6.98 | ||||||||
2012 Equity Incentive Plan [Member] | Patrick M. Lavelle [Member] | Common Class A [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Grant of initial shares under employment agreement | 200,000 |
Accounting for Stock-Based Co_4
Accounting for Stock-Based Compensation - Summary of Activity Related to Initial Stock Grant Additional Stock Grants under Employment Agreement and RSU Grants under 2014 Plan (Details) - $ / shares | Mar. 01, 2021 | Mar. 01, 2020 | Aug. 31, 2021 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (100,000) | (100,000) | |
2014 Plan [Member] | Restricted Stock Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 603,724 | 603,724 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 48,527 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (136,008) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested and Settled in Period | (100,000) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 416,243 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 5.18 | $ 5.18 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 13.59 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 5.50 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested and Settled Period, Weighted Average Grant Date Fair Value | 4.15 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 6.30 |
Supply Chain Financing - Additi
Supply Chain Financing - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | |
Supply Chain Financing [Abstract] | ||||
Proceeds from Sale and Collection of Receivables | $ 29,975 | $ 19,320 | $ 42,176 | $ 39,184 |
Research and Development - Addi
Research and Development - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | |
Research And Development [Abstract] | ||||
Research and Development Expense | $ 3,624 | $ 1,666 | $ 5,945 | $ 3,521 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 6 Months Ended |
Aug. 31, 2021USD ($) | |
Goodwill [Line Items] | |
Goodwill | $ 58,311 |
Goodwill | 56,958 |
Automotive Electronics [Member] | |
Goodwill [Line Items] | |
Goodwill | 11,778 |
Activity during the period | (1,353) |
Goodwill | 10,425 |
Goodwill, Gross | 10,425 |
Goodwill, Impaired, Accumulated Impairment Loss | 0 |
Consumer Electronics [Member] | |
Goodwill [Line Items] | |
Goodwill | 46,533 |
Activity during the period | 0 |
Goodwill | 46,533 |
Goodwill, Gross | 78,696 |
Goodwill, Impaired, Accumulated Impairment Loss | $ (32,163) |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | Feb. 28, 2021 | |
Goodwill and Intangible Assets [Line Items] | |||||
Goodwill | $ 56,958,000 | $ 56,958,000 | $ 58,311,000 | ||
Amortization of Intangible Assets | 1,375,000 | $ 1,327,000 | 2,786,000 | $ 2,496,000 | |
Biometrics [Member] | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Goodwill | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets, Excluding Goodwill (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Feb. 28, 2021 |
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 83,891 | $ 84,069 |
Finite-Lived Intangible Assets, Accumulated Amortization | 59,943 | 57,324 |
Finite-Lived Intangible Assets, Net | 23,948 | 26,745 |
Intangible assets, net | 87,192 | 90,104 |
Trademarks [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 63,244 | 63,359 |
Customer Relationships [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 54,511 | 54,688 |
Finite-Lived Intangible Assets, Accumulated Amortization | 38,170 | 36,412 |
Finite-Lived Intangible Assets, Net | 16,341 | 18,276 |
Trademarks and Tradenames [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 5,545 | 5,545 |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,071 | 811 |
Finite-Lived Intangible Assets, Net | 4,474 | 4,734 |
Patented Technology [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 14,144 | 14,144 |
Finite-Lived Intangible Assets, Accumulated Amortization | 12,651 | 12,516 |
Finite-Lived Intangible Assets, Net | 1,493 | 1,628 |
Patents [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 6,735 | 6,736 |
Finite-Lived Intangible Assets, Accumulated Amortization | 5,095 | 4,629 |
Finite-Lived Intangible Assets, Net | 1,640 | 2,107 |
Licensing Agreements [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,400 | 1,400 |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,400 | 1,400 |
Finite-Lived Intangible Assets, Net | 0 | 0 |
Contractual Rights [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,556 | 1,556 |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,556 | 1,556 |
Finite-Lived Intangible Assets, Net | $ 0 | $ 0 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands | Aug. 31, 2021USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2022 | $ 5,171 |
2023 | 4,432 |
2024 | 4,167 |
2025 | 4,035 |
2026 | $ 2,710 |
Equity Investment - Additional
Equity Investment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | Feb. 28, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||||
Income (Loss) from Equity Method Investments | $ 2,035 | $ 1,883 | $ 4,758 | $ 2,745 | |
ASA Electronics, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% |
Equity Investment - Equity Meth
Equity Investment - Equity Method Investment, Summarized Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Aug. 31, 2021 | May 31, 2021 | Aug. 31, 2020 | May 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity Method Investment, Summarized Financial Information, Current Assets | $ 310,444 | $ 310,444 | $ 319,339 | |||||
Equity Method Investment, Summarized Financial Information, Current Liabilities | 133,812 | 133,812 | 146,796 | |||||
Equity Method Investment Summarized Financial Information, Equity | 374,829 | $ 377,772 | $ 348,484 | $ 339,588 | 374,829 | $ 348,484 | 376,069 | $ 348,229 |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | 37,186 | 38,076 | 73,881 | 58,051 | ||||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | (692) | $ 1,797 | $ 6,555 | $ (9,105) | 1,105 | (2,550) | ||
ASA Electronics, LLC [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity Method Investment, Summarized Financial Information, Current Assets | 49,881 | 49,881 | 49,956 | |||||
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | 4,901 | 4,901 | 4,757 | |||||
Equity Method Investment, Summarized Financial Information, Current Liabilities | 9,868 | 9,868 | 8,179 | |||||
Equity Method Investment Summarized Financial Information, Equity | $ 44,914 | 44,914 | $ 46,534 | |||||
Equity Method Investment, Summarized Financial Information, Revenue | 61,560 | 40,858 | ||||||
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | 15,769 | 10,593 | ||||||
Equity Method Investment, Summarized Financial Information, Income (Loss) from Continuing Operations | 9,488 | 5,345 | ||||||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | $ 9,516 | $ 5,490 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | Feb. 28, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision (benefit) | $ (217) | $ 2,609 | $ 267 | $ 4,390 | |
Unrecognized tax benefits, period increase (decrease) | $ 70 | $ 142 | $ 144 | $ 4,151 | |
Effective income tax rate, continuing operations | 23.90% | 28.50% | 19.50% | 238.60% | |
Income (loss) from continuing operations before income taxes, noncontrolling interest | $ (909) | $ 9,164 | $ 1,372 | $ 1,840 | |
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 21.00% | 21.00% | 21.00% | 21.00% | |
Unrecognized tax benefits, period increase (decrease) excluding U.S. tax jurisdiction from estimated annual effective tax rate | $ 4,275 | ||||
Unrecognized tax benefits, period increase (decrease) due to reversal of uncertain tax provision liabilities resulting from lapse of applicable statute of limitations | 155 | ||||
Unrecognized tax benefit, interest expense | 31 | ||||
Liability for uncertainty in income taxes, noncurrent | $ 1,007 | $ 1,007 | $ 1,170 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory, Current (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Feb. 28, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 21,944 | $ 21,228 |
Work in process | 1,717 | 1,732 |
Finished goods | 122,050 | 107,833 |
Inventory | $ 145,711 | $ 130,793 |
Product Warranties and Produc_3
Product Warranties and Product Repair Costs - Schedule of Product Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | |
Payables And Accruals Warranties [Abstract] | ||||
Opening balance | $ 5,390 | $ 4,566 | $ 5,290 | $ 4,748 |
Liabilities for warranties accrued during the period | 537 | 684 | 1,237 | 1,475 |
Liabilities (adjusted) acquired during acquisition | (352) | 1,200 | (352) | 1,200 |
Warranty claims settled during the period | (1,080) | (930) | (1,680) | (1,903) |
Ending balance | $ 4,495 | $ 5,520 | $ 4,495 | $ 5,520 |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Debt (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Feb. 28, 2021 | |
Debt, Long-term and Short-term, Combined Amount | $ 7,694 | $ 7,114 | |
Less: current portion of long-term debt | 1,328 | 500 | |
Long-term debt | 6,366 | 6,614 | |
Less: debt issuance costs | 1,174 | 652 | |
Total long-term debt, net of debt issuance costs | 5,192 | 5,962 | |
Mortgages [Member] | |||
Debt, Long-term and Short-term, Combined Amount | [1] | 6,866 | $ 7,114 |
Less: debt issuance costs | 140 | ||
Audiovox Germany [Member] | Foreign Line of Credit [Member] | |||
Debt, Long-term and Short-term, Combined Amount | [2] | $ 828 | |
[1] | On July 6, 2015, VOXX HQ LLC, the Company’s wholly owned subsidiary, closed on a $9,995 industrial development revenue tax exempt bond under a loan agreement in favor of the Orange County Industrial Development Authority (the “Authority”) to finance the construction of the Company's manufacturing facility and executive offices in Lake Nona, Florida. Wells Fargo Bank, N.A. ("Wells Fargo") was the purchaser of the bond and U.S. Bank National Association is the trustee under an Indenture of Trust with the Authority. Voxx borrowed the proceeds of the bond purchase from the Authority during construction as a revolving loan, which converted to a permanent mortgage upon completion of the facility in January 2016 (the "Florida Mortgage"). The Company makes principal and interest payments to Wells Fargo, which began March 1, 2016 and will continue through March of 2026. The Florida Mortgage bears interest at 70% of 1-month LIBOR plus 1.54% (1.62% at August 31, 2021) and is secured by a first mortgage on the property, a collateral assignment of leases and rents and a guaranty by the Company. The financial covenants of the Florida Mortgage are as defined in the Company’s Credit Facility with Wells Fargo dated April 26, 2016. The Company incurred debt financing costs totaling approximately $332 as a result of obtaining the Florida Mortgage, which are recorded as deferred financing costs and included in Long-term debt as a contra-liability balance on the accompanying Consolidated Balance Sheets and are being amortized through Interest and bank charges in the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income over the ten-year On July 20, 2015, the Company entered into an interest rate swap agreement in order to hedge interest rate exposure related to the Florida Mortgage and pays a fixed rate of 3.48% under the swap agreement (See Note 5). | ||
[2] | Foreign bank obligations include a Euro Asset-Based Lending ("ABL") credit facility, which has a credit limit of €8,000 for the Company's subsidiary, VOXX Germany, which expires on July 31, 2023. The rate of interest for the ABL is the three-month Euribor plus 2.30% (2.30% at August 31, 2021). |
Financing Arrangements - Sche_2
Financing Arrangements - Schedule of Debt (Parenthetical) (Details) € in Thousands | Apr. 19, 2021USD ($) | Aug. 31, 2021USD ($)Rate | Aug. 31, 2020USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2021USD ($)Rate | Aug. 31, 2020USD ($) | Aug. 31, 2019USD ($) | Apr. 30, 2021USD ($) | Feb. 28, 2021USD ($) | Jul. 20, 2015 | Jul. 06, 2015USD ($) | Oct. 23, 2000EUR (€) |
Line of credit facility, maximum borrowing capacity | $ 107,422,000 | $ 107,422,000 | ||||||||||
Line of credit facility, maturity date | Apr. 19, 2026 | |||||||||||
Percentage of maximum revolver amount | 15.00% | |||||||||||
Debt instrument compliance description | Provided that the Company is in a Compliance Period (the period commencing on that day in which Excess Availability is less than 15% of the Maximum Revolver Amount and ending on a day in which Excess Availability is equal to or greater than 15% for any consecutive 30-day period thereafter) | |||||||||||
Line of credit facility, commitment fee amount | 190,000 | $ 125,000 | $ 323,000 | $ 241,000 | ||||||||
Line of credit facility, additional financing fees | $ 667,000 | |||||||||||
Debt issuance costs, net | 1,174,000 | $ 1,174,000 | $ 652,000 | |||||||||
Industrial revenue bond | $ 9,995,000 | |||||||||||
Mortgage bears interest rate | 70.00% | |||||||||||
Debt issuance costs, gross | $ 332,000 | $ 332,000 | ||||||||||
Derivative, Fixed Interest Rate | 3.48% | |||||||||||
Mortgages [Member] | ||||||||||||
Debt instrument, basis spread on variable rate | Rate | 1.54% | |||||||||||
Debt instrument, interest rate at period end | Rate | 1.62% | 1.62% | ||||||||||
Amortization of debt issuance costs | $ 8,000 | $ 8,000 | $ 16,000 | $ 16,000 | ||||||||
Debt issuance costs, net | $ 140,000 | $ 140,000 | ||||||||||
Debt instrument, term | 10 years | |||||||||||
London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||
Debt instrument, interest rate at period end | 2.00% | 2.00% | ||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||||||||
Debt instrument, basis spread on variable rate | 1.75% | |||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||||||||
Debt instrument, basis spread on variable rate | 2.25% | |||||||||||
Base Rate [Member] | ||||||||||||
Debt instrument, interest rate at period end | 4.00% | 4.00% | ||||||||||
Base Rate [Member] | Minimum [Member] | ||||||||||||
Debt instrument, basis spread on variable rate | 0.75% | |||||||||||
Base Rate [Member] | Maximum [Member] | ||||||||||||
Debt instrument, basis spread on variable rate | 1.25% | |||||||||||
Debt instrument interest rate during period | 1.75% | |||||||||||
Loans [Member] | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | |||||||||||
Revolving Credit Facility [Member] | ||||||||||||
Line of credit facility, current borrowing capacity | $ 140,000,000 | |||||||||||
Line of credit facility, maturity date | Apr. 19, 2026 | |||||||||||
Letter of Credit [Member] | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ 30,000,000 | |||||||||||
Line of Credit [Member] | ||||||||||||
Amortization of debt issuance costs | $ 56,000 | $ 128,000 | $ 131,000 | $ 326,000 | ||||||||
Debt issuance costs, net | $ 1,033,000 | $ 1,033,000 | ||||||||||
Foreign Line of Credit [Member] | Audiovox Germany [Member] | ||||||||||||
Line of credit facility, maximum borrowing capacity | € | € 8,000 | |||||||||||
Debt instrument, basis spread on variable rate | Rate | 2.30% | |||||||||||
Debt instrument, interest rate at period end | Rate | 2.30% | 2.30% |
Other Income (Expense) - Schedu
Other Income (Expense) - Schedule of Other Nonoperating Income (Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | |
Other Income And Expenses [Abstract] | ||||
Foreign currency (loss) gain | $ (2) | $ (363) | $ 114 | $ (479) |
Interest income | 5 | (15) | 12 | 71 |
Rental income | 197 | 182 | 361 | 368 |
Miscellaneous | 176 | (30) | 331 | 500 |
Total other, net | $ 376 | $ (226) | $ 818 | $ 460 |
Foreign Currency - Additional I
Foreign Currency - Additional Information (Details) | 6 Months Ended |
Aug. 31, 2021USD ($) | |
Foreign Currency [Line Items] | |
Cumulative inflation period | 3 years |
Impairment of long-lived assets held-for-use | $ 0 |
Minimum [Member] | |
Foreign Currency [Line Items] | |
Cumulative inflation rate | 100.00% |
Lease Obligations - Additional
Lease Obligations - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | |
Leases [Line Items] | ||||
Short term leases | $ 0 | $ 0 | ||
Other Income (Expense) [Member] | ||||
Leases [Line Items] | ||||
Rental income | $ 197,000 | $ 182,000 | $ 361,000 | $ 368,000 |
Minimum [Member] | ||||
Leases [Line Items] | ||||
Operating and finance leases remaining lease terms | 1 year | |||
Maximum [Member] | ||||
Leases [Line Items] | ||||
Operating and finance leases remaining lease terms | 10 years |
Lease Obligations - Schedule of
Lease Obligations - Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | ||
Leases [Abstract] | |||||
Operating lease cost | [1],[2] | $ 342 | $ 265 | $ 683 | $ 508 |
Finance lease cost: | |||||
Amortization of right of use assets | [2] | 101 | 161 | 222 | 326 |
Interest on lease liabilities | [3] | 3 | 8 | 7 | 17 |
Total finance lease cost | $ 104 | $ 169 | $ 229 | $ 343 | |
[1] | Includes immaterial amounts related to variable rent expense. | ||||
[2] | Recorded within Selling, General and administrative, Engineering and technical support, and Cost of sales on the Unaudited Consolidated Statement of Operations and Comprehensive Income. | ||||
[3] | Recorded within Interest and bank charges on the Unaudited Consolidated Statement of Operations and Comprehensive Income. |
Lease Obligations - Schedule _2
Lease Obligations - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Feb. 28, 2021 |
Operating Leases | ||
Operating lease, right of use assets | $ 4,309 | $ 4,572 |
Total operating lease right of use assets | 4,309 | 4,572 |
Accrued expenses and other current liabilities | 1,101 | 1,119 |
Operating lease liabilities, less current portion | 3,327 | 3,582 |
Total operating lease liabilities | 4,428 | 4,701 |
Finance Leases | ||
Property, plant, and equipment, gross | 2,503 | 2,503 |
Accumulated depreciation | (2,028) | (1,805) |
Total finance lease right of use assets | 475 | 698 |
Accrued expenses and other current liabilities | 335 | 418 |
Finance lease liabilities, less current portion | 155 | 302 |
Total finance lease liabilities | $ 490 | $ 720 |
Weighted Average Remaining Lease Term | ||
Operating leases | 6 years 1 month 6 days | 6 years |
Finance leases | 1 year 7 months 6 days | 1 year 9 months 18 days |
Weighted Average Discount Rate | ||
Operating leases | 4.24% | 4.49% |
Finance leases | 3.87% | 3.87% |
Lease Obligations - Schedule _3
Lease Obligations - Schedule of Maturities of Leases Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Feb. 28, 2021 |
Operating Leases | ||
2021 | $ 1,241 | |
2022 | 920 | |
2023 | 696 | |
2024 | 492 | |
2025 | 347 | |
Thereafter | 1,243 | |
Total lease payments | 4,939 | |
Less imputed interest | 511 | |
Total | 4,428 | $ 4,701 |
Finance Leases | ||
2021 | 342 | |
2022 | 157 | |
Total lease payments | 499 | |
Less imputed interest | 9 | |
Total | $ 490 | $ 720 |
Capital Structure - Schedule of
Capital Structure - Schedule of Capital Units (Details) - $ / shares | 6 Months Ended | |
Aug. 31, 2021 | Feb. 28, 2021 | |
Capital Unit [Line Items] | ||
Treasury stock, shares | 2,862,218 | 2,749,218 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred Stock [Member] | ||
Capital Unit [Line Items] | ||
Preferred Stock, Par or Stated Value Per Share | $ 50 | |
Preferred Stock, Shares Authorized | 0 | 50,000 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred Stock, Liquidation Preference Per Share | $ 50 | |
Series A Preferred Stock [Member] | ||
Capital Unit [Line Items] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | |
Preferred Stock, Shares Authorized | 0 | 1,500,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common Class A [Member] | ||
Capital Unit [Line Items] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 60,000,000 | 60,000,000 |
Treasury stock, shares | 2,862,218 | 2,749,218 |
Common Stock, Shares, Outstanding | 21,614,629 | 21,666,976 |
Common Stock, Voting Rights | 1 | |
Common Class B [Member] | ||
Capital Unit [Line Items] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Outstanding | 2,260,954 | 2,260,954 |
Common Stock, Voting Rights | 10 |
Capital Structure - Additional
Capital Structure - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Aug. 31, 2021USD ($)shares | Aug. 31, 2021USD ($)shares | |
Equity [Abstract] | ||
Repurchase of shares of common stock | 113,000 | 113,000 |
Stock repurchased during period, value | $ | $ 1,220 | $ 1,220 |
Stock repurchase program, number of shares authorized to be repurchased | 2,305,876 | 2,305,876 |
Variable Interest Entity - Addi
Variable Interest Entity - Additional Information (Details) - USD ($) | Apr. 29, 2021 | Aug. 31, 2021 | Feb. 28, 2019 | Feb. 28, 2021 |
Variable Interest Entity [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 107,422,000 | |||
Notes, loans and financing receivable, net, noncurrent | 1.50 | |||
Long-term debt, net of debt issuance costs | $ 5,192,000 | $ 5,962,000 | ||
GalvanEyes [Member] | Put Arrangement [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Equity interest percentage based on occurrence of certain events | 20.00% | |||
Arrangement after initial period Term | 2 years | |||
EyeLock [Member] | Exclusive Distribution Agreement [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Distribution agreement term | 3 years | |||
EyeLock [Member] | Call Arrangement [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Equity interest percentage based on occurrence of certain events | 20.00% | |||
EyeLock [Member] | GalvanEyes [Member] | Exclusive Distribution Agreement [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Annual fee receivable under distribution agreement subject to certain closing conditions | $ 10,000,000 | |||
EyeLock [Member] | GalvanEyes [Member] | Maximum [Member] | Exclusive Distribution Agreement [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Quarterly fee receivable under distribution agreement subject to certain closing conditions | $ 5,000,000 | |||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Debt instrument, interest rate during period | 2.50% | 10.00% | ||
Line of credit facility, maximum borrowing capacity | $ 60,600,000 | |||
Long-term debt, net of debt issuance costs | $ 65,231,000 |
Variable Interest Entity - Summ
Variable Interest Entity - Summary of Carrying Values of Assets and Liabilities Included in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Feb. 28, 2021 |
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 41,051 | $ 59,404 |
Accounts receivable, net | 90,346 | 106,165 |
Prepaid expenses and other current assets | 24,149 | 22,266 |
Total current assets | 310,444 | 319,339 |
Property, plant and equipment, net | 51,022 | 52,026 |
Intangible assets, net | 87,192 | 90,104 |
Other assets | 798 | 1,323 |
Total assets | 534,822 | 550,818 |
Current portion of long-term debt | 1,328 | 500 |
Total current liabilities | 133,812 | 146,796 |
Other long-term liabilities | 4,701 | 5,255 |
Total liabilities | 156,648 | 171,489 |
Commitments and contingencies | ||
Retained earnings | 151,933 | 148,906 |
Total liabilities, redeemable equity, and stockholders' equity | 534,822 | 550,818 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Accounts receivable, net | 102 | 167 |
Inventory, net | 2,251 | 2,245 |
Prepaid expenses and other current assets | 88 | 30 |
Total current assets | 2,441 | 2,442 |
Property, plant and equipment, net | 45 | 39 |
Intangible assets, net | 2,193 | 2,329 |
Other assets | 59 | 60 |
Total assets | 4,738 | 4,870 |
Accounts payable | 1,386 | 1,396 |
Interest payable to VOXX | 12,261 | 11,453 |
Accrued expenses and other current liabilities | 606 | 824 |
Current portion of long-term debt | 65,231 | 61,072 |
Total current liabilities | 79,484 | 74,745 |
Other long-term liabilities | 1,257 | 1,200 |
Total liabilities | 80,741 | 75,945 |
Commitments and contingencies | ||
Capital | 41,416 | 41,416 |
Retained earnings | (117,419) | (112,491) |
Total partners' deficit | (76,003) | (71,075) |
Total liabilities, redeemable equity, and stockholders' equity | $ 4,738 | $ 4,870 |
Variable Interest Entity - Su_2
Variable Interest Entity - Summary of Revenues and Expenses Included in Consolidated Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Aug. 31, 2021 | May 31, 2021 | Aug. 31, 2020 | May 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | |
Variable Interest Entity [Line Items] | ||||||
Net sales | $ 143,109 | $ 128,032 | $ 280,169 | $ 200,019 | ||
Cost of sales | 105,923 | 89,956 | 206,288 | 141,968 | ||
Gross profit | 37,186 | 38,076 | 73,881 | 58,051 | ||
Selling | 11,838 | 9,233 | 23,305 | 17,801 | ||
General and administrative | 17,884 | 15,424 | 36,560 | 30,294 | ||
Engineering and technical support | 7,886 | 4,781 | 14,118 | 9,266 | ||
Total operating expenses | 39,924 | 29,559 | 76,975 | 57,607 | ||
Operating (loss) income | (2,738) | 8,517 | (3,094) | 444 | ||
Interest and bank charges | (582) | (1,010) | (1,110) | (1,809) | ||
Other, net | 376 | (226) | 818 | 460 | ||
Total other income, net | 1,829 | 647 | 4,466 | 1,396 | ||
(Loss) income before income taxes | (909) | 9,164 | 1,372 | 1,840 | ||
Income tax expense | (217) | 2,609 | 267 | 4,390 | ||
Net (loss) income | (692) | $ 1,797 | 6,555 | $ (9,105) | 1,105 | (2,550) |
Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Net sales | 253 | 263 | 458 | 360 | ||
Cost of sales | 177 | 262 | 340 | 381 | ||
Gross profit | 76 | 1 | 118 | (21) | ||
Selling | 163 | 125 | 326 | 302 | ||
General and administrative | 432 | 428 | 776 | 857 | ||
Engineering and technical support | 1,641 | 1,094 | 3,128 | 2,249 | ||
Total operating expenses | 2,236 | 1,647 | 4,230 | 3,408 | ||
Operating (loss) income | (2,160) | (1,646) | (4,112) | (3,429) | ||
Interest and bank charges | (415) | (368) | (816) | (722) | ||
Total other income, net | (415) | (368) | (816) | (722) | ||
(Loss) income before income taxes | (2,575) | (2,014) | (4,928) | (4,151) | ||
Net (loss) income | $ (2,575) | $ (2,014) | $ (4,928) | $ (4,151) |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 6 Months Ended |
Aug. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Number of operating segments | 3 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting Information by Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 143,109 | $ 128,032 | $ 280,169 | $ 200,019 |
Equity in income of equity investees | 2,035 | 1,883 | 4,758 | 2,745 |
Interest expense and bank charges | 582 | 1,010 | 1,110 | 1,809 |
Depreciation and amortization expense | 2,765 | 2,747 | 5,572 | 5,290 |
Income (loss) before income taxes | (909) | 9,164 | 1,372 | 1,840 |
Operating Segments [Member] | Automotive Electronics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 45,761 | 32,633 | 88,418 | 49,909 |
Equity in income of equity investees | 2,035 | 1,883 | 4,758 | 2,745 |
Interest expense and bank charges | 309 | 353 | 682 | 521 |
Depreciation and amortization expense | 755 | 708 | 1,538 | 1,174 |
Income (loss) before income taxes | 926 | 239 | 4,156 | (2,871) |
Operating Segments [Member] | Consumer Electronics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 96,959 | 94,992 | 191,072 | 149,506 |
Equity in income of equity investees | 0 | 0 | 0 | 0 |
Interest expense and bank charges | 1,911 | 2,106 | 3,886 | 4,240 |
Depreciation and amortization expense | 1,003 | 954 | 2,004 | 1,919 |
Income (loss) before income taxes | 2,439 | 12,789 | 7,907 | 12,736 |
Operating Segments [Member] | Biometrics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 253 | 263 | 458 | 360 |
Equity in income of equity investees | 0 | 0 | 0 | 0 |
Interest expense and bank charges | 415 | 367 | 816 | 722 |
Depreciation and amortization expense | 75 | 86 | 151 | 172 |
Income (loss) before income taxes | (2,575) | (2,014) | (4,928) | (4,151) |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 136 | 144 | 221 | 244 |
Equity in income of equity investees | 0 | 0 | 0 | 0 |
Interest expense and bank charges | (2,053) | (1,816) | (4,274) | (3,674) |
Depreciation and amortization expense | 932 | 999 | 1,879 | 2,025 |
Income (loss) before income taxes | $ (1,699) | $ (1,850) | $ (5,763) | $ (3,874) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Details) | 6 Months Ended | |
Aug. 31, 2021USD ($)Segment | Feb. 28, 2021USD ($) | |
Disaggregation Of Revenue [Line Items] | ||
Contract with customer, right to recover product | $ 1,873,000 | $ 2,404,000 |
Contract with customer, refund liability | 3,928,000 | 5,145,000 |
Contract with customer, asset, net | 0 | 0 |
Contract with customer, liability, revenue recognized | $ 1,847,000 | |
Contract with customer, liability | $ 3,766,000 | |
Number of reportable segments | Segment | 3 | |
Telematic Subscription Services [Member] | Directed LLC and Directed Electronics Canada Inc [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Contract with customer, liability | $ 4,641,000 | |
Minimum [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Warrant period | 30 days | |
Maximum [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Warrant period | 3 years |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 143,109 | $ 128,032 | $ 280,169 | $ 200,019 |
Corporate, Non-Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 136 | 144 | 221 | 244 |
Automotive [Member] | Operating Segments [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 45,761 | 32,633 | 88,418 | 49,909 |
Automotive [Member] | Operating Segments [Member] | OEM Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 16,403 | 10,714 | 31,317 | 18,373 |
Automotive [Member] | Operating Segments [Member] | Aftermarket Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 29,358 | 21,919 | 57,101 | 31,536 |
Consumer Electronics [Member] | Operating Segments [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 96,959 | 94,992 | 191,072 | 149,506 |
Consumer Electronics [Member] | Operating Segments [Member] | Premium Audio Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 76,140 | 69,282 | 147,733 | 103,820 |
Consumer Electronics [Member] | Operating Segments [Member] | Other Consumer Electronic Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 20,819 | 25,710 | 43,339 | 45,686 |
Biometrics [Member] | Operating Segments [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 253 | 263 | 458 | 360 |
Biometrics [Member] | Operating Segments [Member] | Biometric Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 253 | $ 263 | $ 458 | $ 360 |