VOXX - Earnings call transcript Q4 2019 | VOXX International Corporation

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Operator

Good day, ladies and gentlemen, and welcome to the VOXX International Fiscal 2019 Year End Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to, Glenn Wiener, Investor Relations.

begin may You

Glenn Wiener

good XXXX Stephaney, welcome VOXX to Thank quarter morning and fiscal fourth call. year-end International's you, and results conference

today today's call. live webcast a those is website, are call who make and for replay on to unable www.voxxintl.com, available Our our being

and this Chief Officer; Financial Stoehr, from Officer. Chief management Lavelle, and President will morning Speaking Senior Pat Vice be President Executive Michael our and

forward-looking the investors Board remarks, assumes portion based The Following And well. XX-K herein, also during business available period Shalam, detailed the information. wishing those responsibility statements no risk to currently our information are statements such everyone remind have for our John available ask on like would except we'll in are I'd today factors their call Chairman made of on us for forward-looking contained session company today's of update and is to with ended be as XXXX. and historical questions. Form any any Q&A webcast to with that our February will statements. XX, call the associated Q&A the constitute for that

the feedback. imaginary of this more at that Additionally, enhance Pat Lavelle. And with an reference over At like new you have our functionality call when turn photos. that Pat? to always you all lifestyle appreciate I time, and as today we encourage to we website take several President look would and to like launched a to and CEO, time I'd

Pat Lavelle

you, thank morning Glenn. and Good

got a on. saw results and pre-announcement yesterday, As we've our from April XXth, going our you on lot issued

in combining to demand future operations, our six savings. better to ensure months product optimum resulting we portfolio significant market changes, our groups, business streamlining restructuring past rationalizing reach efficiencies, meet For we're positioned operating and and have made the substantial

moving to forward we I'd year-end is and operate highlights focus on improving around intend do with more shareholder color how we returns. announcements like the have with Our what to profitability results and you today actions taken a provide

disruptive positively Our performance the some area of the over our the delays the the OEM launch in changes improvement past impacted success partners. of inconsistent, Premium also entrance preferences in business, at products into but fluctuations, several respond our has new by focused and of marked consumer by been new technologies, negatively by which years the on business projects We new and technologies remain and retail, quickly to market to adjusting Audio continued closely program believe developments with Premium yet We've UHC are future. wearable new is Audio this respect select growth year, positively our U.S.-China very fruition our lot had and will categories. trade with come and the are growth most One we in the that EyeLock, impact developments to critical others, but namely at P&L, is negotiations. recent to of to we success a to watching our with

and the our and fiscal line and shareholder older XXXX. headcount unlock groups, for of entity believe bottom further was value, announced enhance remains our one, lower we to previously we we changes consolidation strategy and accessory international a the product lines. Schwaiger we As operations, into can in in profitable made and expenses some two discontinued This with resulting the Oehlbach

ERP of our of of international is our In is expected Intent Pulheim the we approximately which Premium the office order generate all at system we Germany, our remains will non-binding Heco, We're Germany point expenses, estate of marketing position. German In entry. maintaining facility. sale of sales, and into Group. two cash houses folded June. And in reducing in addition, Premium brands the today our VOXX's headcount them combined be system, Audio, operations we proceeds of this lowering that strengthening signed have Magnat Klipsch further announced $XX and a that high-end Audio for real Pulheim, to million that Letter completed and sell our and Again, in which to a allowing the to conversion gross

operation. business by speakers domestic as of over they rationalization our and retail at the and have related accessory products program change, accessory of dramatically products. few with has of and affected to that from legacy the past had technology drastic been declines some the negatively new other us the SKU changes years, This have in combined led Google most Our Bluetooth restructuring portable older Amazon sales and the impacted

share where should categories market be to Going forward, match expenses be where have we we Accessories or more to customers reduced are expand. volumes focusing stable have and contributor which higher will as opportunities and lines, profitable, overhead to a we we have product leading VOXX, sales. anticipated technology, smaller more on and

we result high-end, with a former Garmin various lines across less product several our distribution the segment where digital and international combined segment, And lower capabilities as can such and Commercial installation with our synergies, where speakers lines the for segments antennas, on custom product karaoke leverage Accessory Consumer and Audio other for one brand, restructuring, contain we growing EyeLock wearable products finally Fitbit, leverage reporting and lower including As Audio and Samsung, our our of This Striiv. market, product products we believe companies sold Consumer brands. all Electronics, have our UHC, primarily categories. better Premium accessories our a cost Singsation headcount new logistics basis. Apple, Premium program under operate will new we into under lines audio

a impairment million While restructuring non-cash fiscal and these million $XX.X XXXX. in resulted charge in $X.X actions a charge

with in growth cuts the new expenses Consumer within modest given fiscal segment, major to our Audio decline former and Premium Accessories are increases promotional XXXX planned group tied segment offset partially that in by combined to this in initiatives. former campaigns operating expect some We

will be sales retail extended referenced and antennas, we programs the top-line some in the including segment as speakers wearable Electronics I with Menards. Buy, greater Best new be in remotes addition, new Wal-Mart, Costco category, profitability. modestly Consumer for and which In expect cases our Driving and to and retailers with stated earlier, up

Asia Premium full the of the Audio it all-time as grew Klipsch suite products region, Canada new market year to some important categories. note last are to the distribution year we limit soundbar As year margins. speaker, well America. scheduled and up in U.S., nearly XX% and leverage further In premier South Klipsch took this and expand high in especially fiscal reference product traction, market and share there product to changes will significant and internationally, is this enhance a in Klipsch also launches Klipsch after XXXX, gained fiscal under of to an implemented in continue XX%, penetration the the only its to not to as expected new opportunities EMEA has It's continue. to and headphone respectively, distribution the in

and which now now former of Biometrics component EyeLock segment. EyeLock's with as into partner embedded space ViaTouch structure. and Group, group the experienced with consist new streams will as were by we associated addition improvements EyeLock and the the of in the investors especially of more the AI standalone a our up we with today more anticipated a we're Next for formerly revenue segments ramp stages a sales Consumer the nearing for Accessories result final overhead solutions. income operation year, the With EyeLock and healthcare and and established which of R&D was of have part clarity, its Many of visibility machines in losses large generate completion

in access Outdoor will jumpstart also Reader this There market. as shipping our is make sector, like progress and we on continue business. We begin the control have to extremely is currently in June. should device EXT it important no as security the This the solution

us working Once are EyeLock In marketing are which this non-core driven remote the rear-seat is both the the and top not years and to finally, which have recent year in bright do EVO year we're expect reallocated and aftermarket some ramp due industry Automotive blue-chip opportunities segment but we more we any year past system for few spot contracts last Electronics, there side. the business. where any we And news decline R&D and will that process be savings in this this volumes to one positive Automotive, to not OEM expenses will High-margin the expected global to position profitability, has we the of successes popularity which partnerships profitable on tempered sales and past we've business, areas. in Despite our expectations. - and are to cases the continue yet, had a we we've of OEMs. and is to share. to program, has rear-seat market in some expected but addition, number sales, be to one and continues more a will domestically, will to hold are robust as partners and been expect come on finalized, of the for have our new better felt few rather not fruition. automotive reduced been start, quoting leading G&A our be wide where suppliers years, a being both incorporates loss grow several in the with entertainment - to entertainment market and

year. and Aviator on Ford, remains Nissan Armada swing and GM Lincoln in we'll and Our the business Nissan calendar the this launching be with full later

resulting new remote this of will been and there combined anticipate programs operations with the start the launches now consolidation. of Ford have EVO-based While enjoying vehicles year, be these renewal synergies We Florida fewer other we with RSC our and offset in had that already some programs. facility from new

for over expanding offering believe on to aftermarket technologies developing leverage in relationships. years of XX We the we the are and where focus continuing OEM new we market our can

initiatives some in to planned more of Now underway the attention I'd shift corporate like and fiscal XXXX. to

available program saw you our of of good million X increase the a has utilize Board cash in strong our an we amount position X.X investment an the because shares. from intend to stock over VOXX given capital. use increased shares, We repurchase to and announcements represents believe this our to As million

a as have restrictions full but we to shares the this of laws. course, under are able to can on intentions securities number as there the daily we basis, program Of beginning of are purchase we

our be XXXX agreements saw executives myself, negotiating with new interests on Mike are to our process and changes Sheldon announced further discussed with fiscal in shareholder. As from The Lori and updates we you our for anticipated press first based with aligning in release are our employment C-Suite quarter. the CFO COO management Stoehr, of

and and primarily our It's automation assets forgo possible interest year on we past. Founder our belief tools basis. year in methodologies all lines rationalization divest John we the goal Chairman, the the throughout will There to we plans down efficiencies. drive consistent and annual agreed remains also the annual our much significant Shalam Throughout institute divisions bonus. in and cost will realignment reduce continue cash product half is looking to certain done exit SKU as position in Wherever fiscal to year VOXX shared services, non-profitable generate stronger to and to this quarter. of Additionally, be so look we may has our first with his wind in first to profitability that segments leverage as and fiscal have products a brands, our more the lean an

However right, opportunistic has are regard. more in going to to price the be we but be this

Mike CFO that come Board anticipated on how At market improved issuing lastly may potentially we'll that strength like sheet I'd implement While point, of We'd the progress through later our the at the first this acquisitions sustainable other to continuing who the go as is fiscal in will help and concurrently dividend growth can and changes half and that like balance improvements update our look about changes the of our business to underway, the a given over drive fiscal markets to the call Mike? year. strategy and second turn all the to our of year. us our potential evaluating plans numbers. part of of And profitability. some sometime are to this see Stoehr,

Michael Stoehr

be changes the we've morning, making Thanks, and addressed will everyone. Pat. made Pat of this Good year. all

We sales charges with fourth fiscal prior We year of I'll of experienced restructuring $XXX.X this expected So equipped Premium of XXXX, with million we moved market. of other declined is are comprised Accessories bars. dollar year second as fourth the had $X.X take the $XX.X quarter, a related had for speaker of by which declined results. due a of quarter the across Audio the as down were million $X.X a the had margin on were primarily sound as status by some Highlighting category lines segment majority impairment removing our period SKU number decline sales year of which million, growth the decline line lines. comments number in of more segment the product within planned some quarter segment now car in Aftermarket domestic to key material million last by $X.X vehicles We the categories. satellite product our given our radio $XX.X half with drop number The and variances feature. we decline the approximately again of million non-cash essentially the million with sales basis. OEM not a and vehicle this of as rates of balance year's with quarter million are the the current SKUs on rationalization, the year-over-year this and strong approximately of $XXX,XXX. launched in very in sales remainder in and a with expenses. in Automotive Consumer Net offset to $XX.X to QX the a biggest lower compared sheet, SKU in cover program. fourth product category, part close fiscal of higher primarily variance and of rationalization down starting some home sales of

accessory of are online expected Consumer of as Additionally to the we've timing we in International again were We limited one the home year's declined carrying be also the quarter, repeat. sales international now Accessories Audio fiscal had down orders our tying customer Premium reception not higher speaker to that category back longer rationalization audio did load-ins program. e-commerce model SKU which changed will and lines as XXXX. to due be segments combined fourth some recouped distribution, no last we a which the and our

Gross with our year-over-year were karaoke changes nursery a basis XX.X% we points in offset down impact vast of segment and the Accessories to XX and product it our margins German audio all in Consumer higher an project majority experienced related specifically increases line. digital Singsation expenses As line obsolescence. also and warehouse the with of field and as place to inventory result transition our due of the took of

Pat XPL higher facility. As focused better margin and sustainable introduced performance moving Germany We product sell non-binding of the forward Pulheim our in specific consolidated warehousing Letter and and expect we're noted on we Intent and product more services to we categories as lines.

to declined Automotive XX margins For volume timing sales and reference Audio segment segment by Premium margins points. by XXX basis of improved and due the points lower programs basis

As of expenses, increased million $XX.X operating for total million $XX expenses operating year-over-year.

related restructuring $XX million expenses. and of of intangible $XX.X charges expenses of million impairment However were $X.X million to

million gross core overhead a to and in restructuring margin, results. year cost expenses. Our restructuring lower to excluding of was going the primarily as lower control switch This sales, I'm loss overhead our down reduced resulted operating of $XX.X impairment year, charges, to loss fiscal impairment year-over-year measures. related of and operating of last result $X.X in versus and ongoing QX million an due severance an

with place $XX impairment just As decline sales charges Consumer than And the Accessories million million rehash restructuring provide year rather the to on full it over attributed million, you and the vast twice, with in it $XXX.X $XX greater by Net fourth the performance. the majority our clarity declined will of of segment. of took quarter.

sales that promotions. XXX programs architectural CI XX segment driver, discontinued number Gross increased ceiling lower increased Automotive XX basis basis million We and basis legacy Accessories down in Audio repeat. up $X.X basis were saw and margin fiscal speakers key declined and a the to XXX sale by a included XXXX Premium a rear-seat Premium for product lines, segment lines by XX.X% segment million, older in was the points our the that exiting points. channels. points OEM in primarily $XX home points. sales increases we're Automotive to margins large due products Consumer entertainment. of Audio margins due fiscal margins fact entertainment close-out wall did XXXX down As some of were segment for in product also there and not segment with

XX-K As $XX.X press million. in and increased total Form operating by see our release you expenses

our sales. G&A, asset also related the Engineering decline well operating entertainment of With foreign market. cost ASA of and consistent expense XXXX, product Equity Interest the by $XXX,XXX Selling down total costs also to due two in previously. receivable commissions other expenses contributor notes of net increase declined EyeLock $XX.X out million, R&D to XXXX, offsetting approximately $X.X one, support cost system. $XX.X full. had million relates cutting our technical non-cash year-over-year. our incentive but to in in and year came XXXfly, we're on expenses bank fiscal of R&D and $X.X increase us. as $X.X measures EVO forward due very lower and conjunction G&A Venezuela efforts is charges due costs, which on for million in in million backing impairment was on including and systems $XX.X currency, lower lower, expenses Within rear-seat and of losses Headcount of and accruals with properties $X.X stages income losses included low fees, million respect headcount incurred an had $XX.X lower lower which lower our we year come to still intangible expenses an and However, which a professional have healthcare million final development have Hirschmann. ongoing charge $X.X other XX.X%. expense new to expense investment as of the discussed we cutting declined by fiscal declined reduction related We as which impairment bonus contracts a projects advertising And sale impairment to related of in equity as or on $X.X and we as our restructuring million domestic factors, we in strong investees, of other would completion with declined we as million the expenses year-over-year. million, credit million had pay of a the to to down the increase nearing restructuring. facility completed launch expenses, we in in two, net in to soon

total, operating impairment expenses, of included cash of XXXX $XX.X were other million These and impairment in note, recorded $X.X in expenses, recorded non-cash expenses. the charges million fiscal also XXX $XX.X So non-cash investment. operating in related to record expenses million impairment loss on expenses a Venezuela year expenses, restructuring which in in in charges

the $XX.X this together, to takeaway, not million loss and are loss expected for totals year. That's look repeat. operating key when net which or you both Taken fiscal charges of our at the expenses

basis, EBITDA. headcount made In the of on Consumer fact shrunk of year an with since in the better approximately our our more declines reduced our be with Accessories would operating year-over-year, and be performance of beginning A structure, adjusted the segment changes, will activities. our X% in even we the restructuring we efficiently. We operating losses measurement by all fiscal and business

the contracts. reported impacted million - fiscal adjustments. all fiscal We impairment In and XX%. positive forward FX $X.X us. had EBITDA XXXX, this $XX.X improvement in all million gain related As an all $XX.X charges takes account offset of adjusted million of of of the over fiscal versus of XXXX, by the of impairment also XXXX In related loss or XXXX restructuring Hirschmann, this year In the we on the a sale from into fiscal

increased to restructuring restructuring position charges million million our and $X.X increase XX, year-over-year, even Lastly, sequentially cash $X.X compared the November charges improved - XXXX. and with

on $XX.X facility no debt We $XXX to have A of our million million credit compared of XXXX. as year our total year-end. million and net reduction domestic outstanding fiscal debt $X.X

mortgages. decline of position will of disclose we costs the non-binding of cash approximately the and $XX facility, Pulheim Our closing, further debt our closing LOI, million upon increase sale should completion today the upon and by more net

implement sheet very and the call out. balance is remarks. Pat back capital have for strong, to turn access I'll closing we to the strategy laid has Our Pat to Pat? the

Pat Lavelle

past we result not All right. Thank the a in of or believe changes not valuation with as the by But idly we've we're continue to pleased obviously, stronger you, the stood Mike. the make In VOXX. that performance will company. closing, we

through Our the first the although the profitability the continue thereafter. are realignment goal sustained realignment, not and and we will as losses in second anticipating result, is quarters, a case

cash value road, been we future. our hand and strong stock, frustrating our We - a invest been have equally I me a and personally CEO. the support repurchase to our as balance on to strengthen shares in and intend and has capital long it's to access know it's for this sheet,

clear and forward returns. us With now to profitability we're to I restructuring will ready the for With improve course, confident a alter call open more that am that mostly behind path and we questions. the today VOXX's operator, up

Operator

comes [Operator Brad proceed. Leonard our question Capital BML And with Management. from Instructions] first Please

Brad Leonard

Hello, taking question. thanks my for

spoke what some I last coming time guys that we they confident XXXfly? happened changing The you're going great about this questions directions, and company sounded you take the First, new were and pretty control was had out. to that some products the asked were on

Pat Lavelle

out as based that did it. that a we profitable talking we to We relationship did. take deem decision were to, what work but not able and to would made were they the end we I customers on Yes, the control, with

Brad Leonard

Okay.

and guys point. EyeLock like that you leads at this a is in invested the million to that or which share, million me you've So more $XX investment EyeLock making $XX you XXX, are nextI $XX in million guess $X.XX invested

gives it's share. a any EyeLock What $X than out turn any to XXXfly? you better confidence is So that going

Pat Lavelle

is of testing. just way has at And biometrics. DNA more we're by no IP authentication of that's strong identified very EyeLock becoming to form authentication, prevalent. be is around there's biometric question or more most going - very, we it the all at short position that the Well, and secure which when you a look iris look our

patents, of where conversations to higher we're that, a they is good the having very a companies Right in in company we EyeLock based is hundred on have gives much many, in different with that in very and situation touse use iris application, which is their XX based other security iris that. been strong there cases on has that about many plan license now which have - we will grow to So if they about believe that on people of want biometric application. and another the based position issued XX IP believe to in

part of we EyeLock has The futures and look that bright an that as is to really different, one other that electronics ourselves see reinvent we have bright biometrics company businesses is have continue and to future. space a for

Brad Leonard

Okay.

different So, the lot me. last over to I about which EyeLock of kind always guess, years we've the heard the seem machine promises in of few vending a applications, silly

partnership more sort we about slot that. of a had with heard and everything You machines some haven't

slightly of So - $XX.X it, have losses last come last have like we before. the been out down is year, year million losing not it still were and million this anything you seems or but from year this $XX like seen optimistic past million that in and to $XX you're reduced on the something

going So what year? in division do to you the be losses are this that

Pat Lavelle

ramp their ViaTouch start at basically as what the of up machines. we're we're to looking is, we get that deliver at income Well looking from a they

and iris that return see that develop biometric wait customers outdoors on our again the June programs other that received effectively some give have until of EXT kind could OEMs, themselves work to with EXT year, can level they use are feel because expecting but not this the of they we I'm our On are in first will us shows embed we line help develop drive that product we are are and we working product NXT that the introduce the is top interest one car bought a technology. and and that we a a interest top positive to believe embedded profitability. it likely there that who our talking that the because also product most OEMs, prior from level and is We revenue

in So we've are situation. that different of customers a we got that on number of working type

others. still still within have some those we're moving you've forward, programs mentioned still slot You mentioned These we're the the work technology of are machines; working fine-tuning works, applications. on the to in

Brad Leonard

your were into I take ago dead positive word but all mean different a things don't on working enforcement months to down. the law will and guys subject, three is months that, these I all we and whole going here horse in I I mean just beat Okay. on later shut are XXXfly three on but thing you you're this mean the and

Pat Lavelle

The were problem we that volumes major our would had. that on based that conversations were we the getting to that company have from the there to they we prior customers is that did support commitments and they believe made afterwards We not committing a decision.

and into not not But we are into going we ahead. sometimes received. get couldn't a we were So being get contract we operating that off if of were a that information could contract

Brad Leonard

that. for thanks Okay,

you you million authorization have and you have buyback that X.X I So had an left on X.X is the correct? here, that think was guys an outstanding or increase, announced million shares

Michael Stoehr

Yes.

Brad Leonard

bad and not, news you an outstanding write-offs increasing XXXX. have we're what with announced which and you results of shares buyback, we the this and and write-down in is kind not So But ugly program this had place all purchased and great. since

plan about are seems you've good what trading this, a roughly it it to place and last of kind buyback that shares value, the here we got could year we shares that look and been had out and been we're have for at saying So utilized this, just have the in this think me coming wasn't.

you've there's to there's is low - valuation So, shares, mean, not to there or earnings, and my one. we're I it any I opinion, see very to just no finish buyback - I does. stock the any no but and a I Board think could assets first at to back buying this been the sit trades mean, indication the going that assets,

And so buyback. it pig this the Well, hey, you're trying didn't a one. bit just lipstick you seems on little utilize saying, a to other and me here's that to put

last My thing is… So, I on don't need a that. response

Pat Lavelle

position that other Well, mean, And, I a let the position. anticipate we we're just wait is me strong. until guess, conversation second indicated, I cash will say some just cash our of We have as doing that things I this. we'll now our quarter. in the increase

Brad Leonard

I how the you that know, thought assets the going fine. stock I might these a price. So or worth is far of entire do take by that think do fair any estate, minus, company, plus if enough. just this? then liquidating even I assets. $X you brands sure, you to think And realize That liquidating are something. have ever company more. this real share, or mean, we we piece Because have have worth be are worth to I no selling piece, lot the the But That's assets, the own some more about stock don't one's a maybe action than do lastly,

You've got a valuable RV business.

real lot have The stock worth owned business is assets mean probably and I You've these this. a of below something. Klipsch you And estate. got trading the well is

for have to you this? voting controlled ever real say, because ever how So how have going realize any got because we as we value shareholder, this who control? So no we do a investors realize has are

Pat Lavelle

right the that a far we has think laid doing table, doing dividend, we I are Board that you've these doing If are an have as all all possibly purchasing will opportunity possibly the shares, Well, plans as things comes, these the the things act it. discussed. on possibly a the out acquisition, on as that improving, divestiture, indicated,

acquire You've past. us divest in and the seen

break the in if that ones space, that new these premium money that other reflected spend the really us share that we that all with the believe they causing investments take you're categories these believe improve, So, be audio going doing. in to to businesses have, and on into hold, start the we the space are see with that we're I or to new truly businesses healthy, And are planning the the automotive are whether along price, categories. to things

that's this So position at our point.

Brad Leonard

you. That's I Thank all answer. the appreciate Okay, had.

Pat Lavelle

Thank you.

Operator

comes Our Associates. Sheldon next Grodney Thank with you. Instructions] [Operator proceed. Please [ph] from question [Grodney

Unidentified Analyst

Good morning, everybody.

Pat Lavelle

Sheldon. Morning, Good

Unidentified Analyst

what with to much I the asking agree questioner about. have was of last

the would I it the same been I is where on has dividends. that company today think nine has the to leakage percent the Looking was there over averaged the have company estimate XXXX. much don't for too zero from about equity return numbers where is investments last to years, and from for in the

to liquidation up as I to real. not realize orderly be that just that's an assets very think idea do to are question an that values. does the So the come if why that has the seriously considered

Pat Lavelle

XXXX. share believe get that changed, we obviously the and that's those up that have, is we've comes all going valuation there you're in top just we two believe in has and in think great back Brad. go bottom line both the to - I'll an to improvement assets. segments into agree we company fields since growth, equity I I indicated and two some, price. and modestly, as the the that and That's grow Businesses programs I and company although the And down if where space to the stable And the consumer businesses. therefore, Again, has potential. through, to in Again, the that, technology healthcare what been continue biometrics are there one can potential. or We is great we've we there's that believe in businesses, along. we And if line something a considered automotive see can new enter

we all it. look of at So

John Shalam

few to a I'd that. to add like comments

Pat Lavelle

is - would make to John the comment. Shalam like

John Shalam

the and remind undergoing operations of to of market can of as be the we're a EyeLock that. and confident all I shareholders The improve very lot of restructuring for we lot and improvements interesting materialize of good Well plan seen next we our not questions think nicely the going forward. is from available reorganization quite our of one. well lot I That time heard personally. question that the your the and forward. have to personally the to to understand frame, we're I in spend I and proceed we're you confidence, is and operation and doing that better this in be situation with for aware of many remains cash operations are of have to we're operate go and some your our and periods future better our several a do see whole continue in our And potential. results that a well always continuing benefit able by problem restructuring the major happening, We components. need the have time totally a whether that decision situation, a we materialize as major to go that terms results really improvements an a and discussing major company we'll good EyeLock to is show start of to confidence shareholder as however, however and have in or all liquidate frustration We a stockholders

Unidentified Analyst

Thank you.

Pat Lavelle

operator. Okay,

Operator

BML and proceed. Eric our from Capital next Please you Management. Thank with Landry comes question

Eric Landry

Good you. morning. Thank

want on prior two I follow So just questions. the to up

a this company liquidate a a me you I are customers So product now. with to you Board pretty talked ongoing this so to on commentary type refinance. about going wait for how sort red as like mean, calls profitability far year I has decent here. has of weeks try thing. next the continue few see before a as the go criticized Six you the on so over just long having get till like decide a just decisions you you spoke let our the to the XXth, about talked assets and - to number can some into something once XXXfly been let action monetize later didn't go the January you of these years I'd a for as determined instance, they of for take know they're line

you like that to see So gone - it. that's that lit I'd know on $X.XX just so just fire

- value as to assets will Board of So that down I'd as don't sort line just red the is get far $X.XX like I Board the $X.XX, of less the has the value? the know mean the is here what asset $X.XX, there to know I

Pat Lavelle

initiatives at profitable. their now of when negotiations all we're major the and it's we to and you the of be of some were doing that case shareholder we're the allowed value customers In to improve specifically the results XXX look company taking the things the that trying that Well, about with drive company. trying in to

the move were made enough. that to continuing had the EyeLock okay, we to we instead were get that of business accessory those was story, we going P&Ls clear realities look drain happen lose different non-cash with if we're the of therefore is you cash and decided agreements continuing the have doing group. ahead. writing we we that to not new today of the that very In our a in of that XXX than to negotiations something case not it's not is time-to-time. very and big our money things results going However, and EyeLock to at other in of the within from if some loss were And it This impairment the in very, doesn't not adjust satisfactory

of Within are we're constantly products cases new in the developing product some the and decline is to business electronics and part you that existing new product, disappear business evolving product legacy in. and continues that

some legacy overall take company businesses the this operations we of operations we've next to remain years and that we'll sure we let's that XX profitable, dropped for down so we that said, road overhead can that the adjusted are from November future expect value. the in can that some invest just With XX believe make the to believe say, the Okay. that drop the that increase continue we've overhead, people and

adjustment. with going point certainly a one businesses the and not do categories enough to we - is the the eventually future, be we've the just do place or that in business call that stay But if because will nature business everything we and believe we not not where we will done not If what Now, going support to our of we are of electronics. in to make to be XXX. that's or to what that the coming invest thought as on disappear get we will start any that that make

Eric Landry

Okay.

the quick, Let's a the in stuff India. have strong has EyeLock this some that to industry EyeLock's on ID doing airports, out are calls you already gives [ph] already other several on already EyeLock IP. switch other is you that's to Iris call confidence on with real these in platforms the there. What these enough here are product strong that over players phone is with another competitor IP you competitor Yet, as well that that already your compete in as mentioned what

Pat Lavelle

royalty to materialize as to we biometrics that used, since program a is take where and from believe margins in our based distance it be can our are there, to where are, that And they volume. some is And the set programs generating are we to and good - and then competition, that standpoint, very more is will becomes talking as as compare speed more price the believe to that these we as a advantage we're when profitable. as businesses position whereas standoff very it EyeLock those embedded greater, the competitive is One and we our applications. to get program, products a our strong some we embedded the solutions of are believe far on generate that's high, point and of

Eric Landry

Okay.

say this you of drive one strong very the is very products going that when strong machine vending volume? the to So volumes, is

Pat Lavelle

machines million X.X in United States. vending are There the

Eric Landry

Yeah, but mean I …

Pat Lavelle

partner is that be levels us indicating volume our would The impactful to to very numbers. ViaTouch our

Eric Landry

done end you've those that to volume set anything on numbers? there your Is

Pat Lavelle

speak we with we ramping them know And basis. Yes, on - they're regular a up.

they is different with as as And can fast them, it Okay. fast can we companies. them get different is located locations as see machines get as in

Eric Landry

signed have they hand. So contracts in

Pat Lavelle

yes. they Oh, Oh, do. yes,

Eric Landry

well, thank you. Okay,

John Shalam

removing a now, again. restructuring, are exploring and the this may as to a dividend. your We follow do execute program, we we And intent we costs, is up are buyback divest made Board we acquire. decision John are question, the Eric, we may the Okay. And has Shalam, to

drawn. has been So Eric. the Thank answer yes, line you, to the your question,

Operator

you. over to our turn And closing call the remarks. for Q&A concludes to Thank back this John like Shalam, I'd session.

John Shalam

Operator, that was remark. the closing

You very may much. you the conclude Thank call.

Pat Lavelle

good a Thank you all afternoon. and have

John Shalam

Thank you.

Operator

Ladies you conference. thank and in the gentlemen, your This program. concludes today's for participation

You may disconnect. a great day. have Everyone,

VOXX International (VOXX) 15 May 192019 Q4 Earnings call transcript