VOXX - Earnings call transcript Q1 2020 | VOXX International Corporation

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Operator

Good day ladies and gentlemen and welcome to the VOXX International's First Quarter 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 today's conference is being recorded. to call like Wiener, to, now Relations. Investor would turn over the Glenn I begin. may you Sir,

Glenn Wiener

Thank good Victor first you, and quarter fiscal VOXX results XXXX International's conference call. morning. Welcome to

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

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

have we'll to the Q&A those for wishing questions. remarks, session ask investors any their Following

the is Q&A. also of today Chairman will be the us Shalam, during and John Additionally, Board with available

for I'd detailed today's like February forward-looking statements. to the to in historical would based remind are XXXX. information factors webcast The risk for period and ended And available herein, everyone constitute on responsibility with that company made currently any statements our no business are except our on update statements such that XX, associated XX-K forward-looking contained Form call information. assumes

I this your would call Pat like to VOXX Lavelle. turn I over like time and the to for to in interest would thank you all at

Patrick M. Lavelle

to has thank morning our It roughly VOXX two to we Good outlined Glenn. reported our return and you since months year-end and results plan been profitability.

price. and divestitures seen is what recapture cash so more our share adjusted the is driving aggressive the are flow assets reflected our there actions have last move share assets. which underway yields assets current in price business becomes this in EBITDA cash real significant shareholder from we to than our our priorities Improving value as increase key estate value too value value. our we to in As and is our two Frankly in what our

position as our the exit it we this car vehicle affect on stronger to OEM to that to move market. into our which our our compared caveat fiscal expectations. be generate a operationally, fiscal lower and the structure unfortunately further automotive with in resulting am of of indicators is business lower well year product sales from year-end a that restructuring. will the year non-core XXXX and As cost volume take synergies launches a confident categories we will quarters Economic to will as I as the and one I some given original said our call few products align point

the current the drop is catastrophic It the lower prices, In throughout of and inventory six sales half XXXX. sales, of weaker certain the in same U.S. with compared to the first to car of to expected with lead car a a automakers it and not could major volume is launches. straight continue rising year months new in pace sales period saw continue vehicle XXXX just drop but delay but not trend

accounted two X.X from year-over-year, for was vehicle customers them QX were last dropped Our were as sales in though the sales of And by with OEM reflect down and budgeting million piece passive customers, their inventory this process. launches another OE us. their major finally purchases lower OEM left our reduced line from higher one entry delayed products this at results our

vehicle also After lower XX%. over affected were market sales just down sales or were million by X.X and

side to radio more OE half continues Although to accounted that of the for which than satellite decline. move

position auto strong. not a the certainly in fiscal remain concern customers our is decline year major this the VOXX, with but this For our long-term market will OEM impact as

our positively discussions years rear-seat are partners EVO OEM vehicles for materialize ahead. adding new business -- if would in and impact they our entertainment the in new are We which systems with

sales. eFob next is should Our also impact technology a making positively progress segment and steady year's

current towards buyers year which our weighted business this seeing is and heavily is that are trucks news good gravitating are from more U.S. the SUV Additionally, overall model. to we pickup what

premium in the quarter. former with million our the On year-over-year consumer EyeLock sales X.X consumer premium million performed segment Net less accessories segment up first and consists they QX up electronics a were in separate projects. the over commercial have home XX%. which of speakers, audio audio source well sale segment significant sales or and X.X year premium business as our growth be premium for in products, increase saw Margaritaville volume our mobility commercial should see and of this of speakers. We distribution expanded a we The resort product higher

custom to announced their installation will join in portfolio weeks United a SnapAV for brand episode few speakers speakers exclusive their own a distribution in August for in million available and and QX year, XX generate ago partnership contributing additional SnapAV's first in the we States. new thereafter. an the distribution in Additionally, with will the growth Klipsch with which becoming start partner national of should performance XX will purchase our projected revenue be over end of months

for the home last successful entertainment one on to audio devices a a This with solutions provide all multi-room consumers OnTech ran along a where with Smart We set good, speaker with two brands Klipsch trucks and their Services, business best places audio bars of launched home up, just month professional pilot DISH as smart passive systems. better, and education latest new direct DISH on OnTech offering. smart the and new providing sound brand installation, and Home will consumer OnTech

all to GBA QX trucks and begin will beginning Klipsch our Our contributing into will in be X results. going November

online is Klipsch headphones, announced select retailers its week development China. speakers, bars will sound in tabletop positive begin Another limited selling and a of to and last assortment

the world's websites offer affective the fall. will select second products distribution to site tmall.com, with We largest e-commerce immediately plans on retailers online expand to these in and

online We one initially, economies. in world's the will to equity selling of brand campaigns premium fastest managing expand marketing Klipsch's growing building and inventory accordingly, be

result consumer a were of as are within year-over-year helping down of lower grew had discontinued the product the we categories several segment -- categories. CE sales lot reduced deemphasized on electronics we product keep mind offset and products other in but in Staying focusing of SKUs. a to Many sales QX

so X.X positive QX flat essentially a Additionally the is was business were our total down Germany years. recent in sales the million declines domestic periods given which comparable for

million Just partner a sales Canada outdoor few we things to acoustic for cost total our close distribution as X added by the a of to speakers. research highlight, audio as increased

just also of sales Amazon. brand under much of via that and less was our which SKU We which categories. is new some focused took and remain karaoke hookup, our our on base is that had an where were focus strong customer to XX% wearable longer everything our of products and decline offerings the to Wal-Mart. giving and product in rationalization consist particularly a area our expectations higher about Sales we in is station of close else category strategy. of technology, grew our lifecycle, more strategy category. higher XXX,XXX same to as sales at products an on hookup due year-over-year we exceeded with reception, brands, margin, where saw increase in General And approximately to sustainable expanded and domestically Reception line down remotes the place accessories

devices Garmin wearable healthcare support serves distribution wearable Fitbit, as motion category. lastly for of the and logistical in and the VOXX And partner distribution and Stride. the Apple, support the Healthcare's Samsung, program for United handling

Apple added is our expected position for a million program verbal the growth sales the and part more the not year's to in drive During categories products added prior of VOXX X.X fiscal increase years and overall the which were QX and that we to saw the members was as results. year nice motion program in we year-over-year This follow. coming

about not segment, did orders EXTC for just the June. were and have biometric and customers verticals have healthcare, but be EXTs ship QX. since no the shipping to the Both services, quarter the to both and financial situations Within as solutions essentially we NXT to for NXTs and in upgraded we been in began products and being revenue remedied the education launched. modified had both we were had in inventory

AI activities we June noted for throughout marketing on too and year rectified had had machine for ViaTouch we also more ViaTouch. delays that in first manufacturing ViaTouch call with based launches, stunted our projected our to pilots, shipments been year vending but on this of and As XXX,XXX the units we has orders shipped last follow the

making that quarter negotiations. in healthcare begin to progress not though the to we're details and next provide a in about specific side we also believe position will be We're contractual talking still as anticipated contributions. position currently program are a on We by the in we

three On volume greatest the two will be physical education to healthcare, security quarters in the next as financial services, and side opportunities our over focus exist. where the is of this near-term

There one our be and this the pilot things healthcare year's is also focus other solution But various we On embedded we a side development the development EyeLock's working projects on embedded samples this show. we demonstrating applications. that are in of be security CES to vehicle. new on automotive incorporating a application stage new at the engaged this on side but and is are with in early in and prototype should this coming and is will similar

We us based be EBITDA over compensation EyeLock earnings align COO each Loriann the agreements shareholders. align for year to release different start benefits adjusted on agreements And more paid working commercialization. of and revenue anticipated a and done all true EBITDA Shelton, of generating for our to independent now had bonuses there us meeting minimum thresholds. firm Stoehr, the turn more throughout and we before we should our losses now comments Michael calculations based further Mike, myself. more with the yesterday are with you'll R&D that This to adjusted as a I on further past to determine with call in income. and practices announced were pretax quarters on advisory decline are employment our net figure will to moving was coming new an see truly best key for compensation just to bonuses executives from in are whereas In few operating

which share based to VOXX. the our And terms agreement stock with will remains as of exceeding price employment the per the interests John new term. agreement is as year and further this five accomplishes. conditions forego part annual Additionally agreed his The agreement Shalam my in and compensation forth during shareholders on stock shareholder a reminder the $X set align increase bonus goal new my at largest to with has and

working on our As we this strong point were a we intend stock completion of to up believe opens just track to to from strengthen repurchase which accessories further position proceeds financing close our present transaction XX remain value program August to and subject wanted with Subject window The once our and cash at requirements. is once we investment cash and final time over in on complete. share our remove is expected in to revenue a out announced execute in XX transaction business sale EBITDA was that I adjusted the contingency as company. approximately to a for sheet. program the generate expect represents the the same the XXst after a the net follow announced the precluded to on annual gross program balance million German previously of million purchasing will purchase around to stock approximately further capital and on and At little the we price basis X million an

Additionally an the generate company be [indiscernible] the there purchase environmental euro event X.X the is if subsequent a estate and pending granting real an to the exists going million just will transaction. this resolution potential is expect close [indiscernible] of that to the right which to this we to study property option agreement

Pulheim, proceeds to in Monday Pulheim which formal parties into sale we estate signed transfer gross the non-binding close past a XX fall. to anticipated the This purchase with expected In sell property is a May for agreement the Germany real of entered in the and LOI million. of our

is while with. and sales discussions number divesting and is even cash strategy segments profitability. acquisitions, the focus replace Nothing to current been us continuing is automotive our are in more infrastructure to EBITDA and have electronics leverage of and find at imminent companies flow we look to our we synergies but may there have and We on a are that our enable consumer strengthening companies and that our identified generate and

few the evaluate dividend and good program see a to the to to is review going come quarters We we share over to know continuing our want like and and in repurchase of other exploring timing of our strategy. through get Mike then is of believe would to and the Board quarterly how what questions. of capital benefits business come I part the and you sheet lastly next And dividend. about call now I'm the may we'll corporate performs and uses events our represent this turn numbers the to back the for some but balance

C. Michael Stoehr

Pat. Thanks

shipments XXX. Good the clarity, little in June everyone. units not a for Just XXX is the ViaTouch morning

first year electronics, quarter reminder All reporting day and a Xst, first results of effective operations based segments XXXX. fiscal account of on of are March the comparisons into As XXXX our and the XX, XX, the our take our automotive biometrics. consumer structure ended and segment May changed electronics, we May P&L

as sales XX net is segment. million. and electronic basis variances, XX.X remote higher sales a head down approximately for up products million million typically decline of were margins these by segment points reported bases of gross year-over-year million to offset consolidated sales aftermarket as partially We XX.X XX.X% primarily declines were as compared the On segment $XXX,XXX. segment sales stock well margins XX down key XX.X% consumer Automotive of due increase to million the products X.X a XXX.X security points. in decline electronics XXX a automotive our biometric at This million margins. were generate drivers basis gross and product electronics a OEM provided in Pat ref X.X gross were

within not as sales Offsetting Sales of European which fiscal aftermarket products, year margins products discounts included product of period. the electronics this separate product segment driven margins in a by and sales. basis prior margins gross increased changes contributed in did first karaoke certain lower by premium XX% satellite factors mobility caused for the well higher higher products. as certain as on XXXX products favorably quarter in XXX offered Consumer commercial margins lower to speakers, speakers were radio of points volumes of quarter offered security mix, by segment segment the of

begin increased the reserves XXX,XXX in gross a of margin positive fiscal expect gross again margins we contributions. Biometric we segment expenses and this sales of offering increase release operating and were were sales year-over-year. up up quarter. of a the ramp This but million the as immaterial inventory result high Total XXXX was to year remains XX.X

fiscal X.X first However legal in reimbursement year's in had the of last million approximately quarter fees. we

Excluding were X.X down this the operating year-over-year expenses million.

XXX,XXX to restructuring, resulting in due business declines Selling a commissions throughout in expenses declined sales, X.X from lower due lower salaries headcount. million decline the on decline to and our of a other salesman based

amortization from initiatives. structuring We from related expense also was displays lower have advertising display to This new fixtures selling approximately XXX,XXX offset employees costs as partially that and many amortized. fully and by shifted G&A are and to hires

just X.X General G&A and administrative within expenses million X.X approximately of our million fiscal down of $XXX,XXX. XX.X was million spoke though is included and note increased I reimbursement by XXXX excluding this G&A

expense the We due to salary also decrease certain above. noted of and a had as to lower transfer in employees headcounts selling

Engineering year our with million had were higher by labor in our We in approximately X.X and costs low in engineering of roughly expenses segment. costs prior segment XXX,XXX. automotive labor support down consumer line electronics technical offset engineering

operating R&D XXXX now On X.X fiscal support million an million first we basis biometric Within products versus and completed. majority segment new the our as at R&D X CE quarter. segment are in to a the of increased product nearly within declined launches were

million periods. operating have in fees for been fiscal X.X the quarter the line roughly losses in of legal would first comparable Excluding XXXX reimbursement

total charges which net in year charged With were versus and in first product in the XXX,XXX domestic of amendment income had by bank the expenses outstanding we in in equity credit million X stated the XXXX in in Interest XXXX ago quarter declined last incurred unused of resulted by present as we borrowings respect of a lending of in This a year not And fiscal no for ago line compared quarter fiscal other on our income to comparable quarter in portion pretax of Fargo million currently fiscal fees X.X year. of approximately Wells sales, X.X fiscal and that to due certain this impact in to partially Equity recall agreement lower tariffs, of in the to income period. were declined loss million have XXX comparable loss year pretax credit due we our X first and changes total lowered. X.X first the the period. million other approximately facility. investees

recorded income tax related taxation last quarter in primarily interest million XXXX X.X months XX, We of period LLC, The to tax EyeLock income the at ended of tax nondeductible benefit quarter. X.X not rates. the from the The controlling rate effective rate XXXX year. statutory million tax was varying first three differences, in an the compared compared immediate to first earnings benefit tax the U.S. rate differs XXXX XX.X% income in effective tax XX% to taxes, an May of fiscal state fiscal for permanent the and due foreign and local in jurisdictions to of foreign XX.X% income comparable

valuation achieved period in diluted shares of year's loss an this in loss of fiscal can estimated primarily the the was on first $X.XX. loss increased includes be U.S. of to a and tax tax million addition basic versus year to the annual which recognizing income approximately an XXX,XXX allowance the our the XXXX. tax income or pretax X.X XXXX company provision income for for which a benefit attributable fiscal is for $X.XX If for XX.X% provision remainder jurisdictions profitable compared a last forecast tax which no income a be net loss credits of recognized. can attributed income effective loss annual for The based anticipates comparable and In for rate quarter VOXX of is recognized. tax pretax year annual to benefit subsequent in the Net quarters VOXX fiscal jurisdictions fiscal limited forecast anticipating is tax and

higher versus to reimbursement and settlement XXX,XXX This decline. X.X other and net. onetime of offset which loss included was million the of or expenses from higher lower fiscal adjusted and EBITDA adjusted first an by million EBITDA gross margins due reported income quarter we X.X sales Lastly XXXX

were As for million. million equivalents X.X a XXXX since year-over-year balance year-end at cash of equivalents cash and cash by XX increased cash million sheet, fiscal as basis XX, XXXX to XX.X XX, up the May and our On compared May XXth. February

dollar current related excess on note purchase that million two transactions to adjustments estate by margins. each an resale to million announced and working net Euro increase the of the we U.S. With the cash real includes based and costs international the and of to of X.X upon net approximately and XX capital the could generate on fees. Also closing expect additional closing we option based fees conversion

as debt properties obligation to and based February XXXX as debt million total of was million X.X compared XX, a Euro related February XXXX, international million XXXX German lending to long-term of XX, Total of XXXX, an improvement of XX XXX,XXX. mortgages consist X.X debt improvement Total May as our as million to The an asset May X.X and support was of million. our domestic operations. XX.X compared of as XX, to XX, as of company's

further Pulheim We of our the facility. of upon expect debt the our to decline completion sale

strength to improve sheet remains us initiatives a our company business. affords and leverage to a of balance execute number Our the

ready now open to the are up we Operator questions. call for

Glenn Wiener

Thank you Mike.

Operator

come [Operator Landry Instructions]. BML from question will our of And the line first Eric from capital.

You begin. may

Eric Landry

thanks. Good morning,

Patrick M. Lavelle

Good morning.

Eric Landry

I this you're one is anything negotiations the currently deal is well EyeLock correctly but can't did So, see that in deal? do that this

Patrick M. Lavelle

Yeah, is this deal essentially deal. one is multi-year a that

Eric Landry

In space? the healthcare

Patrick M. Lavelle

Yes.

Eric Landry

know, the or in as as number tens shot facilities Okay, the you so facilities or is mean, I dark thousands of the hundreds is go? the far

Patrick M. Lavelle

quarter. negotiations to still on hopefully we're in with back the Because company and like substantial. else the in the I'd on very everything that numbers come be and third pass final could It

non-disclosure have at We this a time.

working significant it non-disclosure point at our on numbers. this are the but is We to

Eric Landry

great. Got you,

I a thought give shot. would it Okay,

safe NXT of the in the So, have had run and sales that XXX,XXX quarter or…? not inventory in at sort the would rate the with EXT it assume the been normal is the the range that to issue couple happened

C. Michael Stoehr

we new. A were fact little all bit higher that because of the had EXTs

than were software been our a unit outdoor last year run to is to have so and rate we EXT the hardware sales. Okay, Those which the would higher the are the on upgraded first latest NXTs modify were the new. all shipments being anticipating

Eric Landry

things that forecast eventual still mentioned of it there you number machine manufacturing as issue. I just hasn't the to initial far adjustment want been a as -- clear vending is intact number the that the was on the in of sort those on And market? any make the

Patrick M. Lavelle

but them, right wanted didn't a make it in This numbers able and shipping they is now quite number for product was and to up that very so wanted sure going everything units launch they first expensive -- the are ramping to that bullish a was build. right biggest of they're was they scheduled not sure it They are hold to have. make only their machine They that to for they about think they be now the to the launch quarter. make the back that was

Eric Landry

you. got I

gears there shifting was May here wireless to quarter? in [ph] a Okay, the revenue bit, TX any little

Patrick M. Lavelle

No.

Eric Landry

to Okay, this I'm starting ship quarter if it assuming that that is hasn't already?

Patrick M. Lavelle

Yes, true and it wireless. yes rave on we're I've started me Believe reviews the month, this read getting them.

Eric Landry

Great, that segment at that margin? is the assume we can product is a

Patrick M. Lavelle

yes. that, assume can you Yes,

Eric Landry

is on and going Great, Tmall? to that be

Patrick M. Lavelle

Yes, some them. are that things those of the for planned are

Eric Landry

great. looks a product, really how it excited to me Okay, To do it. see fantastic you I'm like

here sort Now a of kind that this is case? any question but protection of IP is there dumb sort on of

Patrick M. Lavelle

is shape the The no, protection the the unit only on earplugs. No, of IP isn't. there

Eric Landry

nervous that? an in issue you're there not that and right to Yeah, China is be going with

Patrick M. Lavelle

product going and fought brand. years, we the we over the exist, to battle you the going our protect Well, situation will Klipsch our it's to But a know position. monitor to it's with we're best do constant [indiscernible] to

Speakers] [Multiple

the of we the year way the fees had legal that a the that counterfeiters. claim against counterfeit award on Klipsch by on Just X.X had the pickup was expenses last million

of the of So, are products. the and position very protective active Klipsch we very

Eric Landry

quick any [ph] that real comments TX the selling wireless? initial on here, for Okay,

Patrick M. Lavelle

stock. We of out are

Eric Landry

Okay.

or a is Lastly that the ongoing product thing? that one an recall of in sort ASA, was timer

Patrick M. Lavelle

fiscal handling that They next be course the this will of over year.

Eric Landry

So we forward can look to…

Patrick M. Lavelle

for the Yeah, right. quarter. It effect time is one a not

Eric Landry

in for look we a that Okay, to year thing? now so to forward are lower earnings going

Patrick M. Lavelle

some in some segments increases other it. of that the can very things offset offset positive got market of happening their has ASA would but That

Eric Landry

you. Alright, thank

Operator

Thank you. and [Operator Kahn Instructions]. Kahn Brothers. we have Alright, Thomas from

may You begin.

Thomas Kahn

Thomas Kahn, speaking. K-A-H-N

Patrick M. Lavelle

Kahn. morning Good

Thomas Kahn

Good was disappointing would this John say Pat. morning release. a I very

listened have and always to calls and know You the optimistic of company's some the you our lets says own the long maybe if is past time clients to three release, statements I XX% that John And the $X net optimism the is some The comes is in some liquid reason and at there of then of for we John never call. in look through. the a share stock probably years listen way assets. for way assets it more

compensation should way paid $X $XX the package with mean there what if of in regardless options to shareholder interest large the the When John a were right it's price to shareholder sense. the they you options, done stretch I align a with very to So would of perspective. have like management. be make $XX, a liquid these $XX, things and be doesn't consultant is cash wrong kind little says of from you my and ASA hit assets $X interest

you was that public four it in a five selling our $X was for. times remember stock I or Now that worth company price said meeting the

know number maybe in maybe but it's omelet for you XX-XX bad wrong, mushroom worth worth maybe breakfast that less we so undervalued. maybe had not Now your that grossly it's a it's is all

all the way compensation shareholders the plan at to base doesn't I'd was far said sense. as because concerned? you of filing if by so copy it's I'm make by compensation the off of see could the So what would irrespective as it please make look a like plan any a way --

John Shalam

out let address is me XX-Q a and be compensation… the with Tom, in that will -- the putting it we

Thomas Kahn

to of they vote tell use that that to I And Full again. of this because have for mean the recommend, plan I I stock with I name is… consultant can't to what those be guys our because said. not you want to clients I recommend I Board can't the just our Management sure

John Shalam

I you price. of share $XX are agreement for least a awards read that on example to there realize The stretch when depend you me amount think the us getting at goals.

it you'll hear and different hold meeting. the and can have for a can agreement the and that it you think look So read you it shareholders discuss when you at I I we when

Thomas Kahn

say about at nice seems giving John me doing with nothing like I $X to being to today now a I and conscionable. Pat believe and to Pat, right a you of cash say we're ASA just look want shareholder shareholder you guy. it's here. get and he is alright that to value I $X a perfectly ASA but That's of Regardless him work, doing if I it's away can cash when be here and assets but missing anything but don't I talking in a and you I don't anything worth $X. will am John thanks unconscionable worth price there's contingency giveaway. no consultant mind always And $X a think has What I

account be with sure our I cheap so manager able still still he John stock So about am I is am this about to us. concerned -- I I which he will am XXX talk will of any window be, stepping money very hope sure when up always will our better somebody is or be shares is putting at the I not and own the Directors. or the buying else somebody. plate -- meeting XX I'd it grand or than or [indiscernible] because their open Shalam there's nothing John to other into for

there's here tell can't know, what. you and wrong something I You

John Shalam

have you're it. then big we'll the discussion me of missing because a Tom, and let contracts portion a read

Thomas Kahn

them, because read are not going happy. management with to we vote will telling contrary not absent us to we're I the anything anybody

pretty the another. of years of and says markets quarter the listen there much price of And for is but that see bull the can or biggest five you kind meeting. Pat every John at it tapes one one the stock wrong to in past we'll can the You see discuss the and during to something American optimistic what sayings history

John Shalam

good. Sounds

move Let's on.

Operator

Management. comes from Brad Capital BML next our Leonard question line you Thank and from

begin. may You

Brad Leonard

other I one see saw else, I filed on detail in and I guys Q the the plan, no Hi those plan, there detail yet just question on the have actual anything comp contracts. the the was was there? have but not didn't that been right,

Patrick M. Lavelle

No, but filed. be it will

Brad Leonard

we will that. for Okay, okay, look

stock get a think -- And so to steps the look of I mean XXX. you is clean X to value to higher mean net done bucks got you've and this my real so the don't a let's cash, what to paid I show you lot worth worth price and I $X really a a got here's get of the easy. so some business that X recognized taken be covers in asset guys worth in at bunch easy stock. that you're have structure, but not or to today probably? price try estate maybe to and that's realize of reporting the Klipsch own, this this value I $X very have say to I it's this to you -- I ASA it up stock When XXX for going know worth lot share mean try is you is is

Patrick M. Lavelle

point. would for sell I think this paid it would disagree. for -- more what Klipsch at I In would acquisition than the probably we

Brad Leonard

what if it's I'm the that maybe is back worth Auto take could nothing, I might worth I Okay, than well kind conservative is rest of to dialogue a be EyeLock is you better doubt nothing. be something. I'll being and of here word, great That's how to of say that. better add CE lot, conservative that's trying worth worth a is worth be be again, $X I I'm don't sure me. would worth your and know even not The unknown. worth. $X an envelope Could but us that's probably be and share worth

up risk so lot are it me we why envelope biggest you've ballpark But to I the hopefully be got a a you EyeLock. the really there's and a right great of stepping math and enough if where off you're happy your is it and $XX.XX not would a that for thing the that less acquisition from this of value the to this that's something earnings we but stupid to stock comfort price returning going create it's how in And so and this dismantling of thing something a you game going risk. all or of of burning to help cash up owns point $XX the your that's sell divisions to there I EyeLock going And correct I just So a was and or here. something selling may should concern, hear do versus here's a know thinking it going pile it or we're share. realize doesn't my the do me whether skin this everybody being mean we're my dismantling to to is to I and that my like of like are it are is realize and sudden I really with risk buy lot mean of that to math on going taken do my all the like value just steps company, to stuff but $XX to the your ramp smart up work with question their we're is is value it some or not results and it best I'm I that try take have the think off or or Klipsch like thoughts. exciting. value to and we worth a goes value, the than and stock XXX being we're some unknown to to everybody clean a share? see and asset in looks home company do and asset or a way your get know back that, shareholders goes going he's going on $XX to long unknown, here's parts John cash potentially ton $XX ends is this of and try out

John Shalam

aware you of Shalam appraisal. points the your appraisal you you are absolutely in all correct your Brad, is have and are well in absolutely John correct mentioned. and This we are

strongly of the shareholders right businesses the our the of And to is the in really as now to stock round been place the and call value this in restructure off that existing I up to very corporation of don't VOXX then stock. sure on plans for anything the not at company that share the to to believe acquisition We would you the out with advantage to And the of potential, possible substantial you think the try time. based valuations substantial contribution do it, different not were But right that taken earnings the be bits will and believe divisions, now sell value. come the I'm now, dismantle company and make shareholders but real the rather which before potential very dismantling price these a should sell is adequately has price all if we future it's pieces the stock. reflected revenue reflected this for the in and of

potential I a the plans free think and we bank have better and debt now we have can the cash if much and much show our are performance to materialize in we a with improvement. that we better

our plan. So that's

Brad Leonard

it. that's all appreciate I had, Okay,

Glenn Wiener

Brad. thanks Okay,

Operator

question Thank you. And Kahn the our next from from Thomas Brothers. line Kahn of comes

Thomas Kahn

would I a to in John's basis tell taxable because that I up and prove anything's has be probably very follow As going a low that us a John result unless it believe sold event. stock would don't can't

a low it kind That's talking has would sell we're can higher think. So stock state up realize the If these values if I repurchase. the it I or think he with to doesn't way way share is stepped best sense. because best about a why make sell basis John's of now, large basis the

summer they to houses, their buying they on and is. your cars, think should distressed put are they I money So this they not Directors mean vacations, sit of really that John Board buy where plate shares. their see up want winter I'm mouth if but houses, whatever the to thing some best take to I the step and

John Shalam

my now. we made see tax changes taking go is will of it value a We of aware materializing I some and the the have are in for problem clearly you price Tom very along. a And And think the not that now past. this of point Tom, amply well and my stock you stock place as problem in low it's terms of right

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Thomas Kahn

that people plate? shares. up it, Well to that's there's They stepping and stock would understand I a when the Directors aren’t are XX plate the to these something don't that they're on wrong. are things the forth be the answer I price don't and share but not buy worth why or XX do they If think XX it. you would inside, the reluctant, our step is or so one of good permitted and help who Directors up

John Shalam

the my future went the of all with will was based in That that's on stock. the indicated align happened. these Tom out and and the They them continue as exactly the which management I more comments what are see bonus cash what you'll stock on stock I having more have hands we intent think of in not that shareholders. management's put into earlier on plans the advisors is based they and do and with to of more past Their will

was So was you you agreement read see the accomplished. after that I that think will what

Thomas Kahn

meeting We John. talk that will at

John this quarters is the to shareholder the past bad can look the see over the I think the getting getting calls, meeting. I way XX you've and I the I bad been been listen somehow think but But I if talk advice. you've at I haven't calls yet advice. read we report bad advice further

John Shalam

lot a our have Tom. honest from you Well of be recommendations come to

Thomas Kahn

from will problems look that tell you, four and getting years then you I have will over me, further. tell advice or if we been back you there Well can talk three you the I have past been bad but

John Shalam

when a will we been talk we couple have again see of in you there and weeks. Yes,

C. Michael Stoehr

suggestions When because to over the used of we get the first some have together comp the tops like investor again industry. advisors, advisors best past we class we'll banks, talk in use your

vetted concerned with any that your of standpoint and thoroughly out. I'm were plans thoroughly comments from So not laid because the

Thomas Kahn

not you of Board poor even I'm and doing the there. is management of And accusing judgments. accusing that, anything no accusing one you of or improper don't go business judgments, I'm illegal. making

Patrick M. Lavelle

that. get I

it for are of like case Management we and the around and -- you well. we million where Hirschmann money Board of we turned is acquisitions certainly Klipsch can accused -- and While I case Klipsch Klipsch poor the $XX paid have in they making doing sell than the will in where for made and okay more of

So some those… upset not None you're other the some of are terribly with that's stock comments correct. of But the comments fine. price, understand the of I

Thomas Kahn

judgments skin they and not with upset with, mostly I'm decisions have in much I’m been what own I stock bad the motivated what for clients some to price. don't is XX% we they And my seem decisions upset own, am that the of and they've upset the That's so of my stock. don't directors. some good, I'm about and be game making by the which but motivated what, fiduciaries,

So decisions I to the are have to guys every you making. talk him day about

Patrick M. Lavelle

get of and it have the hopefully I the the out here we new and that have the changes we've Yeah, and debt. in no that plans reutilization capital and company that laid made we we've the now divestitures

as to back acquisitions do to we see that what talked dividend German the allow will States that do that's us the in share but million as far That's cash basic the our you'll things estimated buy are our $XX help us acquisitions, and price, in reclose help you overhead returns we've of game stock a existing on also north to We generate do here to about to the have build be over some potentially any the sitting and of few do. quarters. next leverage EBITDA plan on better the

Operator

great This ladies Everyone you in Alright a and today's concludes the may day. all thank have disconnect. participating conference. gentlemen, program you and for

John Shalam

and and plans summer. I'm report VOXX. forward rest improving in day a to ahead. interest looking the implementing your enjoy the for you of to hope the Thank Thank months Have the in numbers outlined you. good

VOXX International (VOXX) 11 Jul 192020 Q1 Earnings call transcript