VOXX - Earnings call transcript Q4 2020 | VOXX International Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the VOXX International's Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference to your host today, Glenn Wiener, Investor Relations. Please go ahead, sir.

Glenn Wiener

Thank you. to Conference Fiscal Call. welcome and Fourth and Results Year-End morning, VOXX XXXX International's Quarter Good

close. be Our SEC, of a market and XX-K our we documents Form was issued press filed website. release IR on the found with the Both section can after

will completion Our is of replay this live approximately X Internet, and over call. call available the hour webcast a being be after the

and Stoehr, up Chief will President management Officer. and Pat Chief Senior today Vice and Officer; then for from have President Speaking will Lavelle, Michael Financial we Both prepared the will Executive and questions. be remarks, call open

which call Founder, the Our over Form webcast February you I'll forward-looking constitute update Lavelle. associated are except and I'd historical that with to to like like based turn also XX, responsibility remind point statements available information. business, detailed such Pat? on John no Chairman today's I'd Pat available assumes any for for risk call statements questions. period The and the ended factors Shalam, is and herein, company information now for would the that everyone contained statements, currently are in to to to XXXX. forward-looking on made our XX-K our

Patrick Lavelle

good Thanks, everyone. morning, Glenn, and

the First, we're expenses as international with distribution. of are the times and get ones valuations. we out moved we on to We U.S. hope to of business a our lines to unprecedented share product of shareholder unveiled our restructured market to and We as goal XXXX and stable to leading and conference which lower comprehensive in we taking to Germany, strong and our all. strategy Oehlbach our on deal behalf enhance consolidated domestic countries older our These that to German and real under are restructuring that us improving accessories sell fiscal and technology a on -- operations safe where are balance international categories, sell underwent margins, buyer back our have especially of Schwaiger end did other realign position We our I business accessory the business. everyone best extra profitability time program legacy and audio bring VOXX remain you first is accessory year-end our to On or focused with sheet. all at not improve call, VOXX, way, precautions Klipsch. reopen. experiencing had We materialize to wishes did more operation, us The obtain cash the unfortunately as not at financing. estate begin allowed

We Combining also accessories changes our businesses. into audio our a and stand-alone the aftermarket out remained and infrastructure. segments, our OEM reporting to breaking biometrics premium Automotive given and segment. changed

successfully to increase the of an authorized vast repurchase program. Board the We we majority programs Lastly, executed share our embarked on.

lower believe Subaru, unveiled Automotive compensatory the believe we hard sales technology. expected; which million, of program, customers, partnership closed January, be Automotive impacted $XX Escalade always and with one The which This and a was we our GM GM historically adjust was and end-of-life to the of certain February, the our innovation, program, and Ford the In at there big projected forecast. away to which focused in the down greater expecting. the EyeLock's aftermarket alliance had e-wallet more However, earlier consistent were than were on Amazon from we decline SiriusXM-Visa ones, our remain CES We launch issues, and for primarily Electronics plants, not, results the however, was we car materialized Sales down may modestly some OEM and of the few and we updates due we'll in we on had accordingly. the with leveraging segment, which planned. delays took of the were accordingly. Ford ended said sales our end benefits program; in than be far which the Explorer a our provide channels. acquisition overhead our we to segment to from biometrics anticipated due programs. We for moved profitable TV and were Fire We and a company At well-established both then with in way. VSM-Rostra, quickly hit

the is believe Ford due GM this COVID. of some fiscal we recouped expected business first to delayed would that and fiscal of XXXX's recall, you no with but longer If year, the half be in

the are hit Automotive to our the However, primary as close to next will years lead over in were we VSM-Rostra confident initial that few acquisition not as considered and year perform this their by that business were projections government new should as markets growth essential others. and the innovations hard

profitability generate We expecting to ASA, XX-XX venture, for are also our continue VOXX. to joint

we're $XX on years. This million next with years were to estimated a term, continuing bullish later business Fire year. for start approximately TV program This RSE XXXX. I in program and new with program and Nissan program $XX over pleased also Ford at our expect rear-seat valued for million are is years, I X the next of will Armada program We X for begin awarded to a we starting still $XXX this fall. with that Chrysler, $XX over million system, segment And the awarded long last over that at new midyear is is we X.X which $XXX business. the million And were the Fiat OEM another win announce now opportunities discussed and We am quarter. growth. our entertainment on to building million

meaningful start by half growth. marked should The out slow have for volume in and on 'XX the industry-wide, based due programs While will pick the profitable next half segment should of lower sales second first the to vehicle the fiscal years be up should we several be year.

speakers, product premium we our was of income strong decline the restructuring. Turning little a generated saw headphones. of especially products, performance lower and $X.X gross now the lineups, XXXX. we for where product bars down of segment, million we several wireless versus bulk sales lines. sales revised with Consumer and mobility accessory in lines, XXX of Electronics discontinued were the which bluetooth we In products, expected pretax were had points, were Consumer loss margins in The $XX.X expenses basis up fiscal to and Segment as premium year, accessories that fiscal X% But and Klipsch-branded segment 'XX, segment. and the is million continued includes over audio sound strength a and of

at new to hit Assistant, region able the to wireless were Amazon quickly VOXX custom products the our as we this an further team, speaker fall. The and North EMEA see And now, Google new higher been Atmos, were the have help supplier from exclusive of expecting the added our and the Alexa, shipments continued portable overhead theater, cord, finally, lineup more new for America Klipsch we covered stores higher -- working impact be this stronger. Depot. portfolio Formula same consumers Consumer traditional to share. of of I the minimize with strong and consumers holds the When market bar One brick-and-mortar expanded the expanded cutting COVID official sound in market of and We to sound distribution powered summer Walmart down gross and in bars margins of antenna And again third quarter QX, but chosen restructuring, partner market-leading quick headphones, due fiscal antenna of we're this categories we Staying with true sales expanding accessory sales expected headphone to to Dolby launch and power true audio business. across installation segment. in positive coming were our This Xs we bluetooth headphones summer again the are We the as leading distribution. all personal home, the has are portable our and call, the of significant category bars McLaren our and with and at share are again should some categories. APAC shutdown, as have depth markets speakers, Klipsch done grew but products from category, as by to see never the launching ProMedia WiFi, to our the saw the product contributions redirect began year and Electronics new also and will reductions. on 'XX, In shift given antenna in and We SKUs and new Sales partners, home uptick monitors other was products. our online lines. summarize, with audio for drive with number a speakers, the in from which with happening Home which fall. a sales sound antenna the which connectivity various we

the added to of We karaoke sellers. new also Singsation top top Amazon, on brand of including X X machines the and SKUs XX had the

speakers Our perform well, and at continue have series new AR the scheduled launch to outdoor wireless Costco. we to

a just has again Lastly, quarter. and test the remained IGT still our delayed these unfortunately, and focused be fiscal The in care have second resumed projects Many of and with net validation our lowered rather project 'XX, e-wallet completed than for fiscal government current COVID, some well, overhead the within industries. were segment. testing underway. few should in the opportunities. with few and example, we In wide to The on a a plans. health others alliance fourth computing and undergo we quarter in Biometrics of our quarter. deals SiriusXM-Visa is In space, as

we great in authentication iris solutions we new our an company state-of-the-art and systems partnership solutions. we iris best competitive and the the the on new have, believe hardware by have hardware revised market. are will recognition market. and with a systems Our with EXT And CMITech, far, software the most with Combining NXT their now algorithms,

a designed of also preferred and and interest authorized iris is the lot recent authentication biometrics. thermal the iris for required. this technology recognition We checks arrangement for of One is of the entry a expect and inbound entry of first quickly if facing and company. even becoming has everyone a will weeks. in interest backlash environment given prototype COVID combination temperature and bar mid-July. renewed authentication and COVID the additional created is will for where the It's facilities With meet the the and is EyeLock temperature believe is EyeLock's be Facial gloves, in is result iris sensor technology this authorized wearing high events present. from in of solution needs and choice new current temperature touchless It masks first products the in will a checks.

facial offer this are longer technology, no would only stance. ones they and the that to they announced recognition take IBM week, last Just not

interest in QX. I August, financing an and growing. of debt a we increase Additionally, recent noncash we COVID, an could to with did, however, close into on materialize, we in business evaluating positive to be banker have With and sales QX would line new may outright now strategic can assure spin-off, venture due EyeLock. evaluated. maturing QX, to improvement the a engaged in a partner, given ventures some But converting Overall, ownership But will investment to be view consider momentum I I QX write-down everything which slow good take a debt you, the a spoke into have sale. EyeLock's and us equity, say, corresponding while slow about, EyeLock's or alternatives intangibles. our been as We moving we is will for which on developments. be joint This in support remain to finish

in direction, then based for we and the horizon. done believe begin, come planning and this auto on are closing new should the assuming return I'll new everything comments. on the potentially based in growth to moving distribution now review, will launches some product at on volume that 'XX is the programs to pandemic I'll EyeLock. over that We for Mike? Klipsch and for that and higher automotive I have back fiscal right financial the Mike VOXX turn with profitability call the

Charles Stoehr

both and comments I'd during respect with first outside our operations unprecedented towards is are on minimal had merchandise in QX, of fiscal to all, of of everyone. and Pat, more U.S. all and on pandemic of operating XXXX Thanks, an the us On note, had impact majority but the the of vendors impact Rim. with Pat's thankfully The times. are good that like end to professionally, COVID-XX. these my morning, the It Pacific and best our echo quarter. you undoubtedly many earlier impacted personally has wishes resource

and peak capacity. are Some at closed factories than or less have been others have operating

and the in automotive partial with that been which also our working We is I'll of to and our our work our with offset given actively have partners orders our will very has add impressed stay-at-home in closely are we've and and cutting responded. teams impacted environment have mitigate partners been OEM net issues country, sales, less customers for This the some shutdown tied the has the virtually to as costs spending essential work cut into all across managing well. and to certainly business, we and this. been pace

EyeLock indicated earlier, of quite and sales picked our auto, have segment certainly e-commerce On interest premium and some the other products, done has Consumer as both of hand, Pat up. the well, in Electronics accessories

and all XXXX. Note Now XXXX the for both February for February comparisons periods for XX, our results, ended quarter XX, and year. the

by For the covered, Electronics. due reasons Automotive $X.X Electronics $X.X the net in declined a were $X.X sales to offset million. Pat million Consumer segment quarter sales million comparisons, increase by down

product associated segment, Within see reception as We the as Klipsch primary and the remotes comparisons trackers rationalization subscribers quarter down was and however, products, products driver given with added. fourth with the discontinued well programs did, the were activity lines. as Program SKU CE hookup in Motion an total product for were up product XX%. accessory more the Klipsch for General sales almost UHC sales increase brand

X of with programs year, Pat net with and the The Subaru down due Electronics the million with down OEM aftermarket $XXX.X decline For segment the was $XX to $XX.X sales the radio, of GM. and Ford bulk the discussed and million, Automotive were million aftermarket lower anticipated sales biggest it, satellite decline.

year-over-year environment fiscal $X.X segment million While exited and for by product product sales did the global consumers. group the were years, Reception for the auto realignment given key biggest as sales impacting were categories up and up distribution, to sales fourth XX% declined comparable the as dollar expanded business a XXXX were over trackers market product over Consumer and percentage of down Electronics well mix. XXX the increased XX.X% increased Total was we Klipsch CE fiscal followed segment year-over-year. of quite restructuring Electronics anticipated considering higher year-over-year. of premium the volumes XX%. sales up XXXX. the as activity accessories driven the were up Virtually Automotive General points factor, all by brand gross the basis quarter and were on higher as versus segment program This total segment by by margins XXX% a share relative domestically sales the margins Fiscal in our offsetting lines.

For XX.X% compared XXXX. up XXX XXXX points XX and compared fiscal comparisons, gross to margins basis points basis fiscal fiscal were year of to

business conditions. what years, While volume absorption achieving lower we reported the which the improvements in back of held consecutive Automotive, more impacted we believe normal in is for capable

quarter both XXXX and business in true comparable an changes out. years high-margin see of EyeLock have expenses chain a fourth lot the were we As fiscal period, the up Operating to improve million car of efficiencies million. $X.X down mix. investors were better of quarter moving fiscal run year-over-year sales in and as continue there for impact and kick believe to $XX.X materialize, we the and loss increase reported was will as a of and operating we operating anticipated to in the to with expenses margins supply take We business improved positive new costs fourth pieces programs starts made

reported however, shortfall in segment, $X.X was the an charges, had mind, On unanticipated. loss have of fiscal Again, company operating million thus with to million, of noncash restructuring reported quarter noncash loss backing million. loss of which annual operating out of noncash been $XX.X have million. out and stock impairment $X.X Excluding impairment of back basis, XXXX, in we you operating the we $X.X executive with operating charges, the $X.X an rent, big million. Automotive Keep million. we would million In an recorded $XX.X loss $XX of $XX.X the true along been a related improvement million. impairment $X.X would loss When was million charges operating fourth

you see path. company So without this, the is on can the right

profitable operating million income on For per of and $XX.X fiscal and a of loss plus net fourth a summarize basic the diluted, nonimpairments loss $XX.X in charges of XXXX, And fiscal XXXX. our basic loss diluted had in attributable and diluted to and compared of related for investee, million addressed were fiscal expenses of had attributable was share, loss 'XX, In and million $XX.X both is down. loss loss $XX.X a XXXFly $X.X to a are Interest sale And and of a $X.X $XXX was true noncash million loss To year-over-year share company yet in of Net loss number VOXX Within or $XXX,XXX $XX.X as which gain properties, factors, to $X.XX $X.XX briefly. fiscal 'XX we of impairment equity charges of quarter. per of basic on million VOXX onetime operating or was but fiscal fourth per were the million expenses million, other or down approximate for net again, to other restructuring $X.XX share, $XX.X we impairment in share or the to In 'XX. diluted investment. Pulheim and of a was compensation, approximate million Form This loss for and estate, million XXXX, of million, $XX.X per VOXX stock ASA, on XX-K. attributable equity investment. which $X.X the million a an income to last there $XX.X of basic compares bank and net, real million. a 'XX, quarter. to our the an an a we $X.XX loss of a quarter German fiscal prior on $XXX,XXX Venezuela of loss reported fiscal pickup which note, charges, an noted due

Lastly, improved EBITDA year. Adjusted of declined $X.X million by year, year-over-year $X.X $X.X -- million. of quarter EBITDA fiscal fiscal million fourth $X.X adjusted the million EBITDA for and XXXX fiscal for adjusted

the on Note, XX, as million as and Corp. fund of XX, used sequentially. Holdings XXXX, down to balance asset increase the fiscal is in sheet. we from million of Safety of fourth $XX.X an This equivalents were of XXXX, February Vehicle million but million. Cash $XX.X cash February cash to the XXXX, in $XX.X Moving $X.X purchase of quarter

We and also used $X.X improvement million February to year-over-year. of debt $X.X our lending as as XX, of million euro $X.X was obligations $X.X operations. This million, debt of to fund Florida Total mortgage program. share million German million repurchase long-term compared XX, consists of asset-based as our the XX, our $X.X February an XXXX, Total as was to XXXX, support of XXXX. February

on XX, Lastly, with to maximum has million new and The we a amount unused Bank it agreement basis XXXX, been XX $XXX.X June amended an revolver amended April Wells as XX, a into line agreement ends lender. equal now as plus entered on Fargo to our points. fee

remarks. We this tomorrow. on X-K a back expect for Pat closing to call going turn file Pat? the to Form to I'm

Patrick Lavelle

our programs for budget forecast we together approach even of put projections our that Thank challenging more and the half And you, year. Mike. in with But the took to first COVID-XX, this our at a conservative year, remains as different we've we and looked models buying so. It's business. sales

to impact overhead only first in Gross not only steady. see We the stability start, believe OEM and back growth placement but new in accessory cut that are start margins more add global new programs new we but leverage as relatively improves. have with we'll programs business Due true of out markets, products, of quarter, should in Klipsch, on will aggressively and second based slow as quarter, earnings the of COVID-XX move hopefully, we potential. the to cost hold anticipating beginning also a

provides the attractive good to also to flexibility are should capital it remains us the for our Our quickly and greater move at to stability remarks, open our is run VOXX with in This access This questions. business. terms. opportunity us have sheet provides for right asset with big emerge and and balance forward shape, we a ready it concludes to as now we up

Charles Stoehr

clear, XXXX. XXXX. Thank not bank I me, I want extended was April just said Excuse The Pat, the XXXX, I were it you. lines April to to misread report.

Patrick Lavelle

Thank an Mike. note. That's important you,

Okay. Operator?

Operator

[Operator Instructions].

comes from Thomas first Kahn Kahn question Our with Brothers.

Thomas Kahn

correct? paid million $XX buy believe, I to that in You cash, Vehicle Is Safety.

Patrick Lavelle

X-X, yes.

Thomas Kahn

normally, And return that did I like an would I if expect, have XX% hurdle a I rate. acquisition would

earn that is on put Vehicle into you I'm the cash it? they one? Safety money? So with going Are earning where XX% that do to you wondering stand Or

Patrick Lavelle

X to at The this They -- okay? a were they aspects manufacturer. fairly program, One, they program with profitable. way had there are they strong a looked VSM. we the EBITDA, had And are

So here down Orlando building. moving our facility from New operation will our in absorption increase Jersey their to the

the we it's when being margin So here. absorption VSM-Rostra, it looked increase to overall And by it's is not above statements, only XX%. at generated at will well X for the looking is that company EBITDA that the when consolidated improvements our those the the OEM operation, additional

Thomas Kahn

the million Okay. $X.X good know. of to have we some Well, this X from fashion in that's benefit together, deal. Putting

Patrick Lavelle

Tom. that, than Higher

Thomas Kahn

Okay.

don't hire a And this market attractive there's to of business, investment range, do And is in many investment think piece $XXX be all $XX EyeLock fell underwriter. IPO, of into going [indiscernible] an That's recoup companies not or with very with think advantage I an right If with EyeLock In the IPO. you Second homework the anybody you because who great up I've investment asked question. the past, mean a I else. banker banker, or does a the to XX% out the And thank speculative more with to a put banker we else exciting we're a X. deals in time would month banker, eye what have EyeLock, very and company. $XXX hungry one wouldn't would this come and and somebody that last for banker I'd underwriter EyeLock. so million another the very IPOs facial that rest million that from this, an anybody, they getting say particularly speculative give the than of where a maybe a an We'll it. with that I million do. much, you. done But anything, try we do and I we

Patrick Lavelle

But one have, of that had of the issues we COVID lot in-person meetings, and a else. delayed Tom, meetings everything is

have really our the is everything, the until we the So end wait of and is come meeting with which to operation, teams June. meet to visit for people believe now starting. first I scheduled

to So everything the as up, and number that. But signed the able else, it's we time. companies start states things and come and until open a with be technology like to expressed of some can see in we we'll -- that going and they have people take the NDAs engaging interest,

are I in companies companies you or banker space that iris contacts biometrics may that already and the with selected in competitive we change that that could However, using need tell good past. in the -- contract the have has either very interest deep to experience biometric expressed

So And hungry. agree, right we we've guy. he's got think I the

Thomas Kahn

up And just please. finish to on EyeLock,

as give So of this is recognition this bank time card told window more And because is doesn't of he IPO it get few time... if this to think of this. all rest you the the somebody do for number where you'll And an a think the now. is months open in I than And client, it, a else. years test do iris ago, at opposed cost putting I wouldn't I your find banker I to put to essence. the to and I to no mean them, a

Patrick Lavelle

take I COVID, question, light no did PPE touch not Nobody situations there's systems happened it and not if wants masks on, used facial around hospital of with work. with you being and just anything. walking what's Tom. with People will in all Well, to mean the work.

PPE a pushback not and on We -- system, is PPP So out system okay, do on an have seeing authenticate or through masks have of facial. to big we able is facial on there. what This in whether things any like more opt-in have we're opt-in secure is the be system. that will one But -- you it's EyeLock? than all where

to that's become the have now, And something think be You advantage. in environment think but we're program. a an in overlooked, strong opt-in to that's I that iris I on will

Thomas Kahn

But get on put iris in pay and I if bank huge small Florida in a the I or television a publicity and X else. in everything would in and were branch newspaper you, to

Patrick Lavelle

Well, we have a our that number biometric. of have iris locations

marketplace, I new going I relationship very, is a develop one CMITech meet latest but the that's needs we only with mentioned can there price. And us marketplace competitive okay, think very today. not the had our systems will hardware, previously, in the also are of what iterations what that bring given of to the different that needs

Operator

Our next question comes from Eric Landry with BML Capital.

Eric Landry

at the that looking at you've he is portfolio? banker -- engaged EyeLock or I to the options is looking only is entire clear make just for this want

Patrick Lavelle

EyeLock No. This the is for operation. only

Eric Landry

Okay.

on you then talked past ASA, in X So onetimers the about quarters. some

correctly. I if I issue, think warranty it remember was a

Patrick Lavelle

Correct.

Eric Landry

all that now? we past Are

Patrick Lavelle

anticipating fact certain in come see, COVID the a areas. Yes. into them going little based income real They'll them have this some residual expenses on the affected that from will we're and impact to that we're lower year, that has but

to So -- but they're a still the profits. we think that generate significant going of portion

Eric Landry

All me quite the of are looks right -- bigger back now. some strongly right. to bouncing like manufacturers the It

Patrick Lavelle

we're what what in business, about... specifically now, you're talking right car the Well, seeing if that's

Eric Landry

like. no, car you I'm if about you as No, talking talk no. the business well, ASA, can but about

Patrick Lavelle

shut obviously, business they the quarter. were first down the in yes, is Well, -- car

impacted trucks and are that. see things to of It's us. like there's already open, as So pretty that's like shortages certain starting demand. very, types But strong And of we they very promotions. good vehicles,

So me sales you between ramp give let see we year end that. is trucks. the some third XX believe to XX and a and in of last quarter Well, as to start robust -- million just The up, the on anywhere million. were million XX projected cars somewhere estimate like around it's caveat the year, trucks, right. This the that second All quarter. manufacturers business start and the we'll

in So year, number it U.S. will of sold be down vehicles the last from the

Eric Landry

there the the you something in and that earlier call venture this EyeLock folks Pat, by of said in I combination think like you the technology the... best, CMITech far, you mentioned with, believe provides

Patrick Lavelle

The best authentication, yes. We believe that.

Eric Landry

Okay.

So like figure look indeed you as or point to can we look the who outsiders technology that best where combination sales that does be point us can out? confident can see Where business? have we to us to -- Where outsider as you so what in that? can you no the anything -- this can that

Patrick Lavelle

equipment Look, we our are have banks. various do in located. We

locker things rooms of -- as you're EyeLock, looking when like I the that on teams to believe forefront we the that. NBA has EyeLock a at I now. come said, have But We basis, in and go-forward think

Eric Landry

you is makes what else? that that believe everybody What makes EyeLock better than you it But is that? believe

Patrick Lavelle

it let's Well, this put way.

mask, none off and now to you've and your you're medical everything the and open your off, a open you you've okay, take and a when door to PPE got have either getting COVID, your take a fingerprint your interest you anything, give off, all to mask have face a to or or EyeLock show you First you're the on, and up since we're you on to wearing have when in walk hospital you would now require got of cabinet that. have else. or glove gloves

like, It's eyes and we big see And for and advantage PPE a That's are covered, eyes that that authenticate. your of touchless. the the to looks pictures see face clear is Okay? seen be some -- will of will you've able the technology. what if you even if which

Eric Landry

let you. me Pat, Right. interrupt But

indicating So is earlier talking what What to face. I call... you're thought you the relative iris were about in

Patrick Lavelle

fingerprint. And

Eric Landry

-- business. relative in to that? misinterpret the the relative What or EyeLock iris players in you thought other that earlier indicating call Did is Yes. iris I I had best were technology the the

Patrick Lavelle

X.X of X a X.X because eye it in scan facial, double today, over us eye gives is No, it's does -- million is that claim eye in live XD live false use okay, false trillion facial, And Apple's that X double We positives. double scan. fingerprint. their as positives. competitive iris just The is in no -- we as and/or case advantages with scan. have a the iris And you use facial live

on So secure most short it's the the market of biometric DNA.

in that the as like of believe So advantage. privacy have. better takes opt-in its requirement It things something convenient. today's people concerns people coverings face a number just have It's We is more where care environment, masks, secure. that's on, of in places that. that works It's

as put So together, the has all not, our the estimation solution on you when market. if emerged in this it one best iris of, biometric

Eric Landry

that, if or But EyeLock Pat. or doesn't no Iris perhaps like to far. the someone or other you it ID get inferior Princeton all players, better iris understand than all technology is very I

were the is in the iris you that than EyeLock's saying technology thought earlier you believe saying what is that. you other call but So that I weren't better perhaps players,

Patrick Lavelle

at at as when our When exceed we the I Yes. And saying against EXT, we players, other iris am all in standoff their look tests. capability. look we that third-party well. our distance that's

Eric Landry

Okay.

So a there indicate will reference indeed can what is stuff else better there's that EyeLock the study out that offering. everybody is than that we

Patrick Lavelle

yes. better, tested Has

Operator

Holding Kähli with comes from AG. Beat Kahli question next Our

Beat Kahli

bit want I too. EyeLock focus a to little on quick

buried. balance end Looking at your have cetera, intangible sheet the the current of on balance other in which sheet million, million, is about February? much $XXX valuation what's words, assets, assets goodwill, million, of EyeLock? this which $XXX et somewhere So [indiscernible] How of EyeLock $XXX is of asset have EyeLock roughly valuation $XXX your million sheet, noncurrent consolidated balance total as

Patrick Lavelle

number? got Okay. that Mike, you

Charles Stoehr

Yes.

in, how not substantial EyeLock the there separately. a is -- XX-K, value way, If XX, sheet. Page when you the balance we carried a our see you is on But amount will on EyeLock full outline carrying consolidate by on of

off the XX, In fact, as written XXXX. of February intangibles had we

Beat Kahli

that words, has you is million amount. words, if EyeLock. saying So interest I a other $X In or marginal other on million sheet, it's you're EyeLock mean, in -- $XX in $XXX it balance which just your another EyeLock million, the consolidated to $XXX are this easy of having basically value million

to But basically, sheet amount the the be So find on which I company consider basically important most I in mean out. investor -- balance nonmaterial I XX EyeLock's a asset can that to Page the say the has on with time is valuation, so given am that reflected? which correct

Patrick Lavelle

Well, able be on would the which EyeLock, that convert. the we be to debt for the only then books carry we thing there would

Beat Kahli

have you but that Understand, consolidated.

your in that's mean I So liabilities.

Patrick Lavelle

right. That's

Beat Kahli

of good but news, that's mean I So sort of surprising. sort

So -- but that's gap. understand

kind by ago. contracts, and with nicely that any example, was EyeLock? contract there while little EyeLock happened there SiriusXM there? for is, update So another I SiriusXM with question like any mean you is of featured the is a EyeLock, Anything

Patrick Lavelle

resume. is Unfortunately, due plan customers. do their to understand that to ongoing, COVID, plan Sirius the all testing was do We they and not able the to to get around still to visitations program they and with that

it's unfortunately shut delay. when So happened That's what's we down. a

Beat Kahli

understand. going. I it's But Okay. still

there news what for I for will it's little a benefits partnership, partnership other investor company? an the mean CMI there for partnership is does mean, CMI, do for again, Besides bit for et EyeLock it's product? understand think rights, you distribution that, little direct but -- the mean, EyeLock, How great I cetera. this our the bit news really EyeLock, a any great EyeLock? VOXX, difficult exclusive to mean current I are On to I CMI improve

Patrick Lavelle

and Well, solution state-of-the-art going us access their perimeter is our out saves some from products. and the thing hardware of it that first redeveloping is

So believe new a it able our being the in move we solutions And time. with their perimeter we'll access to of why able marketplaces in reason program referenced them and to a quite was short helpful be The algorithms, product Plus to the in that they as being that July reach that novel their result of our is quickly the market that advantage. see the move direct prototypes in capability embed are to bring manufacturing next-generation have. I amount to because their this their R&D something developing the changes. marketplace we us ability there serve don't the period our though work product key fair EyeLock certain of quickly would work because is to a embed closely saves technology products. that and them of there of That's to relatively of

Beat Kahli

Okay, got it.

there? million is $XXX of part the TV question, that happened what with partnership So the And your Fire Amazon, new Automotive contracts?

Patrick Lavelle

entertainment. started Yes, with them. bring been in Amazon in to year. a the have with program FCA noted able where TV the And car car collaboration that's together the rear-seat TV we'll able Amazon next to is the Fire from to and an our position program we've be and They to for -- important middle sometime marketplace in working put of we Fire the program the

Beat Kahli

Okay.

that So haven't what XX-K. happened safety with SOLO? I seen children's product, mean in the the vehicles

Patrick Lavelle

on again. SOLO, to we work continue SOLO

key Our would a game how to was on hold after see down. the our for coming was all to like as demonstrations, system configured. That company all they show want that as CES visit plan to in discussions customers the put shut

get allowing we will a that So operations. are their program that of visitors resumption. in. That a soon can be companies still not There as will are start as into number

can there. open get as away. as done, engineering are get to those able soon children done, as those So death to better report demonstrations and car where hot to we going of be problem meetings I not up for That we is go would

will we generate. that we interested can that So develop continue any OEM to with

Beat Kahli

decreased margin out was only that, see this, the I for by revenue margin, to margins, a almost your I your overall yesterday, decrease but XX% like and stable with remained CFO, and while analyzed, that, look an mean I your by stable, When half. Is I what's release by half. normally, revenue of reason that? situation night decrease, which profit your the always there EBITDA gross maybe by jumped almost decreased behind large, is XX% only in EBITDA obviously, something the wouldn't as mean, into

Patrick Lavelle

Mike. ahead, Go

Charles Stoehr

I sorry, didn't question. understand the I'm

Beat Kahli

at When revenue that decreased seeing I your by XX%. I'm your P&L, looked

about Your What's for gross margin EBITDA decreased overall but margin half. by remained reason almost or the stable, your that? half

Charles Stoehr

the -- of sales down into we lot in driving addressed And the put the really we down. what's happened as reducing come -- a down the that is the overhead, -- overhead fourth The the number. quarter, EBIT came didn't what's went EBIT margin that is fast which as

Beat Kahli

But it's significant.

saying congratulations, still the well to that conclusion, you aligned that for Pat, much seeing that's I case. you and So I the you're compared performance. company's thanks decreasing noted that, still came with basically to compensation that EBITDA better operating suggests that gave year -- the And the your think that the only and ago same But expenses high. too much the not are -- that answer,

So Or operating adjustment will you we mean with do did expenses the in QX New to revenues? see Year what I that more now? adjust of

Patrick Lavelle

United but not States. Germany a with COVID and well. at goes we German all what with lot level out We over people the We according what as of people laws, the in took cuts, number aggressively furloughed, of furloughed taken remaining saw that XXX We've employees. Well, happened market. pay to across-the-board coming. only executive We a in

we and than we would thought aggressive COVID the that we to a what situation worse actually So see think very as it's But we've is very, cut turning there be took we done overhead because very we be much deeply. out but overhead anticipation come reduction business back. will get we year-over-year. some and it have be to a back, not to busier, back bring we is of start it not, will And in to significant all we're it my going bring

Charles Stoehr

XXXX. which the Pat the some into in quarter, as fourth will of fiscal benefits And we mentioned, come saw

Beat Kahli

previous makeup of mean, conservative appreciate of stock I your you value. And program. calls, It's as buyback sheet. what stock debt. And was Yes. the the your I to all In literally one below no listening book favorites balance is the know,

products, mean, X/X having your any I but balance profit. company, make share wouldn't own make COVID-XX look, I big more the not mentioned stock to which value is exercise a but why in is valued literally we'll I because, I sheet operational you you pay at everything like of probably you it aggressive, balance which for pursuing back. buy because I aren't one the And easiest you, of all program to look, anybody cetera, of a in However, on valuation. COVID-XX which buyback really money best even mean that that, X/X even is but hard VOXX EyeLock, the very on the or be solid looking shareholder And your shareholders is probably I'm you buy for you book I or with availability as admire price, you will have stock say see I it ample why whenever wondering, and are learn a I the can look that that. go have mean, having balance X/X not world mean, aren't reluctant sheet. easy. et mean, back just a so the -- under, fan it's relatively And stock business, I at in I'm program, personally time, to careful to you mean, for for a to but bonus to at the it. for that looks very even a And with strength this more record and sheet, stock of losses, it that largest would then

saying So balance I'm and participated, at sheet. others I'm again, those still asking having stock calls you you, buying me, so I solid in again, aren't you it more, before very, -- before aggressively back asked why the like very a moment,

Patrick Lavelle

moves We on improve -- don't, improving our But I market, the we that make shares, doing light for lowering in we now. up. can program. everything. good what do our acquiring -- And share thing to our buyback potential to very develops. facing consistently could going we'll... that And will very, to although And believe worthwhile if we think probably now we pick back this moved present are COVID margin see are are and be EBITDA thing basis go-forward will improve some up was okay? the the good a has brands, good our always happened last is Beat, that EBITDA, let's that on. to going at buybacks some point synergistic the And see one there time Well, And what's good, year, focus If opportunities a to where we're is outstanding we the we there and we of on share price this moved operations this company EBITDA, time, right our where are continue entire drove good that believe and all we over point on this be price something at with really position. our have going is up to, it. XXX,XXX here market been we us move bought sales, move But of that are shares the our here public and company, share when that

Beat Kahli

which bought, cherry own $X.XX as and books, Pat. value significant hasn't of the general. is of even value, almost look very, I have out your in EyeLock least company mean I'm has your I Pat of that is shows X/X market then point, think mean you're EyeLock that's I or buybacks you in value. I at five for a we back opportunity, safety mean, think just by equity January, at I almost sure. if see not having significant I been looks but that, stock is valuation books would but if you always valuation, gets just or the in you stock mean I a with than looked really love better, on -- buying you to mean, any larger it's $X would an your present thank literally which very the going on back that fine. on for which without book, look But for and not which abused, or answer, compete but it all when market your opportunity on believe mean, a a years, triple if it the acquisition what $X.XX see from I CFO valued to buying which profitability it very significant often share I'm has or hope I I you could at for back a potential, balance you fan is your have sheet the rare company so

Patrick Lavelle

Okay, you. Beat, thank

John Shalam

comments a is well And buybacks. terms Frankly in Beat, buyback of good strategy. And I'd Shalam. as John Pat's is -- like to to this add

capital for we stock our short-term buying better much boost use which than will to believe the honestly our a for stock. I and However, give cash have

long-term that's sales I be use to strength much at for stock operations. use to sheet plans new -- possibilities, buying have That's very balance and important is and time. to valuable add We the cash profitability us our this to think improve of our and back going our some at developments. and our our to than We our for were looking more improve

So our for the X everything we'll use the don't on think Unless stock months strategy buy no impact to I have sorry. materializes, a now. Beat, it's with good stock. cash being, it, time for us from to up back That's else

Beat Kahli

shareholders to reach decades money And year like the effect we the John, not end value goal the X with continue your triple reputation which continue I you experience with you resources, more that. the sincerely, buy years, in of at doing, hear a same for with stock, by then X consider long-term on balance to side for are if has really and if or everybody because buy the would of the meantime, consider sincerely I which I to make the will we'll I mean, the think think maybe from just I in test a to and which that you an I will case. buying same. you, with stock, have the can I may But sustainable was my assets entrepreneur then and your sheet, think

program you're of why based a And on I on share still accept find that hence, stock, in it. depends are resources valuation at if have even hugely own back entrepreneur. telling mean take and communication investments on test I VOXX And but just all said EyeLock there. and accomplishment. saying credibility the buying of I for I we'll think your better investors And the a lot that, great it I VOXX, can your and than you your you you're buyback that, this but your wondering your balance favorable you a sheet so issuing are having valuation you in So reluctantly answer. it valued without that was

John Shalam

Well, that's of developments. many exactly the strategy, and we're pending aware

are We experiencing in of growth our strong some operations.

major We our into year. Automotive coming developments in group have major, next

serve require have. than a us capital, deal owning and will will available now have things more better these we than which shares of great All we now substantial

program. execute depend Beat, buyback Thank I'll on to you. the you So

Beat Kahli

As I cited am at all. I considering I'm SEC shares in I my it record, on already disclosure, if around probably the slowly I go prayerfully million shareholder, X largest because but have will

your but proof think I'm looking pleased that's spirit to your investments Pat I forward I of think, So I'm and sure but VOXX to and than I yes, stock, with -- you mouth, execute. mean, from the better

John Shalam

continuing interest Thank your and you, appreciate support VOXX. in Beat. We

Operator

from comes David with question next Our Cohen Midwood.

David Cohen

that I it wondering didn't is quarter But all results? there necessarily of fourth of that on call actually catch addressed the our remarks. this prepared quarter the over prepared I'm the given timing remarks first were any now

Patrick Lavelle

Obviously, by is to with first shut the The be car shut happened quarter, dealerships of No. impacted Many were down. the going knows, what's down. COVID. everybody were manufacturers

in able we'll quarter, quarter going to will in to sometime middle a is the indicated slow So first will what be I've go detail in we the with our of next month, but we're have have be call, you. more first start

David Cohen

Right. Well, of that at -- that can Electronics I Consumer -- sort I make this can related Automotive, can in about comment you understand what mean general first quarter? but to the point you

Patrick Lavelle

markets, we the access not that very good. did online We had period. pretty because Electronics Consumer to performed we markets active of during switchover the -- -- business, to had were and

than months it some So originally we expect based to forecasted, Christmas, the it distribution the three surprises. really was shutdown. being the what improve had we we lot additional positive the of of And better we to really a see the quarter, but the added is although which and expect was start quarter, Christmas during our had -- that -- on online during third

Operator

[Operator Instructions].

with comes Management. BML Leonard next from Our question Brad Capital

Braden Leonard

Pat, of just here. things a couple

your down icon. I has years. going been I been long mean time when the your just lot of in my risen on know it's charges up or I for know has risen. said don't a there, X stock last looking time. X has but at data there's EBITDA I'm year-over-year, maybe EBITDA You the

EBITDA going just EBITDA So or to per you it's this, about this EBIT and up. have share. improved But improved talk is it's EBITDA, not great yes, can

to So is mean issue than whatever, at increasing better of the sure but you shares think more and the buy what bunch if going per I'm not shares, guys out So or if stock. back have know that's necessarily issue a to buying you important share I all? go having out. and that, helping shareholders something you level? I it's doing not your highest EBITDA point just EBITDA to acquisitions at that's up

Patrick Lavelle

X business, purchase you Well, used don't purchased you I we've We years we normally ever look our runs in cash. years. that when And our the or order. have of tell cycles. I can maybe shares. short we've over complete out in wipe business that, at or technology because impact business think category A we that past this in Look, could diversified use done disruptive a

a prevent one So many we've and shock diversified we've years. years company seen any that, company killer, against over ago the being to killers protect to from

commercial can have, that you've a in or the the to the maybe we been we that all quicker, our being running you recession, stocks we see years, some many really have spinoff it create move technology moving the that since do maybe market. that wipe depending total that's the groups sales short do into that. we've runs. this But EyeLock set on up, distribution going cycle that the more for EBITDA we of are product is direction their maybe the in off order. Some got move teams that either It's been be out be up and a in designed our years. or technology a Consumer And we that have operations the XX to slated But with I Automotive have programs right moving In so can when years, in influences XXXX. where the interest you We've business, right business, now was entering books. when like teams, new something But our is our we in growing. with drive direction. situation times another believe a business years, good along and with way might the down for all that electronics And down. Electronic the the of to additional some are is do it come the to our partner here been everybody and And

Braden Leonard

understand And successful the this, nature where creating disagree. is the of the and have not understand -- I in business, stock been And so Right, has don't right? long-term I that, is. been but we it I shareholder a not value

remind the I we I auto ups so are. understand we downs the And so business, of cars of again, that have out your that investment, to to they're based this On number. manage throw certain of guys cycle, guaranteed that's numbers and and me, your This -- your don't job choose it. to where is sell. going correct? there, you are a on a projections Is is but of not the amount

Patrick Lavelle

right. to on. That's on what we they're projections It's exactly are based going cars of sell of the that

Braden Leonard

Okay.

that So amount, in, not comes that that's... come into may hopefully, it

Patrick Lavelle

program program Tier the accessory this X. for is is because with -- obviously difference not an -- FCA the Hopefully yes,

cars. many how know going to They're they build. So cars to going they're those build

estimation, And product. of so much it's to manufacturer. accessory a count our trim going equipment it's carry numbers vehicles from we make that's is have the order car can number -- that levels than tighter an going a the that and to in dealer that They be can you're certain our going supplying to on, to they're those

Braden Leonard

up that selling if what don't end vehicles? they But many

Patrick Lavelle

that's always possibility. look, a Well,

Braden Leonard

don't they They they're have so... for they but X going mean build know don't budgets, many in years. to I how sure, know may

Patrick Lavelle

Look, much, contracts... those we even the to we're going so the if that business. That's of had take nature contracts

Braden Leonard

I understand. understand. I

Okay.

value here. to creating back So

guys in past. you claimed the So have

paid you business more is that So than worth it. Klipsch the for

So like that's a $X share.

and a buy a were So you a $X going told hey, bunch about creating to and We've could bunch in stock more. we're we're to back $X value, out to really go it's everybody we're of think a of year, if at see. serious we just going that, Klipsch then share, and say, you and going and worth market

back then $X for create a and and $X, value. out you $X sell lot you bunch a right? Klipsch just financial at or of if you $X So go that's bought or shares And arbitrage, of

Patrick Lavelle

true. That's

Braden Leonard

building you what creating bigger not a may I do versus serious it is mean that it we're really and company value I about it is. think If be could valuable, that. more

thoughts And kind you a of So Who's that year on who my We the year that. better for say I ago. discussed guess guys banker future. the later, a hoping we're is? still banker? the things Can in

Patrick Lavelle

this to something get is would point. at I into This want not

As we let with some get of that involved may we're signing with, people I the NDAs that more out.

Braden Leonard

announce they've hired whoever some a through line, don't review business of and go they they Marrow, Goldman, a when usually companies Well, know. on a I of oftentimes, sort process

So fine. I don't see whatever is --

Patrick Lavelle

it. We into can't get

Braden Leonard

Okay. All right.

facial EyeLock with understand the PPE So better. the about whatever is with I the this discussion wearing. it's mask the problems recognition lastly, everybody all on and

call about what it's like competitor, are. direct but And ZOLOZ themselves, whatever a or I or know EyeVerify, your against they don't So one what they something of not know called, it's now Veloz competitors? I is which

has banking. Fargo their for mobile into their app that built Wells So

app, works It it scans account. up Fargo my on a fine. works. it, So Wells it have opens I

mean than I product why So is your theirs? better

Patrick Lavelle

that because okay, case have of not available is we to iris the we licenses that are we where technology The the the we the space. have. others great over of that licenses have, everyone In outdoor, strength in have

to that you the is that is seen any iris. the iris distance the give other distance, use we've standoff that going our in And number more biometric. on depending The can you of flexibility application, of standoff greatest that is applications

So technology to if right phone, a on we're to iris when and win we be depending -- technology, against to it. testing and the things the going application, we that, standoff distance The compare outdoor, like look testing companies, if in company superior. at upfront to were our that believe it therefore, because it's are win other does simply all iris like not our me, another And far we is going ourselves systems see have up other we we're better.

Braden Leonard

works product your mean, away you So better the than further others?

Patrick Lavelle

personnel they military where sold our had program that It's that caught minute. distance. use I a them we HBox. it have had last in -- run, different We've XX through HBox, don't Yes. Army a us better we XX with all year, programs of much where a the allows know, technology we that And standoff to an a we've

Operator

comes Kahn question from Our next Kahn Brothers. with Thomas

Thomas Kahn

it Kahli XX% the Just looking VOXX. of of and or Mr. Brothers own like upwards at looks clients XX% maybe of filings, Kahn

carry So weight what Kahli of I should what because or says clients, we, some own with XX% and our some I should Mr. VOXX, XX% carry say think weight.

Patrick Lavelle

always It has.

Thomas Kahn

bloody whatever going Okay. with a nothing's to and back goes, miss far now Well, EyeLock we've head from slowly we're we as sit happened got here, opportunity if year so we as EyeLock, a far, have. but

enough put you, lose but encouraging that whatever, nothing So sizzle, you but huge speculative did much when they're amount, money EyeLock? have little what have, place probably the they'll with don't that and I I'm banker a know take some and all whether companies into there's we then I or see see hungry how I underwritings that,

Patrick Lavelle

Approximately $XX million.

Thomas Kahn

get us [indiscernible] an million $XX our money for capital, maybe, opportunity to get is there back our have on upside. a return

our the maintain And done push John, some this listening window. can up this it's and I you, is million, still to upside. man, so we John, back know $XX you're think get I somebody get but to you're the

Patrick Lavelle

the game Tom, that's plan.

any Operator, further questions? Okay.

Operator

any I'm not showing further question.

Patrick Lavelle

interest today. you to very We interesting want VOXX. I thank had conversations for in your Okay. some all

We are few in the feeling months. we're seeing what good about next

you next until forward So all safe. I look stay talking to And to again then, month.

Operator

this gentlemen, participating. concludes and you Ladies call. Thank today's conference for

You may now disconnect.

VOXX International (VOXX) 16 Jun 202020 Q4 Earnings call transcript