News Details

news

Universal Electronics Reports Financial Results for the Second Quarter 2021

Aug 5, 2021 |

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Aug. 5, 2021-- Universal Electronics Inc. (UEI) (NASDAQ: UEIC) reported financial results for the three and six months ended June 30, 2021.

“As we look towards the second half of 2021, we are beginning to see increased demand, which bodes well for our business,” said Paul Arling, UEI’s chairman and CEO. “We are seeing renewed strength in orders for the back half of 2021 on existing platforms and increased adoption of our Apple TV remote for multichannel video programming distributors across the world. We have started shipping launch quantities to our initial MVPD customers with additional launches planned later in 2021 as well as 2022. Nevo Butler, our white-label voice-enabled smart home and entertainment control hub, is in a field trial with a major European telco. However, due to semiconductor component shortages and some logistical challenges in the second quarter, we were unable to fulfill all our orders. Despite these temporal challenges, our continued focus on technology innovation, strong customer relations, and operational excellence expanded our operating profit and delivered a record second quarter EPS.

“Our ongoing commitment to innovation continues to broaden our use cases and diversify our potential customer base. We have led wireless device control for decades overcoming numerous macro-economic conditions be it component shortages, tariffs or pandemics. UEI is resilient and innovative. We set technology trends and standards. We expect to continue to lead the industry for decades to come.”

Financial Results for the Three Months Ended June 30: 2021 Compared to 2020

  • GAAP net sales were $150.5 million, compared to $153.1 million; Adjusted Non-GAAP net sales were $150.6 million, compared to $153.3 million.
  • GAAP gross margins were 29.7%, compared to 24.9%; Adjusted Non-GAAP gross margins were 30.5%, compared to 28.5%.
  • GAAP operating income was $9.0 million, compared to $6.5 million; Adjusted Non-GAAP operating income was $15.8 million, compared to $14.5 million.
  • GAAP net income was $5.6 million, or $0.40 per diluted share, compared to $14.4 million or $1.02 per share; Adjusted Non-GAAP net income was $13.6 million, or $0.98 per diluted share, compared to $12.6 million, or $0.89 per diluted share.
  • At June 30, 2021, cash and cash equivalents were $67.7 million.

Financial Results for the Six Months Ended June 30: 2021 Compared to 2020

  • GAAP net sales were $301.0 million, compared to $304.9 million; Adjusted Non-GAAP net sales were $301.3 million, compared to $305.2 million.
  • GAAP gross margins were 30.2%, compared to 26.6%; Adjusted Non-GAAP gross margins were 30.9%, compared to 29.7%.
  • GAAP operating income was $17.6 million, compared to $14.5 million; Adjusted Non-GAAP operating income was $31.5 million, compared to $29.4 million.
  • GAAP net income was $12.6 million, or $0.89 per diluted share, compared to $20.2 million or $1.43 per share; Adjusted Non-GAAP net income was $26.2 million, or $1.87 per diluted share, compared to $24.1 million, or $1.70 per diluted share.

Financial Outlook

For the third quarter of 2021, the company expects GAAP net sales to range between $160 million and $170 million, compared to $153.5 million in the third quarter of 2020. GAAP earnings per diluted share for the third quarter of 2021 are expected to range from $0.61 to $0.71, compared to a GAAP earnings per diluted share of $0.43 in the third quarter of 2020.

For the third quarter of 2021, the company expects Adjusted Non-GAAP net sales to range from $160 million to $170 million, compared to $153.7 million in the third quarter of 2020. Adjusted Non-GAAP earnings per diluted share are expected to range from $1.00 to $1.10, compared to Adjusted Non-GAAP earnings per diluted share of $0.92 in the third quarter of 2020. The third quarter 2021 Adjusted Non-GAAP earnings per diluted share estimate excludes $0.39 per share related to, among other things, excess manufacturing overhead costs, stock-based compensation, amortization of acquired intangibles, litigation costs, foreign currency gains and losses and the related tax impact of these adjustments. For a more detailed explanation of Non-GAAP measures, please see the Use of Non-GAAP Financial Metrics discussion and the Reconciliation of Adjusted Non-GAAP Financial Results, each located elsewhere in this press release.

The company continues to believe in its long-term growth targets of sales between 5% and 10% and EPS between 10% and 20%.

Conference Call Information

UEI’s management team will hold a conference call today, Thursday, August 5, 2021 at 4:30 p.m. ET / 1:30 p.m. PT, to discuss its second quarter 2021 earnings results, review recent activity and answer questions. To access the call in the U.S. please dial 877-843-0414, and for international calls dial 315-625-3071 approximately 15 minutes prior to the start of the conference. The conference ID is 8165525. The conference call will also be broadcast live on the investor section of the UEI website where it will be available for replay for one year. In addition, a replay will be available via telephone for two business days beginning two hours after the call. To listen to the replay, in the U.S. please dial 855-859-2056, and internationally dial 404-537-3406. The access code is 8165525.

Use of Non-GAAP Financial Metrics

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, UEI provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GAAP financial measures. These measures are not required by, in accordance with, or an alternative for, GAAP and may be different from non-GAAP financial measures used by other companies. UEI’s management uses these measures for reviewing the financial results of UEI for budget planning purposes and for making operational and financial decisions. Management believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, help investors evaluate UEI’s core operating and financial performance and business trends consistent with how management evaluates such performance and trends. Additionally, management believes these measures facilitate comparisons with the core operating and financial results and business trends of competitors and other companies.

Adjusted Non-GAAP net sales is defined as net sales excluding the revenue impact of stock-based compensation for performance-based warrants. Adjusted Non-GAAP gross profit is defined as gross profit excluding the impact of additional Section 301 U.S. tariffs on products manufactured in China and imported into the U.S., excess manufacturing overhead costs, including those related to the COVID-19 pandemic, factory transition costs, loss on the sale of our Ohio call center, gain on the release from our Ohio call center lease obligation guarantee, stock-based compensation expense, depreciation expense related to the increase in fixed assets from cost to fair market value resulting from acquisitions and employee related restructuring costs. Adjusted Non-GAAP operating expenses are defined as operating expenses excluding stock-based compensation expense, amortization of intangibles acquired, changes in contingent consideration related to acquisitions, costs associated with our International Trade Commission litigation efforts, and employee related restructuring and other costs. Adjusted Non-GAAP net income is defined as net income excluding the aforementioned items, the reversal of a social insurance accrual related to our Guangzhou entity, which was sold in 2018, foreign currency gains and losses, the related tax effects of all adjustments and the effect of a reversal of a reserve of an uncertain tax position related to our Guangzhou entity, which was sold in 2018. Adjusted Non-GAAP diluted earnings per share is calculated using Adjusted Non-GAAP net income. A reconciliation of these financial measures to the most directly comparable GAAP financial measures is included at the end of this press release.

About Universal Electronics

Founded in 1986, Universal Electronics Inc. (NASDAQ: UEIC) is the global leader in wireless universal control solutions for home entertainment and smart home devices. We design, develop, manufacture, ship and support control and sensor technology solutions and a broad line of universal control systems, audio video accessories, and intelligent wireless security and smart home products. Our products and solutions are used by the world's leading brands in the video services, consumer electronics, security, home automation, climate control and home appliance markets. For more information, visit www.uei.com.

Forward-looking Statements

This press release and accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including net sales, profit margin and earnings trends, estimates and assumptions; our expectations about new product introductions; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those we identify below and other risk factors that we identify in our most recent annual report on Form 10-K for the year ended December 31, 2020, and quarterly and periodic reports we have filed with the Securities Exchange Commission (the “SEC”) since then. Risks that could affect forward-looking statements in this press release include: the acceptance of and demand for the various advanced control products and technologies, including our Apple TV remote control and Nevo Butler products, technologies, and platforms; our ability to continue anticipating the needs and wants of our customers, and timely develop and deliver products and technologies that will be accepted by our customers; the continued commitment of our customers to their product development strategies that translate into greater demand for our technologies and products as anticipated by management; the continued ordering pattern of our customers as anticipated by management; management's ability to manage its business to achieve its net sales, margins, and earnings through its operating efficiencies, product mix, and gross margin improvement initiatives as guided and as anticipated; our ability to enhance and protect the value of our intellectual properties, including our patents and trade secrets, through our licensing and litigation efforts; interruptions in our supply and logistics chains; the effects that natural disasters and public health crises, including the COVID-19 pandemic, have on our business and management’s ability to anticipate and mitigate those effects, including the duration, severity and scope of the COVID-19 pandemic, and the actions and restrictions that may be imposed on us and our operations by federal, state, local and international public health and governmental authorities to contain and combat the outbreak and spread of COVID-19, each of which may exacerbate one or more of the aforementioned risks; and uncertainties and other factors more fully described in our reports filed with the SEC; and effects that changes in laws, regulations and policies may have on our business including the impact of trade regulations pertaining to importation of our products and the tariffs imposed upon them. Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. Further, any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release. We make these forward-looking statements as of August 5, 2021, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

– Tables Follow –

         

UNIVERSAL ELECTRONICS INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share-related data)

(Unaudited)

         

 

 

June 30, 2021

 

December 31, 2020

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

67,690

 

 

$

57,153

 

Accounts receivable, net

 

134,994

 

 

129,433

 

Contract assets

 

9,585

 

 

9,685

 

Inventories

 

121,430

 

 

120,430

 

Prepaid expenses and other current assets

 

6,901

 

 

6,828

 

Income tax receivable

 

3,650

 

 

3,314

 

Total current assets

 

344,250

 

 

326,843

 

Property, plant and equipment, net

 

82,485

 

 

87,285

 

Goodwill

 

48,555

 

 

48,614

 

Intangible assets, net

 

19,923

 

 

19,710

 

Operating lease right-of-use assets

 

19,098

 

 

19,522

 

Deferred income taxes

 

4,571

 

 

5,564

 

Other assets

 

2,502

 

 

2,752

 

Total assets

 

$

521,384

 

 

$

510,290

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

90,079

 

 

$

83,229

 

Line of credit

 

46,000

 

 

20,000

 

Accrued compensation

 

24,207

 

 

28,931

 

Accrued sales discounts, rebates and royalties

 

6,597

 

 

10,758

 

Accrued income taxes

 

1,027

 

 

3,535

 

Other accrued liabilities

 

29,046

 

 

33,057

 

Total current liabilities

 

196,956

 

 

179,510

 

Long-term liabilities:

 

 

 

 

Operating lease obligations

 

13,197

 

 

13,681

 

Contingent consideration

 

 

 

292

 

Deferred income taxes

 

2,477

 

 

1,913

 

Income tax payable

 

1,054

 

 

1,054

 

Other long-term liabilities

 

332

 

 

539

 

Total liabilities

 

214,016

 

 

196,989

 

Commitments and contingencies

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding

 

 

 

 

Common stock, $0.01 par value, 50,000,000 shares authorized; 24,603,638 and 24,391,595 shares issued on June 30, 2021 and December 31, 2020, respectively

 

246

 

 

244

 

Paid-in capital

 

309,072

 

 

302,084

 

Treasury stock, at cost, 11,128,717 and 10,618,002 shares on June 30, 2021 and December 31, 2020, respectively

 

(322,179

)

 

(295,495

)

Accumulated other comprehensive income (loss)

 

(17,347

)

 

(18,522

)

Retained earnings

 

337,576

 

 

324,990

 

Total stockholders’ equity

 

307,368

 

 

313,301

 

Total liabilities and stockholders’ equity

 

$

521,384

 

 

$

510,290

 

       

UNIVERSAL ELECTRONICS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

       

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

Net sales

$

150,491

 

 

$

153,133

 

 

$

301,033

 

 

$

304,911

 

Cost of sales

105,829

 

 

115,058

 

 

209,972

 

 

223,895

 

Gross profit

44,662

 

 

38,075

 

 

91,061

 

 

81,016

 

Research and development expenses

7,676

 

 

7,385

 

 

15,618

 

 

15,283

 

Selling, general and administrative expenses

27,965

 

 

24,230

 

 

57,811

 

 

51,227

 

Operating income

9,021

 

 

6,460

 

 

17,632

 

 

14,506

 

Interest income (expense), net

(127

)

 

(372

)

 

(235

)

 

(1,004

)

Accrued social insurance adjustment

 

 

9,464

 

 

 

 

9,464

 

Other income (expense), net

(17

)

 

731

 

 

6

 

 

383

 

Income before provision for income taxes

8,877

 

 

16,283

 

 

17,403

 

 

23,349

 

Provision for income taxes

3,284

 

 

1,883

 

 

4,817

 

 

3,103

 

Net income

$

5,593

 

 

$

14,400

 

 

$

12,586

 

 

$

20,246

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

Basic

$

0.41

 

 

$

1.03

 

 

$

0.92

 

 

$

1.45

 

Diluted

$

0.40

 

 

$

1.02

 

 

$

0.89

 

 

$

1.43

 

Shares used in computing earnings per share:

 

 

 

 

 

 

 

Basic

13,672

 

13,915

 

13,737

 

13,938

Diluted

13,926

 

14,151

 

14,062

 

14,181

     

UNIVERSAL ELECTRONICS INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

     

 

 

Six Months Ended June 30,

 

 

2021

 

2020

Cash flows from operating activities:

 

 

 

 

Net income

 

$

12,586

 

 

$

20,246

 

Adjustments to reconcile net income to net cash used for operating activities:

 

 

 

 

Depreciation and amortization

 

13,128

 

 

15,663

 

Provision for credit losses

 

1

 

 

240

 

Deferred income taxes

 

1,637

 

 

1,275

 

Shares issued for employee benefit plan

 

681

 

 

739

 

Employee and director stock-based compensation

 

5,044

 

 

4,594

 

Performance-based common stock warrants

 

274

 

 

338

 

Impairment of long-term assets

 

 

 

50

 

Accrued social insurance adjustment

 

 

 

(9,464

)

Loss on sale of Ohio call center

 

 

 

712

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable and contract assets

 

(6,241

)

 

(848

)

Inventories

 

(1,076

)

 

9,571

 

Prepaid expenses and other assets

 

625

 

 

1,947

 

Accounts payable and accrued liabilities

 

(7,338

)

 

(40,869

)

Accrued income taxes

 

(2,837

)

 

293

 

Net cash provided by operating activities

 

16,484

 

 

4,487

 

Cash flows from investing activities:

 

 

 

 

Acquisitions of property, plant and equipment

 

(6,206

)

 

(6,210

)

Acquisitions of intangible assets

 

(1,907

)

 

(3,077

)

Payment on sale of Ohio call center

 

 

 

(500

)

Net cash used for investing activities

 

(8,113

)

 

(9,787

)

Cash flows from financing activities:

 

 

 

 

Borrowings under line of credit

 

41,000

 

 

50,000

 

Repayments on line of credit

 

(15,000

)

 

(45,000

)

Proceeds from stock options exercised

 

991

 

 

 

Treasury stock purchased

 

(26,684

)

 

(6,405

)

Contingent consideration payments in connection with business combinations

 

 

 

(3,091

)

Net cash provided by (used for) financing activities

 

307

 

 

(4,496

)

Effect of foreign currency exchange rates on cash and cash equivalents

 

1,859

 

 

(5,674

)

Net increase (decrease) in cash and cash equivalents

 

10,537

 

 

(15,470

)

Cash and cash equivalents at beginning of period

 

57,153

 

 

74,302

 

Cash and cash equivalents at end of period

 

$

67,690

 

 

$

58,832

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

Income taxes paid

 

$

5,663

 

 

$

2,215

 

Interest paid

 

$

202

 

 

$

1,069

 

         

UNIVERSAL ELECTRONICS INC.

RECONCILIATION OF ADJUSTED NON-GAAP FINANCIAL RESULTS

(In thousands, except per share amounts)

(Unaudited)

         

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2021

 

2020

 

2021

 

2020

Net sales:

 

 

 

 

 

 

 

 

Net sales - GAAP

 

$

150,491

 

 

$

153,133

 

 

$

301,033

 

 

$

304,911

 

Stock-based compensation for performance-based warrants

 

131

 

 

154

 

 

274

 

 

338

 

Adjusted Non-GAAP net sales

 

$

150,622

 

 

$

153,287

 

 

$

301,307

 

 

$

305,249

 

 

 

 

 

 

 

 

 

 

Cost of sales:

 

 

 

 

 

 

 

 

Cost of sales – GAAP

 

$

105,829

 

 

$

115,058

 

 

$

209,972

 

 

$

223,895

 

Section 301 U.S. tariffs on goods imported from China (1)

 

 

 

(3,523

)

 

 

 

(3,523

)

Excess manufacturing overhead and factory transition costs (2)

 

(976

)

 

(1,813

)

 

(2,221

)

 

(4,728

)

Loss on sale of Ohio call center (3)

 

 

 

 

 

 

 

(570

)

Gain on release from Ohio call center lease obligation guarantee (4)

 

 

 

 

 

542

 

 

 

Stock-based compensation expense

 

(40

)

 

(36

)

 

(77

)

 

(110

)

Adjustments to acquired tangible assets (5)

 

(64

)

 

(66

)

 

(129

)

 

(132

)

Employee related restructuring

 

 

 

 

 

 

 

(204

)

Adjusted Non-GAAP cost of sales

 

104,749

 

 

109,620

 

 

208,087

 

 

214,628

 

Adjusted Non-GAAP gross profit

 

$

45,873

 

 

$

43,667

 

 

$

93,220

 

 

$

90,621

 

 

 

 

 

 

 

 

 

 

Gross margin:

 

 

 

 

 

 

 

 

Gross margin – GAAP

 

29.7

%

 

24.9

%

 

30.2

%

 

26.6

%

Stock-based compensation for performance-based warrants

 

0.2

%

 

0.1

%

 

0.2

%

 

0.1

%

Section 301 U.S. tariffs on goods imported from China (1)

 

%

 

2.3

%

 

%

 

1.2

%

Excess manufacturing overhead and factory transition costs (2)

 

0.6

%

 

1.2

%

 

0.7

%

 

1.6

%

Loss on sale of Ohio call center (3)

 

%

 

%

 

%

 

0.2

%

Gain on release from Ohio call center lease obligation guarantee (4)

 

%

 

%

 

(0.2

)%

 

%

Stock-based compensation expense

 

0.0

%

 

0.0

%

 

0.0

%

 

0.0

%

Adjustments to acquired tangible assets (5)

 

0.0

%

 

0.0

%

 

0.0

%

 

0.0

%

Employee related restructuring

 

%

 

%

 

%

 

0.0

%

Adjusted Non-GAAP gross margin

 

30.5

%

 

28.5

%

 

30.9

%

 

29.7

%

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Operating expenses - GAAP

 

$

35,641

 

 

$

31,615

 

 

$

73,429

 

 

$

66,510

 

Stock-based compensation expense

 

(2,404

)

 

(2,255

)

 

(4,967

)

 

(4,484

)

Amortization of acquired intangible assets

 

(277

)

 

(1,396

)

 

(553

)

 

(2,791

)

Change in contingent consideration

 

 

 

1,261

 

 

193

 

 

2,224

 

Litigation costs (6)

 

(2,908

)

 

 

 

(6,477

)

 

 

Employee related restructuring and other costs

 

 

 

(50

)

 

111

 

 

(287

)

Adjusted Non-GAAP operating expenses

 

$

30,052

 

 

$

29,175

 

 

$

61,736

 

 

$

61,172

 

         

UNIVERSAL ELECTRONICS INC.

RECONCILIATION OF ADJUSTED NON-GAAP FINANCIAL RESULTS

(In thousands, except per share amounts)

(Unaudited)

         

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2021

 

2020

 

2021

 

2020

Operating income:

 

 

 

 

 

 

 

 

Operating income - GAAP

 

$

9,021

 

 

$

6,460

 

 

$

17,632

 

 

$

14,506

 

Stock-based compensation for performance-based warrants

 

131

 

 

154

 

 

274

 

 

338

 

Section 301 U.S. tariffs on goods imported from China (1)

 

 

 

3,523

 

 

 

 

3,523

 

Excess manufacturing overhead and factory transition costs (2)

 

976

 

 

1,813

 

 

2,221

 

 

4,728

 

Loss on sale of Ohio call center (3)

 

 

 

 

 

 

 

570

 

Gain on release from Ohio call center lease obligation guarantee (4)

 

 

 

 

 

(542

)

 

 

Stock-based compensation expense

 

2,444

 

 

2,291

 

 

5,044

 

 

4,594

 

Adjustments to acquired tangible assets (5)

 

64

 

 

66

 

 

129

 

 

132

 

Amortization of acquired intangible assets

 

277

 

 

1,396

 

 

553

 

 

2,791

 

Change in contingent consideration

 

 

 

(1,261

)

 

(193

)

 

(2,224

)

Litigation costs (6)

 

2,908

 

 

 

 

6,477

 

 

 

Employee related restructuring and other costs

 

 

 

50

 

 

(111

)

 

491

 

Adjusted Non-GAAP operating income

 

$

15,821

 

 

$

14,492

 

 

$

31,484

 

 

$

29,449

 

 

 

 

 

 

 

 

 

 

Adjusted pro forma operating income as a percentage of net sales

 

10.5

%

 

9.5

%

 

10.4

%

 

9.6

%

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

Net income - GAAP

 

$

5,593

 

 

$

14,400

 

 

$

12,586

 

 

$

20,246

 

Stock-based compensation for performance-based warrants

 

131

 

 

154

 

 

274

 

 

338

 

Section 301 U.S. tariffs on goods imported from China (1)

 

 

 

3,523

 

 

 

 

3,523

 

Excess manufacturing overhead and factory transition costs (2)

 

976

 

 

1,813

 

 

2,221

 

 

4,728

 

Loss on sale of Ohio call center (3)

 

 

 

 

 

 

 

570

 

Gain on release from Ohio call center lease obligation guarantee (4)

 

 

 

 

 

(542

)

 

 

Stock-based compensation expense

 

2,444

 

 

2,291

 

 

5,044

 

 

4,594

 

Adjustments to acquired tangible assets (5)

 

64

 

 

66

 

 

129

 

 

132

 

Amortization of acquired intangible assets

 

277

 

 

1,396

 

 

553

 

 

2,791

 

Change in contingent consideration

 

 

 

(1,261

)

 

(193

)

 

(2,224

)

Litigation costs (6)

 

2,908

 

 

 

 

6,477

 

 

 

Employee related restructuring and other costs

 

 

 

50

 

 

(111

)

 

491

 

Accrued social insurance adjustment (7)

 

 

 

(9,464

)

 

 

 

(9,464

)

Foreign currency (gain) loss

 

480

 

 

(505

)

 

589

 

 

(209

)

Income tax provision on adjustments

 

733

 

 

1,467

 

 

(800

)

 

(75

)

Other income tax adjustments (8)

 

 

 

(1,303

)

 

 

 

(1,303

)

Adjusted Non-GAAP net income

 

$

13,606

 

 

$

12,627

 

 

$

26,227

 

 

$

24,138

 

 

 

 

 

 

 

 

 

 

Diluted shares used in computing earnings per share:

 

 

 

 

 

 

 

 

GAAP

 

13,926

 

 

14,151

 

 

14,062

 

 

14,181

 

Adjusted Non-GAAP

 

13,926

 

 

14,151

 

 

14,062

 

 

14,181

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

Diluted earnings per share - GAAP

 

$

0.40

 

 

$

1.02

 

 

$

0.89

 

 

$

1.43

 

Total adjustments

 

$

0.58

 

 

$

(0.13

)

 

$

0.97

 

 

$

0.27

 

Adjusted Non-GAAP diluted earnings per share

 

$

0.98

 

 

$

0.89

 

 

$

1.87

 

 

$

1.70

 

(1)

The three and six months ended June 30, 2020 include costs directly attributable to the additional Section 301 U.S. tariffs implemented in 2018 on goods manufactured in China and imported into the U.S.

(2)

The three and six months ended June 30, 2021 and 2020 include excess manufacturing overhead costs due to the expansion of our manufacturing facility in Mexico where products destined for the U.S. market are now manufactured. These products destined for the U.S. market were previously manufactured in China. Additionally, the six months ended June 30, 2020 includes excess manufacturing overhead costs incurred as we temporarily shut-down our China and Mexico-based factories as a result of the COVID-19 pandemic.

(3)

Consists of the loss recorded on the sale of our Ohio call center in February 2020.

(4)

Consists of the gain associated with the January 2021 release from our guarantee of the lease obligation related to our Ohio call center which was sold in February 2020.

(5)

Consists of depreciation related to the mark-up from cost to fair value of fixed assets acquired in business combinations.

(6)

Consists of expenses related to our International Trade Commission (“ITC”) investigation of Roku, Inc. and certain other related entities. We have requested the ITC to issue a permanent limited exclusion order prohibiting the importation of certain products into the United States due to their infringement of our patents.

(7)

Consists of the reversal of a social insurance accrual related to our Guangzhou entity, which was sold in 2018. The indemnification agreement related to the sale of our Guangzhou entity expired in the second quarter of 2020.

(8)

The three and six months ended June 30, 2020 includes the reversal of a reserve of an uncertain tax position related to our Guangzhou entity, which was sold in 2018. The indemnification agreement related to the sale of our Guangzhou entity expired in the second quarter of 2020.

 

Paul Arling, Chairman & CEO, UEI, 480.530.3000
Press: Shoshana Leon, Corporate Communications, UEI, sleon@uei.com, 480.521.3354
Investors: Kirsten Chapman, LHA Investor Relations, uei@lhai.com, 415.433.3777

Source: Universal Electronics Inc.

INVESTORS

Quick Links