Universal Electronics Reports Second Quarter 2009 Financial Results
Aug 6, 2009
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- Reports EPS of $0.27, Up 13% over Second Quarter 2008 -
“Our strong second quarter revenue of
Quarterly Financial Results: Second Quarter 2009 Compared to Second Quarter 2008
-
Net sales were
$78.3 million , compared to$70.7 million .
-
Business Category revenue was
$68.1 million , compared to$56.8 million . The Business Category contributed 87% of total net sales, compared to 80%. -
Consumer Category revenue was
$10.2 million , compared to$13.9 million . The Consumer Category contributed 13% of total net sales, compared to 20%.
-
Business Category revenue was
- Gross margins were 32.6 %, compared to 34.3%.
-
Total operating expenses were
$19.8 million , compared to$19.9 million . -
Net income was
$3.8 million , or$0.27 per diluted share, compared to$3.5 million , or$0.24 per diluted share. -
At
June 30 th, the cash and cash equivalents and term deposit balance was$70.6 million .
Six-month Period Financial Results:
-
Net sales were
$149.4 million , compared to$131.9 million . - Gross margins were 31.4%, compared to 34.8%.
-
Total operating expenses were
$39.7 million , including$1.1 million in deal costs relating to the acquisition of remote control assets fromZilog, Inc , compared to$38.9 million . -
Net income was
$ 4.6 million , or$0.33 per diluted share, compared to$6.0 million , or$0.40 per diluted share.
Financial Outlook
Hackworth continued, “When determining our guidance, we use both micro data such as internal sales and customer forecasts as well as macro data such as industry and general economic forecasts. These data inputs have become increasingly unclear and at times contradictory in both the Business and Consumer categories. We believe this to be a result of the volatility and unpredictability of the current economy. While we have met or exceeded expectations in both the first and second quarter of 2009, our visibility of future outcomes beyond one quarter has diminished considerably throughout the current year. As a result, we will not provide detailed guidance for the full year 2009; however, we believe we will continue to produce sales growth for the remainder of 2009 and we expect earnings to be relatively flat compared to the prior year.”
For the third quarter of 2009, net sales are expected to range between
Conference Call Information
UEI’s management team will hold a conference call today,
About
Founded in 1986,
Safe Harbor Statement
This press release contains forward-looking statements that are made
pursuant to the Safe-Harbor provisions of the Private Securities
Litigation Reform Act of 1995. Words and expressions reflecting
something other than historical fact are intended to identify
forward-looking statements. These forward-looking statements involve a
number of risks and uncertainties, including the timing and success of
the Company’s integration of recently acquired the patented and software
technologies with the Company’s existing technologies, including the
successful transition of recently hired personnel and technology
development; the ability to realize anticipated synergies from the Zilog
acquired assets with the Company’s existing businesses; the continued
growth in the subscription broadcasting markets and continued increasing
global consumer demand for advanced technologies including digital, DVR,
and HD transitions; the continued softness in our worldwide
markets due to the current economic environment; general economic
conditions; and other factors described in the Company's filings with
the
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UNIVERSAL ELECTRONICS INC. |
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CONSOLIDATED BALANCE SHEETS |
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(In thousands, except share-related data) |
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(Unaudited) |
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June 30,
2009 |
December 31,
2008 |
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| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 21,377 | $ | 75,238 | ||||
| Term deposit | 49,199 | — | ||||||
| Accounts receivable, net | 58,636 | 59,825 | ||||||
| Inventories, net | 44,722 | 43,675 | ||||||
| Prepaid expenses and other current assets | 2,354 | 3,461 | ||||||
| Deferred income taxes | 2,402 | 2,421 | ||||||
| Total current assets | 178,690 | 184,620 | ||||||
| Equipment, furniture and fixtures, net | 8,472 | 8,686 | ||||||
| Goodwill | 13,674 | 10,757 | ||||||
| Intangible assets, net | 12,076 | 5,637 | ||||||
| Other assets | 624 | 609 | ||||||
| Deferred income taxes | 7,391 | 7,246 | ||||||
| Total assets | $ | 220,927 | $ | 217,555 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 42,603 | $ | 44,705 | ||||
| Accrued sales discounts, rebates and royalties | 4,426 | 4,848 | ||||||
| Accrued income taxes | 1,828 | 2,334 | ||||||
| Accrued compensation | 4,779 | 3,617 | ||||||
| Other accrued expenses | 6,966 | 6,813 | ||||||
| Total current liabilities | 60,602 | 62,317 | ||||||
| Long-term liabilities: | ||||||||
| Deferred income taxes | 140 | 130 | ||||||
| Income tax payable | 1,442 | 1,442 | ||||||
| Other long-term liabilities | 154 | 313 | ||||||
| Total liabilities | 62,338 | 64,202 | ||||||
| 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; 18,925,878 and 18,715,833 shares issued at June 30, 2009 and December 31, 2008, respectively | 189 | 187 | ||||||
| Paid-in capital | 124,643 | 120,551 | ||||||
| Accumulated other comprehensive income | 966 | 750 | ||||||
| Retained earnings | 108,926 | 104,314 | ||||||
| 234,724 | 225,802 | |||||||
| Less cost of common stock in treasury, 5,274,296 and 5,070,319 shares at June 30, 2009 and December 31, 2008, respectively | (76,135 | ) | (72,449 | ) | ||||
| Total stockholders’ equity | 158,589 | 153,353 | ||||||
| Total liabilities and stockholders’ equity | $ | 220,927 | $ | 217,555 | ||||
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UNIVERSAL ELECTRONICS INC. |
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CONSOLIDATED INCOME STATEMENTS |
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(In thousands, except per share amounts) |
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(Unaudited) |
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| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Net sales | $ | 78,303 | $ | 70,684 | $ | 149,429 | $ | 131,875 | ||||||||
| Cost of sales | 52,808 | 46,472 | 102,497 | 85,928 | ||||||||||||
| Gross profit | 25,495 | 24,212 | 46,932 | 45,947 | ||||||||||||
| Research and development expenses | 2,050 | 2,121 | 4,160 | 4,317 | ||||||||||||
| Selling, general and administrative expenses | 17,758 | 17,734 | 35,549 | 34,590 | ||||||||||||
| Operating income | 5,687 | 4,357 | 7,223 | 7,040 | ||||||||||||
| Interest income, net | 127 | 893 | 266 | 1,790 | ||||||||||||
| Other income (expense), net | 182 | (2 | ) | (186 | ) | 180 | ||||||||||
| Income before provision for income taxes | 5,996 | 5,248 | 7,303 | 9,010 | ||||||||||||
| Provision for income taxes | (2,180 | ) | (1,753 | ) | (2,691 | ) | (3,042 | ) | ||||||||
| Net income | $ | 3,816 | $ | 3,495 | $ | 4,612 | $ | 5,968 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.28 | $ | 0.25 | $ | 0.34 | $ | 0.42 | ||||||||
| Diluted | $ | 0.27 | $ | 0.24 | $ | 0.33 | $ | 0.40 | ||||||||
| Shares used in computing earnings per share: | ||||||||||||||||
| Basic | 13,621 | 14,033 | 13,640 | 14,256 | ||||||||||||
| Diluted | 13,981 | 14,547 | 13,907 | 14,755 | ||||||||||||
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UNIVERSAL ELECTRONICS INC. |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(In thousands) |
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(Unaudited) |
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Six Months Ended
June 30, |
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| 2009 | 2008 | |||||||
| Cash provided by operating activities: | ||||||||
| Net income | $ | 4,612 | $ | 5,968 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 3,332 | 2,892 | ||||||
| Provision for doubtful accounts | 143 | 64 | ||||||
| Provision for inventory write-downs | 2,170 | 973 | ||||||
| Benefit for deferred income taxes | (111 | ) | (171 | ) | ||||
| Tax benefit from exercise of stock options | 301 | 171 | ||||||
| Excess tax benefit from stock-based compensation | (151 | ) | (134 | ) | ||||
| Shares issued for employee benefit plan | 342 | 282 | ||||||
| Stock-based compensation | 2,081 | 2,311 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 927 | 4,173 | ||||||
| Inventories | (3,021 | ) | (7,462 | ) | ||||
| Prepaid expenses and other assets | 1,112 | (1,112 | ) | |||||
| Accounts payable and accrued expenses | (1,603 | ) | 8,795 | |||||
| Accrued income taxes | (527 | ) | 639 | |||||
| Net cash provided by operating activities | 9,607 | 17,389 | ||||||
| Cash used for investing activities: | ||||||||
| Term deposit | (49,199 | ) | — | |||||
| Acquisition of equipment, furniture and fixtures | (2,193 | ) | (3,457 | ) | ||||
| Acquisition of intangible assets | (751 | ) | (505 | ) | ||||
| Acquisition of assets from Zilog, Inc. | (9,502 | ) | — | |||||
| Net cash used for investing activities | (61,645 | ) | (3,962 | ) | ||||
| Cash used for financing activities: | ||||||||
| Proceeds from stock options exercised | 1,557 | 525 | ||||||
| Treasury stock purchased | (3,873 | ) | (17,489 | ) | ||||
| Excess tax benefit from stock-based compensation | 151 | 134 | ||||||
| Net cash used for financing activities | (2,165 | ) | (16,830 | ) | ||||
| Effect of exchange rate changes on cash | 342 | 5,008 | ||||||
| Net (decrease) increase in cash and cash equivalents | (53,861 | ) | 1,605 | |||||
| Cash and cash equivalents at beginning of period | 75,238 | 86,610 | ||||||
| Cash and cash equivalents at end of period | $ | 21,377 | $ | 88,215 | ||||
Source:
UEI
Paul Arling, 714-820-1000
or
IR Agency
Kirsten
Chapman, 415-433-3777