SECURITIES AND EXCHANGE COMMISSION
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTIONS 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): February 17, 2005
UNIVERSAL ELECTRONICS INC.
Delaware (State or other jurisdiction of incorporation or organization) |
33-0204817 (I.R.S. Employer Identification No.) |
6101 Gateway Drive
Cypress, California 90630
(Address of principal executive offices, with Zip Code)
(714) 820-1000
(Registrants telephone number, including area code):
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
Item 2.02 Results of Operations and Financial Condition | ||||||||
Item 9.01 Financial Statements and Exhibits | ||||||||
SIGNATURES | ||||||||
INDEX TO EXHIBITS | ||||||||
EXHIBIT 99.1 |
Item 2.02 Results of Operations and Financial Condition
Press Release Dated February 17, 2005 Universal Electronics Reports Strong Fourth Quarter and Year-end 2004 Financial Results |
Item 9.01 Financial Statements and Exhibits
(c) | Exhibits |
99.1 Press Release dated February 17, 2005. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Universal Electronics Inc. |
||||
Date: February 17, 2005 | By: | /s/ Bernard J. Pitz | ||
Bernard J. Pitz | ||||
Senior Vice President and Chief Financial Officer (Principal Financial Officer) | ||||
INDEX TO EXHIBITS
Exhibit Number | Description | |
99.1
|
Press Release dated February 17, 2005 |
Exhibit 99.1
Contacts: Paul Arling (UEI) 714.820.1000
Kirsten Chapman (IR Agency) 415.433.3777
UNIVERSAL ELECTRONICS REPORTS STRONG FOURTH QUARTER AND
YEAR-END 2004 FINANCIAL RESULTS
- Annual Net Sales Grew 31 Percent and Net Income Increased 45 Percent Compared to 2003 -
CYPRESS, CA February 17, 2005 Leading wireless technology developer Universal Electronics Inc. (UEI; NASDAQ: UEIC) today announced financial results for the fourth quarter and year ended December 31, 2004.
Net sales for the fourth quarter of 2004 were $51.7 million compared to $35.5 million for the same quarter last year. The $16.2 million increase in sales from fourth quarter 2003 to fourth quarter 2004 was primarily attributable to original equipment manufacturer (OEM) sales both in the United States and abroad. Operating income increased 74 percent during the fourth quarter 2004 to $5.7 million. Net income for the 2004 fourth quarter was $3.7 million, or $0.26 per diluted share, compared to $2.5 million, or $0.17 per diluted share, for the fourth quarter of 2003.
Net sales for the year-ended December 31, 2004 were $158.4 million compared to $120.5 million for the year ended December 31, 2003. Operating income increased to $13.5 million and grew 58 percent compared to last year. Net income for the year 2004 was $9.1 million, or $0.65 per diluted share, compared to $6.3 million, or $0.45 per diluted share, for the year 2003.
2004 was a year of strong revenue and earnings growth for UEI, stated Paul Arling, the companys chairman and chief executive officer. Net sales in the fourth
quarter increased 46 percent from last year as a result of strong retail sales, growth in our worldwide OEM business and the continued strengthening of customer relationships across our entire business. As we look toward the future, our broadening technology base combined with the acquisition of SimpleDevices, illustrates the lead our technologies have in todays home.
Our successful execution of our sales, operational and product plans led to our strong growth in 2004, said Rob Lilleness, UEIs president and chief operating officer. In 2005, we are excited about leveraging our industry-leading connectivity software and intellectual property to continue to expand in our core market. In addition, we will introduce customizable and digital media solutions into the custom installer marketplace with our NevoSL product, which we unveiled at the International Consumer Electronics Show in January.
Bernie Pitz, UEIs chief financial officer, added, In 2004, despite the repurchase of 495,000 shares for approximately $6.7 million, our investment in technology and the acquisition of SimpleDevices in October for $12.5 million, we closed the year with $42.5 million in cash and cash equivalents. In addition, our gross margin remained on target at 39.1 percent for the fourth quarter and 38.9 percent for the full year 2004.
Conference Call Information:
UEIs management team will hold a conference call today, Thursday February 17, 2005 at 1:30 p.m.
Pacific Time to review year-end results and hold a question and answer session for callers. To
participate call 1-800-622-9917 ten minutes prior to start time. International dialers call
1-706-645-0366. The live call can also be accessed via the Internet through Universals Web site
at www.uei.com. If you are unable to participate, a replay will be available beginning at 7:30
p.m. Eastern Time on February 17, 2005 until
11:59 p.m. Eastern Time on February 21, 2005. To access, please dial 1-800-642-1687 and international 706-645-9291, reservation number 3443774. The web cast replay will be available at www.uei.com.
About Universal Electronics
Universal Electronics Inc., based in Southern California, develops firmware and turnkey solutions
as well as software designed to enable consumers to wirelessly connect, control and interact with
an increasingly complex home environment. The companys primary markets include original equipment
manufacturers (OEMs) in consumer electronics and personal computing, as well as multiple system
operators in the cable and satellite subscription broadcasting markets. Over the past 16 years, the
company has developed a broad portfolio of patented technologies and the industrys leading
database of home connectivity software that it licenses to its customers, including many leading
Fortune 500 companies. In addition, UEI sells its universal wireless control products and other
audio/visual accessories through its European headquarters in The Netherlands, and to distributors
and retailers in Europe, Asia, Latin America, South Africa and Australia/New Zealand under the One
For All® brand name. More information about UEI can be obtained at http://www.uei.com.
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from those expressed herein are the following: the failure of the companys business lines to grow and expand in the manner anticipated by the companys management; the failure of the companys customers to grow and expand as anticipated by the companys management; the strength of the Euro as compared to the U.S. Dollar continuing in a manner similar to that experienced during 2004; the growth of, acceptance of and the demand for the companys products and technologies, including new products such as NevoSL, in various markets and geographical regions, including the computing, cable, satellite, consumer electronics, OEM, retail and interactive TV and home automation industries, not materializing as believed by the companys management; the companys inability to add profitable complementary products which are accepted by the market place; the inability by the company to continue to maintain its operating costs at acceptable levels through its cost containment efforts; the companys European subsidiaries continuing to grow and expand its product lines as in the past; the continued strength of the companys balance sheet including the ability to obtain payments from its customers on a timely basis; the inability of the company to continue selling its products or licensing its technologies at higher or profitable margins throughout 2005 and beyond; the failure of the various markets and industries to grow or emerge as rapidly or as successfully as believed by the companys management; the inability of the company to obtain orders or maintain its order volume with its new and existing customers; the possible dilutive effect the companys stock option programs may have on the companys EPS and stock price; the effect of factors(including domestic and global economic environments and natural and other events) beyond the companys control that increase the cost of manufacturing and/or delivering the companys products; the inability of the company to deliver the NevoSL at the time and in the quantities anticipated by the companys management, or to continue to obtain adequate quantities of component parts or secure adequate factory production capacity on a timely basis; and other factors listed from time to time in the companys press releases and SEC filings. The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
- Tables Follow -
UNIVERSAL ELECTRONICS INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
December 31, | December 31, | |||||||
2004 | 2003 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 42,472 | $ | 58,481 | ||||
Accounts receivable, net |
38,763 | 30,501 | ||||||
Inventories |
23,862 | 19,386 | ||||||
Prepaid expenses and other current assets |
1,907 | 1,108 | ||||||
Income tax receivable |
1,158 | 1,167 | ||||||
Deferred income taxes |
3,216 | 2,544 | ||||||
Total current assets |
111,378 | 113,187 | ||||||
Equipment, furniture and fixtures, net |
3,732 | 3,475 | ||||||
Goodwill |
10,655 | 3,348 | ||||||
Intangible assets, net |
6,550 | 3,431 | ||||||
Other assets |
2,935 | 1,445 | ||||||
Deferred income taxes |
5,035 | 1,281 | ||||||
Total assets |
$ | 140,285 | $ | 126,167 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 17,559 | $ | 13,754 | ||||
Accrued income taxes |
4,370 | 4,504 | ||||||
Accrued compensation |
5,914 | 2,923 | ||||||
Other accrued expenses |
8,454 | 9,815 | ||||||
Total current liabilities |
36,297 | 30,996 | ||||||
Long term liabilities
Deferred income taxes |
107 | 0 | ||||||
Total liabilities |
36,404 | 30,996 | ||||||
Stockholders equity: |
||||||||
Common stock |
166 | 164 | ||||||
Paid-in capital |
78,872 | 75,805 | ||||||
Accumulated other comprehensive income (loss) |
3,571 | 298 | ||||||
Retained earnings |
45,293 | 36,179 | ||||||
Deferred stock-based compensation |
(168 | ) | (42 | ) | ||||
Common stock held in treasury |
(23,853 | ) | (17,233 | ) | ||||
Total stockholders equity |
103,881 | 95,171 | ||||||
Total liabilities and stockholders equity |
$ | 140,285 | $ | 126,167 | ||||
UNIVERSAL ELECTRONICS INC.
CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Net sales |
$ | 51,711 | $ | 35,537 | $ | 158,380 | $ | 120,468 | ||||||||
Cost of sales |
31,467 | 22,057 | 96,800 | 74,168 | ||||||||||||
Gross profit |
20,244 | 13,480 | 61,580 | 46,300 | ||||||||||||
Research and Development |
1,533 | 1,159 | 5,625 | 4,700 | ||||||||||||
Selling, general and
administrative expenses |
12,964 | 9,020 | 42,415 | 33,026 | ||||||||||||
Operating expenses |
14,497 | 10,179 | 48,040 | 37,726 | ||||||||||||
Operating income |
5,747 | 3,301 | 13,540 | 8,574 | ||||||||||||
Interest income, net |
(198 | ) | (182 | ) | (723 | ) | (583 | ) | ||||||||
Other (income)expense, net |
483 | (243 | ) | 540 | (338 | ) | ||||||||||
Income before income taxes |
5,462 | 3,726 | 13,723 | 9,495 | ||||||||||||
Provision for income taxes |
(1,742 | ) | (1,267 | ) | (4,609 | ) | (3,228 | ) | ||||||||
Net income |
$ | 3,720 | $ | 2,459 | $ | 9,114 | $ | 6,267 | ||||||||
Earnings per share: |
||||||||||||||||
Basic |
$ | 0.27 | $ | 0.18 | $ | 0.67 | $ | 0.46 | ||||||||
Diluted |
$ | 0.26 | $ | 0.17 | $ | 0.65 | $ | 0.45 | ||||||||
Shares used in computing
earnings per share: |
||||||||||||||||
Basic |
13,580 | 13,835 | 13,567 | 13,703 | ||||||||||||
Diluted |
14,206 | 14,187 | 14,100 | 14,007 | ||||||||||||
###