VOXX International (VOXX) investor relations material

Executive summary

• Net sales declined 22.2% year-over-year to $105.2M for the quarter and 19.8% to $289.3M for the nine months ended November 30, 2024, driven by lower demand, divestitures, and economic conditions.

• Net loss attributable to VOXX was $44.0M for the quarter and $50.8M for the nine months, compared to net income of $1.9M and a net loss of $19.9M in the prior year periods.

• Significant non-cash impairment charges of $44.3M were recorded for goodwill and intangible assets due to reduced business outlook and market value.

• The company entered into a merger agreement with Gentex Corporation to be acquired for $7.50 per share, with US and German regulatory approvals received; closing expected in the first half of 2025, pending shareholder and other customary approvals.

• Strategic divestitures included the sale of the domestic accessories business and a manufacturing facility, generating gains used to repay debt.

Financial highlights

• Gross profit fell 38.5% year-over-year to $22.3M for the quarter; gross margin declined to 21.2% from 26.9%, impacted by $7.0M in inventory write-downs.

• Operating loss was $54.2M for the quarter and $70.5M for the nine months, compared to operating income of $2.3M and a loss of $17.7M in the prior year.

• Adjusted EBITDA for the quarter was $(4.7)M, down from $8.0M in the prior year; for the nine months, Adjusted EBITDA was $(10.4)M versus $3.0M.

• Cash and equivalents were $6.3M at quarter-end, with $15.0M outstanding on the credit facility and $81.8M in available revolver capacity.

• Total debt at November 30, 2024, was $18.8M, down from $73.3M at prior fiscal year-end.

Outlook and guidance

• Management expects continued sales declines in Consumer Electronics due to the August 2024 sale of the domestic accessories business.

• The merger with Gentex is anticipated to close in the first half of 2025, subject to shareholder and regulatory approvals.

• No conference call or forward guidance provided due to the pending Gentex merger.

• The company believes it has sufficient liquidity to operate for the next twelve months.