Universal Electronics Inc. (NASDAQ:UEIC) Q2 2021 Earnings Conference Call August 5, 2021 4:30 PM ET Company Participants Kirsten Chapman - Investor Relations, LHA Paul Arling - Chairman & Chief Executive Officer Bryan Hackworth - Chief Financial Officer Conference Call Participants Richard Magnusen - B. Riley & Co. Greg Burns - Sidoti & Company Operator Good day and thank you for standing by. Welcome to the Universal Electronics Second Quarter 2021 Financial Results Conference Call. At this time, all partic ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 For the quarterly period ended June 30, 2021 FORM 10-Q _______________________________________ OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 0-21044 _______________________________________ UNIVERSAL ELECTRONICS INC. (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Indicate by check ...

Universal Electronics Inc. 16th Annual Needham Virtual Technology & Media Conference May 19, 2021 1 SAFE HARBOR STATEMENT This presentation 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 ...

Universal Electronics Inc. (NASDAQ:UEIC) Q1 2021 Earnings Conference Call May 6, 2021 4:30 PM ET Company Participants Kirsten Chapman – Investor Relations-LHA Paul Arling – Chairman and Chief Executive Officer Bryan Hackworth – Chief Financial Officer Conference Call Participants Jeff Van Sinderen – B. Riley and Company Greg Burns – Sidoti and Company Operator Good day. Thank you for standing by and welcome to the First Quarter 2021 Financial Results Conference Call. At this time all participants are in a l ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q _______________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 0-21044 _______________________________________ UNIVERSAL ELECTRONICS INC. (Exact Name of R ...

Sales Performance - Universal Electronics Inc. reported that sales to Comcast accounted for 20.1% of net sales in 2020, up from 15.9% in 2019 and 17.6% in 2018[32]. - Net sales for 2020 were $614.68 million, a decrease of 18.5% from $753.48 million in 2019[182]. - Net sales decreased by 18.4% to $614.7 million in 2020 from $753.5 million in 2019[191]. - The company expects to see increased sales in the second half of the year, consistent with historical trends influenced by the retail sales cycle[67]. - Anticipated negative impact on sales demand into at least the first half of 2021 due to the COVID-19 pandemic[193]. Financial Performance - Operating income for 2020 was $37.27 million, compared to $15.32 million in 2019, reflecting a significant improvement[182]. - Net income attributable to Universal Electronics Inc. for 2020 was $38.57 million, up from $3.63 million in 2019[182]. - Basic earnings per share for 2020 were $2.78, compared to $0.26 in 2019, indicating strong earnings growth[182]. - Gross profit margin increased to 28.7% in 2020 from 22.6% in 2019, demonstrating improved operational efficiency[182]. - Working capital rose to $147.33 million in 2020, up from $112.30 million in 2019, indicating better liquidity[182]. - Total assets decreased to $510.29 million in 2020 from $564.16 million in 2019, reflecting a reduction in asset base[182]. - Stockholders' equity increased to $313.30 million in 2020, compared to $274.40 million in 2019, showing a stronger financial position[182]. Research and Development - The company has shipped over 100 million voice-enabled RF remote controls since 2015, highlighting its leadership in voice navigation technologies[31]. - UEI's technology pipeline includes the nevo.ai platform, which enables a digital assistant for the connected home, integrated with the Nevo Butler smart home hub[29]. - The company has developed a device knowledge graph with nearly 13,000 brands and over 930,000 device models, supporting various smart home protocols[43]. - R&D expenses increased by 6.9% to $31.5 million in 2020 from $29.4 million in 2019, focusing on enhancing user experience in home entertainment and automation[216]. Supply Chain and Manufacturing - The company operates vertically integrated manufacturing and assembly factories in the PRC, Mexico, and Brazil, allowing for regional production and scalability to meet growing demand[50]. - The company relies on third-party manufacturers in Asia for a portion of its products, and the loss of any major manufacturer could adversely affect its business until alternative arrangements are secured[97]. - The company maintains inventories of integrated circuits to mitigate supply interruptions, but any extended shortages or price increases could negatively impact its operating results and cash flows[99]. - Approximately 1,700 employees in Brazil and Mexico are represented by labor unions, and disputes could lead to production slowdowns, affecting delivery times and potentially harming the company's reputation[101]. Environmental and Compliance Initiatives - The company is committed to reducing its environmental impact, including a robust product refurbishment program that reclaims and recycles pre-owned remote controls[61]. - The company has a dedicated "Green Team" in the PRC to ensure compliance with environmental regulations and to promote sustainability initiatives[60]. - The company has achieved ISO 9001:2015 certification for quality management and ISO 14001 certification for environmental management in its PRC factories[53]. - The company maintains a Global Supplier Code of Conduct to ensure suppliers adhere to strict quality and ethical standards[54]. Market and Competitive Landscape - The company faces significant competition in the home security and automation industry, which is highly fragmented and subject to pricing pressures from larger brands and DIY companies[107]. - The company is dependent on new product introductions to remain competitive in various markets, with significant investments required for R&D and production capabilities[91]. - The company has established a COVID-19 task force to manage health and safety requirements across global operations[80]. Risks and Challenges - The company faces risks related to cybersecurity, including potential breaches that could disrupt operations and damage reputation[85]. - The company is exposed to risks related to U.S. trade policies, including tariffs on goods imported from the PRC, which may impact demand and margins[115]. - The company faces risks related to fluctuations in foreign currency exchange rates, which may adversely affect financial results as international operations grow[144]. - Economic downturns and global conditions may adversely affect the company's results of operations, cash flow, and financial condition[158]. - The company may experience significant fluctuations in quarterly results due to demand variability, competitive actions, and market conditions[142].

Universal Electronics Inc. (NASDAQ:UEIC) Q4 2020 Results Earnings Conference Call February 18, 2021 4:30 PM ET Company Participants Kristen Chapman - LHA Investor Relations Paul Arling - Chairman and CEO Bryan Hackworth - Chief Financial Officer Conference Call Participants Greg Burns - Sidoti & Company Steven Frankel - Colliers Jeff Van Sinderen - B. Riley Operator Ladies and gentlemen, thank you for standing by. And welcome to the Fourth Quarter 2020 Universal Electronics Inc. Earnings Conference Call. At ...

Universal Electronics Inc. (NASDAQ:UEIC) Q3 2020 Earnings Conference Call November 5, 2020 4:30 PM ET Company Participants Kirsten Chapman - Investor Relations Paul Arling - Chairman and Chief Executive Officer Bryan Hackworth - Chief Financial Officer Conference Call Participants Richard Magnuson - B. Riley Greg Burns - Sidoti & Company Operator Ladies and gentlemen, thank you for standing by and welcome to the Third Quarter 2020 Universal Electronics Financial Results Conference Call. At this time, all pa ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) Universal Electronics Inc.'s unaudited consolidated financial statements, including balance sheets, statements of operations, comprehensive income, stockholders' equity, and cash flows, are presented for periods ending September 30, 2020 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$508.6 million** from **$564.2 million** at December 31, 2019, primarily due to reductions in inventories and accounts payable, while total stockholders' equity increased to **$296.6 million** Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Cash and cash equivalents | $67,146 | $74,302 | | Inventories | $115,750 | $145,135 | | Total current assets | $329,824 | $378,752 | | Total assets | $508,617 | $564,159 | | Line of credit | $50,000 | $68,000 | | Total liabilities | $212,062 | $289,760 | | Total stockholders' equity | $296,555 | $274,399 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Q3 2020 net sales decreased to **$153.5 million**, but operating income increased to **$10.2 million**, and net income more than doubled to **$6.2 million** year-over-year, with a significant swing to **$26.4 million** net income for the nine-month period Q3 2020 vs Q3 2019 Performance (in thousands, except per share) | Metric | Q3 2020 | Q3 2019 | | :--- | :--- | :--- | | Net sales | $153,505 | $200,724 | | Gross profit | $44,156 | $46,479 | | Operating income | $10,246 | $6,127 | | Net income | $6,168 | $2,669 | | Diluted EPS | $0.43 | $0.19 | Nine Months 2020 vs 2019 Performance (in thousands, except per share) | Metric | Nine Months 2020 | Nine Months 2019 | | :--- | :--- | :--- | | Net sales | $458,416 | $578,783 | | Operating income | $24,752 | $3,864 | | Net income (loss) | $26,414 | $(3,397) | | Diluted EPS (loss) | $1.86 | $(0.25) | - An accrued social insurance adjustment of **$9.5 million** was recorded in the first nine months of 2020, significantly boosting income before taxes[10](index=10&type=chunk) [Consolidated Comprehensive Income (Loss) Statements](index=5&type=section&id=Consolidated%20Comprehensive%20Income%20(Loss)%20Statements) Comprehensive income for Q3 2020 significantly improved to **$11.2 million** from a **$2.8 million** comprehensive loss in Q3 2019, driven by higher net income and a positive foreign currency translation adjustment of **$5.0 million** Comprehensive Income (Loss) (in thousands) | Metric | Q3 2020 | Q3 2019 | Nine Months 2020 | Nine Months 2019 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $6,168 | $2,669 | $26,414 | $(3,397) | | Foreign currency translation | $5,005 | $(5,457) | $(2,774) | $(5,557) | | **Comprehensive income (loss)** | **$11,173** | **$(2,788)** | **$23,640** | **$(8,954)** | [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity increased to **$296.6 million** by September 30, 2020, primarily due to **$26.4 million** net income, partially offset by **$9.8 million** in treasury stock purchases and a negative currency translation adjustment of **$2.8 million** for the nine-month period - Key drivers of the change in stockholders' equity during the first nine months of 2020 included net income, currency translation adjustments, and the purchase of treasury shares[15](index=15&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was **$43.8 million** for the nine months ended September 30, 2020, with net cash used in investing and financing activities leading to a **$7.2 million** net decrease in cash Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net cash from operating activities | $43,827 | $39,921 | | Net cash used for investing activities | $(16,618) | $(17,359) | | Net cash used for financing activities | $(30,913) | $(19,081) | | **Net decrease in cash** | **$(7,156)** | **$1,522** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue recognition, customer concentration, legal proceedings, and other key aspects of the financial statements, highlighting Comcast Corporation as a major customer and ongoing patent litigation with Roku, Inc - The COVID-19 pandemic has created uncertainties that may impact the company's estimates, judgments, and the carrying values of assets and liabilities, though no specific updates were required as of the report date[24](index=24&type=chunk) Net Sales by Major Customer (>10%) | Customer | Q3 2020 % of Sales | Nine Months 2020 % of Sales | | :--- | :--- | :--- | | Comcast Corporation | 21.2% | 20.7% | | Sony Corporation | 10.4% | N/A | - The company is engaged in multiple legal actions against Roku, Inc and others, alleging patent infringement, and has filed a complaint with the International Trade Commission (ITC)[75](index=75&type=chunk)[76](index=76&type=chunk)[78](index=78&type=chunk) - In June 2020, the company reversed an accrued social insurance liability of approximately **$9.5 million** related to its sold Guangzhou entity as an indemnification period expired[70](index=70&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **23.5%** decrease in Q3 2020 net sales to **$153.5 million** due to COVID-19, offset by improved gross margin of **28.8%** and increased operating income of **$10.2 million**, with sufficient liquidity maintained - The COVID-19 pandemic negatively impacted sales demand and caused supply chain disruptions, and the company expects this negative impact on sales to continue for the remainder of 2020[122](index=122&type=chunk)[129](index=129&type=chunk) Q3 2020 vs Q3 2019 Results Summary | Metric | Q3 2020 | Q3 2019 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $153.5M | $200.7M | -23.5% | | Gross Margin % | 28.8% | 23.2% | +5.6 p.p. | | Operating Income | $10.2M | $6.1M | +67.2% | - Gross margin improvement was driven by reduced U.S. tariff expense, better operational efficiency at the Mexico facility, and increased royalty revenue[130](index=130&type=chunk) - SG&A expenses decreased from **$32.4 million** to **$26.2 million** in Q3 year-over-year, primarily due to lower incentive compensation, reduced contingent consideration, and discretionary spending cuts related to COVID-19[132](index=132&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate and foreign currency fluctuations, particularly with the Chinese Yuan Renminbi, and uses foreign currency exchange contracts to mitigate some of this risk - A 100 basis point increase in interest rates would have an approximate annual impact of **$0.4 million** on net income based on the outstanding credit line balance at September 30, 2020[163](index=163&type=chunk) - The most significant foreign currency exposure is to the Chinese Yuan Renminbi, as it is the functional currency for its China-based factories, where a strengthening Yuan increases manufacturing costs[165](index=165&type=chunk) - Management estimates that a **10%** fluctuation in key foreign currency exchange rates relative to the U.S. Dollar would impact Q4 2020 net income by approximately **$6.6 million**[168](index=168&type=chunk) [Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2020, with no material changes in internal control over financial reporting during the third quarter - The principal executive and financial officers concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[170](index=170&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[171](index=171&type=chunk) [PART II. OTHER INFORMATION](index=34&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the discussion of ongoing litigation matters from Note 11 of the financial statements, detailing patent infringement lawsuits against Roku, Inc. and other entities - The company is subject to various lawsuits arising from its business operations, with detailed information on these matters provided in Note 11 of the Notes to Consolidated Financial Statements[172](index=172&type=chunk) [Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) The COVID-19 pandemic is a primary risk factor, having negatively impacted sales and posing ongoing risks to business operations, financial condition, and supply chains - The COVID-19 pandemic is a primary risk factor, having negatively impacted sales volumes in the first nine months of 2020 and is expected to continue posing risks to business operations, financial condition, and cash flows[174](index=174&type=chunk) - Potential effects of the pandemic include reduced consumer confidence, disruptions in manufacturing and supply chains, and the weakening financial position of some customers[176](index=176&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2020, the company repurchased **90,890** shares for approximately **$3.4 million**, and a new share repurchase program for up to **500,000** shares was approved effective November 10, 2020 Stock Repurchases (Q3 2020) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2020 | 625 | $46.29 | | August 2020 | 3,317 | $45.30 | | September 2020 | 86,948 | $37.23 | | **Total** | **90,890** | **$37.59** | - On October 28, 2020, the Board terminated the September 2020 repurchase program and replaced it with a new program, effective November 10, 2020, to repurchase up to **500,000** shares[86](index=86&type=chunk)[177](index=177&type=chunk) [Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including required certifications by the Chief Executive Officer and Chief Financial Officer and Inline XBRL documents - Exhibits filed with this report include Rule 13a-14(a) and Section 1350 certifications from the CEO and CFO, as well as Inline XBRL data files[179](index=179&type=chunk) [Signatures](index=37&type=section&id=Signatures) The report is duly signed on behalf of Universal Electronics Inc. by its Chief Financial Officer, Bryan M. Hackworth, on November 5, 2020 - The Form 10-Q was signed on November 5, 2020, by Bryan M. Hackworth, Chief Financial Officer[183](index=183&type=chunk)

Universal Electronics, Inc. (NASDAQ:UEIC) Q2 2020 Earnings Conference Call August 6, 2020 4:30 PM ET Company Participants Kirsten Chapman - LHA Investor Relations Paul Arling - Chairman & Chief Executive Officer Bryan Hackworth - Chief Financial Officer Conference Call Participants Steven Frankel - Dougherty Securities Operator Ladies and gentlemen, thank you for standing by and welcome to the Universal Electronics, Inc. Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a l ...