Universal Electronics(UEIC) - 2024 Q2 - Quarterly Results

Financial Performance - GAAP net sales for Q2 2024 were $90.5 million, down from $107.4 million in Q2 2023, representing a decrease of approximately 15.9%[3] - For the first half of 2024, GAAP net sales were $182.4 million, down from $215.8 million in the same period of 2023, a decrease of approximately 15.4%[4] - Net sales for Q2 2024 were $90,452 thousand, a decrease of 16% compared to $107,391 thousand in Q2 2023[16] - The company expects Q3 2024 GAAP net sales to range from $98.0 million to $108.0 million, compared to $107.1 million in Q3 2023[5] - The company expects GAAP net sales for the three months ending September 30, 2024, to range between $98,000 thousand and $108,000 thousand, compared to $107,095 thousand for the same period in 2023[22] Profitability and Loss - GAAP net loss for Q2 2024 was $8.2 million, or $0.63 per share, compared to a net loss of $10.4 million, or $0.81 per share in Q2 2023, showing an improvement of 21.2%[3] - Operating loss for Q2 2024 was $(4,453) thousand, an improvement from $(9,132) thousand in Q2 2023[16][19] - Net loss for Q2 2024 was $(8,193) thousand, compared to a net loss of $(10,411) thousand in Q2 2023[16] - The company anticipates being profitable in the second half of 2024 and expects consistent sales and earnings growth into 2025 and beyond[2] - Diluted earnings per share (GAAP) for the three months ending September 30, 2024, are projected to be between $(0.33) and $(0.23), an improvement from $(1.50) in the same period of 2023[22] Gross Margin and Profitability Metrics - GAAP gross margin increased to 28.7% in Q2 2024, up 580 basis points from 22.9% in Q2 2023[3] - The gross margin for the first half of 2024 was 28.5%, an increase from 22.9% in the first half of 2023[4] - Gross profit increased to $25,952 thousand in Q2 2024, up from $24,617 thousand in Q2 2023, resulting in a gross margin of 28.7%[16][19] - GAAP gross margin for the three months ended June 30, 2024, included $1.4 million of excess manufacturing overhead costs, impacting gross margin by 160 basis points[20] - The company incurred $2.6 million in excess manufacturing costs for the six months ended June 30, 2024, which affected gross margin by 140 basis points[20] Cash and Cash Equivalents - Cash and cash equivalents as of June 30, 2024, were $23.1 million, down from $42.8 million at the end of 2023[15] - Cash and cash equivalents at the end of Q2 2024 were $23,128 thousand, a decrease from $55,823 thousand at the end of Q2 2023[17] - Net cash provided by operating activities for the first six months of 2024 was $2,675 thousand, compared to $13,255 thousand in the same period of 2023[17] Operating Expenses - Total operating expenses for Q2 2024 were $30,405 thousand, down from $33,749 thousand in Q2 2023[19] - Research and development expenses for Q2 2024 were $7,520 thousand, down from $8,484 thousand in Q2 2023[16] - Adjusted Non-GAAP operating loss for Q2 2024 was $(1,147) thousand, an improvement from $(4,534) thousand in Q2 2023[19] Share Repurchase and Restructuring - The company repurchased approximately 27,000 shares for $0.3 million during Q2 2024[3] - The company is undergoing factory restructuring, with costs of $1.6 million associated with the closure of its southwestern China factory and downsizing of its Mexico factory[20] - The company incurred factory restructuring charges of $1,555 thousand in Q2 2024, with no such charges reported in Q2 2023[19] Adjusted Non-GAAP Metrics - Adjusted Non-GAAP earnings per diluted share for Q3 2024 are expected to range from $0.01 to $0.11, compared to $0.06 in Q3 2023[5] - Adjusted Non-GAAP net income for the six months ended June 30, 2024, was $(4,610) thousand, a decrease from $(8,839) thousand in the same period of 2023, reflecting a 47.9% improvement[20] - Total adjustments for diluted earnings per share (GAAP) for the three months ended September 30, 2024, are expected to be $0.34, consistent with the previous year[22]