VOXX International (US:VOXX)2021-10-13 16:20Financial Data and Key Metrics Changes - Revenues grew almost twelve percent in Q2 and are up forty percent through the first six months year-over-year [10] - Operating loss for the six-month period in fiscal 2022 was three point one million dollars compared to operating income of four hundred thousand dollars in the previous year [12] - Adjusted EBITDA increased to fourteen point six million dollars from ten point seven million dollars for the first halves of fiscal 2022 and 2021, an improvement of three point nine million [13] Business Line Data and Key Metrics Changes - Automotive Electronics segment grew by forty percent in Q2 and revenues are up seventy-seven percent through the first half of the year [14] - Aftermarket business was up thirty-four percent, while OEM business increased by fifty-three percent due to new programs [15] - Consumer electronics business grew by approximately two percent in Q2 and almost twenty-eight percent year-to-date, with premium audio product sales growing by approximately ten percent in Q2 [17] Market Data and Key Metrics Changes - Automotive segment grew by seventy-seven percent for the six-month period, with aftermarket revenue up over eighty-one percent and OEM revenue up approximately seventy percent [16] - Sales in the biometric segment remained relatively flat for the quarter but were up twenty-seven percent for the six-month period [21] - Sales from the Trading Company increased by eleven point four million dollars in Q2 and seventeen point seven million dollars for the six-month period [19] Company Strategy and Development Direction - The company is optimistic about future growth, expecting to exceed one billion dollars in sales over the next few years [33] - The acquisition of Onkyo's Home Entertainment A/V business is expected to contribute significantly to growth and profitability [20] - The company plans to layer on new business from Onkyo and new OEM awards to reach sales targets [60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business outlook, citing the resolution of supply chain issues and increased production from automotive manufacturers [57] - The company anticipates continued growth in the second half of the year, with sales expected to be around six hundred forty million to six hundred fifty million dollars for fiscal 2022 [29] - Management noted that gross margins should stabilize based on actions taken to address supply chain challenges [30] Other Important Information - The company has cash and cash equivalents of forty-one point one million dollars as of August 31, 2021, compared to thirty-six point seven million dollars as of May 31, 2021 [48] - Total debt stood at seven point seven million dollars as of August 31, 2021, reflecting an increase due to inventory purchases [50] - The company expects to ramp up cash outlays as it enters its largest selling season [49] Q&A Session Summary Question: Optimism about business this quarter - Management agreed that there is increased optimism due to the successful closing of the Onkyo transaction and new OEM programs [57] Question: Thoughts on M&A opportunities - Management indicated they are considering strategic acquisitions but are not in a rush, focusing on integrating recent acquisitions first [59] Question: Growth projections for the second half of the year - Management stated that growth projections are based on customer orders and promotions scheduled for the second half [64] Question: Company stock buyback - Management confirmed that the company bought about one million two hundred thousand shares over the past quarter [66] Question: Sustainability of business with Costco - Management highlighted the strong relationship with Costco and ongoing programs for the holiday season [72]