About Voxx International Corporation
Through more than 15 subsidiaries and more than 30 brands, VOXX International makes and sells consumer, automobile electronics, and biometrics. Its products include HDTV and WiFi antennas, power cords, universal remotes, a plethora of speakers and music systems, auto security and remote start systems, and power lift gates. The company counts Acoustic Research, Audiovox, Car Link, Omega, Prestige, Rosen, and Schwaiger among its brands. VOXX markets its products to original equipment manufacturers (OEMs), as well as mass merchants, specialty retailers, distributors, and others. It generates more than 80% of sales in the US.
VOXX operates through three segments: Consumer Electronics, Automotive Electronics, and Biometrics.
Consumer Electronics segment generate more than 70% of total sales. It designs, manufactures, distributes and markets home theater systems, high-end loudspeakers, outdoor speakers, business music systems, cinema speakers, flat panel speakers, wireless and Bluetooth speakers, soundbars, wired and wireless headphones..
Automotive Electronics segment gives in about 30% of total sales. It designs, manufactures, distributes and markets rear-seat entertainment devices, satellite radio products, automotive security, vehicle access systems, remote start systems, mobile multimedia devices, aftermarket/OE-styled radios, car link-smartphone telematics application, and driver distraction products.
Biometrics segment designs, markets and distributes iris identification and biometric security related products.
VOXX generates more than 80% of its total revenue from the US, with Europe accounting for the rest.
From its headquarters in Florida, the company directs operations that span some 20 facilities in about 10 US states (Arkansas, Florida, Georgia, New Jersey, New York, Ohio, Texas, and North Carolina), as well as Canada, China, France, Germany, Hong Kong, and Mexico.
Sales and Marketing
VOXX markets its products to a variety of customers, including regional chain stores, mass merchants, power retailers, specialty and Internet retailers, new car dealers, distributors, the US military, cinema operators, and vehicle equipment manufacturers. VOXX's five largest customers generate about a quarter of sales. Its OEM customers, which include Ford Motor Company, General Motors, Kia, Subaru, and Toyota, bring in approximately 20% of sales.
VOXX has seen revenue declined about 26% since fiscal 2016 amid increased competition and rapid changes in technology that have made high volume/low margin items such as camcorders, clock radios, and DVD players increasingly obsolete. The company, however, has been reporting losses for the last two years.
In fiscal 2020, the company reported revenue of $394.9 million, down about 12% from the prior year. Sales in Automotive and Consumer electronics segments, as well as sales of Biometrics, all declined for the year.
The net loss of the company decreased substantially by 43% to $26.4 million, compared to $46 million in 2019, mainly due to lower cost of sale and lower operating expenses.
Cash at the end of fiscal 2020 was $37.4 million, a decrease of $20.8 million from the prior year. Cash used by operations was $1 million while investing and financing activities used $6.7 million and $12.6 million, respectively. Main cash uses were for repayments of bank obligations and purchases of acquired businesses.
The company's objective is to grow its business both organically and through strategic acquisitions. It will drive the business organically by continued product development in new and emerging technologies that should increase gross margins and improve operating income. It is focused on expanding sales both domestically and internationally and broadening its customer and partner base as it brings these new products to its target markets. In addition, it plans to continue to acquire synergistic companies that would allow it to leverage its overhead, penetrate new markets and expand existing product categories. Notwithstanding the above, if the appropriate opportunity arises, the company will explore the potential divestiture of a product line or business.
The key elements of this strategy are to: Continue to build and capitalize on the VOXX family of brands; Continue to maintain a diversified, blue chip customer base; Capitalize on niche product and distribution opportunities in its target markets; Combine new, internal manufacturing capabilities with its proven outsourced manufacturing with industry partners; Use innovative technology generation capabilities to enable the company to build a robust pipeline of new products; Leverage its domestic and international distribution network; Grow its international presence; Pursue strategic and complementary acquisitions; Maintain disciplined acquisition criteria; Rapidly integrate acquired businesses; and Improve bottom-line performance and generate sustainable shareholder returns.
Mergers and Acquisitions
In mid-2020, VOXX International Corporation has successfully acquired the aftermarket vehicle remote start and security systems (RSS) and connected car solutions (CC) businesses of Florida-based, Directed, LLC and Directed Electronics Canada Inc. The cash purchase price is $11 million and the assets the Buyer acquired include inventory, accounts receivable, IT systems, intellectual property (which includes patents, trademarks, domain names, and copyrights), plus certain fixed assets. This is a natural fit for both companies, with far reaching synergies and opportunities to leverage platforms and talent to improve the customer offering, learn from each other and enhance value.
In early 2019, VOXX International Corporation completed the acquisition of Vehicle Safety Holding Corp. ("VSHC" or "Vehicle Safety") via an asset purchase agreement valued at $16.5 million. VSHC, through its Vehicle Safety Manufacturing, LLC and Rostra Brands subsidiaries, is a leading developer, manufacturer and distributor of safety electronics. VSHC is now part of VOXX Automotive Corp. and financial results will be incorporated into the Company's Automotive Electronics segment. On an annualized basis, VSHC is expected to add approximately $28.0 million in net revenue and approximately $3.0 million in Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), with further improvements as synergies are realized.
Voxx International Corporation traced its roots back in 1960, when John J. Shalam founded Audiovox, In 1987, it was incorporated in Delaware and began trading as a public company on the American Stock Exchange.
2351 J Lawson Blvd
Orlando, FL 32824-4386
Phone: 1 (800) 645-7750
Employer Type: Publicly Owned
Stock Symbol: VOXX
Stock Exchange: , NASDAQ
President, CEO, and Director: Patrick M. Lavelle
Chairman: John J. Shalam
SVP and COO: Loriann Shelton
Employees (This Location): 330
Employees (All Locations): 912
West Chester, OH