VOXX International Corporation (VOXX) has reported a 25.42 percent fall in profit for the quarter ended Nov. 30, 2016. The company has earned $5.80 million, or $0.24 a share in the quarter, compared with $7.78 million, or $0.32 a share for the same period last year.
Revenue during the quarter grew 3.34 percent to $198.94 million from $192.51 million in the previous year period. Gross margin for the quarter expanded 25 basis points over the previous year period to 29.26 percent. Total expenses were 96.33 percent of quarterly revenues, down from 98.14 percent for the same period last year. This has led to an improvement of 181 basis points in operating margin to 3.67 percent.
Operating income for the quarter was $7.31 million, compared with $3.58 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $15.49 million compared with $13.14 million in the prior year period. At the same time, adjusted EBITDA margin improved 96 basis points in the quarter to 7.79 percent from 6.83 percent in the last year period.
Pat Lavelle, president and chief executive officer of VOXX International, commented, "We had a relatively strong fiscal third quarter, as our net sales, gross margins and expenses all improved year-over-year. We reported a $3.7 million increase in operating income and Adjusted EBITDA improved by $2.4 million. Driving much of this improvement was our Premium Audio segment. The investments we made throughout last year to enhance our line-up and expand into new categories are paying off, and with a few quarters of growth behind us, we believe this is a trend that should continue. Lower Automotive segment sales were anticipated, due primarily to changes in the aftermarket and lower domestic OEM sales. Internationally, our OEM business remains strong and we continue to win new OEM contracts. Similarly, our Consumer Accessories segment should be aided by new products introduced in the second and third quarters and many of the products we introduced last week at the Consumer Electronics Show. We believe we're better positioned to show improved top and bottom-line performance in the year ahead."
Working capital increases sharply
VOXX International Corporation has recorded an increase in the working capital over the last year. It stood at $153.01 million as at Nov. 30, 2016, up 141.79 percent or $89.73 million from $63.28 million on Nov. 30, 2015. Current ratio was at 2.05 as on Nov. 30, 2016, up from 1.28 on Nov. 30, 2015.
Cash conversion cycle (CCC) has decreased to 56 days for the quarter from 108 days for the last year period. Days sales outstanding were almost stable at 46 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 51 days for the quarter compared with 105 days for the previous year period. At the same time, days payable outstanding went down to 42 days for the quarter from 43 for the same period last year.
Debt moves up
VOXX International Corporation has witnessed an increase in total debt over the last one year. It stood at $117.79 million as on Nov. 30, 2016, up 13.34 percent or $13.86 million from $103.93 million on Nov. 30, 2015. Total debt was 16.96 percent of total assets as on Nov. 30, 2016, compared with 14.78 percent on Nov. 30, 2015. Debt to equity ratio was at 0.30 as on Nov. 30, 2016, up from 0.27 as on Nov. 30, 2015.
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