This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Universal Electronics Reports Second Quarter 2012 Financial Results

Stocks in this article: UEIC

About Universal Electronics Inc.

Founded in 1986, Universal Electronics Inc. (UEI) is the global leader in wireless control technology for the connected home. UEI designs, develops, and delivers innovative solutions that enable consumers to control entertainment devices, digital media, and home systems. The company’s broad portfolio of patented technologies and database of infrared control software have been adopted by many Fortune 500 companies in the consumer electronics, subscription broadcast, and computing industries. UEI sells and licenses wireless control products through distributors and retailers under the One For All® brand name. For additional information, please visit our website at www.uei.com.

Safe Harbor Statement

This press release contains forward-looking statements that are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words and expressions reflecting something other than historical fact are intended to identify forward-looking statements. These forward-looking statements involve a number of risks and uncertainties, including the benefits anticipated by the Company due to the Company’s ability to gain market share; the Company’s ability to attract new customers and retain and expand our relationships with its existing customers; acceptance by consumers of the Company’s innovative tablet and smartphone applications; general economic conditions; the strength and growth prospects of the consumer electronics and broader retail industries; and other factors described in the Company's filings with the U.S. Securities and Exchange Commission. The actual results that the Company achieves may differ materially from any forward looking statement due to such risks and uncertainties. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

   

UNIVERSAL ELECTRONICS INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share-related data)

(Unaudited)

 

 

   June 30,    2012

December 31, 2011

ASSETS
Current assets:
Cash and cash equivalents $ 30,688 $ 29,372
Accounts receivable, net 86,017 82,184
Inventories, net 77,798 90,904
Prepaid expenses and other current assets 3,773 3,045
Deferred income taxes   6,586     6,558  
Total current assets 204,862 212,063
Property, plant, and equipment, net 78,025 80,449
Goodwill 30,795 30,820
Intangible assets, net 31,192 32,814
Other assets 5,285 5,350
Deferred income taxes   8,135     7,992  
Total assets $ 358,294   $ 369,488  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 45,462 $ 55,430
Line of credit 3,000 2,000
Notes payable 10,000 14,400
Accrued sales discounts, rebates and royalties 6,317 6,544
Accrued income taxes 2,878 5,707
Accrued compensation 29,629 29,204
Deferred income taxes 49 50
Other accrued expenses   8,156     13,967  
Total current liabilities 105,491 127,302
Long-term liabilities:
Deferred income taxes 11,276 11,056
Income tax payable 1,136 1,136
Other long-term liabilities   1,477     5  
Total liabilities   119,380     139,499  
 
Commitments and contingencies
 
Stockholders’ equity:
Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding
Common stock, $0.01 par value, 50,000,000 shares authorized; 21,331,074 and 21,142,915 shares issued on June 30, 2012 and December 31, 2011, respectively 213 211
Paid-in capital 177,496 173,701
Accumulated other comprehensive (loss) income (555 ) 938
Retained earnings   160,801     154,016  
337,955 328,866
 
Less cost of common stock in treasury, 6,358,515 and 6,353,035 shares on June 30, 2012 and December 31, 2011, respectively   (99,041 )   (98,877 )
Total stockholders’ equity   238,914     229,989  
Total liabilities and stockholders’ equity $ 358,294   $ 369,488  
 

UNIVERSAL ELECTRONICS INC.

CONSOLIDATED INCOME STATEMENTS

(In thousands, except per share amounts)

(Unaudited)

   

 

Three Months Ended

June 30,

Six Months Ended

June 30,

  2012       2011     2012       2011  
Net sales $ 116,704 $ 121,746 $ 220,436 $ 227,458
Cost of sales   83,734     86,802     159,139     164,935  
Gross profit 32,970 34,944 61,297 62,523
 
Research and development expenses 3,424 3,157 6,887 6,414
Selling, general and administrative expenses   23,080     23,477     45,632     45,264  
 
Operating income 6,466 8,310 8,778 10,845
Interest expense, net (51 ) (69 ) (88 ) (154 )
Other expense, net   (126 )   (384 )   (450 )   (418 )
 
Income before provision for income taxes 6,289 7,857 8,240 10,273
Provision for income taxes   (1,136 )   (1,736 )   (1,455 )   (2,325 )
Net income $ 5,153   $ 6,121   $ 6,785   $ 7,948  
 
Earnings per share:
Basic $ 0.35   $ 0.41   $ 0.46   $ 0.53  
Diluted $ 0.34   $ 0.40   $ 0.45   $ 0.52  
 
Shares used in computing earnings per share:
Basic   14,933     15,025     14,904     15,000  
Diluted   15,048     15,407     15,080     15,395  
 

UNIVERSAL ELECTRONICS INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Six Months Ended

June 30,

  2012       2011  
Cash provided by operating activities:
Net income $ 6,785 $ 7,948
Adjustments to reconcile net income to net cash (used for) provided by operating activities:
Depreciation and amortization 8,525 8,588
Provision for doubtful accounts 37 237
Provision for inventory write-downs 1,623 2,099
Deferred income taxes 6 645
Tax benefit from exercise of stock options and vested restricted stock (72 ) 374
Excess tax benefit from stock-based compensation (30 ) (344 )
Shares issued for employee benefit plan 468 396
Stock-based compensation 2,337 2,085
 
Changes in operating assets and liabilities:
Accounts receivable (4,678 ) 262
Inventories 10,630 (11,409 )
Prepaid expenses and other assets (711 ) (78 )
Accounts payable and accrued expenses (13,523 ) (2,514 )
Accrued income taxes   (2,796 )   (3,696 )
Net cash provided by operating activities   8,601     4,593  
 
Cash used for investing activities:
Acquisition of property, plant, and equipment (4,261 ) (5,554 )
Acquisition of intangible assets   (430 )   (513 )
Net cash used for investing activities   (4,691 )   (6,067 )
 
Cash used for financing activities:
Issuance of debt 8,000
Payment of debt (11,400 ) (14,400 )
Proceeds from stock options exercised 1,386 1,212
Treasury stock purchased (486 ) (3,500 )
Excess tax benefit from stock-based compensation   30     344  
Net cash used for financing activities   (2,470 )   (16,344 )
 
Effect of exchange rate changes on cash   (124 )   1,469  
 
Net increase (decrease) in cash and cash equivalents 1,316 (16,349 )
 
Cash and cash equivalents at beginning of period   29,372     54,249  
 
Cash and cash equivalents at end of period $ 30,688   $ 37,900  
 

Supplemental Cash Flow Information — There were income tax payments of $4.2 million and $6.4 million during the six months ended June 30, 2012 and 2011, respectively. There were interest payments of $0.1 million and $0.2 million during the six months ended June 30, 2012 and 2011, respectively.

 

UNIVERSAL ELECTRONICS INC.

RECONCILIATION OF ADJUSTED PRO FORMA FINANCIAL RESULTS

(In thousands, except share-related data)

(Unaudited)

   

Three Months Ended

Three Months Ended

June 30, 2012

June 30, 2011

    Adjusted     Adjusted

GAAP

Adjustments

Pro Forma

GAAP

Adjustments

Pro Forma

 
Net sales $ 116,704 $ $ 116,704 $ 121,746 $ $ 121,746
Cost of sales (1)   83,734     (277 )   83,457     86,802     (277 )   86,525  
Gross profit 32,970

 

277 33,247 34,944 277 35,221
 
Research and development expenses 3,424 3,424 3,157 3,157
Selling, general and administrative expenses (2)   23,080     (965 )   22,115     23,477     (1,026 )   22,451  
 
Operating income 6,466 1,242 7,708 8,310 1,303 9,613
Interest expense, net (51 ) (51 ) (69 ) (69 )
Other expense , net   (126 )       (126 )   (384 )       (384 )
 
Income before provision for income taxes 6,289 1,242 7,531 7,857 1,303 9,160
Provision for income taxes (4)   (1,136 )   (238 )   (1,374 )   (1,736 )   (296 )   (2,032 )
Net income $ 5,153   $ 1,004   $ 6,157   $ 6,121   $ 1,007   $ 7,128  
 
Earnings per share diluted $ 0.34   $ 0.07   $ 0.41   $ 0.40   $ 0.06   $ 0.46  
 

Six Months Ended

Six Months Ended

June 30, 2012

June 30, 2011

Adjusted Adjusted

GAAP

Adjustments

Pro Forma

GAAP

Adjustments

Pro Forma

 
Net sales $ 220,436 $ $ 220,436 $ 227,458 $ $ 227,458
Cost of sales (1)   159,139     (554 )   158,585     164,935     (554 )   164,381  
Gross profit 61,297 554 61,851 62,523 554 63,077
 
Research and development expenses 6,887 6,887 6,414 6,414
Selling, general and administrative expenses (3)   45,632     (2,197 )   43,435     45,264     (1,659 )   43,605  
 
Operating income 8,778 2,751 11,529 10,845 2,213 13,058
Interest expense, net (88 ) (88 ) (154 ) (154 )
Other expense, net   (450 )       (450 )   (418 )       (418 )
 
Income before provision for income taxes 8,240 2,751 10,991 10,273 2,213 12,486
Provision for income taxes (4)   (1,455 )   (542 )   (1,997 )   (2,325 )   (441 )   (2,766 )
Net income $ 6,785   $ 2,209   $ 8,994   $ 7,948   $ 1,772   $ 9,720  
 
Earnings per share diluted $ 0.45   $ 0.15   $ 0.60   $ 0.52   $ 0.11   $ 0.63  

____________

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs