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!

DynaVox Reports Fourth Quarter And Fiscal Year 2012 Results

Stocks in this article: DVOX

Forward-Looking Statements

This press release contains forward-looking statements which reflect our current views with respect to, among other things, our operations and financial performance. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "projects", "potential," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include but are not limited to those described under "Risk Factors" in our Annual Report on Form 10-K, as such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission (SEC), which are accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Annual Report on Form 10-K and other filings. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

About DynaVox Inc.

DynaVox Inc. (Nasdaq:DVOX) is a publicly traded holding Company with its headquarters in Pittsburgh, Pennsylvania, whose primary operating entities are DynaVox Systems LLC and Mayer-Johnson LLC. DynaVox is the leading provider of speech generating devices and symbol-adapted special education software used to assist individuals in overcoming their speech, language and learning challenges. These solutions are designed to help individuals who have complex communication and learning needs participate in the home, classroom and community. Our mission is to enable our customers to realize their full communication and education potential by developing industry-leading devices, software and content and by providing the services to support them. We assist individuals, families, and professionals with an extensive field support organization, as well as centralized technical and reimbursement support. For more information, visit www.dynavoxtech.com .

DYNAVOX INC. AND SUBSIDIARIES
         
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)
         
  Thirteen Weeks Ended Fifty-Two Weeks Ended
  June 29, 2012 July 1, 2011 June 29, 2012 July 1, 2011
         
NET SALES  $ 23,884  $ 32,340  $ 97,318  $ 108,103
COST OF SALES  7,148  9,704  27,563  32,251
         
GROSS PROFIT  16,736  22,636  69,755  75,852
         
OPERATING EXPENSES:        
Selling and marketing  8,576  9,787  34,048  35,567
Research and development  1,875  2,652  7,126  9,888
General and administrative  5,594  4,366  18,816  18,480
Amortization of certain intangibles  75  111  405  445
Impairment loss  4,794  244  66,901  1,262
         
Total operating expenses  20,914  17,160  127,296  65,642
         
INCOME (LOSS) FROM OPERATIONS  (4,178)  5,476  (57,541)  10,210
         
OTHER INCOME (EXPENSE):        
Interest income  6  6  28  36
Interest expense  (572)  (636)  (2,288)  (2,650)
Change in fair value and net loss on interest rate swap agreement  --   --   --   (81)
Other income (expense) — net  (107)  782  (134)  513
         
Total other income (expense) — net  (673)  152  (2,394)  (2,182)
         
INCOME (LOSS) BEFORE INCOME TAXES  (4,851)  5,628  (59,935)  8,028
INCOME TAX EXPENSE (BENEFIT)  3,009  1,027  (3,605)  1,361
         
NET INCOME (LOSS) ATTRIBUTABLE TO THE CONTROLLING AND NON-CONTROLLING INTERESTS  $ (7,860)  $ 4,601  $ (56,330)  $ 6,667
         
Less: net (income) loss attributable to the non-controlling interests  2,751  (3,671)  37,880  (5,438)
         
NET INCOME (LOSS) ATTRIBUTABLE TO DYNAVOX INC.  $ (5,109)  $ 930  $ (18,450)  $ 1,229
         
Weighted-average shares of Class A common stock outstanding:        
Basic  10,914,780  9,378,297  10,494,500  9,375,824
         
Diluted  10,914,780  9,378,593  10,494,500  9,375,898
         
Net income (loss) available to Class A common stock per share:        
Basic  $ (0.47)  $ 0.10  $ (1.76)  $ 0.13
         
Diluted  $ (0.47)  $ 0.10  $ (1.76)  $ 0.13
     
DYNAVOX INC. AND SUBSIDIARIES    
     
CONDENSED CONSOLIDATED BALANCE SHEETS    
(Unaudited)    
(Dollars in thousands)    
     
  June 29, 2012 July 1, 2011
ASSETS    
CURRENT ASSETS:    
Cash and cash equivalents  $ 17,944  $ 12,171
Trade receivables - net   14,864  18,676
Other receivables  253  318
Inventories - net  5,401  4,876
Prepaid expenses and other current assets  1,055  1,298
Deferred taxes  685  669
     
Total current assets  40,202  38,008
     
PROPERTY AND EQUIPMENT - Net  2,890  5,517
GOODWILL AND INTANGIBLES - Net  22,941  90,695
DEFERRED TAXES  48,709  40,677
OTHER ASSETS   1,499  2,253
     
TOTAL ASSETS  $ 116,241  $ 177,150
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
CURRENT LIABILITIES:    
Trade accounts payable  $ 4,900  $ 6,680
Other liabilities  9,688  9,459
     
Total current liabilities  14,588  16,139
     
LONG-TERM DEBT  31,200  36,200
OTHER LONG-TERM LIABILITIES  46,388  42,262
     
Total liabilities  92,176  94,601
     
STOCKHOLDERS' EQUITY  24,065  82,549
     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $ 116,241  $ 177,150
 
DYNAVOX INC. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
         
  Thirteen Weeks Ended Fifty-Two Weeks Ended
  June 29, 2012 July 1, 2011 June 29, 2012 July 1, 2011
         
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net cash provided by operating activities  $ 2,834  $ 8,177  $ 15,635  $ 11,829
         
CASH FLOWS FROM INVESTING ACTIVITIES:        
Net cash used in investing activities  (89)  (368)  (461)  (3,196)
         
CASH FLOWS FROM FINANCING ACTIVITIES:        
Net cash used in financing activities  (6,910)  (7,886)  (9,293)  (17,326)
         
EFFECT OF CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS  (50)  2  (108)  87
         
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS  (4,215)  (75)  5,773  (8,606)
CASH AND CASH EQUIVALENTS:        
Beginning of period  22,159  12,246  12,171  20,777
End of period  $ 17,944  $ 12,171  $ 17,944  $ 12,171
 
DYNAVOX INC. AND SUBSIDIARIES
         
ADJUSTED EBITDA
(Unaudited)
(Dollars in thousands)
         
  Thirteen Weeks Ended Fifty-Two Weeks Ended
  June 29, 2012 July 1, 2011 June 29,  2012 July 1, 2011
Other Financial Data        
         
Adjusted EBITDA (1)  $ 3,026  $ 8,058  $ 16,767  $ 19,273
         
(1) Adjusted EBITDA represents income before income taxes, interest income, interest expense, impairment loss, depreciation and amortization and the other adjustments noted in the table below.
         
  Adjusted EBITDA Reconciliation  
  Thirteen Weeks Ended Fifty-Two Weeks Ended
  June 29, 2012 July 1, 2011 June 29,  2012 July 1, 2011
         
Income (loss) before income taxes $ (4,851) $ 5,628 $ (59,935) $ 8,028
Depreciation 660 834 2,985 3,377
Amortization of certain intangibles 173 287 854 981
Interest income (6) (6) (28) (36)
Interest expense 572 636 2,288 2,650
Change in fair value and net loss on interest rate swap agreements -- -- -- 81
Other (income) expense, net (a) 100 (755) 65 (530)
Equity-based compensation 465 540 2,137 2,124
Employee severance and other costs 1,276 89 1,427 397
Acquisition costs (b) -- 116 -- 277
Impairment loss 4,794 244 66,901 1,262
Other adjustments(c) (157) 445 73 662
Adjusted EBITDA $ 3,026 $ 8,058 $ 16,767 $ 19,273
         
(a) Excludes realized foreign currency gains or losses.    
(b) Legal, accounting and other external costs related to the purchase of certain assets and liabilities of Blink-Twice Inc. and the purchase of Eye Response Technologies, Inc. including certain post-closing expenses which may be reimbursed to the Company at a later date under the terms of the applicable agreements.
(c) Includes certain amounts related to other taxes.    
 
DYNAVOX INC. AND SUBSIDIARIES
         
ADJUSTED PRO FORMA NET INCOME (LOSS)
(Unaudited)
(Dollars in thousands, except per share amounts)
         
  Thirteen Weeks Ended Fifty-Two Weeks Ended
  June 29, 2012 July 1, 2011 June 29, 2012 July 1, 2011
         
Net income (loss) attributable to DynaVox Inc.  $ (5,109)  $ 930  $ (18,450)  $ 1,229
         
Adjustments:        
Net income (loss) attributable to the non-controlling interest  (2,751)  3,671  (37,880)  5,438
Income tax benefit (expense)  3,031  (1,204)  (6,252)  (2,169)
Impairment loss  4,794  244  66,901  1,262
Total adjustments  5,074  2,711  22,769  4,531
         
Adjusted pro forma net income (loss)  $ (35)  $ 3,641  $ 4,319  $ 5,760
         
Pro forma weighted-average shares outstanding - diluted  29,823,119  29,804,134  29,808,956  29,823,700
         
Adjusted pro forma net income (loss) per share - diluted  $ (0.00)  $ 0.12  $ 0.14  $ 0.19
         
Adjusted pro forma net income (loss), as defined by DynaVox, represents net income (loss) before non-controlling interests and impairment loss and after proforma corporate income tax benefit (expense) applied at an assumed 38.0% rate, which includes a provision for U.S. federal income taxes, assumes the highest statutory rates apportioned to each state, local and/or foreign jurisdiction and assumes the full exchange of Holdings Units into Class A Common Stock as described below. Adjusted pro forma net income (loss) per share consists of adjusted pro forma net income (loss), divided by the weighted-average number of the Company's Class A Common Stock outstanding, assuming full exchange of Holdings Units of DynaVox Holdings into Class A Common Stock of DynaVox Inc. and giving effect to the dilutive impact, if any, of stock options and restricted stock awards.
       
The table above provides a reconciliation of net income (loss) to adjusted pro forma net income (loss) and adjusted pro forma net income (loss) per share.  
         
CONTACT: News Media Contact:
         DynaVox
         Dave Colson
         Communications Director
         (412) 995-4090
         
         Investor Contact:
         ICR, LLC
         Sherry Bertner
         Managing Director
         (646) 277-1247

4 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 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

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