- Net sales were $116.7 million, compared to $121.7 million.
- Business Category revenue was $103.9 million, compared to $111.1 million.The Business Category contributed 89% of total net sales, compared to 91%.
- Consumer Category revenue was $12.8 million, compared to $10.6 million.The Consumer Category contributed 11% of total net sales, compared to 9%.
- Adjusted pro forma gross margins were 28.5%, compared to gross margins of 28.9%.
- Adjusted pro forma operating expenses were $25.5 million, compared to operating expenses of $25.6 million.
- Adjusted pro forma operating income was $7.7 million, compared to operating income of $9.6 million.
- Adjusted pro forma net income was $6.2 million, or $0.41 per diluted share, compared to net income of $7.1 million, or $0.46 per diluted share.
- At June 30, 2012, cash and cash equivalents was $30.7 million.
- Net sales were $220.4 million, compared to $227.5 million.
- Adjusted pro forma gross margins were 28.1%, compared to gross margins of 27.7%.
- Adjusted pro forma operating expenses were $50.3 million, compared to operating expenses of $50.0 million.
- Adjusted pro forma operating income was $11.5 million, compared to operating income of $13.1 million.
- Adjusted pro forma net income was $9.0 million, or $0.60 per diluted share, compared to net income of $9.7 million, or $0.63 per diluted share.
For the full 2012 year, the company continues to expect net sales to range between $465.0 million and $485.0 million, compared to $468.6 million in 2011. Adjusted pro forma earnings per diluted share for 2012 are expected to range from $1.55 to $1.75, compared to adjusted pro forma earnings per diluted share of $1.55 in 2011.Conference Call Information UEI’s management team will hold a conference call today, Thursday, August 2, 2012 at 4:30 p.m. ET / 1:30 p.m. PT, to discuss its second quarter 2012 earnings results, review recent activity and answer questions. To access the call in the U.S. please dial 877-655-6895 and for international calls dial 706-758-0299 approximately 10 minutes prior to the start of the conference. The conference ID is 12768924. The conference call will also be broadcast live over the Internet and available for replay for one year at www.uei.com. In addition, a replay of the call will be available via telephone for two business days, beginning two hours after the call. To listen to the replay, in the U.S., please dial 855-859-2056 and internationally, 404-537-3406. Enter access code 12768924. Use of Non-GAAP Financial Metrics Non-GAAP gross margins, Non-GAAP operating expenses, and Non-GAAP net income and earnings per share are supplemental measures of the company's performance that are not required by, and are not presented in accordance with GAAP. The non-GAAP information does not substitute for any performance measure derived in accordance with GAAP. Non-GAAP gross profit is defined as gross profit excluding charges related to the write-up of inventory and depreciation related to the acquisition. Non-GAAP operating expenses is defined as cash operating expenses excluding acquisition costs, amortization of intangibles and other employee related restructuring costs. Non-GAAP net income is net income from operations excluding the aforementioned items. A reconciliation of Non-GAAP financial results to GAAP results is included at the end of this press release.
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|
|Cash and cash equivalents||$||30,688||$||29,372|
|Accounts receivable, net||86,017||82,184|
|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|
|Intangible assets, net||31,192||32,814|
|Deferred income taxes||8,135||7,992|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Line of credit||3,000||2,000|
|Accrued sales discounts, rebates and royalties||6,317||6,544|
|Accrued income taxes||2,878||5,707|
|Deferred income taxes||49||50|
|Other accrued expenses||8,156||13,967|
|Total current liabilities||105,491||127,302|
|Deferred income taxes||11,276||11,056|
|Income tax payable||1,136||1,136|
|Other long-term liabilities||1,477||5|
|Commitments and contingencies|
|Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding||—||—|
|Common stock, $0.01 par value, 50,000,000 shares authorized; 21,331,074 and 21,142,915 shares issued on June 30, 2012 and December 31, 2011, respectively||213||211|
|Accumulated other comprehensive (loss) income||(555||)||938|
|Less cost of common stock in treasury, 6,358,515 and 6,353,035 shares on June 30, 2012 and December 31, 2011, respectively||(99,041||)||(98,877||)|
|Total stockholders’ equity||238,914||229,989|
|Total liabilities and stockholders’ equity||$||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,|
|Cost of sales||83,734||86,802||159,139||164,935|
|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|
|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||)|
|Earnings per share:|
|Shares used in computing earnings per share:|
|UNIVERSAL ELECTRONICS INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)|
|Six Months Ended June 30,|
|Cash provided by operating activities:|
|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|
|Changes in operating assets and liabilities:|
|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||$||37,900|
|UNIVERSAL ELECTRONICS INC. RECONCILIATION OF ADJUSTED PRO FORMA FINANCIAL RESULTS (In thousands, except share-related data) (Unaudited)|
|Three Months Ended||Three Months Ended|
|June 30, 2012||June 30, 2011|
|GAAP||Adjustments||Pro Forma||GAAP||Adjustments||Pro Forma|
|Cost of sales (1)||83,734||(277||)||83,457||86,802||(277||)||86,525|
|Research and development expenses||3,424||—||3,424||3,157||—||3,157|
|Selling, general and administrative expenses (2)||23,080||(965||)||22,115||23,477||(1,026||)||22,451|
|Interest expense, net||(51||)||—||(51||)||(69||)||—||(69||)|
|Other expense , net||(126||)||—||(126||)||(384||)||—||(384||)|
|Income before provision for income taxes||6,289||1,242||7,531||7,857||1,303||9,160|
|Provision for income taxes (4)||(1,136||)||(238||)||(1,374||)||(1,736||)||(296||)||(2,032||)|
|Earnings per share diluted||$||0.34||$||0.07||$||0.41||$||0.40||$||0.06||$||0.46|
|Six Months Ended||Six Months Ended|
|June 30, 2012||June 30, 2011|
|GAAP||Adjustments||Pro Forma||GAAP||Adjustments||Pro Forma|
|Cost of sales (1)||159,139||(554||)||158,585||164,935||(554||)||164,381|
|Research and development expenses||6,887||—||6,887||6,414||—||6,414|
|Selling, general and administrative expenses (3)||45,632||(2,197||)||43,435||45,264||(1,659||)||43,605|
|Interest expense, net||(88||)||—||(88||)||(154||)||—||(154||)|
|Other expense, net||(450||)||—||(450||)||(418||)||—||(418||)|
|Income before provision for income taxes||8,240||2,751||10,991||10,273||2,213||12,486|
|Provision for income taxes (4)||(1,455||)||(542||)||(1,997||)||(2,325||)||(441||)||(2,766||)|
|Earnings per share diluted||$||0.45||$||0.15||$||0.60||$||0.52||$||0.11||$||0.63|
(1) To reflect depreciation expense for the corresponding periods relating to the mark-up in fixed assets from cost to fair value as part of the Enson Assets Limited acquisition.(2) To reflect $0.7 million of amortization expense for the three months ended June 30, 2012 and June 30, 2011, relating to intangible assets acquired as part of acquisitions. In the second quarter 2012 and 2011, there were additional costs incurred relating primarily to other employee restructuring costs. (3) To reflect $1.5 million of amortization expense for the six months ended June 30, 2012 and June 30, 2011, relating to intangible assets acquired as part of acquisitions. For the six months ended 2012 and 2011, there were additional costs incurred relating primarily to other employee restructuring costs. (4) To reflect the tax effect of the adjustments.