- Net sales were $117.8 million, compared to $117.6 million.
- Business Category revenue was $102.8 million, compared to $103.7 million. The Business Category contributed 87.3% of total net sales, compared to 88.2%.
- Consumer Category revenue was $15.0 million, compared to $13.9 million. The Consumer Category contributed 12.7% of total net sales, compared to 11.8%.
- Adjusted pro forma gross margins were 30.5%, compared to 28.6%.
- Adjusted pro forma operating expenses were $27.1 million, compared to $26.2 million.
- Adjusted pro forma operating income was $8.9 million, compared to $7.4 million.
- Adjusted pro forma net income was $6.3 million, or $0.42 per diluted share, compared to $5.9 million, or $0.40 per diluted share.
- At December 31, 2012, cash and cash equivalents was $44.6 million.
- Net sales were $463.1 million, compared to $468.6 million.
- Adjusted pro forma gross margins were 29.1%, compared to 28.0%.
- Adjusted pro forma operating expenses were $102.9 million, compared to $100.2 million.
- Adjusted pro forma operating income was $31.6 million, compared to $31.0 million.
- Adjusted pro forma net income was $23.4 million, or $1.55 per diluted share, compared to $23.6 million, or $1.55 per diluted share.
For the first quarter of 2013, the company expects net sales to range between $106.0 million and $112.0 million, compared to $103.7 million in the first quarter of 2012. Adjusted pro forma earnings per diluted share for the first quarter of 2013 are expected to range from $0.20 to $0.26, compared to adjusted pro forma earnings per diluted share of $0.19 in the first quarter of 2012.Conference Call Information UEI’s management team will hold a conference call today, Thursday, February 21, 2013 at 4:30 p.m. ET / 1:30 p.m. PT, to discuss its fourth quarter and year-end 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 93200814. 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 93200814. 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 acquisitions. Non-GAAP operating expenses are defined as operating expenses excluding acquisition costs, amortization of intangibles, other employee related restructuring costs, as well as costs associated with moving our corporate headquarters from Cypress, CA to Santa Ana, CA. Non-GAAP net income is net income from operations excluding the aforementioned items and the related tax effects as well as the write down of certain deferred tax assets resulting from tax law changes. 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 continued innovation of products and technologies, such as solutions to address mode confusion, that eliminate remote control setup, and that transform smart devices (such as smartphones and tablets) and gaming consoles into universal remote controls; the Company’s ability to gain market share through the consolidation of our industry and by adding new customers and retaining current customers; the Company’s app technologies being embedded in smart devices and game consoles as anticipated by management; the demand for smart devices and game consoles to grow as anticipated by management; the continued global general economic conditions; the benefits the Company expects via the growth of new markets in certain geographic areas including Latin America, Asia-Pacific region, and Eastern Europe; 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)|
|December 31, 2012||December 31, 2011|
|Cash and cash equivalents||$||44,593||$||29,372|
|Accounts receivable, net||91,048||82,184|
|Prepaid expenses and other current assets||3,661||3,045|
|Income tax receivable||270||—|
|Deferred income taxes||5,210||6,558|
|Total current assets||229,163||212,063|
|Property, plant, and equipment, net||77,706||80,449|
|Intangible assets, net||29,835||32,814|
|Deferred income taxes||6,369||7,992|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Line of credit||—||2,000|
|Accrued sales discounts, rebates and royalties||8,093||6,544|
|Accrued income taxes||3,668||5,707|
|Deferred income taxes||41||50|
|Other accrued expenses||10,644||13,967|
|Total current liabilities||115,675||127,302|
|Deferred income taxes||10,687||11,056|
|Income tax payable||525||1,136|
|Other long-term liabilities||1,787||5|
|Commitments and contingencies|
|Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding||—||—|
|Common stock, $0.01 par value, 50,000,000 shares authorized; 21,491,398 and 21,142,915 shares issued on December 31, 2012 and 2011, respectively||215||211|
|Accumulated other comprehensive income (loss)||1,052||938|
|Less cost of common stock in treasury, 6,516,382 and 6,353,035 shares on December 31, 2012 and 2011, respectively||(101,793||)||(98,877||)|
|Total stockholders’ equity||250,650||229,989|
|Total liabilities and stockholders’ equity||$||379,324||$||369,488|
|UNIVERSAL ELECTRONICS INC. CONSOLIDATED INCOME STATEMENTS (In thousands, except per share amounts)|
|Three Months Ended December 31,||Twelve Months Ended December 31,|
|Cost of sales||82,081||84,285||329,653||338,569|
|Research and development expenses||3,744||2,992||14,152||12,267|
|Selling, general and administrative expenses||24,068||24,102||93,083||91,218|
|Interest expense, net||(39||)||(60||)||(151||)||(270||)|
|Other expense, net||(898||)||(304||)||(1,413||)||(1,075||)|
|Income before provision for income taxes||6,953||5,902||24,638||25,231|
|Provision for income taxes||4,035||988||8,085||5,285|
|Earnings per share:|
|Shares used in computing earnings per share:|
|UNIVERSAL ELECTRONICS INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)|
|Year Ended December 31,|
|Cash provided by operating activities:|
|Adjustments to reconcile net income to net cash provided by operating activities:|
|Depreciation and amortization||17,613||17,335|
|Provision for doubtful accounts||73||277|
|Provision for inventory write-downs||2,994||5,625|
|Deferred income taxes||2,536||(1,043||)|
|Tax benefit from exercise of stock options and vested restricted stock||(83||)||280|
|Excess tax benefit from stock-based compensation||(111||)||(439||)|
|Shares issued for employee benefit plan||749||729|
|Changes in operating assets and liabilities:|
|Prepaid expenses and other assets||(588||)||(345||)|
|Accounts payable and accrued expenses||8,186||(4,319||)|
|Accrued income and other taxes||(2,943||)||(302||)|
|Net cash provided by operating activities||43,543||14,800|
|Cash used for investing activities:|
|Acquisition of property, plant, and equipment||(10,463||)||(13,630||)|
|Acquisition of intangible assets||(1,140||)||(1,064||)|
|Net cash used for investing activities||(11,603||)||(14,694||)|
|Cash used for financing activities:|
|Issuance of debt||30,800||4,200|
|Payment of debt||(47,200||)||(22,800||)|
|Debt issuance costs||(42||)||—|
|Proceeds from stock options exercised||2,204||1,677|
|Treasury stock purchased||(3,451||)||(9,785||)|
|Excess tax benefit from stock-based compensation||111||439|
|Net cash used for financing activities||(17,578||)||(26,269||)|
|Effect of exchange rate changes on cash||859||1,286|
|Net increase (decrease) in cash and cash equivalents||15,221||(24,877||)|
|Cash and cash equivalents at beginning of year||29,372||54,249|
|Cash and cash equivalents at end of year||$||44,593||$||29,372|
|Supplemental Cash Flow Information:|
|Income taxes paid||$||10,445||$||8,097|
|UNIVERSAL ELECTRONICS INC. RECONCILIATION OF ADJUSTED PRO FORMA FINANCIAL RESULTS (In thousands) (Unaudited)|
|Three Months Ended December 31, 2012||Three Months Ended December 31, 2011|
|GAAP||Adjustments||Adjusted Pro Forma||GAAP||Adjustments||Adjusted Pro Forma|
|Cost of sales (1)||82,081||(277||)||81,804||84,285||(277||)||84,008|
|Research and development expenses||3,744||—||3,744||2,992||—||2,992|
|Selling, general and administrative expenses (2)||24,068||(743||)||23,325||24,102||(890||)||23,212|
|Interest expense, net||(39||)||—||(39||)||(60||)||—||(60||)|
|Other expense, net||(898||)||—||(898||)||(304||)||—||(304||)|
|Income before provision for income taxes||6,953||1,020||7,973||5,902||1,167||7,069|
|Provision for income taxes (4)||4,035||(2,388||)||1,647||988||179||1,167|
|Earnings per share diluted||$||0.19||$||0.22||$||0.42||$||0.33||$||0.07||$||0.40|
|Twelve Months Ended December 31, 2012||Twelve Months Ended December 31, 2011|
|GAAP||Adjustments||Adjusted Pro Forma||GAAP||Adjustments||Adjusted Pro Forma|
|Cost of sales (1)||329,653||(1,108||)||328,545||338,569||(1,108||)||337,461|
|Research and development expenses||14,152||—||14,152||12,267||—||12,267|
|Selling, general and administrative expenses (3)||93,083||(4,316||)||88,767||91,218||(3,292||)||87,926|
|Interest expense, net||(151||)||—||(151||)||(270||)||—||(270||)|
|Other expense, net||(1,413||)||—||(1,413||)||(1,075||)||—||(1,075||)|
|Income before provision for income taxes||24,638||5,424||30,062||25,231||4,400||29,631|
|Provision for income taxes (4)||8,085||(1,454||)||6,631||5,285||765||6,050|
|Earnings per share diluted||$||1.10||$||0.46||$||1.55||$||1.31||$||0.24||$||1.55|
|(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 each of the three months ended December 31, 2012 and 2011 relating to intangible assets acquired as part of acquisitions. For the quarter ending December 31, 2011, there was an additional $0.1 million incurred relating to other employee restructuring costs, primarily severance.|
|(3)||To reflect $3.0 million of amortization expense for the twelve months ended December 31, 2012 and 2011, relating to intangible assets acquired as part of acquisitions. For the twelve months ended 2012, there were approximately $0.8 million of other employee restructuring costs incurred, primarily severance, as well as $0.5 million incurred relating to moving our corporate headquarters from Cypress, CA to Santa Ana, CA. For the twelve months ended December 31, 2011, there were approximately $0.3 million of other employee restructuring costs incurred, primarily severance.|
|(4)||To reflect $2.8 million of tax expense for the three and twelve months ended December 31, 2012 relating to a valuation allowance applied to the California R&D credit (deferred tax asset) which resulted in a $2.2 million tax expense, net of federal benefit, as well as a $0.6 million write-off of a deferred tax asset in China which was acquired as part of the November 4, 2010 acquisition of Enson Assets Limited. Both of the aforementioned items resulted from tax law changes.|
|To reflect a tax refund of approximately $0.3 million, recorded on the books of Enson Assets Limited, for the three and twelve months ended December 31, 2012, relating to tax years preceding the acquisition.|
|To reflect the tax effect of $0.2 million and $1.1 million for the three and twelve months ended December 31, 2012, respectively, relating to the pre-tax income adjustments.|
|To reflect the tax effect of $0.2 million and $0.8 million for the three and twelve months ended December 31, 2011, respectively, relating to the pre-tax income adjustments.|