-Increased net income 16% over first quarter 2014 –
-Maintains long-term financial outlook of average annual sales growth of 5% to
10% and average earnings growth of 10% to 20% –
ANA, CA – May 7, 2015– Universal Electronics Inc. (UEI), (NASDAQ: UEIC)
reported financial results for the three months ended March 31, 2015.
Paul Arling, UEI’s Chairman and CEO, stated: “During the
first quarter of 2015, we performed as expected with net income increasing 16%
compared to the first quarter of 2014. We continued to maintain strong
relationships with our customers in subscription broadcasting, OEMs and smart
device manufacturers to integrate both our traditional remote control solutions
as well as our newest innovations into their current and future devices. In
fact, many of our customers are focusing on introducing new, more
differentiated remote controls that provide consumers with increasingly
sophisticated capabilities including new connectivity protocols, voice control
navigation and new design aesthetics, among others. While offering consumers
more advanced technologies has been a longstanding trend in the home
entertainment industry, it is now happening more quickly and more broadly than
ever before. While in the short term we expect to see below average order
volumes as some of our customers deplete existing inventories in advance of
their new product rollouts, in the second half of 2015 we expect to begin
benefitting from this growing trend.”
“Our strategy to build relationships with key customers in targeted
geographies has served us well for nearly 30 years. By attracting brands in
regions that represent the highest growth potential, we have been successful in
winning new customers and taking share in subscription broadcasting, consumer
electronics and now game consoles, smart TVs, as well as smart devices. The
market is once again evolving, and we continue to be at the forefront of changing
trends in home entertainment by ensuring we develop the innovative solutions
that proactively address the needs of our customers and consumers,”
Forma Financial Results for the Three Months Ended March 31: 2015 Compared to
• Net sales were $132.7 million, compared to $129.8
• Business Category revenue was $121.5 million, compared
to $118.4 million. The Business Category contributed 91.6% of total net sales,
compared to 91.2%.
• Consumer Category revenue was $11.2 million, compared
to $11.4 million. The Consumer Category contributed 8.4% of total net sales,
compared to 8.8%.
margins were 28.4%, compared to 28.3%.
• Operating expenses were $28.6 million, compared to
income was $9.1 million, compared to $8.8 million.
income was $7.4 million, or $0.46 per diluted share, compared to $6.4 million,
or $0.40 per diluted share.
March 31, 2015, cash and cash equivalents was $97.1 million.
Bryan Hackworth, Senior Vice President and CFO, stated: “During the first quarter, we
repurchased approximately 69,000 shares for $4.0 million at an average stock
price of $57.89. Given the positive long-term trends in our industry, our stronger
than ever market position and the trading range of our stock, we plan to aggressively
buy back our shares over the next three months.”
For the second quarter of 2015, the company expects net
sales to range between $143.0 million and $151.0 million, compared to $146.3
million in the second quarter of 2014. Adjusted pro forma earnings per diluted
share for the second quarter of 2015 are expected to range from $0.63 to $0.73,
compared to adjusted pro forma earnings per diluted share of $0.66 in the
second quarter of 2014.
continued: “While there are normal ebbs and flows in our sales figures from time-to-time,
the long-term outlook for our business remains unchanged. We continue to expect
average annual sales growth of between 5% and 10% and average earnings growth
of between 10% and 20%.”
Conference Call Information
UEI’s management team will hold a
conference call today, Thursday, May 7, 2015 at 4:30 p.m. ET / 1:30 p.m.
PT, to discuss its first quarter 2015 earnings results, review recent activity
and answer questions. To access the call in the U.S. please dial 877-843-0414
and for international calls dial 315-625-3071 approximately 10 minutes prior to
the start of the conference. The conference ID is 24098012. 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
Use of Non-GAAP Financial Metrics
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 depreciation expense related to the increase in fixed assets from
cost to fair market value resulting from acquisitions. Non-GAAP operating
expenses are defined as operating expenses excluding amortization of intangibles
acquired, employee related restructuring costs, and stock-based compensation
expense. Non-GAAP net income is defined as net income from operations excluding
the aforementioned items and the related tax effects. A reconciliation of
Non-GAAP financial results to GAAP results is included at the end of this press
About Universal Electronics
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, visit our website at www.uei.com.
Safe Harbor Statement
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 company’s
ability to maintain and build its relationships with key customers; the
company’s ability to anticipate the needs and wants of its customers and timely
develop and deliver products that will meet those needs and wants; the
continued success in winning new customers and growing its market share; the
timing of new product rollout orders from the company’s customers as
anticipated by management; the continued trend of the home entertainment
industry in providing consumers with more advanced technologies; management’s
ability to manage its business to achieve its revenue and earnings as guided;
and the other factors described in the company’s filings with the U.S.
Securities and Exchange Commission. The actual results 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.