– Fourth quarter 2015 financial guidance represents all-time
highs in both net sales and EPS –
Universal Electronics Inc. (UEI), (NASDAQ: UEIC)
reported financial results for the three and nine months ended September 30,
Paul Arling, UEI’s Chairman and CEO, stated: “Our third quarter 2015 net sales
represented 9% growth over the same quarter last year. We are just beginning to
see the positive impacts of the rollout of advanced remote control technologies,
and we anticipate it will continue building into our fourth quarter and beyond as
our customers ramp into their new product releases. The
world is changing as consumers require more advanced functionality and
increased simplification, which is exactly where UEI excels as we help
our customers provide devices and technologies that meet both requirements.”
“We remain on plan with the integration of Ecolink
Intelligent Technology, the acquisition which we announced on August 6, 2015. Ecolink is a leading provider of wireless security, sensing and
home automation products and services. The acquisition provides us access to an exciting opportunity in the
emerging and rapidly expanding smart
home industry. We are currently working on several new products in this market,
which we expect to introduce with our industry partners throughout 2016.”
Adjusted Pro Forma
Financial Results for the Three Months Ended September 30: 2015 Compared to
- Net sales were $160.5 million, compared to $147.8
- Business Category revenue was $148.6 million, compared
to $135.2 million. The Business Category contributed 92.6% of total net sales,
compared to 91.5%.
- Consumer Category revenue was $11.9 million, compared
to $12.6 million. The Consumer Category contributed 7.4% of total net sales,
compared to 8.5%.
- Gross margins were 26.9%, compared to 30.7%.
expenses were $25.9 million, compared to $28.9 million.
- Operating income was $17.2 million, compared to $16.4
- Net income was $11.8 million, or $0.78 per diluted
share, compared to $12.9 million, or $0.80 per diluted share.
- At September 30, 2015, cash and cash equivalents were
Adjusted Pro Forma
Financial Results for the Nine Months Ended September 30: 2015 Compared to 2014
- Net sales were $440.7 million, compared to $423.9
- Gross margins were 27.5%, compared to 29.7%.
- Operating expenses were $81.5 million, compared to
- Operating income was $39.8 million, compared to $39.7
- Net income was $30.0 million, or $1.89 per diluted
share, compared to $29.8 million, or $1.85 per diluted share.
Senior Vice President and CFO, stated: “During the
third quarter, we repurchased approximately 945,000 shares for $44.4 million
representing an average price of approximately $47 per share. Looking ahead, we
expect to continue to buy back our shares as the promising trends in our industry
and our growing market position support our positive long-term outlook.”
quarter 2015 financial guidance reflects the accelerated rollout of advanced
remote control technologies among our customer base. As a result, we expect the
fourth quarter will be the largest quarter in our long history in both net
sales and earnings per share,” stated Hackworth.
For the fourth
quarter of 2015, the company expects net sales to range between $159.0 million
and $167.0 million, compared to $138.4 million in the fourth quarter of 2014.
Adjusted pro forma earnings per diluted share for the fourth quarter of 2015
are expected to range from $0.79 to $0.89, compared to adjusted pro forma
earnings per diluted share of $0.70 in the fourth quarter of 2014.
UEI’s management team will hold a
conference call today, Thursday, November 5, 2015 at 4:30 p.m. ET / 1:30
p.m. PT, to discuss its third 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 64007983. 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 64007983.
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 cost of goods sold and depreciation expense related to the
increase in inventories and 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, stock-based compensation expense, a court ordered
award to a defendant in a lawsuit for a portion of its legal fees and
acquisition related expenses. 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
About Universal Electronics
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, 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 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 significant percentage of our revenues attributable to a limited
number of customers, 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; the successful integration of the Ecolink assets and business lines;
the timely development, delivery and market acceptance of products and
technologies such as home security, home automation, wireless sensors and other
technologies identified in this release; the continued penetration and growth
of next generation consumer technologies; management’s ability to manage its
business to achieve its revenue and earnings as guided; the continued ability to identify and execute on
opportunities that maximize stockholder value, including the effects
repurchasing the company’s shares have on the company’s stock value; 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.