SANTA ANA, CA – Universal Electronics Inc. (UEI), (NASDAQ: UEIC)
reported financial results for the three months ended March 31, 2016.
Paul Arling, UEI’s Chairman and CEO, stated, “For the first quarter 2016, we
reported adjusted pro forma net sales growth of 14% and adjusted pro forma EPS
growth of 9% over the same quarter last year. Our subscription broadcasting
business continues to benefit from the increasing adoption of advanced products
and technologies by the world’s largest home entertainment companies. We’ve
also made progress in bringing our new suite of intelligent home sensing solutions
to market as we signed an exclusive distribution agreement with Interlogix
to enhance our penetration of the residential and commercial security sales
“Throughout 2016, we plan to introduce an exciting line-up of new home security, monitoring
and control solutions. These new products combine with our home entertainment
control solutions, enabling us to provide our customers with a more complete
smart home solution. As the Internet of Things allows more devices to be
included within the home control arena, UEI’s products and technologies are
enabling consumers to more easily control and interact with their entertainment
and home security products.”
Adjusted Pro Forma Financial Results for the Three Months Ended March 31: 2016 Compared to
sales were $151.5 million, compared to $132.7 million.
- Business Category revenue was $141.5 million, compared
to $121.5 million. The Business Category contributed 93.4% of total net sales,
compared to 91.6%.
- Consumer Category revenue was $10.0 million, compared
to $11.2 million. The Consumer Category contributed 6.6% of total net sales,
compared to 8.4%.
- Business Category revenue was $141.5 million, compared
- Gross margins were 25.6%, compared to 28.4%.
- Operating expenses were $29.5 million, compared to
- Operating income was $9.4 million, compared to $9.1
- Net income was $7.3 million, or $0.50 per diluted
share, compared to $7.4 million, or $0.46 per diluted share.
- At March 31, 2016, cash and cash equivalents were
For the second quarter of 2016, the company expects adjusted pro forma net sales to
range between $167.0 million and $175.0 million, compared to $147.6 million in
the second quarter of 2015. Adjusted pro forma earnings per diluted share for
the second quarter of 2016 are expected to range from $0.71 to $0.81, compared
to adjusted pro forma earnings per diluted share of $0.67 in the second quarter
Conference Call Information
UEI’s management team will hold a conference call today, Thursday, May 5, 2016 at 4:30 p.m. ET / 1:30 p.m.
PT, to discuss its first quarter 2016 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 88920918. 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 88920918.
Use of Non-GAAP Financial Metrics
Adjusted pro forma net sales, gross margins, operating expenses, net income and earnings
per share are Non-GAAP 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 net sales
is defined as net sales excluding the impact of stock-based compensation for
performance-based warrants. Non-GAAP
gross profit is defined as gross profit excluding stock-based compensation
expense and 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, stock-based compensation
expense, and employee related restructuring costs. 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 release.
About Universal Electronics
Universal Electronics Inc. (NASDAQ: UEIC) is the worldwide leader in universal control
and sensing technologies for the smart home. For more information, please visit
Note on Forward-looking Statements
This press release and accompanying schedules contain “forward-looking
statements” within the meaning of federal securities laws, including net
sales, profit margin and earnings trends, estimates and assumptions; our
expectations about new product introductions; and similar statements concerning
anticipated future events and expectations that are not historical facts.
We caution you that these statements are not guarantees of future performance
and are subject to numerous risks and uncertainties, including those we
identify below and other risk factors that we identify in our most recent
annual report on Form 10-K. Risks that could affect forward-looking
statements in this press release include changes in market conditions; the pace
of the economy; competitive conditions in the industries we serve, including
the smart home and residential and commercial security industries; and
relationships with our customers. Any of these factors could cause actual
results to differ materially from the expectations we express or imply in this
press release. We make these forward-looking statements as of May 5, 2016.
We undertake no obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or otherwise.
Paul Arling (UEI) 714.918.9500
Herrick (IR Agency) 415.433.3777
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