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| [February 21, 2013] |
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Universal Electronics Reports Fourth Quarter and Year-End 2012 Financial Results
SANTA ANA, Calif. --(Business Wire)--
Universal Electronics Inc. (UEI), (NASDAQ: UEIC) reported financial
results for the three and twelve months ended December�31, 2012.
"Our fourth quarter results reflect our solid performance and were
within our expectations," stated Paul Arling, UEI's Chairman and CEO.
"In 2012, we demonstrated the many applications for our technology and
gained traction in the growing regions of the world and in new product
categories, such as smart devices and game consoles. For example, we
recently announced that LG joined other leading smart device companies
in selecting UEI technology to power their innovative new products,
further establishing our embedded app technology in these exciting new
growth markets. Smart devices represent a large and growing market for
us as the introduction and adoption of smart TVs, tablets and
smartphones continues to increase.
"The 2013 International Consumer Electronics Show in Las Vegas in
January was another successful event for UEI as we further established
ourselves as the leader in innovative solutions for home entertainment
control. We unveiled a variety of products and technologies that provide
a more intuitive and automated control interface for consumers. Our
ability to anticipate the changing trends in home entertainment enables
us to provide the products and technologies that address our customers'
and consumers' evolving needs. We believe this strategy will continue to
serve us well in the months and years ahead."
Financial Results for the Three Months Ended
December�31: 2012 Compared to 2011
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Net sales were $117.8 million, compared to $117.6 million.
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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%.
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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%.
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Adjusted pro forma gross margins were 30.5%, compared to 28.6%.
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Adjusted pro forma operating expenses were $27.1 million, compared to
$26.2 million.
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Adjusted pro forma operating income was $8.9 million, compared to $7.4
million.
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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.
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At December�31, 2012, cash and cash equivalents was $44.6 million.
Financial Results for the Twelve Months Ended
December�31: 2012 Compared to 2011
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Net sales were $463.1 million, compared to $468.6 million.
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Adjusted pro forma gross margins were 29.1%, compared to 28.0%.
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Adjusted pro forma operating expenses were $102.9 million, compared to
$100.2 million.
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Adjusted pro forma operating income was $31.6 million, compared to
$31.0 million.
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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.
Financial Outlook
Bryan Hackworth, UEI's CFO, stated: "For many years, we have been at the
forefront of advancements in control technologies and solutions, which
are now evolving to include Smart Devices. We are very pleased with our
early successes embedding UEI technology inside gaming consoles,
smartphones, tablets and smart TVs. Initial customer reaction and
feedback has been quite positive. We are confident that we will deliver
solid growth in 2013 and that our investment in these areas carries
significant additional growth potential. Longer term, we believe the
profile of our business is one with approximately 5% to 10% average
annual revenue growth and average earnings growth of between 10% and
15%. Because it is difficult to accurately predict the commencement,
timing of launch and magnitude of orders for specific new products
across future quarters or within the current fiscal year, we have
decided that, going forward, we will only provide detailed guidance for
the upcoming quarter."
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.
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UNIVERSAL ELECTRONICS INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share-related data)
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�
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�
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December 31, 2012
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December 31, 2011
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ASSETS
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Current assets:
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Cash and cash equivalents
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$
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44,593
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$
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29,372
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Accounts receivable, net
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91,048
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82,184
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Inventories, net
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84,381
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90,904
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Prepaid expenses and other current assets
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3,661
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3,045
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Income tax receivable
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270
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-
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Deferred income taxes
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5,210
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�
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6,558
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�
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Total current assets
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229,163
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212,063
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Property, plant, and equipment, net
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77,706
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80,449
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Goodwill
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30,890
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30,820
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Intangible assets, net
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29,835
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32,814
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Other assets
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5,361
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5,350
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Deferred income taxes
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6,369
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�
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7,992
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�
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Total assets
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$
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379,324
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�
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$
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369,488
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities:
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Accounts payable
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$
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59,831
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$
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55,430
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Line of credit
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-
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2,000
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Notes payable
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-
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14,400
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Accrued sales discounts, rebates and royalties
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8,093
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6,544
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Accrued income taxes
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3,668
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5,707
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Accrued compensation
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33,398
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29,204
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Deferred income taxes
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41
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50
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Other accrued expenses
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10,644
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�
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13,967
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�
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Total current liabilities
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115,675
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127,302
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Long-term liabilities:
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Deferred income taxes
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10,687
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11,056
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Income tax payable
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525
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1,136
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Other long-term liabilities
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1,787
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�
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5
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�
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Total liabilities
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128,674
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�
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139,499
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�
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Commitments and contingencies
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Stockholders' equity:
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Preferred stock, $0.01 par value, 5,000,000 shares authorized; none
issued or outstanding
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-
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-
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Common stock, $0.01 par value, 50,000,000 shares authorized;
21,491,398 and 21,142,915 shares issued on December 31, 2012 and
2011, respectively
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215
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211
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Paid-in capital
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180,607
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173,701
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Accumulated other comprehensive income (loss)
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1,052
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938
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Retained earnings
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170,569
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�
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154,016
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�
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352,443
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328,866
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Less cost of common stock in treasury, 6,516,382 and 6,353,035
shares on December 31, 2012 and 2011, respectively
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(101,793
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(98,877
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)
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Total stockholders' equity
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250,650
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�
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229,989
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�
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Total liabilities and stockholders' equity
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$
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379,324
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�
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$
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369,488
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�
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