10-Q
Q2false20230000807707http://fasb.org/us-gaap/2022#PropertyPlantAndEquipmentNet--02-28http://fasb.org/us-gaap/2022#PropertyPlantAndEquipmentNet0000807707us-gaap:RetainedEarningsMember2021-03-012021-05-310000807707us-gaap:OperatingSegmentsMembervoxx:AutomotiveElectronicsMember2021-03-012021-08-310000807707us-gaap:TrademarksMember2022-02-280000807707us-gaap:CommonStockMember2022-02-280000807707us-gaap:OperatingSegmentsMembervoxx:BiometricsMember2021-06-012021-08-310000807707us-gaap:OperatingSegmentsMembervoxx:ConsumerElectronicsMembervoxx:PremiumAudioProductsMember2021-03-012021-08-310000807707us-gaap:LineOfCreditMember2022-08-310000807707voxx:OnkyoHomeEntertainmentCorporationMember2022-06-012022-08-310000807707us-gaap:FairValueInputsLevel3Member2022-08-310000807707us-gaap:AdditionalPaidInCapitalMember2022-06-012022-08-310000807707voxx:OnkyoHomeEntertainmentCorporationMember2021-09-080000807707voxx:IntercompanyTransactionsOfLongTermInvestmentNatureMemberus-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-03-012022-08-310000807707voxx:BiometricsMember2022-02-2800008077072015-07-060000807707us-gaap:RestrictedStockMember2022-08-310000807707voxx:ContingentConsiderationMember2022-03-012022-08-310000807707voxx:FirstYearMemberus-gaap:CommonClassAMembersrt:ChiefExecutiveOfficerMember2019-07-082019-07-080000807707voxx:WellsFargoBankNaMember2022-08-310000807707voxx:EyeLockLimitedLiabilityCompanyMembervoxx:ExclusiveDistributionAgreementMember2021-04-282021-04-290000807707us-gaap:PreferredStockMemberus-gaap:RedeemablePreferredStockMember2021-05-310000807707us-gaap:RestrictedStockMember2022-03-012022-08-310000807707us-gaap:NoncontrollingInterestMember2021-05-310000807707us-gaap:OperatingSegmentsMembervoxx:OtherConsumerElectronicProductsMembervoxx:ConsumerElectronicsMember2021-03-012021-08-310000807707us-gaap:OperatingSegmentsMembervoxx:OEMProductsMembervoxx:AutomotiveMember2021-03-012021-08-310000807707us-gaap:PreferredStockMemberus-gaap:RedeemablePreferredStockMember2022-06-012022-08-310000807707voxx:BreachOfContractClaimMember2021-06-012021-06-300000807707us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMembervoxx:TranslatingFinancialStatementsMember2022-03-012022-08-3100008077072022-03-012022-05-310000807707us-gaap:CommonClassBMember2022-08-310000807707srt:ChiefExecutiveOfficerMember2019-07-080000807707us-gaap:CommonClassAMembervoxx:ThirdYearMembersrt:ChiefExecutiveOfficerMember2019-07-082019-07-0800008077072022-03-032022-03-030000807707voxx:PutArrangementMembervoxx:GalvanEyesLimitedLiabilityCompanyMember2022-08-310000807707us-gaap:CommonClassAMember2022-03-012022-08-310000807707srt:ChiefExecutiveOfficerMember2021-06-012021-08-310000807707us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-08-310000807707us-gaap:MortgagesMember2022-06-012022-08-310000807707voxx:EyeLockLimitedLiabilityCompanyMembervoxx:GalvanEyesLimitedLiabilityCompanyMembervoxx:ExclusiveDistributionAgreementMember2021-04-282021-04-290000807707voxx:BreachOfContractClaimMember2021-11-292021-11-290000807707us-gaap:LondonInterbankOfferedRateLIBORMembersrt:MinimumMember2022-03-012022-08-310000807707voxx:OnkyoHomeEntertainmentCorporationMember2021-12-012022-02-280000807707us-gaap:OperatingSegmentsMembervoxx:BiometricsMembervoxx:BiometricProductsMember2021-06-012021-08-310000807707voxx:OnkyoHomeEntertainmentCorporationMember2022-03-012022-08-3100008077072021-03-012021-08-310000807707srt:MaximumMember2022-03-012022-08-310000807707us-gaap:AccumulatedOtherComprehensiveIncomeLossDerivativeQualifyingAsHedgeExcludedComponentIncludingPortionAttributableToNoncontrollingInterestMember2022-08-310000807707us-gaap:ContractualRightsMember2022-02-280000807707us-gaap:CommonClassAMembersrt:ChiefExecutiveOfficerMember2021-06-012021-08-310000807707us-gaap:RestrictedStockUnitsRSUMembervoxx:TwoThousandFourteenEquityIncentivePlanMember2022-02-280000807707us-gaap:FairValueInputsLevel2Member2022-02-280000807707us-gaap:NoncontrollingInterestMember2021-08-310000807707voxx:AutomotiveElectronicsMember2022-03-012022-08-310000807707us-gaap:PreferredStockMemberus-gaap:RedeemablePreferredStockMember2021-02-280000807707us-gaap:TreasuryStockMember2022-08-310000807707us-gaap:CommonClassAMembersrt:ChiefExecutiveOfficerMember2019-07-082019-07-080000807707us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel1Member2022-08-310000807707us-gaap:OperatingSegmentsMembervoxx:AutomotiveElectronicsMember2022-03-012022-08-310000807707us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-08-310000807707us-gaap:CustomerRelationshipsMember2022-02-280000807707us-gaap:RetainedEarningsMember2021-08-310000807707voxx:EyeLockLimitedLiabilityCompanyMembervoxx:CallArrangementMember2021-04-290000807707us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2021-06-012021-08-310000807707us-gaap:CommonClassAMember2022-10-070000807707us-gaap:AdditionalPaidInCapitalMember2022-05-310000807707us-gaap:MortgagesMember2021-06-012021-08-310000807707us-gaap:NoncontrollingInterestMember2022-02-280000807707us-gaap:CommonClassBMember2022-02-280000807707us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-06-012021-08-310000807707us-gaap:RestrictedStockMember2021-06-012021-08-3100008077072022-05-310000807707us-gaap:RestrictedStockMember2022-06-012022-08-310000807707us-gaap:OperatingSegmentsMembervoxx:BiometricsMembervoxx:BiometricProductsMember2022-03-012022-08-310000807707us-gaap:SeriesAPreferredStockMember2022-02-280000807707us-gaap:CommonStockMember2021-08-310000807707us-gaap:PreferredStockMember2022-02-280000807707us-gaap:RevolvingCreditFacilityMember2022-03-012022-08-310000807707us-gaap:AccumulatedOtherComprehensiveIncomeLossDerivativeQualifyingAsHedgeExcludedComponentIncludingPortionAttributableToNoncontrollingInterestMember2022-03-012022-08-310000807707us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2018-03-012019-02-280000807707us-gaap:OperatingSegmentsMembervoxx:ConsumerElectronicsMembervoxx:PremiumAudioProductsMember2022-06-012022-08-3100008077072021-06-012021-08-310000807707srt:ChiefExecutiveOfficerMember2022-03-012022-08-310000807707us-gaap:TrademarksAndTradeNamesMember2022-08-310000807707voxx:OnkyoHomeEntertainmentCorporationMemberus-gaap:TrademarksMember2021-09-080000807707us-gaap:CorporateNonSegmentMember2022-06-012022-08-310000807707us-gaap:CommonClassAMembersrt:ChiefExecutiveOfficerMember2021-03-012021-03-010000807707us-gaap:CommonStockMember2022-03-012022-05-310000807707us-gaap:CommonClassBMember2022-10-070000807707us-gaap:CommonClassBMember2022-03-012022-08-310000807707us-gaap:OperatingSegmentsMembervoxx:BiometricsMember2022-06-012022-08-310000807707us-gaap:OperatingSegmentsMembervoxx:ConsumerElectronicsMember2022-03-012022-08-3100008077072022-03-012022-03-010000807707us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-03-012021-08-310000807707srt:ChiefExecutiveOfficerMember2021-03-012021-08-310000807707voxx:ContingentConsiderationMember2022-08-310000807707us-gaap:OperatingSegmentsMembervoxx:ConsumerElectronicsMember2021-06-012021-08-310000807707us-gaap:MortgagesMember2021-03-012021-08-310000807707voxx:AutomotiveElectronicsMember2022-02-280000807707us-gaap:OperatingSegmentsMembervoxx:OtherConsumerElectronicProductsMembervoxx:ConsumerElectronicsMember2022-06-012022-08-310000807707us-gaap:CorporateNonSegmentMember2021-06-012021-08-310000807707voxx:ASAElectronicsLLCMember2022-03-012022-08-310000807707us-gaap:TreasuryStockMember2022-05-310000807707voxx:OnkyoHomeEntertainmentCorporationMemberus-gaap:TrademarksMember2021-09-082021-09-080000807707us-gaap:RestrictedStockUnitsRSUMembervoxx:TwoThousandFourteenEquityIncentivePlanMember2022-03-012022-08-310000807707us-gaap:MutualFundMember2022-08-310000807707us-gaap:RestrictedStockUnitsRSUMembervoxx:TwoThousandFourteenEquityIncentivePlanMember2022-08-310000807707voxx:OnkyoHomeEntertainmentCorporationMembervoxx:PremiumAudioCompanyLLCMember2021-05-260000807707us-gaap:NoncontrollingInterestMember2022-05-310000807707us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-012021-05-310000807707us-gaap:CommonClassAMembersrt:ChiefExecutiveOfficerMember2022-06-012022-08-310000807707us-gaap:TrademarksMember2022-08-310000807707voxx:ConsumerElectronicsMember2022-08-310000807707us-gaap:OperatingSegmentsMembervoxx:ConsumerElectronicsMembervoxx:PremiumAudioProductsMember2021-06-012021-08-310000807707us-gaap:OperatingSegmentsMembervoxx:AutomotiveMember2022-06-012022-08-310000807707us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel1Member2022-02-280000807707voxx:ASAElectronicsLLCMember2022-02-280000807707us-gaap:SeriesAPreferredStockMember2022-08-310000807707us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-03-012022-08-310000807707us-gaap:LineOfCreditMember2021-06-012021-08-310000807707us-gaap:CommonClassAMembersrt:ChiefExecutiveOfficerMember2021-03-012021-08-310000807707voxx:ConsumerElectronicsMember2022-03-012022-08-310000807707srt:ChiefExecutiveOfficerMember2019-07-082019-07-080000807707us-gaap:OperatingSegmentsMembervoxx:AftermarketProductsMembervoxx:AutomotiveMember2021-06-012021-08-310000807707us-gaap:CommonStockMember2022-08-310000807707us-gaap:AdditionalPaidInCapitalMember2021-06-012021-08-310000807707us-gaap:RetainedEarningsMember2022-05-310000807707us-gaap:CustomerRelationshipsMember2022-08-310000807707us-gaap:NoncontrollingInterestMember2022-06-012022-08-310000807707us-gaap:LetterOfCreditMembervoxx:WellsFargoBankNaMember2016-04-260000807707voxx:ShareholderLoanPayableMembervoxx:SharpCorporationMember2022-02-280000807707us-gaap:RestrictedStockMember2021-03-012021-08-310000807707us-gaap:LicensingAgreementsMember2022-02-280000807707us-gaap:InterestRateSwapMember2022-08-310000807707us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-02-280000807707us-gaap:RestrictedStockUnitsRSUMembervoxx:TwoThousandFourteenEquityIncentivePlanMembervoxx:EmployeesMember2022-07-012022-07-310000807707us-gaap:OperatingSegmentsMembervoxx:AftermarketProductsMembervoxx:AutomotiveMember2022-03-012022-08-310000807707us-gaap:RetainedEarningsMember2021-06-012021-08-310000807707voxx:ShareholderLoanPayableMembervoxx:SharpCorporationMember2022-08-310000807707us-gaap:OperatingSegmentsMembervoxx:ConsumerElectronicsMember2021-03-012021-08-310000807707us-gaap:TreasuryStockMember2021-05-310000807707voxx:TwoThousandTwelveEquityIncentivePlanMemberus-gaap:CommonClassAMembersrt:ChiefExecutiveOfficerMember2019-07-082019-07-080000807707voxx:OnkyoHomeEntertainmentCorporationMember2021-09-082021-09-080000807707us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2022-06-012022-08-310000807707voxx:OnkyoHomeEntertainmentCorporationMembervoxx:ShareholderLoanPayableMembervoxx:SharpCorporationMember2021-09-080000807707voxx:EyeLockLimitedLiabilityCompanyMembervoxx:GalvanEyesLimitedLiabilityCompanyMembervoxx:ExclusiveDistributionAgreementMember2021-04-290000807707voxx:BreachOfContractClaimMember2021-07-142021-07-140000807707voxx:ASAElectronicsLLCMember2022-08-310000807707us-gaap:CorporateNonSegmentMember2022-03-012022-08-310000807707us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-05-310000807707voxx:PutArrangementMembervoxx:GalvanEyesLimitedLiabilityCompanyMember2021-04-282021-04-290000807707us-gaap:OtherOperatingIncomeExpenseMember2021-06-012021-08-310000807707us-gaap:CommonClassAMember2022-02-280000807707voxx:AutomotiveElectronicsMember2022-08-310000807707us-gaap:RetainedEarningsMember2022-06-012022-08-310000807707us-gaap:CommonStockMember2021-02-280000807707us-gaap:OperatingSegmentsMembervoxx:AutomotiveMember2021-06-012021-08-310000807707us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMember2021-06-012021-08-310000807707us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-012021-08-310000807707us-gaap:OperatingSegmentsMembervoxx:OEMProductsMembervoxx:AutomotiveMember2021-06-012021-08-310000807707us-gaap:TreasuryStockMember2021-06-012021-08-310000807707us-gaap:PatentsMember2022-08-310000807707voxx:AudiovoxGermanyMemberus-gaap:ForeignLineOfCreditMember2022-02-280000807707us-gaap:NoncontrollingInterestMember2021-06-012021-08-310000807707voxx:AudiovoxGermanyMemberus-gaap:ForeignLineOfCreditMember2000-10-2300008077072022-08-310000807707us-gaap:LineOfCreditMember2022-06-012022-08-310000807707us-gaap:OperatingSegmentsMembervoxx:PremiumAudioProductsMembervoxx:ConsumerElectronicsMember2022-03-012022-08-310000807707us-gaap:OperatingSegmentsMembervoxx:OEMProductsMembervoxx:AutomotiveMember2022-06-012022-08-310000807707us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-012022-08-310000807707us-gaap:CommonClassAMembersrt:ChiefExecutiveOfficerMember2020-01-312020-01-310000807707srt:MinimumMemberus-gaap:BaseRateMember2022-03-012022-08-310000807707us-gaap:OtherOperatingIncomeExpenseMember2022-03-012022-08-310000807707us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-08-310000807707srt:MaximumMemberus-gaap:BaseRateMember2022-03-012022-08-310000807707us-gaap:PreferredStockMemberus-gaap:RedeemablePreferredStockMember2021-08-3100008077072022-06-012022-08-310000807707us-gaap:AdditionalPaidInCapitalMember2022-02-280000807707voxx:OnkyoHomeEntertainmentCorporationMember2022-08-310000807707voxx:UnsettledStockGrantsAndRestrictedStockUnitAwardsMembervoxx:TwoThousandFourteenEquityIncentivePlanMember2022-03-012022-08-310000807707us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-08-310000807707us-gaap:FairValueInputsLevel1Member2022-08-310000807707us-gaap:CommonClassAMember2022-08-310000807707us-gaap:CommonClassAMember2022-03-012022-05-310000807707us-gaap:OperatingSegmentsMembervoxx:BiometricsMembervoxx:BiometricProductsMember2021-03-012021-08-310000807707us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-02-280000807707srt:MinimumMemberus-gaap:RestrictedStockUnitsRSUMembervoxx:TwoThousandFourteenEquityIncentivePlanMember2014-03-012015-02-2800008077072021-03-012021-05-310000807707voxx:OnkyoHomeEntertainmentCorporationMember2022-02-280000807707us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2022-02-280000807707us-gaap:MortgagesMember2022-03-012022-08-310000807707us-gaap:CommonClassAMembersrt:ChiefExecutiveOfficerMember2022-03-012022-08-310000807707us-gaap:PreferredStockMemberus-gaap:RedeemablePreferredStockMember2021-06-012021-08-310000807707us-gaap:AdditionalPaidInCapitalMember2021-05-310000807707us-gaap:CommonStockMember2021-05-310000807707us-gaap:PreferredStockMemberus-gaap:RedeemablePreferredStockMember2022-02-280000807707us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-03-012022-08-310000807707us-gaap:RevolvingCreditFacilityMembervoxx:WellsFargoBankNaMember2016-04-260000807707us-gaap:PatentsMember2022-02-280000807707voxx:ASAElectronicsLLCMember2021-03-012021-08-310000807707us-gaap:AdditionalPaidInCapitalMember2021-08-310000807707us-gaap:LondonInterbankOfferedRateLIBORMember2022-08-310000807707us-gaap:AdditionalPaidInCapitalMember2021-02-280000807707us-gaap:NoncontrollingInterestMember2021-02-280000807707us-gaap:OperatingSegmentsMembervoxx:AutomotiveElectronicsMember2022-06-012022-08-310000807707us-gaap:PatentedTechnologyMember2022-02-280000807707us-gaap:TrademarksAndTradeNamesMember2022-02-280000807707srt:ChiefExecutiveOfficerMember2022-03-012022-03-010000807707us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-02-280000807707us-gaap:OtherOperatingIncomeExpenseMember2022-06-012022-08-310000807707us-gaap:BaseRateMember2022-08-310000807707us-gaap:OperatingSegmentsMembervoxx:AftermarketProductsMembervoxx:AutomotiveMember2022-06-012022-08-310000807707us-gaap:PreferredStockMemberus-gaap:RedeemablePreferredStockMember2022-08-3100008077072022-02-280000807707voxx:OnkyoHomeEntertainmentCorporationMemberus-gaap:PatentedTechnologyMember2021-09-082021-09-080000807707us-gaap:NoncontrollingInterestMember2022-03-012022-05-310000807707voxx:PutArrangementMembervoxx:GalvanEyesLimitedLiabilityCompanyMember2021-04-290000807707voxx:OnkyoHomeEntertainmentCorporationMembervoxx:ShareholderLoanPayableMembervoxx:SharpCorporationMember2021-09-082021-09-080000807707us-gaap:PreferredStockMemberus-gaap:RedeemablePreferredStockMember2021-03-012021-05-310000807707us-gaap:LineOfCreditMember2022-03-012022-08-310000807707us-gaap:TreasuryStockMember2021-08-310000807707us-gaap:FairValueInputsLevel3Member2022-02-280000807707voxx:ASAElectronicsLLCMember2022-02-280000807707us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMember2021-03-012021-08-3100008077072020-03-012020-03-010000807707voxx:GalvanEyesLimitedLiabilityCompanyMember2022-06-012022-08-310000807707us-gaap:NoncontrollingInterestMember2021-03-012021-05-310000807707voxx:OnkyoHomeEntertainmentCorporationMemberus-gaap:GoodwillMember2021-09-080000807707us-gaap:RetainedEarningsMember2022-08-310000807707us-gaap:PreferredStockMemberus-gaap:RedeemablePreferredStockMember2022-05-310000807707srt:MinimumMember2022-03-012022-08-310000807707us-gaap:RetainedEarningsMember2022-02-280000807707us-gaap:PatentedTechnologyMembervoxx:OnkyoHomeEntertainmentCorporationMember2021-09-080000807707us-gaap:LondonInterbankOfferedRateLIBORMembersrt:MaximumMember2022-03-012022-08-310000807707us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMember2022-03-012022-08-310000807707us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-08-310000807707us-gaap:OtherOperatingIncomeExpenseMember2021-03-012021-08-310000807707us-gaap:OperatingSegmentsMembervoxx:ConsumerElectronicsMember2022-06-012022-08-310000807707us-gaap:PreferredStockMember2022-08-310000807707voxx:ASAElectronicsLLCMember2022-08-310000807707us-gaap:AccumulatedOtherComprehensiveIncomeLossDerivativeQualifyingAsHedgeExcludedComponentIncludingPortionAttributableToNoncontrollingInterestMember2022-02-280000807707voxx:AudiovoxGermanyMemberus-gaap:ForeignLineOfCreditMember2022-08-310000807707us-gaap:AdditionalPaidInCapitalMember2022-08-310000807707us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-012022-08-310000807707us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-012022-05-3100008077072021-05-310000807707us-gaap:OperatingSegmentsMembervoxx:AutomotiveElectronicsMember2021-06-012021-08-310000807707us-gaap:FairValueInputsLevel1Member2022-02-280000807707us-gaap:TreasuryStockMember2022-02-280000807707us-gaap:AdditionalPaidInCapitalMember2022-03-012022-05-310000807707us-gaap:PatentedTechnologyMember2022-08-310000807707voxx:BiometricsMember2022-08-3100008077072021-02-280000807707srt:ChiefExecutiveOfficerMember2022-06-012022-08-310000807707us-gaap:NoncontrollingInterestMember2022-08-310000807707us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-05-310000807707us-gaap:CommonClassAMember2021-03-012021-05-3100008077072021-08-310000807707us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2022-08-310000807707voxx:ConsumerElectronicsMember2022-02-280000807707us-gaap:MutualFundMember2022-02-280000807707us-gaap:OperatingSegmentsMembervoxx:AutomotiveMember2021-03-012021-08-310000807707us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-03-012022-08-310000807707us-gaap:CommonClassAMember2021-06-012021-08-310000807707voxx:ContingentConsiderationMember2022-02-2800008077072022-03-012022-08-310000807707us-gaap:OperatingSegmentsMembervoxx:OtherConsumerElectronicProductsMembervoxx:ConsumerElectronicsMember2021-06-012021-08-310000807707us-gaap:LicensingAgreementsMember2022-08-310000807707voxx:AudiovoxGermanyMemberus-gaap:ForeignLineOfCreditMember2022-03-012022-08-310000807707voxx:OnkyoHomeEntertainmentCorporationMembervoxx:SharpCorporationMember2021-05-260000807707us-gaap:OperatingSegmentsMembervoxx:BiometricsMembervoxx:BiometricProductsMember2022-06-012022-08-310000807707us-gaap:MortgagesMember2022-08-310000807707us-gaap:LoansMembervoxx:WellsFargoBankNaMember2016-04-2600008077072021-04-300000807707us-gaap:RevolvingCreditFacilityMember2022-08-310000807707us-gaap:CommonStockMember2022-05-310000807707voxx:SecondYearMemberus-gaap:CommonClassAMembersrt:ChiefExecutiveOfficerMember2019-07-082019-07-080000807707us-gaap:RetainedEarningsMember2022-03-012022-05-310000807707us-gaap:FairValueInputsLevel2Member2022-08-310000807707us-gaap:OperatingSegmentsMembervoxx:AftermarketProductsMembervoxx:AutomotiveMember2021-03-012021-08-310000807707us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-06-012022-08-310000807707us-gaap:OperatingSegmentsMembervoxx:AutomotiveMember2022-03-012022-08-310000807707us-gaap:ContractualRightsMember2022-08-310000807707us-gaap:OperatingSegmentsMembervoxx:BiometricsMember2022-03-012022-08-310000807707us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-02-2800008077072015-07-200000807707us-gaap:CommonClassAMembersrt:ChiefExecutiveOfficerMember2022-03-012022-03-010000807707us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2022-03-012022-08-310000807707us-gaap:RetainedEarningsMember2021-02-280000807707us-gaap:OperatingSegmentsMembervoxx:BiometricsMember2021-03-012021-08-310000807707us-gaap:RetainedEarningsMember2021-05-310000807707us-gaap:MortgagesMember2022-02-280000807707us-gaap:RestrictedStockUnitsRSUMembervoxx:TwoThousandFourteenEquityIncentivePlanMember2014-03-012015-02-280000807707voxx:EyeLockLimitedLiabilityCompanyMembersrt:MaximumMembervoxx:GalvanEyesLimitedLiabilityCompanyMembervoxx:ExclusiveDistributionAgreementMember2021-04-290000807707us-gaap:OperatingSegmentsMembervoxx:OtherConsumerElectronicProductsMembervoxx:ConsumerElectronicsMember2022-03-012022-08-310000807707voxx:TelematicSubscriptionServicesMembervoxx:DirectedLLCAndDirectedElectronicsCanadaIncMember2022-08-310000807707us-gaap:LineOfCreditMember2021-03-012021-08-310000807707us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2021-03-012021-08-310000807707us-gaap:PreferredStockMemberus-gaap:RedeemablePreferredStockMember2022-03-012022-05-310000807707us-gaap:TreasuryStockMember2021-02-280000807707us-gaap:OperatingSegmentsMembervoxx:OEMProductsMembervoxx:AutomotiveMember2022-03-012022-08-310000807707us-gaap:CorporateNonSegmentMember2021-03-012021-08-3100008077072021-03-012021-03-010000807707us-gaap:AdditionalPaidInCapitalMember2021-03-012021-05-310000807707us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-02-28iso4217:EURxbrli:purevoxx:Segmentxbrli:sharesiso4217:USDxbrli:sharesvoxx:Derivativeiso4217:USD

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended August 31, 2022

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission file number: 0-28839

 

VOXX International Corporation

(Exact name of registrant as specified in its charter)

 

Delaware

(State or other jurisdiction of

incorporation or organization)

 

13-1964841

(IRS Employer Identification No.)

2351 J Lawson Blvd., Orlando, Florida

(Address of principal executive offices)

 

32824

(Zip Code)

 

 

 

(800) 645-7750

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class:

Trading Symbol:

Name of Each Exchange on which Registered

Class A Common Stock $.01 par value

VOXX

The Nasdaq Stock Market LLC

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YesNo

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YesNo

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

Number of shares of each class of the issuer's common stock outstanding as of the latest practicable date.

 

Class

 

As of October 7, 2022

Class A Common Stock

 

21,675,966 Shares

Class B Common Stock

 

2,260,954 Shares

 


 

VOXX International Corporation and Subsidiaries

Table of Contents

 

 

 

 

 

Page

PART I

 

FINANCIAL INFORMATION

 

 

 

 

 

 

 

Item 1

 

FINANCIAL STATEMENTS

 

 

 

 

Consolidated Balance Sheets at August 31, 2022 (unaudited) and February 28, 2022

 

3

 

 

Unaudited Consolidated Statements of Operations and Comprehensive Income for the Three and Six Months Ended August 31, 2022 and 2021

 

5

 

 

Unaudited Consolidated Statements of Stockholders’ Equity for the Three and Six Months Ended August 31, 2022 and 2021

 

6

 

 

Unaudited Consolidated Statements of Cash Flows for the Six Months Ended August 31, 2022 and 2021

 

7

 

 

Notes to Unaudited Consolidated Financial Statements

 

8

Item 2

 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

33

Item 3

 

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

48

Item 4

 

CONTROLS AND PROCEDURES

 

48

 

 

 

 

 

PART II

 

OTHER INFORMATION

 

 

 

 

 

 

 

Item 1

 

LEGAL PROCEEDINGS

 

49

Item 1A

 

RISK FACTORS

 

49

Item 2

 

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

49

Item 6

 

EXHIBITS

 

50

SIGNATURES

 

51

 

2


 

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

VOXX International Corporation and Subsidiaries

Consolidated Balance Sheets

(In thousands, except share and per share data)

 

 

 

August 31,
2022

 

 

February 28,
2022

 

 

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

4,326

 

 

$

27,788

 

Accounts receivable, net

 

 

80,375

 

 

 

105,625

 

Inventory

 

 

192,931

 

 

 

174,922

 

Receivables from vendors

 

 

218

 

 

 

363

 

Prepaid expenses and other current assets

 

 

19,569

 

 

 

21,340

 

Income tax receivable

 

 

3,746

 

 

 

734

 

Total current assets

 

 

301,165

 

 

 

330,772

 

Investment securities

 

 

1,225

 

 

 

1,231

 

Equity investment

 

 

22,185

 

 

 

21,348

 

Property, plant and equipment, net

 

 

48,441

 

 

 

49,794

 

Operating lease, right of use asset

 

 

4,106

 

 

 

4,464

 

Goodwill

 

 

71,412

 

 

 

74,320

 

Intangible assets, net

 

 

94,599

 

 

 

101,450

 

Deferred income tax assets

 

 

38

 

 

 

40

 

Other assets

 

 

3,651

 

 

 

3,245

 

Total assets

 

$

546,822

 

 

$

586,664

 

Liabilities, Redeemable Equity, Redeemable Non-Controlling Interest, and Stockholders' Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

50,851

 

 

$

76,665

 

Accrued expenses and other current liabilities

 

 

43,966

 

 

 

54,659

 

Income taxes payable

 

 

2,178

 

 

 

2,714

 

Accrued sales incentives

 

 

20,840

 

 

 

23,755

 

Interim arbitration award payable (see Note 23)

 

 

41,417

 

 

 

39,444

 

Contract liabilities, current

 

 

4,224

 

 

 

4,373

 

Current portion of long-term debt

 

 

500

 

 

 

2,406

 

Total current liabilities

 

 

163,976

 

 

 

204,016

 

Long-term debt, net of debt issuance costs

 

 

36,321

 

 

 

9,786

 

Finance lease liabilities, less current portion

 

 

 

 

 

78

 

Operating lease liabilities, less current portion

 

 

2,924

 

 

 

3,298

 

Deferred compensation

 

 

1,225

 

 

 

1,231

 

Contingent consideration, less current portion (see Note 2)

 

 

4,494

 

 

 

5,750

 

Deferred income tax liabilities

 

 

5,084

 

 

 

5,300

 

Other tax liabilities

 

 

907

 

 

 

1,083

 

Prepaid ownership interest in EyeLock LLC due to GalvanEyes LLC (see Note 20)

 

 

4,921

 

 

 

2,451

 

Other long-term liabilities

 

 

3,177

 

 

 

3,508

 

Total liabilities

 

 

223,029

 

 

 

236,501

 

Commitments and contingencies (see Note 23)

 

 

 

 

 

 

Redeemable equity (see Note 8)

 

 

3,783

 

 

 

3,550

 

Redeemable non-controlling interest (see Note 2)

 

 

(321

)

 

 

511

 

Stockholders' equity:

 

 

 

 

 

 

Preferred stock:

 

 

 

 

 

 

No shares issued or outstanding (see Note 19)

 

 

 

 

 

 

Common stock:

 

 

 

 

 

 

Class A, $.01 par value, 60,000,000 shares authorized, 24,538,184 and 24,476,847 shares issued and 21,675,966 and 21,614,629 shares outstanding at August 31, 2022 and February 28, 2022, respectively

 

 

246

 

 

 

245

 

Class B Convertible, $.01 par value, 10,000,000 shares authorized, 2,260,954 shares issued and outstanding at both August 31, 2022 and February 28, 2022

 

 

22

 

 

 

22

 

Paid-in capital

 

 

296,311

 

 

 

300,453

 

Retained earnings

 

 

109,830

 

 

 

126,573

 

Accumulated other comprehensive loss

 

 

(20,867

)

 

 

(17,503

)

Less: Treasury stock, at cost, 2,862,218 shares of Class A Common Stock at both August 31, 2022 and February 28, 2022

 

 

(25,138

)

 

 

(25,138

)

Less: Redeemable equity

 

 

(3,783

)

 

 

(3,550

)

Total VOXX International Corporation stockholders' equity

 

 

356,621

 

 

 

381,102

 

Non-controlling interest

 

 

(36,290

)

 

 

(35,000

)

Total stockholders' equity

 

 

320,331

 

 

 

346,102

 

Total liabilities, redeemable equity, redeemable non-controlling interest, and stockholders' equity

 

$

546,822

 

 

$

586,664

 

 

3


 

See accompanying notes to unaudited consolidated financial statements.

4


 

VOXX International Corporation and Subsidiaries

Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income

(In thousands, except share and per share data)

 

 

 

Three months ended
August 31,

 

 

Six months ended
August 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net sales

 

$

125,705

 

 

$

143,109

 

 

$

254,437

 

 

$

280,169

 

Cost of sales

 

 

96,448

 

 

 

105,923

 

 

 

191,941

 

 

 

206,288

 

Gross profit

 

 

29,257

 

 

 

37,186

 

 

 

62,496

 

 

 

73,881

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling

 

 

11,865

 

 

 

11,838

 

 

 

24,150

 

 

 

23,305

 

General and administrative

 

 

19,082

 

 

 

17,884

 

 

 

38,212

 

 

 

36,560

 

Engineering and technical support

 

 

8,284

 

 

 

7,886

 

 

 

16,673

 

 

 

14,118

 

Acquisition costs

 

 

 

 

 

2,316

 

 

 

136

 

 

 

2,992

 

Total operating expenses

 

 

39,231

 

 

 

39,924

 

 

 

79,171

 

 

 

76,975

 

Operating loss

 

 

(9,974

)

 

 

(2,738

)

 

 

(16,675

)

 

 

(3,094

)

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and bank charges

 

 

(911

)

 

 

(582

)

 

 

(1,641

)

 

 

(1,110

)

Equity in income of equity investee

 

 

1,763

 

 

 

2,035

 

 

 

3,351

 

 

 

4,758

 

Interim arbitration award (see Note 23)

 

 

(986

)

 

 

 

 

 

(1,972

)

 

 

 

Other, net

 

 

(1,519

)

 

 

376

 

 

 

(3,629

)

 

 

818

 

Total other (expense) income, net

 

 

(1,653

)

 

 

1,829

 

 

 

(3,891

)

 

 

4,466

 

(Loss) income before income taxes

 

 

(11,627

)

 

 

(909

)

 

 

(20,566

)

 

 

1,372

 

Income tax (benefit) expense

 

 

(708

)

 

 

(217

)

 

 

(1,800

)

 

 

267

 

Net (loss) income

 

 

(10,919

)

 

 

(692

)

 

 

(18,766

)

 

 

1,105

 

Less: net loss attributable to non-controlling interest

 

 

(703

)

 

 

(1,003

)

 

 

(2,023

)

 

 

(1,922

)

Net (loss) income attributable to VOXX International Corporation

 

$

(10,216

)

 

$

311

 

 

$

(16,743

)

 

$

3,027

 

Other comprehensive (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(2,128

)

 

 

(1,334

)

 

 

(3,622

)

 

 

(962

)

Derivatives designated for hedging

 

 

99

 

 

 

163

 

 

 

186

 

 

 

282

 

Pension plan adjustments

 

 

40

 

 

 

22

 

 

 

72

 

 

 

23

 

Other comprehensive loss, net of tax

 

 

(1,989

)

 

 

(1,149

)

 

 

(3,364

)

 

 

(657

)

Comprehensive (loss) income attributable to VOXX International Corporation

 

$

(12,205

)

 

$

(838

)

 

$

(20,107

)

 

$

2,370

 

(Loss) income per share - basic: Attributable to VOXX International Corporation

 

$

(0.42

)

 

$

0.01

 

 

$

(0.69

)

 

$

0.12

 

(Loss) income per share - diluted: Attributable to VOXX International Corporation

 

$

(0.42

)

 

$

0.01

 

 

$

(0.69

)

 

$

0.12

 

Weighted-average common shares outstanding (basic)

 

 

24,423,577

 

 

 

24,281,220

 

 

 

24,418,020

 

 

 

24,273,731

 

Weighted-average common shares outstanding (diluted)

 

 

24,423,577

 

 

 

24,855,307

 

 

 

24,418,020

 

 

 

24,890,641

 

 

See accompanying notes to unaudited consolidated financial statements.

5


 

VOXX International Corporation and Subsidiaries

Unaudited Consolidated Statements of Stockholders' Equity

For the three and six months ended August 31, 2022 and 2021

(In thousands, except share and per share data)

 

 

 

Class A
and Class B
Common
Stock

 

 

Paid-in
Capital

 

 

Retained
Earnings

 

 

Accumulated
Other
Comprehensive
Loss

 

 

Non-
controlling
Interests

 

 

Treasury
Stock

 

 

Redeemable Equity

 

 

Total
Stock-
holders'
Equity

 

Balances at February 28, 2022

 

$

267

 

 

$

300,453

 

 

$

126,573

 

 

$

(17,503

)

 

$

(35,000

)

 

$

(25,138

)

 

$

(3,550

)

 

$

346,102

 

Net loss

 

 

 

 

 

 

 

 

(6,527

)

 

 

 

 

 

(707

)

 

 

 

 

 

 

 

 

(7,234

)

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

(1,375

)

 

 

 

 

 

 

 

 

 

 

 

(1,375

)

Cash settlement of market stock units upon vesting of 80% of award

 

 

 

 

 

(4,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,000

)

Net settlement of 61,337 shares of Class A Common Stock upon vesting of stock awards, net of withholding taxes

 

 

1

 

 

 

(404

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(403

)

Reclassification of stockholders' equity to redeemable equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(33

)

 

 

(33

)

Stock-based compensation expense

 

 

 

 

 

126

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

133

 

 

 

259

 

Balances at May 31, 2022

 

 

268

 

 

 

296,175

 

 

 

120,046

 

 

 

(18,878

)

 

 

(35,707

)

 

 

(25,138

)

 

 

(3,450

)

 

 

333,316

 

Net loss

 

 

 

 

 

 

 

 

(10,216

)

 

 

 

 

 

(583

)

 

 

 

 

 

 

 

 

(10,799

)

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

(1,989

)

 

 

 

 

 

 

 

 

 

 

 

(1,989

)

Stock-based compensation expense

 

 

 

 

 

136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(333

)

 

 

(197

)

Balances at August 31, 2022