Universal Electronics Inc.Reports Fourth Quarter and Year-End 2011 Financial Results
February 23, 2012
Contacts: Paul Arling (UEI) 714.820.1000
Becky Herrick (IR Agency) 415.433.3777
Reports 2011 Net Sales of $468.6 Million, Up 41% over 2010
CYPRESS, CA – Universal Electronics Inc. (UEI), (NASDAQ: UEIC) reported financial results for the three and twelve months ended December 31, 2011.
Paul Arling, UEI's Chairman and CEO, stated: “Our fourth quarter 2011 net sales were within our expectations and demonstrated strong growth of 15% over last year, and earnings were at the high end of our expectations, at $0.40 per share. In 2011, we maintained focus on improving our operational footing by introducing new innovative products and technologies, gaining market share and expanding geographically.”
“At the 2012 Consumer Electronics Show (CES), we showcased several innovative yet simple-to-use products and technologies that address new growth areas in our industry such as IP-based set-top boxes, “smart” televisions, smartphones, tablets and Over-the-Top services. These innovations continue to demonstrate UEI’s leadership in providing consumers with both the “lean forward” control experience and the familiar “lean back” experience with a remote control. As the face of remote control technology expands to include new platforms, UEI will continue to be at the forefront of developing hardware and software technologies that bring new functionality, enhanced applications and automated setup to the user’s control experience,” concluded Arling.
Financial Results for the Three Months Ended December 31: 2011 Compared to 2010
- Net sales were $117.6 million, compared to net sales of $102.5 million.
- Business Category revenue was $103.7 million, compared to $89.1 million.
The Business Category contributed 88.2% of total net sales, compared to 86.9%.
- Consumer Category revenue was $13.9 million, compared to $13.4 million.
The Consumer Category contributed 11.8% of total net sales, compared to 13.1%.
- Adjusted pro forma gross margins were 28.6%, compared to gross margins of 29.7%.
- Adjusted pro forma operating expenses were $26.2 million, compared to operating expenses of $22.4 million.
- Adjusted pro forma operating income was $7.4 million, compared to operating income of $8.0 million.
- Adjusted pro forma net income was $5.9 million, or $0.40 per diluted share, compared to net income of $6.6 million, or $0.45 per diluted share.
- At December 31, 2011, cash and cash equivalents was $29.4 million.
Financial Results for the Twelve Months Ended December 31: 2011 Compared to 2010
- Net sales were $468.6 million, compared to net sales of $331.8 million.
- Adjusted pro forma gross margins were 28.0%, compared to gross margins of 31.8%.
- Adjusted pro forma operating expenses were $100.2 million, compared to operating expenses of $81.0 million.
- Adjusted pro forma operating income was $31.0 million, compared to operating income of $24.6 million.
- Adjusted pro forma net income was $23.6 million, or $1.55 per diluted share, compared to net income of $17.9 million, or $1.27 per diluted share.
For the first quarter of 2012, the company expects net sales to range between $104 million and $110 million, compared to $105.7 million in the first quarter of 2011. Adjusted pro forma earnings per diluted share for the first quarter of 2012 are expected to range from $0.19 to $0.25, compared to adjusted pro forma earnings per diluted share of $0.17 in the first quarter of 2011.
For the full 2012 year, the company expects net sales to range between $500 million and $520 million, compared to $468.6 million in 2011. Adjusted pro forma earnings per diluted share for 2012 are expected to range from $1.65 to $1.85, compared to adjusted pro forma earnings per diluted share of $1.55 in 2011.
Conference Call Information
UEI’s management team will hold a conference call today, Thursday, February 23, 2012 at 4:30 p.m. ET / 1:30 p.m. PT, to discuss its fourth quarter and year-end 2011 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 49555937. 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 49555937.
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 the acquisition. Non-GAAP operating expenses is defined as cash operating expenses excluding acquisition costs, amortization of intangibles and other employee related restructuring costs. Non-GAAP net income is net income from operations excluding the aforementioned items. 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 StatementThis 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; the Company’s ability to gain market share; general economic conditions; the consumer electronics and broader retail industries to be weaker than anticipated by management; 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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