Universal Electronics Reports Fourth Quarter and Year-End 2015 Financial Results
February 18, 2016
- Achieves record net sales and EPS in the fourth quarter 2015 -
SANTA ANA, CA – Universal Electronics Inc. (UEI), (NASDAQ: UEIC) reported financial results for the three and twelve months ended December 31, 2015.
Paul Arling, UEI's Chairman and CEO, stated, “Our record fourth quarter 2015 sales and earnings results demonstrate the solid performance across our core business. Subscription broadcasting sales were particularly strong as the transition to more advanced remote control products and technologies continues. Looking ahead into 2016, the introduction of higher-end platforms will continue to ramp as our customers rollout new products throughout the year. In addition, we expect to further benefit from this trend as customers in regions around the world adopt more advanced features and devices.
“We continue to be very excited about our acquisition of Ecolink Intelligent Technology in August 2015 and remain on track with the integration. To take advantage of the opportunity in the emerging smart home market, we expect to introduce a variety of wireless security, sensing and home automation products and services with our industry partners throughout 2016,” concluded Arling.
Adjusted Pro Forma Financial Results for the Three Months Ended December 31: 2015 Compared to 2014
- Net sales were $162.1 million, compared to $138.4 million.
- Business Category revenue was $145.4 million, compared to $120.7 million. The Business Category contributed 89.7% of total net sales, compared to 87.2%.
- Consumer Category revenue was $16.7 million, compared to $17.7 million. The Consumer Category contributed 10.3% of total net sales, compared to 12.8%
- Gross margins were 28.8%, compared to 30.3%.
- Operating expenses were $31.4 million, compared to $29.1 million.
- Operating income was $15.2 million, compared to $12.8 million.
- Net income was $13.4 million, or $0.91 per diluted share, compared to $11.3 million, or $0.70 per diluted share.
- At December 31, 2015, cash and cash equivalents were $53.0 million.
Adjusted Pro Forma Financial Results for the Twelve Months Ended December 31: 2015 Compared to 2014
- Net sales were $602.8 million, compared to $562.3 million.
- Gross margins were 27.9%, compared to 29.8%.
- Operating expenses were $112.9 million, compared to $115.3 million.
- Operating income was $55.0 million, compared to $52.5 million.
- Net income was $43.3 million, or $2.79 per diluted share, compared to $41.1 million, or $2.55 per diluted share.
Bryan Hackworth, UEI’s CFO, stated, “In comparing the first quarters of 2016 and 2015, it is important to note the year-ago period reflected a higher level of royalty income. However, as we have a number of new customers transitioning to advanced platforms throughout 2016, both in the U.S. as well as in Europe, and as we begin shipping home security products to new customers in the second quarter, we expect to see continued growth in earnings.”
For the first quarter of 2016, the company expects net sales to range between $153.0 million and $161.0 million, compared to $132.7 million in the first quarter of 2015. Adjusted pro forma earnings per diluted share for the first quarter of 2016 are expected to range from $0.46 to $0.54, compared to adjusted pro forma earnings per diluted share of $0.46 in the first quarter of 2015.
Conference Call Information
UEI’s management team will hold a conference call today, Thursday, February 18, 2016 at 4:30 p.m. ET / 1:30 p.m. PT, to discuss its fourth quarter and the full year 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 45191957. The conference call will also be broadcast live over the Internet and available for replay for one year atwww.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 45191957.
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, changes in contingent consideration related to the acquisition of the net assets of Ecolink Intelligent Technology, Inc., 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 as well as adjustments to certain deferred tax assets and liabilities 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
Universal Electronics Inc. (NASDAQ: UEIC) is the worldwide leader in sensing and control technologies for the smart home. For more information, please visit www.uei.com/about.
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; 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.
Paul Arling (UEI) 714.918.9500
Becky Herrick (IR Agency) 415.433.3777