Universal Electronics announces 1995 first quarter financial results; the company takes charge for restructuring.TWINSBURG, Ohio--(BUSINESS WIRE)--April 27, 1995--Universal Electronics Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :UEIC UEIC Universal Electronics Inc. (stock symbol) UEIC United East India Company UEIC Unplanned Event Information Center ), a leading manufacturer of universal remote controls for home video and audio equipment, today announced financial results for the first quarter ended March 31, 1995. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the first quarter were $18.7 million, an 8.2% decrease from $20.4 million for the same quarter a year earlier. The Company experienced a loss for the first quarter of $2.5 million, or $0.36 per share, compared to a net loss of $1.2 million, or $0.18 per share, in the first quarter of 1994. Included in the 1995 first quarter net loss was a previously announced after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charge of approximately $625,000 ($0.09 per share) resulting from personnel severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and facilities closures relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). . David M. Gabrielsen, President and Chief Executive Officer of Universal Electronics stated: "Although we are not pleased with these results, they are consistent with our initial expectations for the quarter. Among our key accomplishments for the quarter was a 50% reduction of slow moving inventory which was the subject of the 1994 year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. write down. While the Company realized many positive effects from these sales, our overall gross margin for the quarter was negatively impacted. Our standard gross margin on these sales would have been approximately $747,000. Inventory reduction will continue to be a priority for us in 1995." Mr. Gabrielsen continued: "We have begun to see a positive impact from our restructuring efforts. Our SG&A expenses for the quarter declined by $1.1 million versus the same period in 1994. We have consolidated two of the six US-based operating facilities and will continue this consolidation so that by year-end, we will have two facilities: Our technology center in Anaheim, California “Anaheim” redirects here. For Annaheim, see Annaheim, Saskatchewan. Anaheim is a city in Orange County, California, located 28 miles southeast of Los Angeles. and our corporate and all other functions in Ohio." Mr. Gabrielsen further stated: "Our sales decline in the first quarter was due primarily to a significant reduction in private label business in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). . In the United States, this
situation was caused by a product line conversion is temporary and
should be rectified rectifiedrefined; made straight. in the months to come. In Europe, a key account exited the universal remote business but we believe this decline should be offset by our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. One For All(R) business in the second and third quarters. In addition, in the United States we experienced a decline in our One For All retail branded business due primarily to major retailers carrying over inventory from the fourth quarter of 1994. Mr. Gabrielsen concluded: "Despite our loss in the first quarter, I remain very optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the prospects for Universal Electronics in 1995 and beyond. Our opportunities in our Cable, Cable OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and , International Retail and OEM businesses remain strong. While we believe our retail business will be down in the first six months of this year, compared with the same period last year, we believe that other business segments, improved distribution and new promotional programs should make up this shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. by year-end." Universal Electronics Inc. develops, manufactures and markets preprogrammed, easy-to-use universal remote controls principally for home video and audio entertainment equipment. The Company sells its remote control products to retailers in the United States, Australia, Canada, Europe, Mexico, and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. under the One For All brand name. The Company also sells its products to private label customers, original equipment manufacturers, and cable operators. -0-
UNIVERSAL ELECTRONICS INC.
CONSOLIDATED BALANCE SHEET
ASSETS
March 31, December 31,
1995 1994
(Unaudited) (Audited)
(Dollars in thousands)
Current assets:
Cash and cash equivalents $ 1,282 $ 1,440
Accounts receivable, net 13,993 16,751
Inventories 39,782 42,993
Refundable income taxes 42 4,054
Prepaid expenses 2,260 2,038
Deferred income taxes 5,529 3,624
Total current assets 62,888 70,900
Equipment, furniture and
fixtures, net 3,953 3,568
Other assets 861 802
Total assets $ 67,702 $ 75,270
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Revolving credit facility $ 12,137 $ 11,480
Accounts payable 3,550 8,708
Accrued income taxes 355 425
Accrued compensation 223 465
Other accrued expenses 4,032 4,389
Total current liabilities 20,297 25,467
Stockholders' equity:
Capital stock 67 67
Paid-in capital 53,496 53,496
Currency translation adjustment 92 37
Retained earnings (deficit) (6,250) (3,797)
Total stockholders' equity 47,405 49,803
Total liabilities and
stockholders' equity $ 67,702 $ 75,270
UNIVERSAL ELECTRONICS INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
Three Months Ended March 31,
1995 1994
(Dollars and shares
in thousands, except
per share amounts)
Net sales $18,714 $20,382 Cost of sales 13,935 13,620
Gross profit 4,779 6,762
Operating expenses 7,575 8,712 Restructuring expenses 977 -
Operating loss (3,773) (1,950)
Interest expense, net 262 18 Other income (218) -
Loss before
income taxes (3,817) (1,968)
Benefit for income
taxes (1,364) (748)
Net loss $(2,453) $(1,220)
Net loss
per share $( 0.36) $ (0.18)
Weighted average
common and common
share equivalents
outstanding 6,741 6,635
CONTACT: Universal Electronics Inc., Twinsburg Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. Vereecken, 216/487-1110 |
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