Delaware | 0-21044 | 33-0204817 | ||
(State or other jurisdiction | (Commission File No.) | (I.R.S. Employer | ||
of incorporation or organization) | Identification No.) |
Item 2.02 Results of Operations and Financial Condition | 1 | |
Item 9.01 Financial Statements and Exhibits | 1 | |
SIGNATURES | 2 | |
INDEX TO EXHIBITS | 3 | |
EXHIBIT 99.1 |
(d) | Exhibits. The following exhibit is furnished with this report. |
Universal Electronics Inc. | ||||||
Date: May 2, 2013 | By: | /s/ Bryan Hackworth | ||||
Bryan Hackworth | ||||||
Chief Financial Officer (Principal Financial Officer) |
Exhibit Number | Description | |
99.1 | Press Release Dated May 2, 2013 |
• | Net sales were $114.7 million, compared to $103.7 million. |
• | Business Category revenue was $104.6 million, compared to $92.4 million. The Business Category contributed 91.2% of total net sales, compared to 89.1%. |
• | Consumer Category revenue was $10.1 million, compared to $11.3 million. The Consumer Category contributed 8.8% of total net sales, compared to 10.9%. |
• | Gross margins were 28.6%, compared to 27.6%. |
• | Operating expenses were $27.7 million, compared to $24.8 million. |
• | Operating income was $5.1 million, compared to $3.8 million. |
• | Net income was $3.9 million, or $0.26 per diluted share, compared to $2.8 million, or $0.19 per diluted share. |
• | At March 31, 2013, cash and cash equivalents was $28.7 million. |
March 31, 2013 | December 31, 2012 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 28,724 | $ | 44,593 | ||||
Accounts receivable, net | 88,713 | 91,048 | ||||||
Inventories, net | 89,579 | 84,381 | ||||||
Prepaid expenses and other current assets | 3,955 | 3,661 | ||||||
Income tax receivable | 125 | 270 | ||||||
Deferred income taxes | 5,196 | 5,210 | ||||||
Total current assets | 216,292 | 229,163 | ||||||
Property, plant, and equipment, net | 77,472 | 77,706 | ||||||
Goodwill | 30,807 | 30,890 | ||||||
Intangible assets, net | 28,975 | 29,835 | ||||||
Other assets | 5,317 | 5,361 | ||||||
Deferred income taxes | 7,202 | 6,369 | ||||||
Total assets | $ | 366,065 | $ | 379,324 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 50,295 | $ | 59,831 | ||||
Line of credit | — | — | ||||||
Accrued compensation | 31,680 | 33,398 | ||||||
Accrued sales discounts, rebates and royalties | 5,691 | 8,093 | ||||||
Accrued income taxes | 2,779 | 3,668 | ||||||
Deferred income taxes | 38 | 41 | ||||||
Other accrued expenses | 9,564 | 10,644 | ||||||
Total current liabilities | 100,047 | 115,675 | ||||||
Long-term liabilities: | ||||||||
Deferred income taxes | 10,549 | 10,687 | ||||||
Income tax payable | 525 | 525 | ||||||
Other long-term liabilities | 1,921 | 1,787 | ||||||
Total liabilities | 113,042 | 128,674 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding | — | — | ||||||
Common stock, $0.01 par value, 50,000,000 shares authorized; 21,573,699 and 21,491,398 shares issued on March 31, 2013 and December 31, 2012, respectively | 216 | 215 | ||||||
Paid-in capital | 182,611 | 180,607 | ||||||
Accumulated other comprehensive income (loss) | (74 | ) | 1,052 | |||||
Retained earnings | 173,515 | 170,569 | ||||||
356,268 | 352,443 | |||||||
Less cost of common stock in treasury, 6,589,901 and 6,516,382 shares on March 31, 2013 and December 31, 2012, respectively | (103,245 | ) | (101,793 | ) | ||||
Total stockholders’ equity | 253,023 | 250,650 | ||||||
Total liabilities and stockholders’ equity | $ | 366,065 | $ | 379,324 |
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
Net sales | $ | 114,722 | $ | 103,732 | ||||
Cost of sales | 82,173 | 75,405 | ||||||
Gross profit | 32,549 | 28,327 | ||||||
Research and development expenses | 4,241 | 3,463 | ||||||
Selling, general and administrative expenses | 24,413 | 22,552 | ||||||
Operating income | 3,895 | 2,312 | ||||||
Interest income (expense), net | 9 | (37 | ) | |||||
Other expense, net | (550 | ) | (324 | ) | ||||
Income before provision for income taxes | 3,354 | 1,951 | ||||||
Provision for income taxes | 408 | 319 | ||||||
Net income | $ | 2,946 | $ | 1,632 | ||||
Earnings per share: | ||||||||
Basic | $ | 0.20 | $ | 0.11 | ||||
Diluted | $ | 0.19 | $ | 0.11 | ||||
Shares used in computing earnings per share: | ||||||||
Basic | 14,965 | 14,871 | ||||||
Diluted | 15,225 | 15,108 |
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
Cash provided by (used for) operating activities: | ||||||||
Net income | $ | 2,946 | $ | 1,632 | ||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||
Depreciation and amortization | 4,374 | 4,260 | ||||||
Provision for doubtful accounts | 24 | (17 | ) | |||||
Provision for inventory write-downs | 573 | 894 | ||||||
Deferred income taxes | (954 | ) | 124 | |||||
Tax benefit from exercise of stock options and vested restricted stock | 2 | 8 | ||||||
Excess tax benefit from stock-based compensation | (37 | ) | (30 | ) | ||||
Shares issued for employee benefit plan | 255 | 121 | ||||||
Stock-based compensation | 1,261 | 1,197 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 1,669 | 8,934 | ||||||
Inventories | (6,066 | ) | 5,387 | |||||
Prepaid expenses and other assets | (268 | ) | (681 | ) | ||||
Accounts payable and accrued expenses | (14,345 | ) | (21,511 | ) | ||||
Accrued income and other taxes | (731 | ) | (2,343 | ) | ||||
Net cash provided by (used for) operating activities | (11,297 | ) | (2,025 | ) | ||||
Cash used for investing activities: | ||||||||
Acquisition of property, plant, and equipment | (3,058 | ) | (1,712 | ) | ||||
Acquisition of intangible assets | (291 | ) | (216 | ) | ||||
Net cash used for investing activities | (3,349 | ) | (1,928 | ) | ||||
Cash provided by (used for) financing activities: | ||||||||
Issuance of debt | 13,500 | 5,000 | ||||||
Payment of debt | (13,500 | ) | (7,200 | ) | ||||
Proceeds from stock options exercised | 593 | 1,151 | ||||||
Treasury stock purchased | (1,558 | ) | (309 | ) | ||||
Excess tax benefit from stock-based compensation | 37 | 30 | ||||||
Net cash provided by (used for) financing activities | (928 | ) | (1,328 | ) | ||||
Effect of exchange rate changes on cash | (295 | ) | 221 | |||||
Net increase (decrease) in cash and cash equivalents | (15,869 | ) | (5,060 | ) | ||||
Cash and cash equivalents at beginning of year | 44,593 | 29,372 | ||||||
Cash and cash equivalents at end of year | $ | 28,724 | $ | 24,312 | ||||
Supplemental Cash Flow Information: | ||||||||
Income taxes paid | $ | 1,682 | $ | 1,094 | ||||
Interest payments | $ | 22 | $ | 95 |
Three Months Ended March 31, 2013 | Three Months Ended March 31, 2012 | |||||||||||||||||||||||
GAAP | Adjustments | Adjusted Pro Forma | GAAP | Adjustments | Adjusted Pro Forma | |||||||||||||||||||
Net sales | $ | 114,722 | $ | — | $ | 114,722 | $ | 103,732 | $ | — | $ | 103,732 | ||||||||||||
Cost of sales (1) | 82,173 | (277 | ) | 81,896 | 75,405 | (277 | ) | 75,128 | ||||||||||||||||
Gross profit | 32,549 | 277 | 32,826 | 28,327 | 277 | 28,604 | ||||||||||||||||||
Research and development expenses | 4,241 | — | 4,241 | 3,463 | — | 3,463 | ||||||||||||||||||
Selling, general and administrative expenses (2) | 24,413 | (921 | ) | 23,492 | 22,552 | (1,232 | ) | 21,320 | ||||||||||||||||
Operating income | 3,895 | 1,198 | 5,093 | 2,312 | 1,509 | 3,821 | ||||||||||||||||||
Interest expense, net | 9 | — | 9 | (37 | ) | — | (37 | ) | ||||||||||||||||
Other expense, net | (550 | ) | — | (550 | ) | (324 | ) | — | (324 | ) | ||||||||||||||
Income before provision for income taxes | 3,354 | 1,198 | 4,552 | 1,951 | 1,509 | 3,460 | ||||||||||||||||||
Provision for income taxes (3) | 408 | 212 | 620 | 319 | 304 | 623 | ||||||||||||||||||
Net income | $ | 2,946 | $ | 986 | $ | 3,932 | $ | 1,632 | $ | 1,205 | $ | 2,837 | ||||||||||||
Earnings per share diluted | $ | 0.19 | $ | 0.06 | $ | 0.26 | $ | 0.11 | $ | 0.08 | $ | 0.19 |
(1) | To reflect depreciation expense of $0.3 million for each of the three months ended March 31, 2013 and 2012, related to the mark-up in fixed assets from cost to fair value as a result of acquisitions. |
(2) | To reflect amortization expense for each of the three months ended March 31, 2013 and 2012, related to intangible assets acquired as part of acquisitions. Also, in the first quarter of 2013 and 2012, an additional $0.2 million and $0.5 million, respectively, was incurred representing other employee related restructuring costs. |
(3) | To reflect the tax effect of the adjustments. |