Audiovox CEO: Company remains active in mergers and acquisitions
Audiovox Corp. (Nasdaq: VOXX) CEO Patrick Lavelle said the consumer electronics vendor plans to remain active in seeking mergers and acquisitions and is preparing for a “strong” holiday season. Lavelle made the comments during a midday conference call.
This fiscal year, the Hauppauge, N.Y.-based company acquired consumer electronics companies Thomson, Oehlbach and Incaar.
“Every one of these acquisitions were synergistic and together, they will add roughly $185 million to $200 million to our revenues on a full-year basis, while costing us only $67 million,” Lavelle said. “We will continue to be active on the [mergers and acquisitions] front.”
The chief executive said the volatile credit market has given Audiovox an advantage over private equity groups in pursuing acquisitions. The credit market has also forced more reasonable company valuations, he said.
“The breadth of our line, combined with our impressive brand portfolio and financial stability, makes us an attractive supplier to some of the world’s largest retailers,” Lavelle said. “In addition, we have significant financial resources at our disposal to continue to pursue the right strategic acquisition to help expand and enhance overall performance.”
After Wednesday’s close, Audiovox announced second-quarter revenue of $148.3 million, up 52.2% from $97.4 million a year earlier. The company’s net income for the three months ended Aug. 31 was $3.7 million, or $0.16 per share, compared to a loss of $2 million, or a loss of $0.09 per share, during the comparable prior year quarter.
“We are seeing the effects of the programs we have put in place over the last few quarters and they, combined with our acquisitions, are fueling the company’s return to profitability,” Lavelle said.
The revenue increase was fueled by a 1,150% increase in accessory sales to $41 million, from $3.3 million a year earlier. The sales increase was powered by Audiovox’s recent acquisitions.
“We expect accessory sales to be a major contributor to our revenue performance,” Lavelle said. “We believe we have spent our money wisely, focusing on acquisitions that have allowed us to leverage our structure to absorb additional revenues at minimal expenses.”
The company’s operating expenses during the quarter increased to $24.6 million, from $19.9 million in the prior-year period.
In midday trading, VOXX shares are up 10.64%, or $1.27, at $13.21. Over the last 52 weeks, shares have ranged from $9.49 to $16.36.
