VOXX International Corporation announced financial results for its Fiscal 2016 first quarter ended May 31, 2015. Net sales were $164.4 million compared to $187 million in the comparable year-ago period, a decline of $22.5 million or 12.1%.
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The majority of the decline was related to foreign exchange as the Euro conversion accounted for $14 million, and approximately $5 million was related to the sale of its distribution business in Mexico, which occurred in the fiscal 2015 first quarter. The remainder was primarily related to the last of the West Coast port closure and some modest declines in select Premium Audio product categories.
The average Euro in the Fiscal 2016 first quarter was 1.10 as compared to 1.38 in the comparable year ago period, representing an approximate 20% decrease in value.
The gross margin for the Fiscal 2016 first quarter came in at 29.2%, an increase of 80 basis points as compared to 28.4% for the same period last year.
Automotive gross margins came in at 30.3% for both the Fiscal 2016 and Fiscal 2015 periods as the company experienced better margins related to some of its aftermarket products and in its tuner and antenna product lines, offset by some of the company's OEM manufacturing lines as some programs began in last year's Fiscal first quarter.
Additionally, there was a one-time duty refund received in the first quarter of Fiscal 2015 that did not repeat in the current Fiscal year.
Premium Audio gross margins improved by 90 basis points (32.1% vs. 31.2%) due primarily to an improvement in product mix and higher margins in the European market, and Consumer Accessories gross margins improved 220 basis points (24.7% vs. 22.5%) as a result of an increase in sales of higher margin products and lower sales in Mexico.
Operating expenses for the Fiscal 2016 first quarter were $48.8 million as compared to operating expenses of $53.5 million in the comparable year-ago period, a decrease of $4.7 million or 8.7%. Selling expenses declined by $1.6 million, general and administrative expenses declined by $1.9 million and engineering and technical support expenses declined by $1.2 million.
The Euro conversion resulted in lower operating expenses of approximately $4 million for the comparable periods and overall, the company had lower salary and related payroll expenses as a result of steps taken in the fourth quarter of Fiscal 2015 to reduce expenses, as well as a decrease in occupancy costs, advertising expenses and corporate overhead.
The company reported an operating loss of $0.8 million as compared to an operating loss of $0.4 million in the Fiscal 2015 first quarter. The company reported a net loss for the Fiscal 2016 first quarter of $0.7 million or a loss of $0.03 per diluted share as compared to net income of $0.5 million and net income per diluted share of $0.02.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the Fiscal 2016 first quarter was $4.6 million as compared to EBITDA of $6.1 million reported in the Fiscal 2015 first quarter.
Adjusted EBITDA was $4.9 million as compared to $6.2 million for the comparable Fiscal 2015 and 2014 fourth quarter periods. ■