ORLANDO - VOXX International Corporation (NASDAQ: VOXX), known for its automotive and consumer technologies, announced today that its board is exploring strategic alternatives aimed at maximizing shareholder value. The company, which has not committed to a specific course of action, stated that its options could include a sale of the company or parts of it, operational improvements, or other strategic transactions.
The board has formed a strategic transactions committee and has engaged Solomon Partners as its financial advisor and Bryan Cave Leighton Paisner LLP as its legal advisor to assist in the evaluation process. Despite the exploration of various alternatives, VOXX has made it clear that there is no certainty that this will lead to any specific transaction. The company has not disclosed a timeline for the completion of this process and plans to keep developments private until it deems further disclosure appropriate or necessary.
VOXX International has established itself as a leader in the automotive electronics and consumer electronics industries, with a vast portfolio of approximately 30 trusted brands. The company boasts market-leading positions in in-vehicle entertainment, automotive security, reception products, and several premium audio market segments. VOXX operates globally, with a distribution network that includes major retailers, 12-volt specialists, and some of the world's leading automotive manufacturers.
The consideration of strategic alternatives comes at a time when the company, like many others, is navigating a complex global business environment. VOXX's forward-looking statements in the press release indicate various risks and uncertainties that could affect the company's future results. These include the ongoing impacts of the COVID-19 pandemic, supply chain disruptions, global economic trends, and competitive pressures, among others.
As VOXX International continues to assess its strategic options, the company emphasizes its commitment to its fiduciary duties to shareholders. The information provided in this article is based on a press release statement from VOXX International Corporation.
In other recent news, VOXX International Corporation has undergone significant changes and strategic shifts. The company reported a decrease in sales by 18% year-over-year to $91.7 million in its fiscal 2025 first-quarter results, primarily due to a decline in automotive OEM sales. Despite this, VOXX has taken steps to improve margins, reduce expenses, and aims to return to profitability within the current fiscal year. Gross margins have shown an improvement to 27.7%, primarily in the Premium Audio and Automotive segments.
VOXX has also seen changes in its leadership structure with Ari M. Shalam being named Chairman of the Board, succeeding John J. Shalam, who now serves as Chairman Emeritus. This transition accompanies VOXX's ongoing efforts to streamline operations and navigate market challenges. Additionally, VOXX shareholders approved several crucial proposals, including the election of seven board members, the 2024 Equity Incentive Plan, and the ratification of Grant Thornton LLP as the independent auditor for the upcoming fiscal year.
In efforts to optimize operations and supply chain management, VOXX is collaborating with Accordion and implementing an Oracle (NYSE:ORCL) Fusion ERP upgrade to improve automation and customer experience. These recent developments underscore VOXX's determination to focus on operational efficiency and profitability, despite the challenging market conditions.
InvestingPro Insights
As VOXX International Corporation (NASDAQ: VOXX) considers strategic alternatives, it's important to look at the company's financial health and market performance to understand the challenges and opportunities it may face. Here are some insights from InvestingPro that shed light on the company's current situation.
InvestingPro Data highlights that VOXX has a market capitalization of $95.76 million, which is relatively small, suggesting a higher potential for volatility and market fluctuations. The company's Price to Earnings (P/E) ratio stands at -1.69, indicating that it is currently unprofitable. This is further reflected in the adjusted P/E ratio for the last twelve months as of Q1 2023, which is at -2.39. Additionally, VOXX's Price to Book (P/B) ratio is 0.22, which could be seen as undervalued compared to industry standards, potentially making it an attractive investment if the company can turn around its performance.
However, the company's revenue has been declining, with a -13.26% change over the last twelve months as of Q1 2023. This negative growth trend is also seen in the quarterly revenue change, which decreased by -18.11% in Q1 2023. These figures suggest that VOXX is facing significant headwinds in generating sales.
InvestingPro Tips provide further context to VOXX's financial health. Tip #0 warns that the company operates with a significant debt burden, which could be a concern for investors, especially given the tip #2 that VOXX may have trouble making interest payments on its debt. Additionally, tip #4 indicates that VOXX is quickly burning through cash, which could impact its ability to invest in growth or weather economic downturns.
On a more positive note, tip #8 points out that VOXX's liquid assets exceed its short-term obligations, which means the company has enough liquidity to cover its immediate liabilities. However, the company does not pay dividends to shareholders (tip #13), which may be a drawback for income-seeking investors.
For investors considering VOXX as part of their portfolio, it's worth noting that there are 14 additional InvestingPro Tips available at https://www.investing.com/pro/VOXX. These tips can provide deeper insights into the company's financial health and market prospects, helping to make a more informed investment decision.
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