VOXX International Corp (NASDAQ:VOXX), a leading wholesaler of electronic parts and equipment, announced the approval of key proposals by its shareholders during the Annual Meeting held on Tuesday. The approved items include 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.
The shareholders elected Denise Waund Gibson, John Adamovich Jr., and Steve Downing as Class A Directors. Additionally, Class A and B Directors elected include John J. Shalam, Patrick M. Lavelle, Ari M. Shalam, and Beat Kahli. The election saw a significant number of votes cast for each director, with a notable number of broker non-votes recorded.
Furthermore, the appointment of Grant Thornton LLP as the company’s independent auditor for the fiscal year ending February 28, 2025, was ratified with 37,139,304 votes for, 129,483 against, and 20,809 abstentions.
During the meeting, Co-Vice Chair of the Board, Ari Shalam, addressed the shareholders and guests. His remarks, which were followed by a question-and-answer session, have been documented in a transcript attached to the SEC Form 8-K. No questions were asked following his remarks, leading to the conclusion of the meeting.
In other recent news, VOXX International Corporation reported a decline in sales of 18% year-over-year to $91.7 million in its fiscal 2025 first-quarter results, largely due to a decrease in automotive OEM sales. The company, however, has implemented strategies to enhance margins and reduce expenses, with a goal of returning to profitability within the current fiscal year. VOXX is also collaborating with Accordion to evaluate restructuring and optimize operations and supply chain management.
Gross margins have shown improvement to 27.7%, notably in the Premium Audio and Automotive segments. VOXX aims to reduce debt, overhead costs, and invest in new technology and products. The company also anticipates a 5% reduction in overhead in the second half of the year to improve margin and cost structure.
Despite the sales drop, VOXX plans to redirect capital towards stable, profitable, and growth-oriented programs. The company is also taking steps to manage the supply chain more effectively and reduce warehousing expenses, including the implementation of an Oracle (NYSE:ORCL) Fusion ERP upgrade to improve automation and customer experience. These are among the recent developments as VOXX positions itself for a stronger second half of the fiscal year.
InvestingPro Insights
As VOXX International Corp navigates through a challenging financial landscape, insights from InvestingPro provide a nuanced perspective on the company's current standing. With a market capitalization of just $55.07 million, VOXX is trading at a low Price/Book multiple of 0.19, suggesting that the company's assets are potentially undervalued in the market. This is reinforced by a significant share repurchase program, indicating management's belief in the company's intrinsic value.
Despite a decline in revenue by 13.26% over the last twelve months as of Q1 2025, VOXX's liquid assets surpass short-term obligations, providing some financial flexibility. However, the company's challenges are evident, with a negative P/E ratio of -1.47 and an adjusted P/E ratio of -2.05 for the same period, reflecting concerns about profitability.
Investors should note that the company is not expected to pay dividends in the near future, as reflected by the management's focus on navigating its debt burden and improving financial health. For those considering a deeper dive into VOXX's financials and future outlook, InvestingPro offers additional insights with a total of 17 InvestingPro Tips available at https://www.investing.com/pro/VOXX. To access these tips and more, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.