VOXX International Corp (NASDAQ:VOXX) Q2 2020 Earnings Conference Call - Final Transcript
Oct 11, 2019 • 10:00 am ET
C. Michael Stoehr
operating loss improved by $1.7 million and the net loss attributable to VOXX improved by $14.6 million.
Lastly, we reported an adjusted EBITDA loss of $700,000 for the fiscal 2020 second quarter and a loss of [Indecipherable] for the six-month period. This compares to an adjusted EBITDA of $4.3 million and $5.8 million for the three-month and six-month periods in fiscal 2019. The breakdown of EBITDA to adjusted EBITDA is in our press release and in our Form 10-Q filing on Page 41.
In our fiscal 2019 year-end call, we had discussed anticipated losses in the first half of the year as we work through our corporate realignment. The shift in automotive market has been more meaningful impact than we had initially forecasted. However, we move into the second half of the year, we are anticipating profitability on an operating basis on both third and fourth quarters and expect to show year-over-year improvements.
As for the balance sheet, cash and cash equivalents of August 31, 2019, was $39.3 million as compared to $60 million as of May 31, 2019. The cash usage is based upon seasonal working capital needs to fund operations. As we mentioned in our Form 10-Q, we have temporarily suspended our [Indecipherable] finance programs as we do not need the funding. If we had used the program, our cash balance for August would have been approximately $9 million higher. We expect our cash position to increase in the third and fourth quarters as we brought in the inventory and we'll be moving it throughout the remainder of the fiscal year. Additionally, we announced on October 2nd, we completed the sale of our Pulheim real estate and proceeds from the sale will be used to pay down our Euro asset-based lending obligations while providing additional working capital to fund our German operations. Our total debt position stood at $14 million as of August 31st, representing a decline of $3.6 million since fiscal year-end and a decline of $2 million since May 31st. The decline compared to the fiscal year-end is due to a lower outstanding balance on the Euro ABL and lower mortgage debt for our German and Florida properties.
The Company intends to pay down by October 31st approximately $5.6 million of asset-based debt in our German operations. We have sufficient cash on hand to fund our operations. We also have available $140 million domestic credit facility with nothing outstanding. Our balance sheet remains strong and we are maintaining the flexibility needed to continue to invest in R&D, to support future Automotive, premium audio and Biometrics programs and repurchase our stock in the open market as we are able to.
That concludes my remarks and we're now ready to open up the call for questions.
Patrick M. Lavelle
Thank you, Michael.