VOXX International Corp (NASDAQ:VOXX) Q3 2020 Earnings Conference Call - Final Transcript

Jan 10, 2020 • 10:00 am ET

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VOXX International Corp (NASDAQ:VOXX) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the VOXX International's earnings call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded.

[Operator Instructions] I will now hand the conference over to your speaker today, Glenn Wiener with Investor Relations.

Executive
Glenn Wiener

Thank you, Carmen. Good morning and welcome to VOXX International's Fiscal 2020 Third Quarter Results Conference Call. I'm here in Las Vegas with our Chairman, John Shalam, and Pat Lavelle, President and Chief Executive Officer. Today marks Day 4 of the Consumer Electronics Show and if you haven't already, I encourage everyone to visit the news release section of our IR website to view our product and partnership announcements, many of this [Phonetic] will be discussed in today's call. You can also view our earnings release, updated Investor Presentation, and Form 10-Q on the IR site. Michael Stoehr, Senior Vice President and Chief Financial Officer of VOXX, is also on the line dialing in from New York.

I'd like to remind everyone that except for historical information contained herein, statements made on today's call and webcast that would constitute forward-looking statements are based on currently available information. The company assumes no responsibility to update any such forward-looking statements and I'd like to point you to the risk factors associated with our business, which are detailed in our Form 10-K for the period ended February 28, 2019.

I'd like to thank you all for your continued interest in VOXX. If anyone has any follow-up questions, by all means, please feel free to reach out to me after the call. And at this time, I'd like to turn the call over to Pat Lavelle. Pat?

Executive
Patrick M. Lavelle

Thank you, Glenn. Good morning everyone and let me start by wishing you all a Happy New Year. As Glenn mentioned, we're here at CES and like past years, the meetings we've had at the show and the reception to the new products introduced has been very strong. There were also new partnerships unveiled and others that are in work, which hold great promise for the future. As for our results and our progress year-to-date, it's somewhat mixed. On a positive side, the restructuring initiatives we've executed have worked resulting in the lower spending and far greater efficiencies throughout the company.

Our Consumer Electronics segment, backed by the continued strength of our premium audio product lines delivered $9.6 million of pre-tax profit, a $4 million increase when comparing the three month periods. Our Biometrics segment had $1.4 million reduction in pre-tax losses, $2.8 million compared to $4.2 million for the comparable three month periods, a trend we believe will continue as new programs starts and others are finalized. With respect to Automotive, we anticipated lower OEM sales coming into the fiscal year due to lower projected car sales and certain end of life programs.

We expected to offset a significant portion with the start of new programs that unfortunately did not materialize due to delayed