Universal Electronics Reports Results for the Second Quarter 2020

SCOTTSDALE, Ariz.–(BUSINESS WIRE)–Universal Electronics Inc. (UEI), (NASDAQ: UEIC) reported financial results for the three and six months ended June 30, 2020.

“Over the past three decades, our innovation and product development have made UEI into a market leader with a strong financial foundation,” said Paul Arling, UEI’s chairman and CEO. “However, as expected in the current environment, customers have been cautious with their near-term orders, primarily with our traditional home entertainment and security customers. Due to the pandemic, the ability or willingness to install hardware in consumers’ homes, whether it is to establish new service or to upgrade premise equipment, has been significantly disrupted. Regardless, our long-term growth opportunities remain unchanged. Overall, consumption of video entertainment is sky rocketing, and consumers want simplified access to content. Our customers understand these market demands, and they are actively working on the development of a single platform to manage and deliver content from both traditional linear TV and streaming apps on one all-encompassing voice-enabled platform. UEI is partnering with multiple providers in developing this type of next-generation platform, which we expect will be announced and begin shipping in the next few quarters.

“Further, UEI’s Nevo Butler®, a smart home hub with a built-in voice assistant, unifies entertainment and home automation with a secure and managed hardware platform, enabling the limitless control options in the smart home. We offer a complete white label platform solution as well as software ingredients that can be integrated in other products to enable similar capabilities. The market is recognizing our technology lead, and we have secured our first customer for Nevo Butler, a leading telecommunications service provider, as well as several other active engagements in the professional security and hospitality markets.”

Financial Results for the Three Months Ended June 30: 2020 Compared to 2019

  • GAAP net sales were $153.1 million, compared to $193.9 million; Adjusted Non-GAAP net sales were $153.3 million, compared to $193.4 million.
  • GAAP gross margins were 24.9%, compared to 17.5%; Adjusted Non-GAAP gross margins were 28.5%, compared to 25.2%.
  • GAAP operating income was $6.5 million, compared to an operating loss of $3.9 million; Adjusted Non-GAAP operating income was $14.5 million, compared to $15.8 million.
  • GAAP net income was $14.4 million, or $1.02 per diluted share, compared to a net loss of $5.1 million or $0.37 per share; Adjusted Non-GAAP net income was $12.6 million, or $0.89 per diluted share, compared to $11.7 million, or $0.83 per diluted share.
  • At June 30, 2020, cash and cash equivalents were $58.8 million.

Financial Results for the Six Months Ended June 30: 2020 Compared to 2019

  • GAAP net sales were $304.9 million, compared to $378.1 million; Adjusted Non-GAAP net sales were $305.2 million, compared to $376.1 million.
  • GAAP gross margins were 26.6%, compared to 19.5%; Adjusted Non-GAAP gross margins were 29.7%, compared to 25.5%.
  • GAAP operating income was $14.5 million, compared to an operating loss of $2.3 million; Adjusted Non-GAAP operating income was $29.4 million, compared to $30.4 million.
  • GAAP net income was $20.2 million, or $1.43 per diluted share, compared to a net loss of $6.1 million or $0.44 per share; Adjusted Non-GAAP net income was $24.1 million, or $1.70 per diluted share, compared to $23.0 million, or $1.65 per diluted share.

Bryan Hackworth, UEI’s CFO, stated, “Our corporate restructuring efforts have enabled us to reallocate a portion of the savings from SG&A to additional R&D spend including investments in technologies that can be embedded in a number of devices, sold in various form factors, and distributed through multiple channels, resulting in higher margins and greater profitability. In fact, for the third quarter we expect our operating margins to exceed 10%. Additionally, we reiterate our long-term growth targets of revenue between 5% to 10% and bottom line between 10% and 20%.”

Financial Outlook

For the third quarter of 2020, the company expects GAAP net sales to range between $150 million and $160 million, compared to $200.7 million in the third quarter of 2019. GAAP earnings per diluted share for the third quarter of 2020 are expected to range from $0.53 to $0.63, compared to a GAAP earnings per diluted share of $0.19 in the third quarter of 2019.

For the third quarter of 2020, the company expects Adjusted Non-GAAP net sales to range between $150 million and $160 million, compared to $200.9 million in the third quarter of 2019. Adjusted Non-GAAP earnings per diluted share are expected to range from $0.87 to $0.97, compared to Adjusted Non-GAAP earnings per diluted share of $1.01 in the third quarter of 2019. The third quarter 2020 Adjusted Non-GAAP earnings per diluted share estimate excludes $0.34 per share related to, among other things, excess manufacturing overhead costs, stock-based compensation, amortization of acquired intangibles, changes in contingent consideration relating to acquisitions, foreign currency gains and losses and the related tax impact of these adjustments. For a more detailed explanation of Non-GAAP measures, please see the Use of Non-GAAP Financial Metrics discussion and the Reconciliation of Adjusted Non-GAAP Financial Results, each located elsewhere in this press release.

Conference Call Information

UEI’s management team will hold a conference call today, Thursday, August 6, 2020 at 4:30 p.m. ET / 1:30 p.m. PT, to discuss its second quarter 2020 earnings results, review recent activity and answer questions. To gain immediate access to the call, bypass the operator and avoid the queue, you may preregister by clicking here. Upon registering, you will be emailed a dial-in number, direct passcode and unique PIN. Those who prefer to call-in directly, may do so approximately 20 minutes prior to the start time by dialing 888-869-1189, and for international calls dial 706-643-5902. The conference ID is 8005799. The conference call will also be broadcast live on the investor section of the UEI website where it will be available for replay for one year. In addition, a replay will be available via telephone for two business days beginning two hours after the call. To listen to the replay, in the U.S. please dial 855-859-2056, and internationally dial 404-537-3406. The access code is 8005799.

Use of Non-GAAP Financial Metrics

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, UEI provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GAAP financial measures. These measures are not required by, in accordance with, or an alternative for, GAAP and may be different from non-GAAP financial measures used by other companies. UEI’s management uses these measures for reviewing the financial results of UEI, for budget planning purposes, and for making operational and financial decisions and believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, help investors evaluate UEI’s core operating and financial performance and business trends consistent with how management evaluates such performance and trends. Additionally, management believes these measures facilitate comparisons with the core operating and financial results and business trends of competitors and other companies.

Adjusted Non-GAAP net sales is defined as net sales excluding the revenue impact of the additional Section 301 U.S. tariffs on products manufactured in China and imported into the U.S. and the impact of stock-based compensation for performance-based warrants. Adjusted Non-GAAP gross profit is defined as gross profit excluding the impact of the additional Section 301 U.S. tariffs on products manufactured in China and imported into the U.S. and costs of implementing countermeasures to mitigate this impact, excess manufacturing overhead costs including those related to the COVID-19 pandemic, factory transition costs, the loss on the sale of our Ohio call center, stock-based compensation expense, depreciation expense related to the increase in fixed assets from cost to fair market value resulting from acquisitions and employee related restructuring costs. Adjusted Non-GAAP operating expenses are defined as operating expenses excluding costs incurred related to implementing countermeasures to mitigate the impact of the additional Section 301 U.S. tariffs on products manufactured in China and imported into the U.S., stock-based compensation expense, amortization of intangibles acquired, changes in contingent consideration related to acquisitions and employee related restructuring and other costs. Adjusted Non-GAAP net income is defined as net income excluding the aforementioned items, the reversal of a social insurance accrual related to our Guangzhou entity, which was sold in 2018, foreign currency gains and losses, the related tax effects of all adjustments as well as the effect of a reversal of a reserve of an uncertain tax position related to our Guangzhou entity, which was sold in 2018, and certain net deferred tax adjustments. Adjusted Non-GAAP diluted earnings per share is calculated using Adjusted Non-GAAP net income. A reconciliation of these financial measures to the most directly comparable GAAP financial measures is included at the end of this press release.

About Universal Electronics

Founded in 1986, Universal Electronics Inc. (NASDAQ: UEIC) is the global leader in universal control and sensing technologies for the smart home. The company designs, develops, manufactures and ships over 500 innovative products that are used by the world’s leading brands in the consumer electronics, subscription broadcast, security, home automation, hospitality and climate control markets. For more information, please visit www.uei.com.

Forward-looking Statements

This press release and accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including net sales, profit margin and earnings trends, estimates and assumptions; our expectations about new product introductions; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those we identify below and other risk factors that we identify in our most recent annual report on Form 10-K and other reports we have filed with the Securities Exchange Commission (the “SEC”). Risks that could affect forward-looking statements in this press release include: our ability to continue to efficiently operate our factories at full or near full capacity amid the economic and physical restraints we face due to the COVID-19 pandemic; the increased importance and acceptance of and demand for our voice-enabled advanced control products and technologies, including our Nevo Butler® technologies and platform; our ability to anticipate the needs and wants of our customers, and timely develop and deliver products and technologies that will be accepted by our customers; the continued commitment of our customers to their product development strategies that translate into greater demand for our technologies and products as anticipated by management; the continuation of the ordering pattern of our customers as anticipated by management; management’s ability to manage its business to achieve its growth, net sales, margins, and earnings as guided and as anticipated; the effects that natural disasters and public health crises, including the COVID-19 pandemic, have on our business and management’s ability to anticipate and mitigate those effects, including the duration, severity and scope of the COVID-19 pandemic and the actions and restrictions that may be imposed on us and our operations by federal, state, local and international public health and governmental authorities to contain and combat the outbreak and spread of COVID-19, which may exacerbate one or more of the aforementioned and/or other risks, uncertainties and other factors more fully described in our reports filed with the SEC; and effects that changes in laws, regulations and policies may have on our business including the impact of trade regulations pertaining to importation of our products and the tariffs imposed upon them. Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. Further, any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release. We make these forward-looking statements as of August 6, 2020 and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

– Tables Follow –

UNIVERSAL ELECTRONICS INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share-related data)

(Unaudited)

 

 

 

 

 

 

 

June 30, 2020

 

December 31, 2019

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

58,832

 

 

$

74,302

 

Accounts receivable, net

 

143,893

 

 

139,198

 

Contract assets

 

6,493

 

 

12,579

 

Inventories

 

134,650

 

 

145,135

 

Prepaid expenses and other current assets

 

5,339

 

 

6,733

 

Income tax receivable

 

1,743

 

 

805

 

Total current assets

 

350,950

 

 

378,752

 

Property, plant and equipment, net

 

83,438

 

 

90,732

 

Goodwill

 

48,451

 

 

48,447

 

Intangible assets, net

 

19,187

 

 

19,830

 

Operating lease right-of-use assets

 

17,854

 

 

19,826

 

Deferred income taxes

 

4,082

 

 

4,409

 

Other assets

 

2,458

 

 

2,163

 

Total assets

 

$

526,420

 

 

$

564,159

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

80,701

 

 

$

102,588

 

Line of credit

 

73,000

 

 

68,000

 

Accrued compensation

 

19,640

 

 

43,668

 

Accrued sales discounts, rebates and royalties

 

9,366

 

 

9,766

 

Accrued income taxes

 

8,425

 

 

6,989

 

Other accrued liabilities

 

31,117

 

 

35,445

 

Total current liabilities

 

222,249

 

 

266,456

 

Long-term liabilities:

 

 

 

 

Operating lease obligations

 

13,121

 

 

15,639

 

Contingent consideration

 

234

 

 

4,349

 

Deferred income taxes

 

2,871

 

 

1,703

 

Income tax payable

 

1,368

 

 

1,600

 

Other long-term liabilities

 

445

 

 

13

 

Total liabilities

 

240,288

 

 

289,760

 

Commitments and contingencies

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding

 

 

 

 

Common stock, $0.01 par value, 50,000,000 shares authorized; 24,268,744 and 24,118,088 shares issued on June 30, 2020 and December 31, 2019, respectively

 

243

 

 

241

 

Paid-in capital

 

294,007

 

 

288,338

 

Treasury stock, at cost, 10,346,473 and 10,174,199 shares on June 30, 2020 and December 31, 2019, respectively

 

(284,222

)

 

(277,817

)

Accumulated other comprehensive income (loss)

 

(30,560

)

 

(22,781

)

Retained earnings

 

306,664

 

 

286,418

 

Total stockholders’ equity

 

286,132

 

 

274,399

 

Total liabilities and stockholders’ equity

 

$

526,420

 

 

$

564,159

 

UNIVERSAL ELECTRONICS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2020

 

2019

 

2020

 

2019

Net sales

 

$

153,133

 

 

$

193,896

 

 

$

304,911

 

 

$

378,059

 

Cost of sales

 

115,058

 

 

159,903

 

 

223,895

 

 

304,192

 

Gross profit

 

38,075

 

 

33,993

 

 

81,016

 

 

73,867

 

Research and development expenses

 

7,385

 

 

7,163

 

 

15,283

 

 

13,954

 

Selling, general and administrative expenses

 

24,230

 

 

30,756

 

 

51,227

 

 

62,176

 

Operating income (loss)

 

6,460

 

 

(3,926

)

 

14,506

 

 

(2,263

)

Interest income (expense), net

 

(372

)

 

(1,098

)

 

(1,004

)

 

(2,304

)

Accrued social insurance adjustment

 

9,464

 

 

 

 

9,464

 

 

 

Other income (expense), net

 

731

 

 

188

 

 

383

 

 

(278

)

Income (loss) before provision for income taxes

 

16,283

 

 

(4,836

)

 

23,349

 

 

(4,845

)

Provision for income taxes

 

1,883

 

 

225

 

 

3,103

 

 

1,221

 

Net income (loss)

 

$

14,400

 

 

$

(5,061

)

 

$

20,246

 

 

$

(6,066

)

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

Basic

 

$

1.03

 

 

$

(0.37

)

 

$

1.45

 

 

$

(0.44

)

Diluted

 

$

1.02

 

 

$

(0.37

)

 

$

1.43

 

 

$

(0.44

)

Shares used in computing earnings (loss) per share:

 

 

 

 

 

 

 

 

Basic

 

13,915

 

 

13,863

 

 

13,938

 

 

13,845

 

Diluted

 

14,151

 

 

13,863

 

 

14,181

 

 

13,845

 

UNIVERSAL ELECTRONICS INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

 

 

Six Months Ended June 30,

 

 

2020

 

2019

Cash provided by (used for) operating activities:

 

 

 

 

Net income (loss)

 

$

20,246

 

 

$

(6,066

)

Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:

 

 

 

 

Depreciation and amortization

 

15,663

 

 

15,871

 

Provision for bad debts

 

240

 

 

5

 

Deferred income taxes

 

1,275

 

 

3,203

 

Shares issued for employee benefit plan

 

739

 

 

620

 

Employee and director stock-based compensation

 

4,594

 

 

4,191

 

Performance-based common stock warrants

 

338

 

 

670

 

Impairment of long-term assets

 

50

 

 

 

Accrued social insurance adjustment

 

(9,464

)

 

 

Loss on sale of Ohio call center

 

712

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable and contract assets

 

(848

)

 

(8,108

)

Inventories

 

9,571

 

 

(4,387

)

Prepaid expenses and other assets

 

1,947

 

 

2,578

 

Accounts payable and accrued liabilities

 

(40,869

)

 

16,822

 

Accrued income taxes

 

293

 

 

(5,166

)

Net cash provided by (used for) operating activities

 

4,487

 

 

20,233

 

Cash provided by (used for) investing activities:

 

 

 

 

Acquisitions of property, plant and equipment

 

(6,210

)

 

(10,093

)

Acquisitions of intangible assets

 

(3,077

)

 

(1,260

)

Payment on sale of Ohio call center

 

(500

)

 

 

Net cash provided by (used for) investing activities

 

(9,787

)

 

(11,353

)

Cash provided by (used for) financing activities:

 

 

 

 

Borrowings under line of credit

 

50,000

 

 

40,000

 

Repayments on line of credit

 

(45,000

)

 

(46,500

)

Treasury stock purchased

 

(6,405

)

 

(1,404

)

Contingent consideration payments in connection with business combinations

 

(3,091

)

 

(4,251

)

Net cash provided by (used for) financing activities

 

(4,496

)

 

(12,155

)

Effect of exchange rate changes on cash and cash equivalents

 

(5,674

)

 

(367

)

Net increase (decrease) in cash and cash equivalents

 

(15,470

)

 

(3,642

)

Cash and cash equivalents at beginning of period

 

74,302

 

 

53,207

 

Cash and cash equivalents at end of period

 

$

58,832

 

 

$

49,565

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

Income taxes paid

 

$

2,215

 

 

$

3,973

 

Interest paid

 

$

1,069

 

 

$

2,342

 

UNIVERSAL ELECTRONICS INC.

RECONCILIATION OF ADJUSTED NON-GAAP FINANCIAL RESULTS

(In thousands, except per share amounts)

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2020

 

2019

 

2020

 

2019

Net sales:

 

 

 

 

 

 

 

 

Net sales – GAAP

 

$

153,133

 

 

$

193,896

 

 

$

304,911

 

 

$

378,059

 

Section 301 U.S. tariffs on goods imported from China (1)

 

 

 

(730

)

 

 

 

(2,646

)

Stock-based compensation for performance-based warrants

 

154

 

 

236

 

 

338

 

 

670

 

Adjusted Non-GAAP net sales

 

$

153,287

 

 

$

193,402

 

 

$

305,249

 

 

$

376,083

 

 

 

 

 

 

 

 

 

 

Cost of sales:

 

 

 

 

 

 

 

 

Cost of sales – GAAP

 

$

115,058

 

 

$

159,903

 

 

$

223,895

 

 

$

304,192

 

Section 301 U.S. tariffs on goods imported from China (1)

 

(3,523

)

 

(5,097

)

 

(3,523

)

 

(10,507

)

Excess manufacturing overhead and factory transition costs (2)

 

(1,813

)

 

(10,048

)

 

(4,728

)

 

(13,320

)

Loss on sale of Ohio call center (3)

 

 

 

 

 

(570

)

 

 

Stock-based compensation expense

 

(36

)

 

(37

)

 

(110

)

 

(65

)

Adjustments to acquired tangible assets (4)

 

(66

)

 

(120

)

 

(132

)

 

(240

)

Employee related restructuring

 

 

 

 

 

(204

)

 

 

Adjusted Non-GAAP cost of sales

 

109,620

 

 

144,601

 

 

214,628

 

 

280,060

 

Adjusted Non-GAAP gross profit

 

$

43,667

 

 

$

48,801

 

 

$

90,621

 

 

$

96,023

 

 

 

 

 

 

 

 

 

 

Gross margin:

 

 

 

 

 

 

 

 

Gross margin – GAAP

 

24.9

%

 

17.5

%

 

26.6

%

 

19.5

%

Section 301 U.S. tariffs on goods imported from China (1)

 

2.3

%

 

2.3

%

 

1.2

%

 

2.2

%

Stock-based compensation for performance-based warrants

 

0.1

%

 

0.1

%

 

0.1

%

 

0.1

%

Excess manufacturing overhead and factory transition costs (2)

 

1.2

%

 

5.2

%

 

1.6

%

 

3.6

%

Loss on sale of Ohio call center (3)

 

%

 

%

 

0.2

%

 

%

Stock-based compensation expense

 

0.0

%

 

0.0

%

 

0.0

%

 

0.0

%

Adjustments to acquired tangible assets (4)

 

0.0

%

 

0.1

%

 

0.0

%

 

0.1

%

Employee related restructuring

 

%

 

%

 

0.0

%

 

%

Adjusted Non-GAAP gross margin

 

28.5

%

 

25.2

%

 

29.7

%

 

25.5

%

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Operating expenses – GAAP

 

$

31,615

 

 

$

37,919

 

 

$

66,510

 

 

$

76,130

 

Section 301 U.S. tariffs on goods imported from China (1)

 

 

 

(815

)

 

 

 

(1,539

)

Stock-based compensation expense

 

(2,255

)

 

(2,235

)

 

(4,484

)

 

(4,125

)

Amortization of acquired intangible assets

 

(1,396

)

 

(1,401

)

 

(2,791

)

 

(2,802

)

Change in contingent consideration

 

1,261

 

 

56

 

 

2,224

 

 

(1,006

)

Employee related restructuring and other costs

 

(50

)

 

(506

)

 

(287

)

 

(1,021

)

Adjusted Non-GAAP operating expenses

 

$

29,175

 

 

$

33,018

 

 

$

61,172

 

 

$

65,637

 

UNIVERSAL ELECTRONICS INC.

RECONCILIATION OF ADJUSTED NON-GAAP FINANCIAL RESULTS

(In thousands, except per share amounts)

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2020

 

2019

 

2020

 

2019

Operating income (loss):

 

 

 

 

 

 

 

 

Operating income (loss) – GAAP

 

$

6,460

 

 

$

(3,926

)

 

$

14,506

 

 

$

(2,263

)

Section 301 U.S. tariffs on goods imported from China (1)

 

3,523

 

 

5,182

 

 

3,523

 

 

9,400

 

Stock-based compensation for performance-based warrants

 

154

 

 

236

 

 

338

 

 

670

 

Excess manufacturing overhead and factory transition costs (2)

 

1,813

 

 

10,048

 

 

4,728

 

 

13,320

 

Loss on sale of Ohio call center (3)

 

 

 

 

 

570

 

 

 

Stock-based compensation expense

 

2,291

 

 

2,272

 

 

4,594

 

 

4,190

 

Adjustments to acquired tangible assets (4)

 

66

 

 

120

 

 

132

 

 

240

 

Amortization of acquired intangible assets

 

1,396

 

 

1,401

 

 

2,791

 

 

2,802

 

Change in contingent consideration

 

(1,261

)

 

(56

)

 

(2,224

)

 

1,006

 

Employee related restructuring and other costs

 

50

 

 

506

 

 

491

 

 

1,021

 

Adjusted Non-GAAP operating income

 

$

14,492

 

 

$

15,783

 

 

$

29,449

 

 

$

30,386

 

 

 

 

 

 

 

 

 

 

Adjusted pro forma operating income as a percentage of net sales

 

9.5

%

 

8.2

%

 

9.6

%

 

8.1

%

 

 

 

 

 

 

 

 

 

Net income (loss):

 

 

 

 

 

 

 

 

Net income (loss) – GAAP

 

$

14,400

 

 

$

(5,061

)

 

$

20,246

 

 

$

(6,066

)

Section 301 U.S. tariffs on goods imported from China (1)

 

3,523

 

 

5,182

 

 

3,523

 

 

9,400

 

Stock-based compensation for performance-based warrants

 

154

 

 

236

 

 

338

 

 

670

 

Excess manufacturing overhead and factory transition costs (2)

 

1,813

 

 

10,048

 

 

4,728

 

 

13,320

 

Loss on sale of Ohio call center (3)

 

 

 

 

 

570

 

 

 

Stock-based compensation expense

 

2,291

 

 

2,272

 

 

4,594

 

 

4,190

 

Adjustments to acquired tangible assets (4)

 

66

 

 

120

 

 

132

 

 

240

 

Amortization of acquired intangible assets

 

1,396

 

 

1,401

 

 

2,791

 

 

2,802

 

Change in contingent consideration

 

(1,261

)

 

(56

)

 

(2,224

)

 

1,006

 

Employee related restructuring and other costs

 

50

 

 

506

 

 

491

 

 

1,021

 

Accrued social insurance adjustment (5)

 

(9,464

)

 

 

 

(9,464

)

 

 

Foreign currency (gain) loss

 

(505

)

 

(54

)

 

(209

)

 

349

 

Income tax provision on adjustments

 

1,467

 

 

(2,910

)

 

(75

)

 

(5,671

)

Other income tax adjustments (6)

 

(1,303

)

 

 

 

(1,303

)

 

1,772

 

Adjusted Non-GAAP net income

 

$

12,627

 

 

$

11,684

 

 

$

24,138

 

 

$

23,033

 

 

 

 

 

 

 

 

 

 

Diluted shares used in computing earnings (loss) per share:

 

 

 

 

 

 

 

 

GAAP

 

14,151

 

 

13,863

 

 

14,181

 

 

13,845

 

Adjusted Non-GAAP

 

14,151

 

 

14,058

 

 

14,181

 

 

13,989

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share:

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share – GAAP

 

$

1.02

 

 

$

(0.37

)

 

$

1.43

 

 

$

(0.44

)

Total adjustments

 

$

(0.13

)

 

$

1.19

 

 

$

0.27

 

 

$

2.08

 

Adjusted Non-GAAP diluted earnings per share

 

$

0.89

 

 

$

0.83

 

 

$

1.70

 

 

$

1.65

 

Contacts

Paul Arling, Chairman & CEO, UEI, 480.530.3000

Press: Shoshana Leon, Corporate Communications, UEI, sleon@uei.com, 480.521.3354

IR: Kirsten Chapman, LHA Investor Relations, uei@lhai.com, 415.433.3777

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