Page 1

VOXX ™ International Corporation VOXX International Corporation Reports Its Fiscal 2022 First Quarter Financial Results July 12 , 2021 - Fiscal 2022 first quarter net sales increased $ 65.1 million or 90.4 % year - over - year . - Fiscal 2022 first quarter operating loss of $ 0.4 million , a $ 7.7 million year - over - year improvement . - Fiscal 2022 net income attributable to VOXX of $ 2.7 million , an $ 11.0 million year - over improvement . - Fiscal 2022 Adjusted EBITDA of $ 8.3 million , an $ 11.5 million year - over - year improvement . ORLANDO , Fla . , July 12 , 2021 / PRNewswire / -- VOXX International Corporation ( NASDAQ : VOXX ) , a leading manufacturer and distributor of automotive and consumer technologies for the global markets , today announced its financial results for its Fiscal 2022 first quarter ended May 31 , 2021 . Commenting on the Company's Fiscal 2022 first quarter results and business momentum , Pat Lavelle , President and Chief Executive Officer stated , " We reported strong top - line growth with all of our business segments up year - over - year . We also generated positive net income and Adjusted EBITDA compared to losses in last year's fiscal first quarter , up $ 11.0 million and $ 11.5 million , respectively . This was in spite of higher supply chain expenses given industry - wide shortages and delays . We expect higher supply chain costs and shipping delays to impact the fiscal second quarter , and we still anticipate growth , but less than initially anticipated . We instituted price increases to offset the cost of doing business and we will start to realize the positive impact in our fiscal 2022 second quarter , and more so in the second half of the year . We believe we've taken the right steps to ensure we have the inventory on hand to meet customer demand in our all - important fiscal third quarter and our positive outlook for the second half of the year has not changed . " Lavelle continued , " There has been a lot of positive activity in Fiscal 2022. We reached an agreement to acquire Onkyo's Home Entertainment A / V business , set up a joint venture with Sharp to close this transaction , and signed a new licensing agreement with Pioneer Corporation to manufacture and distribute the Pioneer and Pioneer Elite brands for home audio / video products . These are big milestones for our Premium Audio Company and if all closes as planned , we should generate approximately $ 50 million in sales this fiscal year , with significant growth opportunities in the coming years . We also won smaller automotive OEM awards with Nissan and Volvo , and we were advised by Stellantis that we should receive awards for a newly designed in - vehicle entertainment system and displays shortly . These programs we are working on could generate over $ 75 million in new , incremental business over a three - year period . Our distribution agreement with GalvanEyes will be presented to stockholders at our Annual Meeting later this month and if approved , would strengthen EyeLock's distribution and reach , and its financial performance . " Onkyo Home Entertainment Corporation Transaction On April 29 , 2021 , the Company signed a Letter of Intent to acquire the home audio / video business of Onkyo Home Entertainment Corporation ( " Onkyo " ) , along with Sharp Corporation ( " Sharp " ) as its partner . On May 28 , 2021 , the Company and Sharp signed an asset purchase agreement to jointly acquire Onkyo's home a / v business for a total purchase price of $ 30.8 million , plus the assumption of certain liabilities . The agreement was approved at Onkyo's ordinary general meeting of shareholders on June 25 , 2021 , and on June 28 , 2021 , the Company announced that it had entered into a joint venture with Sharp to execute the transaction . Finalization of the proposed transaction is subject to customary and regulatory closing conditions and is expected to be completed by August 30 , 2021 . Distribution Agreement with GalvanEyes LLC On April 29 , 2021 , EyeLock LLC entered into a three - year exclusive distribution agreement ( the " Agreement " ) with GalvanEyes LLC ( " GalvanEyes " ) , a Florida LLC managed by the Company's largest stockholder , Mr. Beat Kahli . The Agreement provides that GalvanEyes will become the exclusive distributor of EyeLock products in the EU , Switzerland , Puerto Rico , Malaysia , and Singapore with the exception of any existing customer relationships . Galvan Eyes was also granted exclusive distribution rights in the United States for the residential real estate market and specific U.S. Government agencies , and non - exclusive distribution rights in all other territories and verticals with the Company's consent . In consideration of the grant of exclusivity , GalvanEyes has agreed to pay EyeLock $ 10.0 million in the form of an annual fee of up to $ 5.0 million , with payments made on a quarterly basis . Any gross profit generated by Galvan Eyes on the sale of EyeLock LLC products by GalvanEyes will be deducted from the annual fee . The transaction is subject to certain closing conditions , including formal approval by the Board of Directors and approval by the Company's stockholders at the Annual Meeting of Stockholders to be held on July 29 , 2021 . Fiscal 2022 and Fiscal 2021 First Quarter Comparisons Net sales in the Fiscal 2022 first quarter ended May 31 , 2021 , were $ 137.1 million as compared to net sales of $ 72.0 million in the Fiscal 2021 first quarter ended May 31 , 2020 , an increase of $ 65.1 million or 90.4 % . The Company reported year - over - year increases in all reporting segments for the comparable Fiscal periods . • Automotive Electronics segment net sales in the Fiscal 2022 first quarter were $ 42.7 million as compared to $ 17.3 million in the comparable year - ago period , an increase of $ 25.4 million or 146.9 % . OEM product sales were $ 14.9 million as