ueic-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________________________________

FORM 10-Q

_______________________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 0-21044

_______________________________________

UNIVERSAL ELECTRONICS INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware

33-0204817

(State or Other Jurisdiction of
Incorporation or Organization)

(I.R.S. Employer
Identification No.)

15147 N. Scottsdale Road, Suite H300, Scottsdale, Arizona 85254-2494

(Address of principal executive offices and zip code)

(480) 530-3000

(Registrant's telephone number, including area code)

_____________________


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	UEIC	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 12,979,876 shares of Common Stock, par value $0.01 per share, of the registrant were outstanding on August 6, 2024.

UNIVERSAL ELECTRONICS INC.

INDEX


			Page Number
PART I. FINANCIAL INFORMATION			3
Item 1. Consolidated Financial Statements (Unaudited)			3
Consolidated Balance Sheets			3
Consolidated Statements of Operations			4
Consolidated Comprehensive Income (Loss) Statements			5
Consolidated Statements of Stockholders' Equity			6
Consolidated Statements of Cash Flows			8
Notes to Consolidated Financial Statements			9
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			27
Item 3. Quantitative and Qualitative Disclosures About Market Risk			33
Item 4. Controls and Procedures			34
PART II. OTHER INFORMATION			35
Item 1. Legal Proceedings			35
Item 1A. Risk Factors			35
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			35
Item 5. Other Information			35
Item 6. Exhibits			36
Signatures			37

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. Consolidated Financial Statements (Unaudited)

UNIVERSAL ELECTRONICS INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share-related data)

(Unaudited)


	June 30, 2024		December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	23,128	$	42,751

Accounts receivable, net	98,800		112,596
Contract assets	3,274		4,240
Inventories	87,491		88,273
Prepaid expenses and other current assets (Note 12)	11,130		7,325
Income tax receivable	2,309		3,666
Total current assets	226,132		258,851
Property, plant and equipment, net	39,259		44,619

Intangible assets, net	25,200		25,349
Operating lease right-of-use assets	15,922		18,693
Deferred income taxes	6,086		6,787
Other assets	1,404		1,573
Total assets	$	314,003	$	355,872
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	55,518	$	57,033
Line of credit	41,000		55,000
Accrued compensation	18,870		20,305
Accrued sales discounts, rebates and royalties	4,103		5,796
Accrued income taxes	1,462		1,833
Other accrued liabilities	20,022		21,181
Total current liabilities	140,975		161,148
Long-term liabilities:
Operating lease obligations	10,386		12,560

Deferred income taxes	1,718		1,992
Income tax payable	434		435
Other long-term liabilities	719		817
Total liabilities	154,232		176,952
Commitments and contingencies (Note 12)
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; 25,627,084 and 25,346,383 shares issued on June 30, 2024 and December 31, 2023, respectively	256		253
Paid-in capital	340,962		336,938
Treasury stock, at cost, 12,654,970 and 12,459,845 shares on June 30, 2024 and December 31, 2023, respectively	(371,814)		(369,973)
Accumulated other comprehensive income (loss)	(25,251)		(20,758)
Retained earnings	215,618		232,460
Total stockholders' equity	159,771		178,920
Total liabilities and stockholders' equity	$	314,003	$	355,872

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

UNIVERSAL ELECTRONICS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net sales	$	90,452	$	107,391	$	182,352	$	215,768
Cost of sales	64,500		82,774		130,412		166,458
Gross profit	25,952		24,617		51,940		49,310
Research and development expenses	7,520		8,484		15,341		16,844
Selling, general and administrative expenses	21,330		25,265		45,341		52,047
Factory restructuring charges	1,555		—		2,619		—
Goodwill impairment	—		—		—		49,075
Operating income (loss)	(4,453)		(9,132)		(11,361)		(68,656)
Interest income (expense), net	(843)		(1,097)		(1,765)		(2,072)

Other income (expense), net	(89)		(702)		(169)		(916)
Income (loss) before provision for income taxes	(5,385)		(10,931)		(13,295)		(71,644)
Provision for (benefit from) income taxes	2,808		(520)		3,547		130
Net income (loss)	$	(8,193)	$	(10,411)	$	(16,842)	$	(71,774)

Earnings (loss) per share:
Basic	$	(0.63)	$	(0.81)	$	(1.30)	$	(5.61)
Diluted	$	(0.63)	$	(0.81)	$	(1.30)	$	(5.61)
Shares used in computing earnings (loss) per share:
Basic	12,917		12,860

SEC Form 10-Q filed by Universal Electronics Inc.