Financial Results and Public Companies and Manufacturers and Klipsch and Manufacturing & Technology

Klipsch helps parent firm double cash flow

May 15, 2012
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Klipsch, the Indianapolis-based maker of high-end speakers, generated sales of $169.5 million in the fiscal year ended Feb. 29, helping its parent company more than double its cash flow, Voxx International Corp. said Tuesday.

Klipsch was acquired by New York-based Voxx in March 2011 for $166 million. Klipsch continues to be managed out of Indianapolis, where it employs about 130 workers.

Voxx, which changed its name from Audiovox last year, owns a number of consumer-electronics brands, including RCA.

Klipsch’s sales appeared to be flat compared with previous years. While Voxx did not report Klipsch sales results for the fiscal year before the acquisition, it had previously disclosed that for the 12 months ending Nov. 30, 2010, Klipsch sales totaled $169 million.

The addition helped Voxx grow its overall sales nearly 26 percent during the most recent fiscal year, to $707.1 million, even though sales in the non-Klipsch segments of its business actually declined by more than 4 percent. Voxx executives previously had forecasted year-end sales of $700 million.

Klipsch incurred operating expenses of $39.2 million during the fiscal year, and its healthy operating margin helped more than doubled Voxx’s earnings before interest, taxes, depreciation and amortization. They rose to $58.7 million in the most recent fiscal year from $25.5 million in the fiscal year before the acquisition.

However, the costs and taxes associated with the Klipsch acquisition trimmed Voxx’s profit for the year to $25.6 million, or $1.10 per diluted share, a boost of 11 percent from the previous fiscal year.

Voxx did not disclose Klipsch sales results for the three months ended Feb. 29. During that quarter, Voxx’s sales and profit results easily exceeded the expectations of the Wall Street analysts who follow the company.

Voxx earned a quarterly profit of $10.9 million, or 46 cents per share. Analysts were expecting 16 cents per share, according to a survey by Thomson Reuters.

Voxx’s revenue for the quarter totaled $176.6 million, again ahead of analysts’ estimates of $173.7 million.

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