ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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) | (Zip Code) |
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of each class | Trading Symbols | Name of each exchange on which registered |
Common Stock, par value $0.01 per share | UEIC | The NASDAQ Stock Market LLC |
Large accelerated filer | ¨ | Accelerated filer | ý |
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 Act). Yes ¨ No ý |
Page Number | |
March 31, 2020 | December 31, 2019 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 58,927 | $ | 74,302 | |||
Accounts receivable, net | 137,094 | 139,198 | |||||
Contract assets | 9,911 | 12,579 | |||||
Inventories | 142,243 | 145,135 | |||||
Prepaid expenses and other current assets | 6,427 | 6,733 | |||||
Income tax receivable | 1,573 | 805 | |||||
Total current assets | 356,175 | 378,752 | |||||
Property, plant and equipment, net | 85,304 | 90,732 | |||||
Goodwill | 48,416 | 48,447 | |||||
Intangible assets, net | 19,284 | 19,830 | |||||
Operating lease right-of-use assets | 18,359 | 19,826 | |||||
Deferred income taxes | 4,078 | 4,409 | |||||
Other assets | 2,618 | 2,163 | |||||
Total assets | $ | 534,234 | $ | 564,159 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 89,558 | $ | 102,588 | |||
Line of credit | 78,000 | 68,000 | |||||
Accrued compensation | 31,837 | 43,668 | |||||
Accrued sales discounts, rebates and royalties | 9,000 | 9,766 | |||||
Accrued income taxes | 6,693 | 6,989 | |||||
Other accrued liabilities | 31,081 | 35,445 | |||||
Total current liabilities | 246,169 | 266,456 | |||||
Long-term liabilities: | |||||||
Operating lease obligations | 14,069 | 15,639 | |||||
Contingent consideration | 195 | 4,349 | |||||
Deferred income taxes | 2,461 | 1,703 | |||||
Income tax payable | 1,368 | 1,600 | |||||
Other long-term liabilities | 13 | 13 | |||||
Total liabilities | 264,275 | 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; 24,255,522 and 24,118,088 shares issued on March 31, 2020 and December 31, 2019, respectively | 243 | 241 | |||||
Paid-in capital | 291,350 | 288,338 | |||||
Treasury stock, at cost, 10,343,366 and 10,174,199 shares on March 31, 2020 and December 31, 2019, respectively | (284,108 | ) | (277,817 | ) | |||
Accumulated other comprehensive income (loss) | (29,790 | ) | (22,781 | ) | |||
Retained earnings | 292,264 | 286,418 | |||||
Total stockholders' equity | 269,959 | 274,399 | |||||
Total liabilities and stockholders' equity | $ | 534,234 | $ | 564,159 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Net sales | $ | 151,778 | $ | 184,163 | |||
Cost of sales | 108,837 | 144,289 | |||||
Gross profit | 42,941 | 39,874 | |||||
Research and development expenses | 7,898 | 6,791 | |||||
Selling, general and administrative expenses | 26,997 | 31,420 | |||||
Operating income | 8,046 | 1,663 | |||||
Interest income (expense), net | (632 | ) | (1,206 | ) | |||
Other income (expense), net | (348 | ) | (466 | ) | |||
Income (loss) before provision for income taxes | 7,066 | (9 | ) | ||||
Provision for income taxes | 1,220 | 996 | |||||
Net income (loss) | $ | 5,846 | $ | (1,005 | ) | ||
Earnings (loss) per share: | |||||||
Basic | $ | 0.42 | $ | (0.07 | ) | ||
Diluted | $ | 0.41 | $ | (0.07 | ) | ||
Shares used in computing earnings (loss) per share: | |||||||
Basic | 13,960 | 13,827 | |||||
Diluted | 14,211 | 13,827 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Net income (loss) | $ | 5,846 | $ | (1,005 | ) | ||
Other comprehensive income (loss): | |||||||
Change in foreign currency translation adjustment | (7,009 | ) | 1,733 | ||||
Comprehensive income (loss) | $ | (1,163 | ) | $ | 728 |
Common Stock Issued | Common Stock in Treasury | Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Totals | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
Balance at December 31, 2019 | 24,118 | $ | 241 | (10,174 | ) | $ | (277,817 | ) | $ | 288,338 | $ | (22,781 | ) | $ | 286,418 | $ | 274,399 | ||||||||||||
Net income (loss) | 5,846 | 5,846 | |||||||||||||||||||||||||||
Currency translation adjustment | (7,009 | ) | (7,009 | ) | |||||||||||||||||||||||||
Shares issued for employee benefit plan and compensation | 129 | 1 | 526 | 527 | |||||||||||||||||||||||||
Purchase of treasury shares | (169 | ) | (6,291 | ) | (6,291 | ) | |||||||||||||||||||||||
Shares issued to directors | 9 | 1 | (1 | ) | — | ||||||||||||||||||||||||
Employee and director stock-based compensation | 2,303 | 2,303 | |||||||||||||||||||||||||||
Performance-based common stock warrants | 184 | 184 | |||||||||||||||||||||||||||
Balance at March 31, 2020 | 24,256 | $ | 243 | (10,343 | ) | $ | (284,108 | ) | $ | 291,350 | $ | (29,790 | ) | $ | 292,264 | $ | 269,959 | ||||||||||||
Balance at December 31, 2018 | 23,933 | $ | 239 | (10,116 | ) | $ | (275,889 | ) | $ | 276,103 | $ | (20,281 | ) | $ | 282,788 | $ | 262,960 | ||||||||||||
Net income (loss) | (1,005 | ) | (1,005 | ) | |||||||||||||||||||||||||
Currency translation adjustment | 1,733 | 1,733 | |||||||||||||||||||||||||||
Shares issued for employee benefit plan and compensation | 78 | 1 | 346 | 347 | |||||||||||||||||||||||||
Purchase of treasury shares | (43 | ) | (1,215 | ) | (1,215 | ) | |||||||||||||||||||||||
Shares issued to directors | 8 | — | — | — | |||||||||||||||||||||||||
Employee and director stock-based compensation | 1,918 | 1,918 | |||||||||||||||||||||||||||
Performance-based common stock warrants | 434 | 434 | |||||||||||||||||||||||||||
Balance at March 31, 2019 | 24,019 | $ | 240 | (10,159 | ) | $ | (277,104 | ) | $ | 278,801 | $ | (18,548 | ) | $ | 281,783 | $ | 265,172 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Cash provided by (used for) operating activities: | |||||||
Net income (loss) | $ | 5,846 | $ | (1,005 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||||||
Depreciation and amortization | 7,498 | 8,019 | |||||
Provision for bad debts | 237 | 3 | |||||
Deferred income taxes | 835 | 2,966 | |||||
Shares issued for employee benefit plan | 527 | 347 | |||||
Employee and director stock-based compensation | 2,303 | 1,918 | |||||
Performance-based common stock warrants | 184 | 434 | |||||
Loss on sale of Ohio call center | 712 | — | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable and contract assets | 2,060 | (14,056 | ) | ||||
Inventories | 1,609 | (3,982 | ) | ||||
Prepaid expenses and other assets | 118 | 735 | |||||
Accounts payable and accrued liabilities | (28,969 | ) | 3,017 | ||||
Accrued income taxes | (1,307 | ) | (2,943 | ) | |||
Net cash provided by (used for) operating activities | (8,347 | ) | (4,547 | ) | |||
Cash provided by (used for) investing activities: | |||||||
Acquisitions of property, plant and equipment | (1,986 | ) | (2,800 | ) | |||
Acquisitions of intangible assets | (1,270 | ) | (653 | ) | |||
Payment on sale of Ohio call center | (500 | ) | — | ||||
Net cash provided by (used for) investing activities | (3,756 | ) | (3,453 | ) | |||
Cash provided by (used for) financing activities: | |||||||
Borrowings under line of credit | 25,000 | 25,000 | |||||
Repayments on line of credit | (15,000 | ) | (20,000 | ) | |||
Treasury stock purchased | (6,291 | ) | (1,215 | ) | |||
Contingent consideration payments in connection with business combinations | (3,091 | ) | (4,251 | ) | |||
Net cash provided by (used for) financing activities | 618 | (466 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (3,890 | ) | 154 | ||||
Net increase (decrease) in cash and cash equivalents | (15,375 | ) | (8,312 | ) | |||
Cash and cash equivalents at beginning of period | 74,302 | 53,207 | |||||
Cash and cash equivalents at end of period | $ | 58,927 | $ | 44,895 | |||
Supplemental cash flow information: | |||||||
Income taxes paid | $ | 1,384 | $ | 1,942 | |||
Interest paid | $ | 637 | $ | 1,186 |
(In thousands) | March 31, 2020 | December 31, 2019 | |||||
United States | $ | 10,421 | $ | 16,751 | |||
People's Republic of China ("PRC") | 14,105 | 13,700 | |||||
Asia (excluding the PRC) | 11,052 | 21,691 | |||||
Europe | 12,810 | 9,081 | |||||
South America | 10,539 | 13,079 | |||||
Total cash and cash equivalents | $ | 58,927 | $ | 74,302 |
Three Months Ended March 31, | |||||||
(In thousands) | 2020 | 2019 | |||||
Goods and services transferred at a point in time | $ | 117,058 | $ | 136,338 | |||
Goods and services transferred over time | 34,720 | 47,825 | |||||
Net sales | $ | 151,778 | $ | 184,163 |
Three Months Ended March 31, | |||||||
(In thousands) | 2020 | 2019 | |||||
United States | $ | 74,381 | $ | 98,936 | |||
Asia (excluding PRC) | 27,825 | 24,076 | |||||
Europe | 20,502 | 23,299 | |||||
People's Republic of China | 17,517 | 22,308 | |||||
Latin America | 4,640 | 7,787 | |||||
Other | 6,913 | 7,757 | |||||
Total net sales | $ | 151,778 | $ | 184,163 |
Three Months Ended March 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
$ (thousands) | % of Net Sales | $ (thousands) | % of Net Sales | |||||||||||
Comcast Corporation | $ | 32,935 | 21.7 | % | $ | 29,246 | 15.9 | % | ||||||
DISH Network Corporation | — | (1) | — | (1) | $ | 19,678 | 10.7 | % |
(In thousands) | March 31, 2020 | December 31, 2019 | |||||
Trade receivables, gross | $ | 129,316 | $ | 130,888 | |||
Allowance for bad debts | (1,681 | ) | (1,492 | ) | |||
Allowance for sales returns | (495 | ) | (623 | ) | |||
Net trade receivables | 127,140 | 128,773 | |||||
Other | 9,954 | 10,425 | |||||
Accounts receivable, net | $ | 137,094 | $ | 139,198 |
(In thousands) | Three Months Ended March 31, | ||||||
2020 | 2019 | ||||||
Balance at beginning of period | $ | 1,492 | $ | 1,121 | |||
Additions to costs and expenses | 237 | 3 | |||||
(Write-offs)/Foreign exchange effects | (48 | ) | (4 | ) | |||
Balance at end of period | $ | 1,681 | $ | 1,120 |
March 31, 2020 | December 31, 2019 | |||||||||||||
$ (thousands) | % of Accounts Receivable, Net | $ (thousands) | % of Accounts Receivable, Net | |||||||||||
Comcast Corporation | $ | 28,423 | 20.7 | % | — | (1) | — | (1) | ||||||
DISH Network Corporation | — | (1) | — | (1) | $ | 14,677 | 10.5 | % |
(1) | Trade receivables associated with this customer did not total more than 10% of our accounts receivable, net for the indicated period. |
(In thousands) | March 31, 2020 | December 31, 2019 | |||||
Raw materials | $ | 59,409 | $ | 56,352 | |||
Components | 18,925 | 24,599 | |||||
Work in process | 5,240 | 1,526 | |||||
Finished goods | 58,669 | 62,658 | |||||
Inventories | $ | 142,243 | $ | 145,135 |
Three Months Ended March 31, | ||||||||||||
2020 | 2019 | |||||||||||
$ (thousands) | % of Total Inventory Purchases | $ (thousands) | % of Total Inventory Purchases | |||||||||
Qorvo International Pte Ltd. | $ | 11,177 | 14.0 | % | — | (1) | — | (1) |
(1) | Purchases associated with this supplier did not total more than 10% of our total inventory purchases for the indicated period. |
March 31, 2020 | December 31, 2019 | |||||||||||||
$ (thousands) | % of Accounts Payable | $ (thousands) | % of Accounts Payable | |||||||||||
Zhejiang Zhen You Electronics Co. Ltd. | $ | 9,330 | 10.4 | % | $ | 11,394 | 11.1 | % |
(In thousands) | March 31, 2020 | December 31, 2019 | |||||
Assets: | |||||||
Operating lease right-of-use assets | $ | 18,359 | $ | 19,826 | |||
Liabilities: | |||||||
Other accrued liabilities | $ | 5,030 | $ | 4,903 | |||
Long-term operating lease obligations | 14,069 | 15,639 | |||||
Total lease liabilities | $ | 19,099 | $ | 20,542 |
(In thousands) | Three Months Ended March 31, | ||||||
2020 | 2019 | ||||||
Cost of sales | $ | 390 | $ | 592 | |||
Selling, general and administrative expenses | 998 | 1,384 | |||||
Total operating lease expense | $ | 1,388 | $ | 1,976 | |||
Operating cash outflows from operating leases | $ | 1,525 | $ | 1,767 | |||
Operating lease right-of-use assets obtained in exchange for lease obligations | $ | 186 | $ | 1,524 |
March 31, 2020 | ||
Weighted average lease liability term (in years) | 4.10 | |
Weighted average discount rate | 4.51 | % |
(In thousands) | March 31, 2020 | ||
2020 (remaining 9 months) | $ | 4,419 | |
2021 | 6,256 | ||
2022 | 5,250 | ||
2023 | 2,399 | ||
2024 | 1,343 | ||
Thereafter | 2,040 | ||
Total lease payments | 21,707 | ||
Less: imputed interest | (2,608 | ) | |
Total lease liabilities | $ | 19,099 |
(In thousands) | |||
Balance at December 31, 2019 | $ | 48,447 | |
Foreign exchange effects | (31 | ) | |
Balance at March 31, 2020 | $ | 48,416 |
March 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
(In thousands) | Gross (1) | Accumulated Amortization (1) | Net | Gross (1) | Accumulated Amortization (1) | Net | |||||||||||||||||
Distribution rights | $ | 316 | $ | (213 | ) | $ | 103 | $ | 322 | $ | (210 | ) | $ | 112 | |||||||||
Patents | 17,625 | (6,705 | ) | 10,920 | 16,587 | (6,491 | ) | 10,096 | |||||||||||||||
Trademarks and trade names | 2,786 | (2,282 | ) | 504 | 2,785 | (2,205 | ) | 580 | |||||||||||||||
Developed and core technology | 12,480 | (10,515 | ) | 1,965 | 12,480 | (10,016 | ) | 2,464 | |||||||||||||||
Capitalized software development costs | 33 | — | 33 | — | — | — | |||||||||||||||||
Customer relationships | 32,534 | (26,775 | ) | 5,759 | 32,534 | (25,956 | ) | 6,578 | |||||||||||||||
Total intangible assets, net | $ | 65,774 | $ | (46,490 | ) | $ | 19,284 | $ | 64,708 | $ | (44,878 | ) | $ | 19,830 |
(1) | This table excludes the gross value of fully amortized intangible assets totaling $7.6 million and $7.4 million at March 31, 2020 and December 31, 2019, respectively. |
(In thousands) | |||
2020 (remaining 9 months) | $ | 4,333 | |
2021 | 2,573 | ||
2022 | 2,575 | ||
2023 | 2,396 | ||
2024 | 1,817 | ||
Thereafter | 5,590 | ||
Total | $ | 19,284 |
(In thousands) | March 31, 2020 | December 31, 2019 | |||||
Accrued social insurance (1) | $ | 16,479 | $ | 16,588 | |||
Accrued salary/wages | 7,181 | 7,465 | |||||
Accrued vacation/holiday | 2,936 | 2,766 | |||||
Accrued bonus | 3,200 | 13,965 | |||||
Accrued commission | 271 | 1,283 | |||||
Other accrued compensation | 1,770 | 1,601 | |||||
Total accrued compensation | $ | 31,837 | $ | 43,668 |
(1) | PRC employers are required by law to remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job industry insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance on March 31, 2020 and December 31, 2019. |
(In thousands) | March 31, 2020 | December 31, 2019 | |||||
Contract liabilities | $ | 1,694 | $ | 1,840 | |||
Duties | 3,585 | 3,731 | |||||
Freight and handling fees | 3,251 | 3,769 | |||||
Operating lease obligations | 5,030 | 4,903 | |||||
Product warranty claim costs | 1,498 | 1,514 | |||||
Professional fees | 3,232 | 2,833 | |||||
Sales taxes and VAT | 2,829 | 3,926 | |||||
Short-term contingent consideration | 3,300 | 5,428 | |||||
Other | 6,662 | 7,501 | |||||
Total other accrued liabilities | $ | 31,081 | $ | 35,445 |
(In thousands) | Three Months Ended March 31, | ||||||
2020 | 2019 | ||||||
Balance at beginning of period | $ | 1,514 | $ | 276 | |||
Accruals for warranties issued during the period | — | — | |||||
Settlements (in cash or in kind) during the period/Foreign exchange effects | (16 | ) | — | ||||
Balance at end of period | $ | 1,498 | $ | 276 |
Three Months Ended March 31, | |||||||
(In thousands) | 2020 | 2019 | |||||
Shares repurchased | 169 | 43 | |||||
Cost of shares repurchased | $ | 6,291 | $ | 1,215 |
(In thousands) | March 31, 2020 | December 31, 2019 | |||||
United States | $ | 19,199 | $ | 19,938 | |||
People's Republic of China | 63,160 | 67,625 | |||||
Mexico | 15,078 | 16,644 | |||||
All other countries | 6,226 | 6,351 | |||||
Total long-lived tangible assets | $ | 103,663 | $ | 110,558 |
Three Months Ended March 31, | |||||||
(In thousands) | 2020 | 2019 | |||||
Cost of sales | $ | 74 | $ | 28 | |||
Research and development expenses | 236 | 220 | |||||
Selling, general and administrative expenses: | |||||||
Employees | 1,583 | 1,424 | |||||
Outside directors | 410 | 246 | |||||
Total employee and director stock-based compensation expense | $ | 2,303 | $ | 1,918 | |||
Income tax benefit | $ | 506 | $ | 399 |
Number of Options (in 000's) | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in 000's) | |||||||||
Outstanding at December 31, 2019 | 745 | $ | 41.73 | |||||||||
Granted | 109 | 46.17 | ||||||||||
Exercised | — | — | $ | — | ||||||||
Forfeited/canceled/expired | — | — | ||||||||||
Outstanding at March 31, 2020 (1) | 854 | $ | 42.29 | 4.13 | $ | 4,070 | ||||||
Vested and expected to vest at March 31, 2020 (1) | 854 | $ | 42.29 | 4.13 | $ | 4,070 | ||||||
Exercisable at March 31, 2020 (1) | 592 | $ | 43.66 | 3.10 | $ | 2,933 |
(1) | The aggregate intrinsic value represents the total pre-tax value (the difference between our closing stock price on the last trading day of the first quarter of 2020 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on March 31, 2020. This amount will change based on the fair market value of our stock. |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Weighted average fair value of grants | $ | 17.70 | $ | 10.28 | |||
Risk-free interest rate | 1.44 | % | 2.49 | % | |||
Expected volatility | 43.95 | % | 41.64 | % | |||
Expected life in years | 4.59 | 4.54 |
Shares (in 000's) | Weighted-Average Grant Date Fair Value | |||||
Non-vested at December 31, 2019 | 310 | $ | 34.99 | |||
Granted | 198 | 35.11 | ||||
Vested | (124 | ) | 38.17 | |||
Forfeited | (1 | ) | 36.06 | |||
Non-vested at March 31, 2020 | 383 | $ | 34.02 |
Incremental Warrants That Will Vest | ||||||||
Aggregate Level of Purchases by Comcast and Affiliates | January 1, 2016 - December 31, 2017 | January 1, 2018 - December 31, 2019 | January 1, 2020 - December 31, 2021 | |||||
$260 million | 100,000 | 100,000 | 75,000 | |||||
$300 million | 75,000 | 75,000 | 75,000 | |||||
$340 million | 75,000 | 75,000 | 75,000 | |||||
Maximum Potential Warrants Earned by Comcast | 250,000 | 250,000 | 225,000 |
Fair value | $17.19 |
Price of Universal Electronics Inc. common stock | $52.21 |
Risk-free interest rate | 1.62% |
Expected volatility | 48.86% |
Expected life in years | 3.00 |
Fair value | $9.00 |
Price of Universal Electronics Inc. common stock | $37.46 |
Risk-free interest rate | 2.22% |
Expected volatility | 44.45% |
Expected life in years | 3.75 |
Three Months Ended March 31, | |||||||
(In thousands) | 2020 | 2019 | |||||
Reduction to net sales | $ | 184 | $ | 434 | |||
Income tax benefit | $ | 46 | $ | 108 |
Three Months Ended March 31, | |||||||
(In thousands) | 2020 | 2019 | |||||
Net gain (loss) on foreign currency exchange contracts (1) | $ | 252 | $ | (271 | ) | ||
Net gain (loss) on foreign currency exchange transactions | (548 | ) | (132 | ) | |||
Other income | (52 | ) | (63 | ) | |||
Other (expense), net | $ | (348 | ) | $ | (466 | ) |
(1) | This represents the gains (losses) incurred on foreign currency hedging derivatives (see Note 18 for further details). |
Three Months Ended March 31, | |||||||
(In thousands, except per-share amounts) | 2020 | 2019 | |||||
BASIC | |||||||
Net income (loss) | $ | 5,846 | $ | (1,005 | ) | ||
Weighted-average common shares outstanding | 13,960 | 13,827 | |||||
Basic earnings (loss) per share | $ | 0.42 | $ | (0.07 | ) | ||
DILUTED | |||||||
Net income (loss) | $ | 5,846 | $ | (1,005 | ) | ||
Weighted-average common shares outstanding for basic | 13,960 | 13,827 | |||||
Dilutive effect of stock options, restricted stock and common stock warrants | 251 | — | |||||
Weighted-average common shares outstanding on a diluted basis | 14,211 | 13,827 | |||||
Diluted earnings (loss) per share | $ | 0.41 | $ | (0.07 | ) |
Three Months Ended March 31, | |||||
(In thousands) | 2020 | 2019 | |||
Stock options | 402 | 543 | |||
Restricted stock awards | 51 | 227 | |||
Performance-based warrants | 275 | 175 |
March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||
Fair Value Measurement Using | Total Balance | Fair Value Measurement Using | Total Balance | |||||||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | (187 | ) | $ | — | $ | (187 | ) | $ | — | $ | (172 | ) | $ | — | $ | (172 | ) |
Date Held | Currency | Position Held | Notional Value (in millions) | Forward Rate | Unrealized Gain/(Loss) Recorded at Balance Sheet Date (in thousands)(1) | Settlement Date | |||||||||||
March 31, 2020 | USD/Chinese Yuan Renminbi | USD | $ | 30.0 | 7.0555 | $ | (146 | ) | April 24, 2020 | ||||||||
March 31, 2020 | USD/Euro | USD | $ | 35.0 | 1.1017 | $ | (41 | ) | April 24, 2020 | ||||||||
December 31, 2019 | USD/Chinese Yuan Renminbi | USD | $ | 35.0 | 6.9867 | $ | 100 | January 23, 2020 | |||||||||
December 31, 2019 | USD/Brazilian Real | USD | $ | 0.5 | 4.0560 | $ | (6 | ) | January 24, 2020 | ||||||||
December 31, 2019 | USD/Euro | USD | $ | 28.0 | 1.1133 | $ | (253 | ) | January 24, 2020 | ||||||||
December 31, 2019 | USD/Brazilian Real | USD | $ | 0.7 | 4.0870 | $ | (13 | ) | January 24, 2020 |
(1) | Unrealized gains on foreign currency exchange contracts are recorded in prepaid expenses and other current assets. Unrealized losses on foreign currency exchange contracts are recorded in other accrued liabilities. |
• | easy-to-use, pre-programmed universal infrared ("IR") and radio frequency ("RF") remote controls that are sold primarily to subscription broadcast providers (cable, satellite and Internet Protocol television ("IPTV") and Over the Top services), original equipment manufacturers ("OEMs"), retailers, and private label customers; |
• | integrated circuits, on which our software and universal device control database is embedded, sold primarily to OEMs, subscription broadcast providers, and private label customers; |
• | software, firmware and technology solutions that can enable devices such as TVs, set-top boxes, audio systems, smartphones, tablets, game controllers and other consumer electronic devices to wirelessly connect and interact with home networks and interactive services to control and deliver digital entertainment and information; |
• | intellectual property which we license primarily to OEMs, software development companies, private label customers, and subscription broadcast providers; |
• | proprietary and standards-based RF sensors designed for residential security, safety and automation applications; |
• | wall-mount and handheld thermostat controllers and connected accessories for intelligent energy management systems, primarily to OEM customers as well as hospitality system integrators; and |
• | AV accessories sold, directly and indirectly, to consumers. |
• | Net sales decreased 17.6% to $151.8 million for the three months ended March 31, 2020 from $184.2 million for the three months ended March 31, 2019. |
• | Our gross margin percentage increased to 28.3% for the three months ended March 31, 2020 from 21.7% for the three months ended March 31, 2019. |
• | Operating expenses, as a percent of net sales, increased to 23.0% for the three months ended March 31, 2020 from 20.8% for the three months ended March 31, 2019. |
• | Our operating income increased to $8.0 million for the three months ended March 31, 2020 from $1.7 million for the three months ended March 31, 2019. Our operating income percentage increased to 5.3% for the three months ended March 31, 2020 from 0.9% for the three months ended March 31, 2019. |
• | Income tax expense increased from $1.2 million for the three months ended March 31, 2020 from $1.0 million for the three months ended March 31, 2019. |
• | continue to develop and market the advanced remote control products and technologies that our customer base is adopting; |
• | continue to broaden our home control and automation product offerings; |
• | further penetrate international subscription broadcast markets; |
• | acquire new customers in historically strong regions; |
• | increase our share with existing customers; and |
• | continue to seek acquisitions or strategic partners that complement and strengthen our existing business. |
Three Months Ended March 31, | |||||
2020 | 2019 | ||||
Net sales | 100.0 | % | 100.0 | % | |
Cost of sales | 71.7 | 78.3 | |||
Gross profit | 28.3 | 21.7 | |||
Research and development expenses | 5.2 | 3.7 | |||
Selling, general and administrative expenses | 17.8 | 17.1 | |||
Operating income (loss) | 5.3 | 0.9 | |||
Interest income (expense), net | (0.4 | ) | (0.7 | ) | |
Other income (expense), net | (0.2 | ) | (0.2 | ) | |
Income (loss) before provision for income taxes | 4.7 | — | |||
Provision for income taxes | 0.8 | 0.5 | |||
Net income (loss) | 3.9 | % | (0.5 | )% |
(In thousands) | Three Months Ended March 31, 2020 | Increase (Decrease) | Three Months Ended March 31, 2019 | ||||||||
Cash provided by (used for) operating activities | $ | (8,347 | ) | $ | (3,800 | ) | $ | (4,547 | ) | ||
Cash provided by (used for) investing activities | (3,756 | ) | (303 | ) | (3,453 | ) | |||||
Cash provided by (used for) financing activities | 618 | 1,084 | (466 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | (3,890 | ) | (4,044 | ) | 154 | ||||||
Net increase (decrease) in cash and cash equivalents | $ | (15,375 | ) | $ | (7,063 | ) | $ | (8,312 | ) |
March 31, 2020 | Increase (Decrease) | December 31, 2019 | |||||||||
Cash and cash equivalents | $ | 58,927 | $ | (15,375 | ) | $ | 74,302 | ||||
Working capital | 110,006 | (2,290 | ) | 112,296 |
Payments Due by Period | |||||||||||||||||||
(In thousands) | Total | Less than 1 year | 1 - 3 years | 4 - 5 years | After 5 years | ||||||||||||||
Operating lease obligations | $ | 24,144 | $ | 6,783 | $ | 11,456 | $ | 4,027 | $ | 1,878 | |||||||||
Purchase obligations (1) | 2,855 | 2,855 | — | — | — | ||||||||||||||
Contingent consideration (2) | 3,470 | 3,275 | 195 | — | — | ||||||||||||||
Total contractual obligations | $ | 30,469 | $ | 12,913 | $ | 11,651 | $ | 4,027 | $ | 1,878 |
(1) | Purchase obligations primarily consist of contractual payments to purchase property, plant and equipment. |
(2) | Contingent consideration consists of contingent payments related to our purchases of the net assets of Ecolink and RCS Control Systems, Inc. ("RCS"). |
(In thousands) | March 31, 2020 | December 31, 2019 | |||||
Cash and cash equivalents | $ | 58,927 | $ | 74,302 | |||
Available borrowing resources | 44,300 | 54,300 |
• | Reduced consumer and investor confidence, instability in the credit and financial markets, volatile corporate profits, and reduced business and consumer spending, which may adversely affect our results of operations by reducing our sales, margins and/or net income as a result of a slowdown in customer orders or order cancellations. In addition, volatility in the financial markets could increase the cost of capital and/or limit its availability. |
• | Economic uncertainty as a result of COVID-19 is expected to make it difficult for us and our customers and suppliers to accurately forecast and plan future business activities. |
• | The potential to weaken the financial position of some of our customers. If circumstances surrounding our customers’ financial capabilities were to deteriorate, write-downs or write-offs could negatively affect our operating results and, if large, could have a material adverse effect on our business, financial condition, results of operations and cash flows. |
• | As a result of governmental orders, we could experience disruptions in our manufacturing operations and in our supply chain in connection with the sourcing of materials from geographic areas that continue to be impacted by COVID-19 and by efforts to contain its spread. |
Period | Total Number of Shares Purchased (1) | Weighted Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (2) | |||||||||
January 1, 2020 - January 31, 2020 | 1,658 | $ | 51.62 | — | 300,000 | ||||||||
February 1, 2020 - February 29, 2020 | 41,334 | 46.26 | — | 300,000 | |||||||||
March 1, 2020 - March 31, 2020 | 126,175 | 34.02 | 124,873 | 175,127 | |||||||||
Total | 169,167 | $ | 37.19 | 124,873 | 175,127 |
(1) | Of the repurchases in January, February and March, 1,658, 41,334 and 1,302 shares, respectively, represent common shares of the Company that were owned and tendered by employees to satisfy tax withholding obligations in connection with the vesting of restricted shares. |
(2) | On March 10, 2020, our Board of Directors replaced the repurchase plan approved in 2018 with a new repurchase plan authorizing the repurchase of up to 300,000 of our common stock ("2020 Plan"). As of March 31, 2020, we had 175,127 shares of common stock authorized for repurchase remaining under the 2020 Plan. We may repurchase shares of common stock in privately negotiated and/or open-market transactions, including pursuant to plans complying with Rule 10b5-1 promulgated under the Securities Exchange Act of 1934. While we have suspended repurchasing under our 2020 Plan due in part to the uncertainties surrounding the COVID-19 pandemic, management may resume such repurchasing when market and business conditions warrant. |
31.1 | ||
31.2 | ||
32 | ||
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
Dated: | May 8, 2020 | UNIVERSAL ELECTRONICS INC. | |||
By: | /s/ Bryan M. Hackworth | ||||
Bryan M. Hackworth | |||||
Chief Financial Officer (principal financial officer | |||||
and principal accounting officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Universal Electronics Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors: |
/s/ Paul D. Arling |
Paul D. Arling |
Chairman and Chief Executive Officer (principal executive officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Universal Electronics Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors: |
/s/ Bryan M. Hackworth |
Bryan M. Hackworth |
Chief Financial Officer (principal financial officer and principal accounting officer) |
Dated: | May 8, 2020 | By: | /s/ Paul D. Arling | ||
Paul D. Arling | |||||
Chief Executive Officer | |||||
(principal executive officer) | |||||
By: | /s/ Bryan M. Hackworth | ||||
Bryan M. Hackworth | |||||
Chief Financial Officer | |||||
(principal financial officer and principal accounting officer) |
Commitments and Contingencies - Narrative (Details) - Pending Litigation |
1 Months Ended | |||
---|---|---|---|---|
Apr. 09, 2020
patent
|
Sep. 05, 2018
patent
|
Jun. 10, 2015
product
subsidiary
patent
customer
|
Sep. 30, 2015
patent
|
|
UEBV Lawsuit | ||||
Contingencies [Line Items] | ||||
Number of subsidiaries named in lawsuit | subsidiary | 1 | |||
Number of customers named in lawsuit | customer | 1 | |||
UEBV Lawsuit | Design Patents | ||||
Contingencies [Line Items] | ||||
Number of products named in lawsuit | product | 1 | |||
Number of patents allegedly infringed upon | 2 | |||
UEBV Lawsuit | Utility Patents | ||||
Contingencies [Line Items] | ||||
Number of patents allegedly infringed upon | 1 | 1 | ||
Roku Lawsuit | Utility Patents | ||||
Contingencies [Line Items] | ||||
Number of patents allegedly infringed upon | 9 | |||
Subsequent Event | Roku, TCL, Hisense, and Funai Patent Infringement - ITC Matter | ||||
Contingencies [Line Items] | ||||
Number of patents allegedly infringed upon | 8 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Dec. 31, 2019 |
|
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 1,220 | $ 996 | |
Unrecognized tax benefits | 4,300 | ||
Unrecognized tax benefits that would impact effective rate | 4,300 | ||
Anticipated decrease in unrecognized tax benefits | 200 | ||
Accrued interest and penalties | $ 200 | $ 200 |
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 58,927 | $ 74,302 |
United States | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 10,421 | 16,751 |
People's Republic of China (PRC) | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 14,105 | 13,700 |
Asia (excluding the PRC) | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 11,052 | 21,691 |
Europe | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 12,810 | 9,081 |
South America | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 10,539 | $ 13,079 |
Revenue and Accounts Receivable, Net - Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | ||||
Trade receivables, gross | $ 129,316 | $ 130,888 | ||
Allowance for bad debts | (1,681) | (1,492) | $ (1,120) | $ (1,121) |
Allowance for sales returns | (495) | (623) | ||
Net trade receivables | 127,140 | 128,773 | ||
Other | 9,954 | 10,425 | ||
Accounts receivable, net | $ 137,094 | $ 139,198 |
Cash and Cash Equivalents (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Cash and Cash Equivalents by Geographic Region | Cash and cash equivalents were held in the following geographic regions:
|
Other Income (Expense), Net |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income (Expense), Net | Other Income (Expense), Net Other income (expense), net consisted of the following:
|
Accrued Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accrued Compensation | The components of accrued compensation were as follows:
The components of other accrued liabilities were as follows:
|
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Income Statement [Abstract] | ||
Net sales | $ 151,778 | $ 184,163 |
Cost of sales | 108,837 | 144,289 |
Gross profit | 42,941 | 39,874 |
Research and development expenses | 7,898 | 6,791 |
Selling, general and administrative expenses | 26,997 | 31,420 |
Operating income | 8,046 | 1,663 |
Interest income (expense), net | (632) | (1,206) |
Other income (expense), net | (348) | (466) |
Income (loss) before provision for income taxes | 7,066 | (9) |
Provision for income taxes | 1,220 | 996 |
Net income (loss) | $ 5,846 | $ (1,005) |
Earnings (loss) per share: | ||
Basic (in dollars per share) | $ 0.42 | $ (0.07) |
Diluted (in dollars per share) | $ 0.41 | $ (0.07) |
Shares used in computing earnings (loss) per share: | ||
Basic (in shares) | 13,960 | 13,827 |
Diluted (in shares) | 14,211 | 13,827 |
Long-lived Tangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Lived Tangible Assets by Geographic Area | Long-lived tangible assets by geographic area, which include property, plant, and equipment, net and operating lease right-of-use assets, were as follows:
|
Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying consolidated financial statements of Universal Electronics Inc. and its subsidiaries contain all the adjustments necessary for a fair presentation of financial position, results of operations and cash flows for the periods presented. All such adjustments are of a normal recurring nature and certain reclassifications have been made to prior year amounts in order to conform to the current year presentation. Information and footnote disclosures normally included in financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). As used herein, the terms "Company," "we," "us," and "our" refer to Universal Electronics Inc. and its subsidiaries, unless the context indicates to the contrary. Our results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk," and the "Financial Statements and Supplementary Data" included in Items 1A, 7, 7A, and 8, respectively, of our Annual Report on Form 10-K for the year ended December 31, 2019. Estimates, Judgments and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, we evaluate our estimates and assumptions, including those related to revenue recognition, allowances for bad debts, inventory valuation, our review for impairment of long-lived assets, intangible assets and goodwill, business combinations, income taxes, stock-based compensation expense and performance-based common stock warrants. The recent coronavirus ("COVID-19") pandemic and the mitigation efforts by governments to attempt to control its spread has created uncertainties and disruptions in the economic and financial markets. While we are not currently aware of events or circumstances that would require an update to our estimates, judgments or adjustments to the carrying values of our assets or liabilities, these estimates may change as developments occur and we obtain additional information. These future developments are highly uncertain and the outcomes are unpredictable. Actual results may differ from those estimates, and such differences may be material to the financial statements. See Note 2 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019 for a summary of our significant accounting policies. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments", which updates existing guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the incurred loss impairment model with an expected loss impairment model. Accordingly, financial assets are presented at amortized costs net of an allowance for expected credit losses over the lifetime of the assets. We adopted this new guidance on January 1, 2020 using the modified retrospective method. The adoption did not require an implementation adjustment and did not materially impact our consolidated statement of financial position, results of operations and cash flows. See Note 3 for further discussion on our allowance for bad debts. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment", which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to the reporting unit. Our adoption on January 1, 2020 did not have a material impact on our consolidated statement of financial position, results of operations and cash flows. In November 2019, the FASB issued ASU 2019-08, "Improvements - Share-based Consideration Payable to a Customer", which clarifies the accounting for share-based payments issued as sales incentives to customers. The guidance requires that stock-based compensation expense is recorded as a reduction in the transaction price on the basis of the grant-date fair value. The grant-date fair value is calculated using the provisions defined under Accounting Standards Codification "Stock Compensation". The transition provisions require that equity-classified awards be measured at the adoption date fair value if the measurement date has not been established prior to the adoption date. This guidance impacts the measurement date of our performance-based common stock warrants. The measurement periods for the first two successive two-year periods of our outstanding performance-based common stock warrants were completed prior to adoption and were not impacted by this updated guidance. The measurement period for the final two-year period began on January 1, 2020, and accordingly, we measured the fair value of the award as of our adoption date on January 1, 2020. We adopted this guidance using the modified retrospective method. Our adoption did not result in a cumulative adjustment in our statement of financial position. See Note 15 for further discussion on the performance-based common stock warrants. Recent Accounting Updates Not Yet Effective In December 2019, the FASB issued ASU 2019-12 "Simplifying the Accounting for Income Taxes", which among other provisions, eliminates certain exceptions to existing guidance related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This guidance also requires an entity to reflect the effect of an enacted change in tax laws or rates in its effective income tax rate in the first interim period that includes the enactment date of the new legislation, aligning the timing of recognition of the effects from enacted tax law changes on the effective income tax rate with the effects on deferred income tax assets and liabilities. Under existing guidance, an entity recognizes the effects of the enacted tax law change on the effective income tax rate in the period that includes the effective date of the tax law. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. We are currently evaluating the impact of this guidance on our consolidated statement of financial position, results of operations and cash flows. |
Income Taxes |
3 Months Ended |
---|---|
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We utilize our estimated annual effective tax rate to determine our provision for income taxes for interim periods. The income tax provision is computed by taking the estimated annual effective rate and multiplying it by the year-to-date pre-tax book income. We recorded income tax expense of $1.2 million and $1.0 million for the three months ended March 31, 2020 and 2019, respectively. The income tax expense for the three months ended March 31, 2020 increased primarily due to the mix of pre-tax income among jurisdictions, including tax expense not recognized for federal and state as a result of utilized tax attributes that have a full valuation allowance and tax windfalls related to stock-based compensation. At December 31, 2019, we assessed the realizability of our deferred tax assets by considering whether it is "more likely than not" some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We considered taxable income in carryback years, the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. At December 31, 2019, we had a three-year cumulative operating loss for our U.S. operations and accordingly, have provided a full valuation allowance on our U.S. and state deferred tax assets. During the three months ended March 31, 2020, there has been no change to our valuation allowance position. At March 31, 2020, we had gross unrecognized tax benefits of $4.3 million, including interest and penalties, of which approximately $4.3 million of this amount, if not for the state Research and Experimentation income tax credit valuation allowance, would affect the annual effective tax rate if these tax benefits are realized. Further, we are unaware of any positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase within the next twelve months. However, based on federal, state and foreign statute expirations in various jurisdictions, we anticipate a decrease in unrecognized tax benefits of approximately $0.2 million within the next twelve months based on federal, state, and foreign statute expirations in various jurisdictions. We have classified uncertain tax positions as non-current income tax liabilities unless expected to be paid within one year. We have elected to classify interest and penalties as a component of tax expense. Accrued interest and penalties of $0.2 million as of March 31, 2020 and $0.2 million at December 31, 2019 are included in the unrecognized tax benefits. On March 18, 2020 and March 22, 2020, the Families First Coronavirus Response ("FFCR") Act and the Coronavirus Aid, Relief and Economic Security ("CARES") Act, respectively, were enacted in response to the COVID-19 pandemic. The FFCR Act and the CARES Act contain numerous income tax provisions, such as relaxing limitations on the deductibility of interest and the use of net operating losses arising in taxable years beginning after December 31, 2017. We are currently evaluating the impact of this legislation on our consolidated financial position, results of operations, and cash flows. Future regulatory guidance under the FFCR and CARES Acts (as well as under the Tax Cuts and Jobs Act) remains forthcoming and such guidance may ultimately increase or lessen their impact on our business and financial condition. It is also highly possible that Congress will enact additional legislation in connection with the COVID-19 pandemic, some of which may impact us. In April 2020, recent interpretations of a German law relating to withholding taxes on intellectual property rights emerged. The company is currently evaluating this law and any related impact to its financial position and results of operations. |
Inventories and Significant Suppliers |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories and Significant Suppliers | Inventories and Significant Suppliers Inventories were as follows:
Significant Suppliers We purchase integrated circuits, components and finished goods from multiple sources. Purchases from the following supplier totaled more than 10% of our total inventory purchases:
The supplier that totaled more than 10% of our accounts payable, was as follows:
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Treasury Stock |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Treasury Stock | Treasury Stock From time to time, our Board of Directors authorizes management to repurchase shares of our issued and outstanding common stock. On March 10, 2020, our Board of Directors replaced the repurchase plan approved in 2018 with a new repurchase plan authorizing the repurchase of up to 300,000 of our common stock ("2020 Plan"). As of March 31, 2020, we had 175,127 shares of common stock authorized for repurchase remaining under the 2020 Plan. We may repurchase shares of common stock in privately negotiated and/or open-market transactions, including pursuant to plans complying with Rule 10b5-1 promulgated under the Securities Exchange Act of 1934. While we have suspended repurchasing under our 2020 Plan due in part to the uncertainties surrounding the COVID-19 pandemic, management may resume such repurchasing when market and business conditions warrant. Repurchased shares of our common stock were as follows:
Repurchased shares are recorded as shares held in treasury at cost. We hold these shares for future use as management and the Board of Directors deem appropriate. |
Other Income (Expense), Net (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Other Income and Expenses [Abstract] | ||
Net gain (loss) on foreign currency exchange contracts | $ 252 | $ (271) |
Net gain (loss) on foreign currency exchange transactions | (548) | (132) |
Other income | (52) | (63) |
Other (expense), net | $ (348) | $ (466) |
Earnings (Loss) Per Share - Securities Excluded from the Computation of Diluted Earnings (Loss) Per Common Share (Details) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded in computation of diluted earning per share (in shares) | 402 | 543 |
Restricted stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded in computation of diluted earning per share (in shares) | 51 | 227 |
Performance-based warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded in computation of diluted earning per share (in shares) | 275 | 175 |
Leases - Operating Lease Expense, Operating Lease Cash Flows and Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Lessee, Lease, Description [Line Items] | ||
Operating lease expense | $ 1,388 | $ 1,976 |
Operating cash outflows from operating leases | 1,525 | 1,767 |
Operating lease right-of-use assets obtained in exchange for lease obligations | 186 | 1,524 |
Cost of sales | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease expense | 390 | 592 |
Selling, general and administrative expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease expense | $ 998 | $ 1,384 |
Cash and Cash Equivalents |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents were held in the following geographic regions:
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Other Accrued Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Accrued Liabilities | The components of accrued compensation were as follows:
The components of other accrued liabilities were as follows:
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Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
May 05, 2020 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | UNIVERSAL ELECTRONICS INC | |
Entity Central Index Key | 0000101984 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,913,019 |
CONSOLIDATED COMPREHENSIVE INCOME (LOSS) STATEMENTS - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 5,846 | $ (1,005) |
Other comprehensive income (loss): | ||
Change in foreign currency translation adjustment | (7,009) | 1,733 |
Comprehensive income (loss) | $ (1,163) | $ 728 |
Stock-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation Expense and Related Income Tax Benefit | Stock-based compensation expense by statement of operations caption and the related income tax benefit were as follows:
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Stock Option Activity | Stock option activity was as follows:
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Assumptions Used in Valuation and Weighted Average Fair Value of Stock Option Grants | The assumptions we utilized in the Black-Scholes option pricing model and the resulting weighted average fair value of stock option grants were the following:
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Non-Vested Restricted Stock Award Activity | Non-vested restricted stock award activity was as follows:
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Commitments and Contingencies |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Product Warranties Changes in the liability for product warranty claim costs were as follows:
Litigation Ruwido Matters Belgium Lawsuits On or about June 10, 2015, FM Marketing GmbH ("FMH") and Ruwido Austria GmbH ("Ruwido") filed a Summons in Summary Proceedings in Belgium court against one of our subsidiaries, Universal Electronics BV ("UEBV"), and one of its customers, Telenet N.V. ("Telenet"), claiming that one of the products UEBV supplied to Telenet violates two design patents and one utility patent owned by FMH and/or Ruwido. By this summons, FMH and Ruwido sought to enjoin Telenet and UEBV from continued distribution and use of the product at issue. After the September 29, 2015 hearing, the court issued its ruling in our and Telenet’s favor, rejecting FMH and Ruwido’s request entirely. On October 22, 2015, Ruwido filed its notice of appeal to this ruling. On September 16, 2019, the appellate court ruled in our favor concluding that our original product did not infringe Ruwido's design rights. Ruwido subsequently filed an appeal of this decision with the Belgium Supreme Court. All parties have submitted their briefs with the Supreme Court and we are waiting for the Supreme Court to set an oral hearing date which we expect to be in late 2021. In addition, Ruwido appealed the lower court's ruling against it with respect to its claims of infringement and unfair competition. Briefing on this appeal is expected to be completed by June 3, 2020, after which the appellate court will set an oral hearing which we expect to be sometime in 2021. Subsequent to the Court's ruling in September 2017 that our second product could not be added to the first case on the merits, Ruwido filed a separate case on the merits with respect to this second product, claiming that it too infringes the same patent at issue in the first suit. We have denied these claims. The Court has postponed oral hearing on the merits with respect to this matter to March 2, 2021. European Patent Opposition In September 2015, UEBV filed an Opposition with the EPO seeking to invalidate the one utility patent asserted against UEBV and Telenet by Ruwido. The hearing on this opposition was held in July 2017. During this hearing the panel requested additional information. We submitted this additional information and the EPO held a second hearing on January 29 and 30, 2019 and revoked Ruwido's patent as originally filed. The EPO, however, maintained the patent in an amended form with a much narrower claim. On August 23, 2019, the EPO issued its written opinion. Both UEBV and Ruwido have appealed the EPO's decision and briefing is due by May 13, 2020. Thereafter, we expect the EPO to set a date for an additional hearing, after which the EPO will render its decision. The Netherlands Lawsuit In September 2017, FMH and Ruwido filed a lawsuit on the merits in the Court of the Hague against UEBV and Telenet, in which they are also claiming that the products UEBV supplied to Telenet violates the same patents as claimed in the Belgium actions. In early 2019, oral hearings took place during which the Court ordered the parties to submit statements relating to the consequences of the EPO decision to the Dutch proceedings. Ruwido has recently submitted its statement and we have until May 13, 2020 to submit our response. Roku Matters 2018 Lawsuit On September 5, 2018, we filed a lawsuit against Roku, Inc. (“Roku”) in the United States District Court, Central District of California, alleging that Roku is willfully infringing nine of our patents that are in four patent families related to remote control set-up and touchscreen remotes. On December 5, 2018, we amended our complaint to add additional details supporting our infringement and willfulness allegations. We have alleged that this complaint relates to multiple Roku streaming players and components therefore and certain universal control devices, including but not limited to the Roku App, Roku TV, Roku Express, Roku Streaming Stick, Roku Ultra, Roku Premiere, Roku 4, Roku 3, Roku 2, Roku Enhanced Remote and any other Roku product that provides for the remote control of an external device such as a TV, audiovisual receiver, sound bar or Roku TV Wireless Speakers. In October 2019, the Court stayed this lawsuit pending action by the Patent Trial and Appeals Board with respect to Roku’s Inter Party Review requests (see discussion below). Inter Party Reviews In September and October, 2019, Roku filed Inter Party Review (“IPR”) requests with the Patent Trial and Appeals Board (the “PTAB”) on the nine patents at issue in the 2018 Lawsuit. Presently, the PTAB denied Roku’s request with respect to three of the nine patents and granted Roku’s request with respect to four of the nine patents. We expect the PTAB’s decision on the remaining two IPR requests by May 14, 2020. As for those IPRs for which the PTAB granted Roku’s request for review, we will vigorously defend our patents. International Trade Commission Investigation of Roku, TCL, Hisense and Funai On April 16, 2020, we filed a complaint with the International Trade Commisssion (the “ITC”) against Roku, TCL Electronics Holding Limited and related entities (collectively, “TCL”), Hisense Co., Ltd. and related entities (collectively, “Hisense”), and Funai Electric Company, Ltd. and related entities (collectively, “Funai”) claiming that certain of their televisions, set-top boxes, remote control devices, human interface devices, streaming devices, and sound bars infringe certain of our patents. We are asking the ITC to issue a permanent limited exclusion order prohibiting the importation of these infringing products into the United States and a cease and desist order to stop these parties from continuing their infringing activities. We expect the ITC to accept our complaint by the end of May 2020 and commence its investigation. Federal District Court Actions against each of Roku, TCL, Hisense, and Funai related to the ITC Matter On April 9, 2020, we filed separate actions against each of Roku, TCL, Hisense, and Funai in the United States District Court, Central District of California, alleging that each of the parties is willfully infringing eight of our patents by incorporating our patented technology into certain of their televisions, set-top boxes, remote control devices, human interface devices, streaming devices, and sound bars. Each of the parties have accepted service and have not yet answered our complaint. There are no other material pending legal proceedings to which we or any of our subsidiaries is a party or of which our respective property is the subject. However, as is typical in our industry and to the nature and kind of business in which we are engaged, from time to time, various claims, charges and litigation are asserted or commenced by third parties against us or by us against third parties arising from or related to product liability, infringement of patent or other intellectual property rights, breach of warranty, contractual relations, or employee relations. The amounts claimed may be substantial but may not bear any reasonable relationship to the merits of the claims or the extent of any real risk of court awards assessed against us or in our favor. However, no assurances can be made as to the outcome of any of these matters, nor can we estimate the range of potential losses to us. In our opinion, final judgments, if any, which might be rendered against us in potential or pending litigation would not have a material adverse effect on our consolidated financial condition, results of operations, or cash flows. Moreover, we believe that our products do not infringe any third parties' patents or other intellectual property rights. We maintain directors' and officers' liability insurance which insures our individual directors and officers against certain claims, as well as attorney's fees and related expenses incurred in connection with the defense of such claims. |
Line of Credit |
3 Months Ended |
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Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of Credit Our Second Amended and Restated Credit Agreement ("Second Amended Credit Agreement") with U.S. Bank National Association ("U.S. Bank") provides for a $125.0 million revolving line of credit ("Credit Line") that expires on November 1, 2021. The Credit Line may be used for working capital and other general corporate purposes including acquisitions, share repurchases and capital expenditures. Amounts available for borrowing under the Credit Line are reduced by the balance of any outstanding letters of credit, of which there were $2.7 million at March 31, 2020. All obligations under the Credit Line are secured by substantially all of our U.S. personal property and tangible and intangible assets as well as 65% of our ownership interest in Enson Assets Limited, our wholly-owned subsidiary which controls our manufacturing factories in the PRC. Under the Second Amended Credit Agreement, we may elect to pay interest on the Credit Line based on LIBOR plus an applicable margin (varying from 1.25% to 1.75%) or base rate (based on the prime rate of U.S. Bank or as otherwise specified in the Second Amended Credit Agreement) plus an applicable margin (varying from 0.00% to 0.50%). The applicable margins are calculated quarterly and vary based on our cash flow leverage ratio as set forth in the Second Amended Credit Agreement. The interest rate in effect at March 31, 2020 was 2.20%. There are no commitment fees or unused line fees under the Second Amended Credit Agreement. The Second Amended Credit Agreement includes financial covenants requiring a minimum fixed charge coverage ratio and a maximum cash flow leverage ratio. In addition, the Second Amended Credit Agreement contains other customary affirmative and negative covenants and events of default. At March 31, 2020, we were in compliance with the covenants and conditions of the Second Amended Credit Agreement. At March 31, 2020, we had $78.0 million outstanding under the Credit Line. Our total interest expense on borrowings was $0.7 million and $1.3 million during the three months ended March 31, 2020 and 2019, respectively. |
Revenue and Accounts Receivable, Net |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue and Accounts Receivable, Net | Revenue and Accounts Receivable, Net Revenue Details The pattern of revenue recognition was as follows:
Our net sales to external customers by geographic area were as follows:
Specific identification of the customer billing location was the basis used for attributing revenues from external customers to geographic areas. Net sales to the following customers totaled more than 10% of our net sales:
(1) Sales associated with this customer did not total more than 10% of our net sales for the indicated period. Accounts Receivable, Net Accounts receivable, net were as follows:
Allowance for Bad Debts Changes in the allowance for bad debts were as follows:
Trade receivables associated with these significant customers that totaled more than 10% of our accounts receivable, net were as follows:
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Derivatives - Total Net Fair Value of Derivatives (Details) - Fair Value Measurements on a Recurring Basis - Foreign Currency Exchange Contracts - Not Designated as Hedging Instrument - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Total Balance | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | $ (187) | $ (172) |
Level 1 | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | 0 | 0 |
Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | (187) | (172) |
Level 3 | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | $ 0 | $ 0 |
Stock-Based Compensation - Assumptions Used in Valuation and Weighted Average Fair Value of Stock Option Grants (Details) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Share-based Payment Arrangement [Abstract] | ||
Weighted average fair value of grants (in dollars per share) | $ 17.70 | $ 10.28 |
Risk-free interest rate | 1.44% | 2.49% |
Expected volatility | 43.95% | 41.64% |
Expected life | 4 years 7 months 2 days | 4 years 6 months 15 days |
Earnings (Loss) Per Share - Calculation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
BASIC | ||
Net income (loss) | $ 5,846 | $ (1,005) |
Weighted-average common shares outstanding (in shares) | 13,960 | 13,827 |
Basic earnings (loss) per share (in dollars per share) | $ 0.42 | $ (0.07) |
DILUTED | ||
Net income (loss) | $ 5,846 | $ (1,005) |
Weighted-average common shares outstanding (in shares) | 13,960 | 13,827 |
Dilutive effect of stock options, restricted stock and common stock warrants (in shares) | 251 | 0 |
Weighted-average common shares outstanding on a diluted basis (in shares) | 14,211 | 13,827 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.41 | $ (0.07) |
Goodwill and Intangible Assets, Net - Changes in the Carrying Amount of Goodwill (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2020
USD ($)
| |
Goodwill [Roll Forward] | |
Balance | $ 48,447 |
Foreign exchange effects | (31) |
Balance | $ 48,416 |
Leases - Lease Balances within the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Assets: | ||
Operating lease right-of-use assets | $ 18,359 | $ 19,826 |
Liabilities: | ||
Other accrued liabilities | 5,030 | 4,903 |
Long-term operating lease obligations | 14,069 | 15,639 |
Total lease liabilities | $ 19,099 | $ 20,542 |
Long-lived Tangible Assets - Long-Lived Tangible Assets by Geographic Area (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived tangible assets | $ 103,663 | $ 110,558 |
United States | ||
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived tangible assets | 19,199 | 19,938 |
People's Republic of China (PRC) | ||
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived tangible assets | 63,160 | 67,625 |
Mexico | ||
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived tangible assets | 15,078 | 16,644 |
All other countries | ||
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived tangible assets | $ 6,226 | $ 6,351 |
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