VOXX International Corp (VOXX) 2025 Q2 法說會逐字稿

Welcome to the fiscal 2025 second-quarter results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

歡迎參加2025財年第二季業績電話會議。（操作員指示）請注意，今天的會議正在錄音。

I would now like to hand the conference over to your speaker today, Glenn Wiener of Investor Relations. Your line is open.

現在，我想將會議交給今天的發言人、投資者關係部門的 Glenn Wiener。您的線路已開通。

Thank you very much, and good morning. Welcome to VOXX International's fiscal 2025 second-quarter results conference call. Yesterday, we filed our Form 10-Q and issued our press release, both documents of which can be found in the Investor Relations section of our website at www.voxxintl.com.

非常感謝，早安。歡迎參加VOXX International 2025財政年度第二季業績電話會議。昨天，我們提交了 10-Q 表並發布了新聞稿，這兩份文件都可以在我們網站 www.voxxintl.com 的投資者關係部分找到。

I'm joined today by Pat Lavelle, Chief Executive Officer; and Loriann Shelton, Chief Financial Officer and our Chief Operating Officer. They will be leading today's call with prepared remarks, after which we will open up the call for questions. There has been a lot of activity over the past quarter, and we certainly welcome questions on today's call. Alternatively, you can reach my office at any time should you like to follow up offline.

今天與我一起參加的是執行長 Pat Lavelle；以及財務長兼營運長 Loriann Shelton。他們將以準備好的發言主持今天的電話會議，之後我們將開始提問。過去一個季度我們進行了許多活動，我們非常歡迎大家在今天的電話會議上提問。另外，如果您想線下跟進，也可以隨時聯絡我的辦公室。

And as for our customary Safe Harbor statement and disclaimer, I'd like to remind everyone that except for historical information contained herein, statements made on today's call and webcast that would constitute forward-looking statements are based on currently available information. The company assumes no responsibility to update any such forward-looking statements, and I'd like to point you to the risk factors associated with our business which are detailed in our Form 10-K for the period ended February 29, 2024.

至於我們慣常的安全港聲明和免責聲明，我想提醒大家，除了本文所載的歷史資訊外，今天的電話會議和網路廣播中所作的構成前瞻性陳述的陳述均基於當前可用的資訊。本公司不承擔更新任何此類前瞻性陳述的責任，我想向您指出與我們的業務相關的風險因素，這些風險因素詳細說明在我們截至 2024 年 2 月 29 日的 10-K 表中。

With that, it is now my pleasure to turn the call over to Pat Lavelle. Pat?

現在我很高興將電話轉給帕特·拉維爾。拍？

Thank you, Glenn, and good morning, everyone. There have been several very important milestones since we reported our Q1 results in May. And before I go into the quarterly financials and business outlook, I thought it'd be best to spend some time talking about our strategy and how these events tied to it. Further, as I run through our business segments, I'll highlight many of the actions we've taken as well as programs underway and upcoming that collectively should get VOXX back into a stronger, more profitable company and one that is more highly valued.

謝謝你，格倫，大家早安。自從我們五月報告第一季業績以來，我們已經取得了幾個非常重要的里程碑。在我介紹季度財務和業務展望之前，我認為最好花一些時間談談我們的策略以及這些事件與之之間的關係。此外，在介紹我們的業務部門時，我將重點介紹我們已經採取的許多行動以及正在進行和即將實施的計劃，這些計劃將共同使 VOXX 重新成為一家更強大、更有利可圖且估值更高的公司。

When we entered fiscal 2024, we were sitting with over $73 million in total debt. This followed the adverse Seaguard ruling, which added $42 million in debt, which was already too high given contributing losses at that time. So we set out to accomplish two things. The first was to pay down our debt as fast as we could as this would lower our interest payments and increase our available borrowings. It would also give us the financial flexibility we had historically enjoyed given our past low debt leverage ratios.

當我們進入 2024 財年時，我們的總債務超過 7,300 萬美元。此前，Seaguard 做出了不利的裁決，導致公司增加了 4,200 萬美元的債務，而考慮到當時的損失，這個數字已經太高了。因此，我們著手完成兩件事。首先是盡快償還債務，因為這將降低我們的利息支付並增加我們的可用借款。由於我們過去的債務槓桿率較低，它也能為我們帶來歷史上享有的財務彈性。

And number two, do the hard but necessary things, necessary to both restructure and rightsize our business based on anticipated sales in the coming year. To do this, we had to realign around what our business would be given strategic divestitures that were in play. We've made significant progress on both fronts since year-end with more to come, which brings me to number three, the strategic alternative process. During the quarter, we entered into a strategic process to quickly improve our balance sheet and get VOXX back to profitability, exploring everything that may be out there, whether it be brand sales, other asset sales, group and our business sales, joint ventures and partnerships, and even the possibility of selling the company.

第二，做一些困難但必要的事情，這些事情對於根據明年的預期銷售情況重組和調整我們的業務規模是必要的。為了實現這一目標，我們必須根據正在進行的策略資產剝離情況重新調整我們的業務。自年底以來，我們在兩個方面都取得了重大進展，並且還將取得更多進展，這讓我想到了第三點，即戰略替代進程。在本季度，我們進入了一項策略流程，以迅速改善我們的資產負債表並使 VOXX 恢復盈利能力，探索可能存在的一切，無論是品牌銷售、其他資產銷售、集團和我們的業務銷售、合資企業和合作夥伴關係，甚至出售公司的可能性。

We continue to receive interest for our brands and businesses, so we have a pretty good sense for the value we can command from them. The process now is designed to expand the universe of interested parties and really look at the best path forward to leverage our strengths to monetize noncore assets and build out a more profitable and valuable business for our shareholders.

我們的品牌和業務持續受到關注，因此我們非常清楚我們能從他們那裡獲得的價值。現在的流程旨在擴大利害關係人的範圍，並真正尋找最佳的前進道路，利用我們的優勢將非核心資產貨幣化，為我們的股東打造更有利可圖、更有價值的業務。

Thus, we will continue to speak with interested parties for parts of our business as well as those that may be interested in VOXX in its entirety such as Gentex. Frankly, we would have preferred to wait until sometime in fiscal 2025, when we believe we'll be in a better financial position, having paid down our debt, realign the business, and hopefully present a more profitable business, generating cash flow and earnings and commanding a higher valuation in the open markets.

因此，我們將繼續與對我們部分業務感興趣的各方以及可能對 VOXX 整體感興趣的各方（例如 Gentex）進行談判。坦白說，我們本來希望等到 2025 財年的某個時候，那時我們相信我們的財務狀況會更好，償還了債務，重新調整了業務，並希望呈現更有利可圖的業務，產生現金流和收益，並在公開市場上獲得更高的估值。

To this end, during this quarter, we sold our domestic accessory business, which was underperforming. We sold off two noncore brands in our premium audio portfolio, and we sold our Florida real estate with the OEM manufacturing transition to Mexico now complete -- the Florida facility is not needed. This provided us with $48 million in gross proceeds, which we used to pay down debt.

為此，本季我們出售了表現不佳的國內配件業務。我們出售了高級音響產品組合中的兩個非核心品牌，並出售了佛羅裡達的房地產，OEM製造向墨西哥的轉型現已完成——佛羅裡達工廠不再需要。這為我們帶來了 4800 萬美元的總收益，我們用這筆錢來償還債務。

In addition, we completed initial restructuring programs generating targeted improvements. We moved through heavy inventory loads across our business lines. Our inventory, which was sitting at over $128 million came down approximately $15 million since then, allowing us to pay down debt and to operate under more normal working capital environments.

此外，我們也完成了初步的重組計劃，並取得了有針對性的改進。我們在整個業務線上處理了大量的庫存。我們的庫存曾超過 1.28 億美元，自那時起已減少了約 1,500 萬美元，這使我們能夠償還債務並在更正常的營運資金環境下運作。

We moved further along in our ERP implementation, which, long term, will greatly enhance efficiencies and lead to significant cost savings. And we altered a lot of the processes and our structure at VOXX, changing with the future state in mind. We're setting up our foundation to operate on a lower fixed cost basis moving forward so that we can support our growth in the future. And I believe when complete, we will be able to scale sales without adding much incremental cost. Loriann will talk about our restructuring and balance sheet in her remarks, so I'll move on.

我們在 ERP 實施方面取得了進一步的進展，從長遠來看，這將大大提高效率並節省大量成本。我們改變了 VOXX 的許多流程和結構，並著眼於未來發展。我們正在建立基礎，以較低的固定成本為基礎開展運營，以便能夠支持我們未來的成長。我相信，完成後我們將能夠在不增加太多增量成本的情況下擴大銷售。Loriann 將在她的演講中談論我們的重組和資產負債表，因此我將繼續討論。

But again, paying down our debt was critical and was our number one priority. And to that end, we paid down over $50 million in total debt since year end, and we did this without impacting operations. Collectively, we removed about $49 million in predominantly lower-margin sales based on fiscal '24 figures. And lastly, I'm especially pleased to report that our total debt as of October 9, stood at under $20 million and our net debt under $15 million, which is now essentially made up of just working capital debt. So I would say we achieved our first goal and on time.

但再說一遍，償還債務至關重要，是我們的首要任務。為此，我們自年底以來已償還了超過 5000 萬美元的債務，而且這樣做並沒有對營運產生影響。整體而言，根據 24 財年的數據，我們剔除了約 4,900 萬美元的低利潤銷售額。最後，我特別高興地報告，截至 10 月 9 日，我們的總債務低於 2000 萬美元，淨債務低於 1500 萬美元，現在基本上僅由營運資金債務組成。所以我想說我們按時實現了我們的第一個目標。

So let's move on to the results and our outlook, starting with automotive. Through the first half of fiscal '25, our automotive business is down considerably, and we both expected and planned for it. A few comments on history and strategy. So some of our newer investors have more insight into why our results were down and why our outlook should be better as we move forward.

讓我們來看看結果和展望，從汽車開始。在25財年上半年，我們的汽車業務大幅下滑，這是我們預料到併計劃好的。關於歷史和戰略的一些評論。因此，我們的一些新投資者對我們的業績下滑的原因以及為什麼我們的前景在未來會更好有了更深入的了解。

Prior to COVID, our automotive group was on the upswing. We had the number one market position in rear seat entertainment and remote starts and a stable and profitable business. With our Amazon deal to bring Fire TV into the car, our prospects got even better as this was an industry first, and we had hundreds of millions of dollars in new long-term rear seat awards. We were also getting new contracts out of our more recently acquired OEM operation, VSM, and we were working on some very exciting integrated projects with partners.

在疫情爆發之前，我們的汽車集團一直處於上升趨勢。我們在後座娛樂和遠端啟動領域佔據第一的市場地位，業務穩定且獲利。透過與亞馬遜達成協議將 Fire TV 引入汽車，我們的前景變得更加美好，因為這是業界首創，而且我們獲得了數億美元的新長期後座獎。我們還從最近收購的 OEM 業務 VSM 中獲得了新的合同，並且正在與合作夥伴開展一些非常令人興奮的綜合項目。

And then COVID hit, and the automotive market over the past four years has still not fully recovered. That's the reality of the past. We constantly were taking actions to offset higher prices, product and component shortages, shipment delays, retailer issues, interest rates, and more.

然後新冠疫情來襲，過去四年的汽車市場仍然沒有完全恢復。這就是過去的現實。我們不斷採取行動來抵銷價格上漲、產品和零件短缺、出貨延遲、零售商問題、利率等影響。

We had various component price increases from vendors, especially in chips, and renegotiated contracts. But at the end of the day, we had to change in order to stop the declines and turn this once consistently profitable business back into a cash-generating entity. During the first half of fiscal '25, our automotive segments were at 26.8% dip in sales and an 80-basis-point increase in gross margin but lost $3.6 million on a pretax basis.

我們從供應商那裡獲得了各種零件價格的上漲，特別是晶片價格，並且重新談判了合約。但最終，我們必須做出改變，以阻止下滑，並將這個曾經持續獲利的業務重新轉變為一個現金產生實體。在 25 財年上半年，我們的汽車部門銷售額下降了 26.8%，毛利率增加了 80 個基點，但稅前虧損了 360 萬美元。

Now the second half should improve, but still, there are a lot of obstacles we must deal with daily and overcome to ensure we get back to profitability. We have been managing the global supply chain very well. That's one area the team continues to excel at, in my opinion, have done an excellent job this past year given everything that has been thrown at us. Past price increases from vendors should be more normalized as newer programs kick off, and we have several plans in the second half and into fiscal '26 and beyond.

現在下半年應該會有所改善，但是，我們仍然需要每天處理和克服許多障礙，以確保我們恢復盈利。我們一直很好地管理全球供應鏈。我認為，這是球隊持續表現出色的一個領域，考慮到我們面臨的所有挑戰，在過去的一年裡，球隊表現十分出色。隨著新專案的啟動，過去供應商的價格上漲應該會更加正常化，我們在下半年以及26財年及以後有幾個計劃。

With our OEM manufacturing transitioning to Mexico, and the significantly lower cost to produce and lower cost of labor, coupled with more consistent OEM production, which will improve absorption, gross margins should improve. We will continue to pressure existing customers to modify pricing so that it makes sense to continue our programs with them. This may impact topline revenue. However, we must ensure all programs remain profitable.

隨著我們的 OEM 製造轉向墨西哥，生產成本和勞動力成本顯著降低，再加上 OEM 生產更加穩定，吸收率將有所提高，毛利率也應該會提高。我們將繼續向現有客戶施壓，要求他們修改價格，​​以便繼續與我們合作的專案變得合理。這可能會影響營業收入。然而，我們必須確保所有項目都能保持獲利。

Coupled with the fact that we have several new programs coming online for heavy-duty trucks and vehicles which are smaller in nature than the car manufacturers, but these are long-term profitable contracts. And we have several for remote start and security products as well. For example, in Q4, Ford will be launching a new rear seat entertainment system for the Navigator and the Expedition. And we will continue to grow our security program with Ford as well as we have been awarded new vehicles for the Middle East market.

再加上我們即將上線幾個針對重型卡車和車輛的新項目，這些項目的規模比汽車製造商的規模要小，但這些都是長期有利可圖的合約。我們還有多種用於遠端啟動和安全的產品。例如，在第四季度，福特將為 Navigator 和 Expedition 推出新的後座娛樂系統。我們將繼續與福特共同拓展我們的安全計劃，同時我們也獲得了針對中東市場的新車輛。

Nissan has kicked off their lighting program that we've talked about previously. The US Postal Service program, which I've discussed is scheduled for a full launch in fiscal 2026. It's a multiyear contract that is expected to ramp considerably next year and over the next several years thereafter.

日產已經啟動了我們之前談到的照明計畫。我所討論的美國郵政服務計劃將於 2026 財政年度全面啟動。這是一份多年期合同，預計明年及隨後幾年將大幅增加。

We have had some new OEM products and integrated systems that are also expected to open up new channels. For example, we currently supply our phone-as-a-key product for the overroad UPS tractor trailers. And we are in tests with a number of fleets that, if awarded, could generate substantial new business in this area. Aftermarket is where we've been hit hard, and it's pretty much related to lower car sales and a weak consumer and retail environment caused by inflation and high interest.

我們有一些新的OEM產品和整合系統，預計也會開闢新的通路。例如，我們目前為公路 UPS 牽引拖車提供手機即鑰匙產品。我們目前正在對一些船隊進行測試，如果合約中標，可能會在該地區產生大量新業務。售後市場受到的打擊最為嚴重，這很大程度上與汽車銷量下降以及通貨膨脹和高利率導致的消費和零售環境疲軟有關。

We have managed the inventory very closely. And as a result, we're entering the stronger part of the year with a much better inventory position. As for our consumer, our consumer business -- within consumer, we sold domestic accessories during the quarter for $25 million, while still maintaining our European operation, VOXX Germany. Between Oehlbach and Schwaiger, we do over $30 million in sales, and the business has been historically profitable. The big growth driver for our international accessory business last year was the new solar power balcony product that was introduced.

我們對庫存進行了非常嚴格的管理。因此，我們以更優的庫存狀況進入了今年更強勁的時期。至於我們的消費者，我們的消費者業務 - 在消費者業務中，我們在本季度以 2500 萬美元的價格銷售了國內配件，同時仍保持了我們的歐洲業務，VOXX 德國。在 Oehlbach 和 Schwaiger 兩地，我們的銷售額超過 3000 萬美元，而且這項業務一直盈利。去年我們國際配件業務的一大成長動力是推出的新型太陽能陽台產品。

But due to the overwhelming popularity of this program, a number of competitors have entered the market just as the German and Austrian economy, the largest market for our accessory group has gone into recession. We expect the market to normalize as the glut of competitors lessen or exit the market all together. Schwaiger is the leading accessory company supplying the do-it-yourself market in Germany and Austria. They have great market position, and they anticipate sales will rebound as we move into next fiscal 2026.

但由於該項目太受歡迎，在我們配件集團最大的市場德國和奧地利經濟陷入衰退之際，許多競爭對手也進入了市場。我們預計，隨著競爭對手的過剩局面減少或全部退出市場，市場將恢復正常。Schwaiger 是德國和奧地利領先的 DIY 市場配件供應商。他們擁有強大的市場地位，並預計進入 2026 財年，銷售額將會反彈。

The bulk of this segment is premium audio. And here is where we have the greatest optimism for near-term value creation from an operations and a cash flow perspective. Similar to the automotive segment, COVID had a big impact on our business, but in different ways. We saw two very strong years of sales and profitability as consumers were purchasing more stay-at-home products as they were locked in their homes.

該部分的主要內容是高端音訊。從營運和現金流的角度來看，我們對近期價值創造最為樂觀。與汽車產業類似，COVID 對我們的業務產生了重大影響，但方式不同。由於消費者被困在家中，購買了更多居家產品，我們經歷了兩年非常強勁的銷售和獲利能力。

The following two years, we saw our industry sales drop just as quickly due to them leaving their homes and doing more experiential vacations and dining out as well as the fact that the normal buying patterns, the normal buying cycles, were interrupted.

隨後的兩年，我們發現行業銷售額也迅速下降，原因是人們離開家，更多地進行體驗式度假和外出就餐，而且正常的購買模式和購買週期被打亂。

Consumers who typically purchase a speaker, a home theater system every three to five years and purchased products all at once during COVID when they were at home, no longer were in the cycle for the following years. Thus, it created market imbalance. Couple this with the fact that we had supply chain and retailer issues, high interest rates and inflation and more, it became a challenging two years.

消費者通常每三到五年購買一台揚聲器、一套家庭劇院系統，而在疫情期間居家期間一次性購買所有產品，但在接下來的幾年裡，他們不再處於這樣的周期中。由此，造成了市場失衡。再加上我們面臨供應鏈和零售商問題、高利率和通貨膨脹等因素，這兩年充滿了挑戰。

While our sales are down just $2.5 million year to date, newer products have been selling strong and higher-margin products up as well. We are seeing increases in our new sound bar business. We have made significant strides in new audio categories like our Bluetooth Music City series and with our new party speakers coming to market later this year.

雖然今年迄今我們的銷售額僅下降了 250 萬美元，但新產品的銷售強勁，利潤率也隨之上升。我們的新型條形音箱業務正在成長。我們在新的音訊類別方面取得了重大進展，例如我們的藍牙音樂城系列以及今年稍後上市的新款派對揚聲器。

We expect our top line revenue to be essentially in line with last year, but we do expect it to be a year of significantly improved profitability with growth around the corner. Through the first six months of the fiscal year, despite over $21 million decline in total consumer segment sales, we generated pretax income of $4.6 million compared to a loss of $7 million in fiscal 2024.

我們預計我們的營業收入將與去年基本持平，但我們預計今年的獲利能力將顯著提高，成長指日可待。在本財年的前六個月，儘管消費部門總銷售額下降了 2,100 多萬美元，但我們仍實現了 460 萬美元的稅前收入，而 2024 財年的虧損為 700 萬美元。

We're expecting a stronger second half for premium audio as well, both sales and profitability, and we maintain a smaller international accessory business with significant growth potential, but there are very high comparables based on the strong launches in the prior year and the competition I just spoke about. I'm not going to rehash all of the products for Klipsch, but know this, we invested in R&D. We combine part of Onkyo's R&D with Klipsch's bringing the best in design and electronics and acoustics together, and I'm really looking forward to some of the new products that consumers will see starting in the second half of this year and moving into calendar years '25 and '26, and will be across home audio, electronics, lifestyle audio, gaming, and more.

我們預計高端音響下半年的銷售和盈利能力都會更加強勁，而且我們的國際配件業務規模較小，但具有巨大的增長潛力，但基於上一年強勁的發布和我剛才提到的競爭，我們的可比性非常高。我不會重新討論 Klipsch 的所有產品，但要知道，我們在研發方面進行了投資。我們將安橋的部分研發部門與傑士的研發部門結合起來，將最好的設計、電子和聲學技術融為一體，我非常期待消費者從今年下半年開始以及在2025年和2026年看到的一些新產品，這些產品將涉及家庭音響、電子產品、生活方式音響、遊戲等領域。

To put it all together and who we are today, VOXX is an automotive business that should be stable and have a lower cost structure and working capital needs. A consumer business made up predominantly of strong Premium Audio brands that can grow modestly but still generate significantly higher profits. And we are a holder of two equity investments, one in BioCenturion LLC, our biometrics business, and the other is in ASA Electronics LLC, our long-standing joint venture that historically has been profitable, has great upside, and significant value.

綜合起來，就我們目前的情況而言，VOXX 是一家汽車企業，應該保持穩定，並具有較低的成本結構和營運資本需求。消費業務主要由強大的高級音訊品牌組成，這些品牌可以適度成長，但仍能產生更高的利潤。我們持有兩項股權投資，一項是 BioCenturion LLC，我們的生物辨識業務，另一項是 ASA Electronics LLC，這是我們的長期合資企業，歷史上一直獲利，具有巨大的上升空間和重要價值。

We've done a lot of heavy lifting, and we have more ahead to get where we need to be, but we believe we are on the right track, knowing we have taken care of debt with improved operations, and we maintain or have grown market share.

我們已經做了很多繁重的工作，我們還有更多工作要做才能達到我們需要的目標，但我們相信我們正走在正確的軌道上，因為我們知道我們已經透過改善營運解決了債務問題，並且我們保持或增加了市場份額。

And at this point, I'd like to turn the call over to Laurie, and then we'll open it for questions. Loriann?

現在，我想將電話轉給勞裡，然後我們開始提問。洛里安？

Thank you, Pat, and good morning to all of those joining us today. Pat talked to the first half of the year, and I'll provide a brief recap of the quarter. Rather than reading through all of the financials, I'll spend the time talking more about the restructuring and what we've accomplished. Our ERP conversion, what it means for us and where we are now. And lastly, our balance sheet with brief discussions around each transaction future working capital needs, our capital structure. Then we'll open up the call for questions.

謝謝你，帕特。帕特談到了今年上半年的情況，我將對本季做一個簡要回顧。我不會閱讀所有的財務數據，而是花時間多談論重組和我們所取得的成就。我們的 ERP 轉換對我們意味著什麼以及我們現在的狀況。最後，我們的資產負債表簡要地討論了每筆交易的未來營運資金需求和我們的資本結構。然後我們將開始提問。

I'll start with our fiscal second-quarter financial comparisons for the periods ending August 31, 2024, and August 31, 2023. We reported Q2 sales of $92.5 million, which were down $21.2 million or 18.6%. Our automotive business declined by $9 million with $5.2 million of the decline related to OEM and the remainder to other automotive electronic products. The biggest OEM shortfall was in rear seat entertainment due to lower volumes.

我將從截至 2024 年 8 月 31 日和 2023 年 8 月 31 日的第二財季財務狀況比較開始。我們公佈第二季銷售額為 9,250 萬美元，下降 2,120 萬美元，或 18.6%。我們的汽車業務下降了 900 萬美元，其中 520 萬美元的下降與 OEM 有關，其餘則與其他汽車電子產品有關。由於產量較低，OEM 最大的缺口是後座娛樂系統。

The consumer segment sales were down $12 million with premium audio down $3.3 million and other CE product sales down $8.7 million. The decline in premium audio relates to the fact that last fiscal year included roughly $2.7 million in higher closed out promotion sales and general softness in the global audio market.

消費領域銷售額下降 1,200 萬美元，其中高階音響銷售額下降 330 萬美元，其他消費性電子產品銷售額下降 870 萬美元。高端音響銷量的下滑與上財年的約 270 萬美元的高額促銷銷售額以及全球音響市場整體疲軟有關。

We did, however, get a nice sales pickup from the new product lines Pat discussed. Several lines were down while others were up, and we expect more of the same market continues to transition. We also believe that profitability will be enhanced due to the higher margin structure of the new line. The decline in other CE product can be paid to lower year-over-year sales volumes of solar power products in Germany, which were down $8.2 million as we had high load-ins in the prior year period.

然而，我們確實從帕特討論的新產品線中獲得了不錯的銷售成長。幾條線路下降了，而其他線路則上升了，我們預計同一市場將有更多的線路繼續轉型。我們也相信，新生產線的利潤率結構更高，獲利能力也將增強。其他消費性電子產品的下滑是由於德國太陽能產品銷量較去年同期下降所致，由於去年同期的裝載量較高，該銷量下降了 820 萬美元。

Fiscal 2025 Q2 gross margins were 24.5% were down 70 basis points. Automotive segment margins declined 70 basis points, primarily due to product mix and sales declines in higher-margin categories as well as inventory obsolescence. Consumer margins were down 40 basis points, primarily due to the sales declines in Europe and Asia. Margins should be favorably impacted by product mix in the periods, especially when newer products coming to the market.

2025 財年第二季毛利率為 24.5%，下降 70 個基點。汽車部門利潤率下降了 70 個基點，主要原因是產品結構和高利潤類別的銷售下滑以及庫存過時。消費者利潤率下降了 40 個基點，主要原因是歐洲和亞洲的銷售額下降。利潤率應該會受到期內產品組合的正面影響，尤其是新產品進入市場時。

As for expenses, so the changes we've implemented to date, our operating expenses are lower by $5.3 million or 14.3% when comparing the second quarter. We brought down headcount through restructuring. We lowered executive compensation expenses. We removed EyeLock salaries through the BioCenturion joint venture, and we actively managed all the expenditures of cash, whether internal or external. Pat has said this before, we're placing more emphasis on the value creation of our spend as we look to rightsize and ultimately grow, irrespective of any potential transaction that may occur.

至於費用，根據我們迄今為止實施的變更，與第二季度相比，我們的營運費用降低了 530 萬美元，即 14.3%。我們透過重組減少了員工人數。我們降低了高階主管薪酬支出。我們透過 BioCenturion 合資企業取消了 EyeLock 的工資，並積極管理所有現金支出，無論是內部還是外部。帕特之前就說過，我們更加重視支出的價值創造，因為我們希望實現規模適度並最終實現成長，無論可能發生的任何潛在交易。

One of my responsibilities to strategy and insurance programs get implemented the right way while maintaining financial discipline throughout. If our business will more normalize, I believe the investors to see the benefits of our efforts in a more meaningful way. With that said, if things hold and we meet our sales plan for the full year, the actions we've taken to position VOXX for profitability by the end of the year.

我的職責之一是確保策略和保險計劃以正確的方式實施，同時始終保持財務紀律。如果我們的業務更加正常化，我相信投資者將以更有意義的方式看到我們努力的成果。話雖如此，如果一切順利，我們能夠實現全年銷售計劃，那麼我們採取的行動將使 VOXX 在年底前實現盈利。

I'd like to now discuss restructuring and ERP integration we have been undertaking. With respect to the restructuring, all of the actions we identified to enact at the beginning of the year have been completed. We have implemented all and have achieved the targeted efficiency, not the full saving. That is because we are maintaining the overhead necessary to support the domestic accessories business that we sold in Q2, which, again, we are being reimbursed for.

現在我想討論一下我們正在進行的重組和 ERP 整合。關於重組，我們年初確定的所有行動都已完成。我們已經全部實施了，並且達到了目標效率，而不是完全節省。這是因為，我們維持了支持第二季出售的國內配件業務所需的管理費用，而這筆費用我們也得到了補償。

When the operating agreement terminates, our overhead will be reduced further. I also believe that as our sales grow in the second half of this year and comparatively year over year as we move into fiscal '26 investors will see additional benefits from our restructuring as we should have a more concentrated fixed cost structure.

當營運協議終止時，我們的管理費用將進一步減少。我還相信，隨著我們今年下半年的銷售額增長以及進入26財年之後銷售額的同比增長，投資者將從我們的重組中看到額外的好處，因為我們應該有一個更加集中的固定成本結構。

In the interim, we're going to remain vigilant in our capital allocation plans and look to either save or reinvest depending on what the situation calls for. The Oracle Fusion implementation is the biggest project underway throughout the organization. This has needed investment in our systems that will cause capital to start but generate a substantial ROI over time, both operationally and financially.

在此期間，我們將繼續密切關注我們的資本配置計劃，並根據情況的需要進行儲蓄或再投資。Oracle Fusion 實施是整個組織正在進行的最大專案。這需要對我們的系統進行投資，這將導致資本啟動，但隨著時間的推移，將在營運和財務方面產生可觀的投資回報。

We are in the process of designing the right system after extensive upfront research and analysis. After the design work, we will move into testing, validation, and rework if needed. We want to ensure we have the most efficient technology tools based on our needs. There has been an immense focus on data, aggregation, analytics, and sharing of that data with everything geared to make faster, smarter business decisions.

經過大量的前期研究和分析後，我們正在設計正確的系統。設計工作完成後，我們將進入測試、驗證和返工階段（如果需要）。我們希望確保我們擁有根據我們的需求最有效的技術工具。人們非常關注數據、聚合、分析和數據共享，一切都是為了做出更快、更明智的商業決策。

The system is heavily geared to support our business operations, and thus, there is a strong focus on distribution and logistics modules. We'll be testing the system for quite some time, integrating data from all points of sale and then using it in our budgeting and forecasting process, fully automating all forecasting systems both financial and procurement. Our ERP integration is about automating processes and having the right tools to use to gather intelligence to further educate our decision-making. I, for one, after running finance and operations for a very long time, am taking on this project with excitement and care as I just know how much it can help us.

該系統主要致力於支援我們的業務運營，因此，重點關注分銷和物流模組。我們將對系統進行相當長時間的測試，整合來自所有銷售點的數據，然後將其用於我們的預算和預測流程，完全自動化所有財務和採購預測系統。我們的 ERP 整合旨在實現流程自動化，並擁有合適的工具來收集情報，以進一步指導我們的決策。就我而言，在負責財務和營運很長一段時間後，我懷著興奮和謹慎的心情承擔了這個項目，因為我知道它能為我們帶來多大的幫助。

Lastly, our balance sheet. Let me quickly walk you through the numbers and our expected use of capital. First, we exited fiscal 2024 with $73.3 million in debt and our Q2 report yesterday, our total debt position as of August 31 stood at $55.2 million. Using cash from the transaction, post quarter end, we paid down the Florida mortgage debt in full, we paid down our revolving credit facility further, reducing our total debt to a little over $18 million as of yesterday, which includes our $3.9 million shareholder note. Taking into consideration our cash position, our net debt stood at $13.6 million.

最後，我們的資產負債表。讓我快速向您介紹一下這些數字以及我們預期的資本用途。首先，我們在 2024 財年結束時負債 7,330 萬美元，而我們昨天的第二季報告顯示，截至 8 月 31 日，我們的總債務為 5,520 萬美元。利用交易產生的現金，在季度末之後，我們全額償還了佛羅裡達州的抵押貸款債務，進一步償還了循環信貸額度，截至昨天，我們的總債務減少到略高於 1800 萬美元，其中包括 390 萬美元的股東票據。考慮到我們的現金狀況，我們的淨債務為 1,360 萬美元。

As we are now in our third quarter, our busiest selling season, we will be drawing on our revolver to fund inventory needs. Thus, our debt will increase again, and then we start cashing up toward the end of the fourth quarter and into first quarter. Our balance sheet is in good shape, and we are making progress internally.

由於我們目前正處於第三季度，也就是最繁忙的銷售季節，我們將動用循環信貸來滿足庫存需求。因此，我們的債務將再次增加，然後我們將在第四季末和第一季開始兌現。我們的資產負債表狀況良好，而且我們內部正在取得進展。

I'd like to thank you all today for listening in. And operator, we are now ready for questions.

我想感謝大家今天的聆聽。接線員，我們現在可以回答問題了。

(Operator Instructions) Bruce Olephant, Oppenheimer.

（操作員指示）布魯斯·奧利芬特（Bruce Olephant），奧本海默。

VOXX purchased Klipsch for $166 million in March 2011, can we make the assumption that 11 years later that Klipsch is worth more than that purchase price?

VOXX 於 2011 年 3 月以 1.66 億美元收購了 Klipsch，我們能否假設 Klipsch 在 11 年後的價值會超過該購買價？

Can we? I would say, yes, because adding to the Klipsch valuation is the Onkyo valuation that we acquired back in 2021. They are a much stronger company today technologically because of the combination of Onkyo's electronics experience and Klipsch's acoustic experience, and we think that is going to be a big driver for us as we move forward.

可以嗎？我想說是的，因為 Klipsch 的估值加上了我們在 2021 年獲得的 Onkyo 估值。由於結合了 Onkyo 的電子經驗和 Klipsch 的聲學經驗，他們如今在技術上變得更加強大，我們認為這將成為我們前進的巨大推動力。

When we look at the passive loud speaker today, it is morphing into powered speakers or active speakers, where actually the electronics of pushing the sound through the speakers inside the speaker. And the addition of a very, very strong Onkyo Electronics team is allowing us to develop products that we think are going to be most important as we look into the future, Bluetooth, broadcast Bluetooth, and and a number of different products that we will be able to integrate better into our speakers because of our experience with the Onkyo team.

今天，當我們觀察被動揚聲器時，它正在演變成有源揚聲器或有源揚聲器，其中實際上透過揚聲器內部的揚聲器推動聲音的電子設備。加入非常強大的安橋電子團隊使我們能夠開發我們認為在未來最重要的產品，藍牙、廣播藍牙以及許多不同的產品，憑藉我們與安橋團隊合作的經驗，我們將能夠更好地將這些產品整合到我們的揚聲器中。

Is Klipsch up for sale?

Klipsch 有出售嗎？

We are in a process, and that process is to determine the value of the company. And there will be, in my estimation, offers for the entire company, which you've seen with the Gentex offer. And we believe that there will be offers for the entire company, additional offers for the entire company, and there will be offers for some of the parts.

我們處於一個過程之中，這個過程就是要確定公司的價值。而且據我估計，整個公司都會收到報價，正如您在 Gentex 的報價中看到的那樣。我們相信，整個公司都會有報價，整個公司都會有額外報價，部分公司也會有報價。

Are we currently doing any business with Gentex?

我們目前與 Gentex 有業務往來嗎？

Yeah. We do a little business with Gentex. We supply the automotive aftermarket with Gentex mirrors.

是的。我們與Gentex有小生意來往。我們為汽車售後市場提供 Gentex 後視鏡。

So we can -- so actually, for the future, we plan to probably do more business with Gentex?

所以我們可以——實際上，未來我們計劃與 Gentex 開展更多業務？

That's our hope. Gentex is a very strong company. They've got great technology. And we think our distribution network, especially into the aftermarket, reaches much further than anything that they may have in distribution. So I see that as a positive.

這是我們的希望。Gentex 是一家非常強大的公司。他們擁有出色的技術。我們認為，我們的分銷網絡，特別是售後市場的分銷網絡，比他們的任何分銷網絡覆蓋範圍都要廣。所以我認為這是積極的。

And the other question I have here, what would be the common book value? Would it be around $11 a share now?

我這裡還有另一個問題，常見的帳面價值是多少？現在每股價格是在 11 美元左右嗎？

That -- I would say, yes, Lori, if you have any -- I mean we've got about 23 million shares out. And when we look at the value of what we believe between the different operations we have, the real estate that we own, it supports a -- is the valuation there higher?

是的，洛瑞，如果你有的話，我想說我們已經發行了大約 2300 萬股。當我們審視我們所擁有的不同業務和房地產的價值時，我們發現它們的估值是否更高？

I think that's a conservative number, Pat. $11.

我認為這是一個保守的數字，帕特。11美元。

What do you think it is right now? What do you think it is?

您認為現在是什麼？你認為它是什麼？

Well, what we think it is and what the market thinks it is may be two different things. But I think the company with its future prospects, stuff, I think you could warrant that type of number.

嗯，我們認為的和市場認為的可能是兩碼事。但我認為，鑑於該公司的未來前景，我認為您可以保證獲得這樣的數字。

Okay. And also, can we make the assumption that being that history says that third quarter is our strongest quarter, can we make the assumption that VOXX will have a profitable third quarter and finish the year profitable?

好的。而且，我們是否可以假設，根據歷史經驗，第三季度是我們表現最強勁的季度，那麼我們是否可以假設 VOXX 將在第三季度盈利並在全年實現盈利？

We are looking at what the second half is projected to be based on all the information we get from customers at this time of the year. Promotions that we know will have started. The biggest thing that what we're looking at now is if the economy continues to slow, it may impact some of those projections.

我們正在根據每年這個時候從客戶那裡獲得的所有資訊來預測下半年的情況。我們知道促銷活動已經開始。我們現在關注的最大問題是，如果經濟持續放緩，可能會影響一些預測。

But normally, our second half, especially the third quarter, is a profitable one. And we believe that if we can hit the numbers that we are projecting that we would be profitable for the year.

但一般來說，我們下半年，特別是第三季度，是獲利的。我們相信，如果我們能夠達到預期的數字，那麼今年我們就能獲利。

Great. And I'm glad to see the great progress that the company has made, and I look for continued success.

偉大的。我很高興看到公司取得的巨大進步，並期待公司繼續取得成功。

(Operator Instructions) I would now like to hand the call back to Pat for closing remarks.

（操作員指示）現在，我想將電話交還給帕特，請他做最後發言。

Well, thank you. If there are no further questions, I want to thank you for your interest in VOXX. It has been a couple of challenging years, but I think we are starting to move forward with the plans that would bring this company back to profitability. So once again, thank you for joining and have a good rest of the day.

好吧，謝謝你。如果沒有其他問題，我要感謝您對 VOXX 的關注。這幾年充滿挑戰，但我認為我們正在開始推進能夠讓公司恢復獲利的計畫。再次感謝您的參與，祝您今天過得愉快。

And this concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。