Investor Presentation. Patrick Lavelle, President and CEO Michael Stoehr, SVP and CFO August 2011

Transcription

1 Investor Presentation Patrick Lavelle, President and CEO Michael Stoehr, SVP and CFO August 2011

2 Audiovox Corporation Investment Highlights Successful Acquisition Strategy Positioned for Financial Growth Shift to High Margin Products NASDAQ:VOXX Expanding Global Footprint Strong & Varied Distribution Network Impressive Brand Portfolio

3 Well Known Domestic and International Brands

4 Broad Consumer Product Lines High-end Loudspeakers Remote Controls Reception Headphones ipod Docks and ipod Sound A/V Connectivity Personal Sound Amplifier Portable/Home Charging Stations Smartphone Home Command Rechargeable Battery Packs Digital Audio/MP3 Digital Camcorders and Voice Recorders

5 Aftermarket and OE Mobile Electronics Products Rear Seat Entertainment Satellite Radio Products (#1 aftermarket supplier) Automotive Security and Remote Start Systems Mobile Multimedia Auto Sound OE Radios Car Link Smart phone telematics application Collision Avoidance Systems

6 Audiovox Corporation Positioned for the Future #1 premium loudspeaker company in the world Major global supplier in the Consumer Electronics Accessories market Rapidly expanding global OEM business Worldwide automotive aftermarket distribution network Positioned for growth and profitability

7 Five - Year Plan In 2005, we sold our Cellular Division raising net proceeds of $165 million We were primarily a mobile electronics after market company with several commoditized CE-product lines Growth Plan: Move into the higher margin Accessory category Increase OEM penetration with expanded programs Enter the high-end Audio and Custom Installation market Expand International presence Attain $1 billion in higher-margin sales

8 Executing our Strategy CE Accessories Disciplined acquisition strategy to add higher-margin, global accessory brands Added exclusive high-end antenna product line and well recognized Accessories brand Added exclusive licensing rights to Energizer in N.A. and select international markets Acquisition of Thomson s Consumer Electronics Accessories and Audio/Video business units Acquisition of a recognized European premium Accessories company Acquisition of a German Accessories market leader Today we are a dominant supplier in CE Accessories FY12 sales projected to be approximately $240 million

9 Executing our Strategy Mobile OEM Expanded OEM partners and programs Key, strategic market acquisitions Incaar Ltd. (2007) Invision Automotive Systems (2010) Acquired U.K.-based OEM supplier, specializing in rear-seat electronics systems. Added a new, international OEM component with BMW and Toyota as initial customers. Gained new accounts with Porsche for Panamera and Cayenne models, and with VW and Bentley. Enhanced product development and engineering capabilities to service European car market. Acquired established manufacturer of rear-seat entertainment systems to OEMs, ports and car dealers. New OEM programs with Ford Motor Company for the Expedition/Navigator and Explorer models, and BMW. Added U.S. manufacturing facility to complement existing product development initiatives out of Detroit. Transaction doubled OEM sales in FY11 with upside in future years FY05 OE sales - $20 million FY12 OE sales projected to be $115 million

10 Growing Global OEM Customer Base Expanding OEM customer relationships in the U.S. and throughout Europe

11 Executing our Strategy High-end Audio Game Changing Acquisition Combined with our existing premium European brands, Klipsch makes us the #1 high-end loudspeaker company in the world

12 Klipsch Quality & Innovation High-quality premium global brands 65-Year Heritage #1 Market Position #1 Brand Awareness Global Platform 42-Year Heritage Danish Design A Market Leader in Europe & Asia Design-Oriented Patented Omni-Directional Sound Technology Small Form Factor Alternative Applications Channel Alternative Strong Performance-to- Value Proposition

13 Strong and Diversified Customer Base Klipsch is the dominant high-end audio brand at many big box and independent retailers (and online) both in the U.S. and throughout the world

14 Strong Professional and Commercial Distribution Channels Cinemas, Restaurants, Retail and More

15 Financial Review Positioned for Growth and Profitability

16 Financial Performance Top Line Review Managing through the downturn Positioned for long-term, profitable growth $800.0 $700.0 $600.0 $500.0 $400.0 $300.0 $200.0 $100.0 $0.0 $456.7 Audiovox Corporation Net Sales $591.4 $603.1 $550.7 $561.7 $ (E) We retooled our product mix focusing on margin enhancements, cost reductions and long-term brand positioning

17 Financial Performance Margin Enhancements Acquisitions and retooled product lines resulting in higher gross margins Gross Profit Margins 30% 25.0% 25% 22.1% 18.8% 19.4% 20% 17.4% 15.9% 16.6% 15% 11.3% 10% 7.8% 5% 0% (E) Fiscal 2012 GPM s projected to be north of 25%

18 FY12 Positioned for Profitability Mobile Consumer FY10 FY11 FY12(E) Consolidated net sales Gross profit margins Operating expenses Operating income Normalized EPS EBITDA $550.7 $561.7 $ % 22.1% 25.0% (+) $103.0 $114.9 $156.0 $3.8 $9.0 $31.0 $0.30 $0.33 $0.73 $16.8 $17.0 $42.0 * Room for upside based on improvements in global economy

19 FY12 First Quarter Performance Audiovox Corporation and Subsidiaries Consolidated Statement of Operations For the three months ended May 31, 2011 and 2010 (In thousands, except share and per share data) 1Q11 1Q12 Net Sales $130.3 $165.3 Gross Profit $27.1 $43.7 Gross Profit Margin (%) 20.8% 26.4% Operating Expenses $28.6 $39.7 Operating Income $(1.5) $4.0 Total Other Income $2.0 $0.1 Pre-Tax Income $0.5 $4.1 Income Tax Expense (Benefit) $(0.6) $1.6 Net Income $1.1 $2.5 Net Income Per Share $0.05 $ EBITDA $3.1 $8.1 Adjusted EBITDA $3.5 $9.7 Top line meets projections; bottom-line exceeds forecast Company reiterates FY12 guidance

20 Safe Harbor Statement Except for historical information contained herein, statements made in this presentation and in this webcast that would constitute forward-looking statements may involve certain risks and uncertainties. All forward-looking statements made in this release are based on currently available information and the Company assumes no responsibility to update any such forward-looking statement. The following factors, among others, may cause actual results to differ materially from the results suggested in the forward-looking statements. The factors include, but are not limited to risks that may result from changes in the Company's business operations; our ability to keep pace with technological advances; significant competition in the mobile and consumer electronics and accessories businesses; our relationships with key suppliers and customers; quality and consumer acceptance of newly introduced products; market volatility; non-availability of product; excess inventory; price and product competition; new product introductions; the possibility that the review of our prior filings by the SEC may result in changes to our financial statements; and the possibility that stockholders or regulatory authorities may initiate proceedings against Audiovox and/or our officers and directors as a result of any restatements. Risk factors associated with our business, including some of the facts set forth herein, are detailed in the Company's Form 10-K for the fiscal year ended February 28, 2011.