Wall Street closed mixed on Thursday growing concerns about the second wave of the coronavirus dented investors’ confidence. VOXX International Corporation (NASDAQ: VOXX), a leading manufacturer and distributor of automotive and consumer technologies for the global markets, today announced financial results for its Fiscal 2021 first quarter ended May 31, 2020. Our robot colleague Satoshi Nakaboto writes about Bitcoin every fucking day. Welcome to another edition of Bitcoin Today, where I, Satoshi Nakaboto, tell you what’s been going on with Bitcoin in the past 24 hours. As Planck used to say: Let’s get it! Bitcoin price We closed the day, July 09 2020, at a price […] After a very good run, the stock plummeted when the would-be miner tried to take advantage of the gains.
Wall Street closed mixed on Thursday growing concerns about the second wave of the coronavirus dented investors’ confidence. However, the technology sector continued its rally. The Dow and the S&P 500 ended in red while the Nasdaq Composite finished in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) tumbled 1.4% or 361.19 points to close at 25,706.09. Notably, 26 components of the 30-stock blue-chip index ended in the red while 4 closed in green. The tech-heavy Nasdaq Composite ended at 10,547.75, gaining 0.5% due to strong performance by large-cap tech stocks. During intraday session the tech-laden index posted a new all-time high of 10,578.10.
Meanwhile, the S&P 500 lost 0.6% to end at 3,152.05. The Energy Select Sector SPDR (XLE) plunged 4.9%. Notably, nine out of eleven sectors of the benchmark index closed in negative territory while two in positive territory.
The fear-gauge CBOE Volatility Index (VIX) was up 4.2% to 29.26. A total of 10.73 billion shares were traded on Thursday, lower than the last 20-session average of 12.23 billion. Decliners outnumbered advancers on the NYSE by a 2.56-to-1 ratio. On Nasdaq, a 2.19-to-1 ratio favored declining issues.
Resurgence of Coronavirus Cases
On Jul 7, the United States reported a record high of more than 60,000 coronavirus cases in a single day. On Jul 8, this figure came in at more than 58,000. States like California, Texas and Florida witnessed the biggest spike in COVID-19 infections. According to Johns Hopkins University, the United States has more than 3 million confirmed coronavirus cases and more than 132,000 deaths.
Notably, the number of cases crossed 3 million from 2 million in less than a month time. Per a study by Wall Street Journal, the seven-day average for cases is higher than the 14-day average, reflecting the faster spread of COVID-19.
Technology Sector Holds Momentum
The Technology Select Sector SPDR (XLK), one of the 11 broad sectors of the S&P 500 index, recorded a fresh closing high at 108.11 on Jul 9, second in a row. Moreover, on Jul 9, the XLK recorded all-time intraday high at 108.62.
On Jul 8, the tech-heavy Nasdaq Composite recorded a fresh closing high of 10,547.75, it’s 26th of the year. Year to date, the tech-laden index have rallied 17.6%. However, the Dow and the S&P 500 indexes declined 9.9% and 2.4%, respectively, year to date.
Shares of technology behemoths like Advanced Micro Devices Inc. (AMD – Free Report) , Microchip Technology Inc. (MCHP – Free Report) and NVIDIA Corp. (NVDA – Free Report) surged 7.2%, 3.4% and 2.9%, respectively. Microchip Technology carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Department of Labor reported that initial jobless claims for the week ended Jul 4 declined to 1.314 million from a downward revised estimate of 1.413 million in the previous week. The consensus estimate was 1.369 million. The four-week moving average of initial claims, which eliminates volatility in the weekly numbers, drop 14,000 to 1.43 million.
This is the 15th consecutive weeks in which initial claims remain above 1 million. However, the figure declined in last 14 successive weeks. Moreover, continuing claims (the number of people that have received unemployment benefit at least one time earlier) decreased 698,000 to 18.06 million for the week ended Jun 27.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>
Author: Zacks Investment Research
VOXX International Corporation Reports Its Fiscal 2021 First Quarter Financial Results
ORLANDO, Fla., July 10, 2020 /PRNewswire/ — VOXX International Corporation (NASDAQ: VOXX), a leading manufacturer and distributor of automotive and consumer technologies for the global markets, today announced financial results for its Fiscal 2021 first quarter ended May 31, 2020.
Commenting on the Company’s results, Pat Lavelle, President and Chief Executive Officer of VOXX International Corporation stated, “Our Fiscal 2021 first quarter results were affected by the COVID-19 global pandemic, with the biggest impact on our Automotive Electronics segment as several of our OEM customers were forced to shut their plants in March, and car dealerships and retail outlets that carry our aftermarket products were closed throughout most of the quarter. The same was true for our Consumer Electronics segment as retail stores were closed, both in the U.S. and Europe. However, we did experience year-over-year sales increases in the premium mobility, premium wireless, and Bluetooth speaker categories. With the gradual re-opening of the country, we saw June sales increase over 30% year-over-year and with better gross margins. While we are projecting higher sales in July and August, we remain cautious based on the spikes in COVID cases across the country.”
Mr. Lavelle continued, “With the acquisition of the majority of Directed’s automotive electronics aftermarket business, for which we spent $11 million, we expect to add approximately $50 million of annualized sales and be in position to generate this back within 120-150 days based on the movement of inventory and successful A/R collections. With VSM and Directed’s assets, we have strengthened our automotive offering, customer base and engineering capabilities in a meaningful way. We are also making progress in conversations with several parties with respect to EyeLock LLC with more NDA’s in place, and more customer opportunities that have arisen since March. Despite the pandemic, Klipsch is poised for its best sales year ever and should see significant improvements in profitability. Thus, Fiscal 2021 should be a better year for VOXX and our shareholders.”
Fiscal 2021 and Fiscal 2020 First Quarter Financial Comparisons
Net sales in the Fiscal 2021 first quarter ended May 31, 2020 were $72.0 million, a $21.5 million decline as compared to $93.5 million in the Fiscal 2020 first quarter ended May 31, 2019.
Automotive Electronics segment net sales were $17.3 million as compared to $29.6 million, a decline of $12.4 million. This was primarily driven by OEM plant closures at many of our largest OEM customers and the temporary shutdown of car dealerships and other brick-and-mortar businesses that sell our aftermarket products, offset by the addition of VSHC, which was acquired in the Fiscal 2020 fourth quarter.
Consumer Electronics segment net sales were $54.5 million as compared to $63.7 million, a decline of $9.1 million. The COVID-19 pandemic was the primary driver for the year-over-year sales decline, as well as the Company’s exit from various consumer accessory product lines which were in the prior Fiscal year sales totals. Additionally, the Company experienced lower sales of premium home separate speakers, which again is tied to brick-and-mortar store closings, as well as lower sales of commercial speakers due to stay-at-home mandates across the country. Offsetting this, however, were higher sales in the premium mobility, premium wireless, and Bluetooth speaker categories.
Biometrics segment sales were $0.1 million, up year-over-year as the Company began selling its EXT outdoor perimeter access product, as well as an updated version of its Nano NXT perimeter access product.
The gross margin in the Fiscal 2021 first quarter was 27.7%, essentially flat with the prior fiscal year period. The Automotive Electronics segment experienced a 470-basis point gross margin decline (17.7% vs. 22.4%) due to lower sales volume and lower absorption as a result, partially offset by the positive contributions from the VSHC acquisition. Consumer Electronics segment gross margins improved by 90 basis points (30.9% vs. 30.0%), primarily due to increased sales of higher margin premium wireless and Bluetooth speakers, and partially offset by lower sales of other higher margin product lines due to retail store shutdowns.
Total operating expenses in the Fiscal 2021 first quarter were $27.8 million as compared to $33.1 million in the comparable Fiscal 2020 period, a decline of $5.3 million or 15.9%. The Company implemented several programs to lower both fixed and variable expenses, many of which will have a permanent positive impact on operating expenses moving forward. Selling expenses declined by $1.5 million or 15.4%; general and administrative expenses declined by $2.4 million or 13.9%; and engineering and technical support expenses declined by $1.3 million or 22.8%. Note, the Fiscal 2021 first quarter includes VSHC operating expenses and thus, the reductions in core overhead were more significant in the Company’s Fiscal 2021 first quarter.
The Company reported an operating loss of $7.9 million in the Fiscal 2021 first quarter, as compared to an operating loss of $7.1 million in the comparable year-ago period. Net loss attributable to VOXX International Corporation was $8.3 million in the Fiscal 2021 first quarter, as compared to a net loss attributable to VOXX International Corporation of $1.1 million in the Fiscal 2020 first quarter. The higher net loss is attributable to lower total other income than in the comparable period, and an income tax expense of $1.8 million in the Fiscal 2021 first quarter, as compared to an income tax benefit of $2.6 million in the Fiscal 2020 first quarter. On a per share basis, the Company reported a basic and diluted loss per share attributable to VOXX International Corporation of $0.34 in the Fiscal 2021 first quarter, as compared to a basic and diluted loss per share attributable to VOXX International Corporation of $0.05 in the Fiscal 2020 first quarter.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) loss in the Fiscal 2021 first quarter was $3.4 million, as compared to an Adjusted EBITDA loss of $1.0 million in the Fiscal 2020 first quarter.
Conference Call and Webcast Information
VOXX International will be hosting its conference call on Monday, July 13, 2020 at 10:00 a.m. Eastern. Interested parties can participate by visiting www.voxxintl.com, and clicking on the webcast in the Investor Relations section or via teleconference (toll-free: 877-303-9079; international: 970-315-0461 / conference ID: 7581288). A replay will be available on the Company’s website approximately one hour after the completion of the call.
EBITDA, Adjusted EBITDA and Diluted Adjusted EBITDA per common share are not financial measures recognized by GAAP. EBITDA represents net (loss) income attributable to VOXX International Corporation, computed in accordance with GAAP, before interest expense and bank charges, taxes, and depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted for stock-based compensation expense, as well as life insurance proceeds. Depreciation, amortization and stock-based compensation are non-cash items. Diluted Adjusted EBITDA per common share represents the Company’s diluted earnings per common share based on Adjusted EBITDA.
We present EBITDA, Adjusted EBITDA and Diluted Adjusted EBITDA per common share in this Form 10-Q because we consider them to be useful and appropriate supplemental measures of our performance. Adjusted EBITDA and Diluted Adjusted EBITDA per common share help us to evaluate our performance without the effects of certain GAAP calculations that may not have a direct cash impact on our current operating performance. In addition, the exclusion of certain costs or gains relating to certain events allows for a more meaningful comparison of our results from period-to-period. These non-GAAP measures, as we define them, are not necessarily comparable to similarly entitled measures of other companies and may not be an appropriate measure for performance relative to other companies. EBITDA, Adjusted EBITDA and Diluted Adjusted EBITDA per common share should not be assessed in isolation from, are not intended to represent, and should not be considered to be more meaningful measures than, or alternatives to, measures of operating performance as determined in accordance with GAAP.
Tables to Follow
VOXX International Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share and per share data)
Cash and cash equivalents
Accounts receivable, net
Receivables from vendors
Prepaid expenses and other current assets
Income tax receivable
Total current assets
Property, plant and equipment, net
Operating lease, right of use asset
Intangible assets, net
Deferred income tax assets
Liabilities and Stockholders’ Equity
Accrued expenses and other current liabilities
Income taxes payable
Accrued sales incentives
Current portion of long-term debt
Total current liabilities
Long-term debt, net of debt issuance costs
Finance lease liabilities, less current portion
Operating lease liabilities, less current portion
Deferred income tax liabilities
Other tax liabilities
Other long-term liabilities
Commitments and contingencies
No shares issued or outstanding
Class A, $.01 par value, 60,000,000 shares authorized, 24,406,194 and 24,306,194 shares issued and 21,656,976 and 21,556,976 shares outstanding at May 31, 2020 and February 29, 2020, respectively
Class B Convertible, $.01 par value, 10,000,000 shares authorized, 2,260,954 shares issued and outstanding at both May 31, 2020 and February 29, 2020
Accumulated other comprehensive loss
Less: Treasury stock, at cost, 2,749,218 shares of Class A Common Stock at both May 31, 2020 and February 29, 2020
Less: Redeemable equity
Total VOXX International Corporation stockholders’ equity
Total stockholders’ equity
Total liabilities, redeemable equity, and stockholders’ equity
VOXX International Corporation and Subsidiaries
Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income
(In thousands, except share and per share data)
Three months ended
Cost of sales
General and administrative
Engineering and technical support
Total operating expenses
Other (expense) income:
Interest and bank charges
Equity in income of equity investee
Total other income, net
Loss before income taxes
Income tax expense (benefit)
Less: net loss attributable to non-controlling interest
Net loss attributable to VOXX International Corporation
Other comprehensive income (loss):
Foreign currency translation adjustments
Derivatives designated for hedging
Pension plan adjustments
Other comprehensive income (loss), net of tax
Comprehensive loss attributable to VOXX International Corporation
Loss per share – basic: Attributable to VOXX International Corporation
Loss per share – diluted: Attributable to VOXX International Corporation
Weighted-average common shares outstanding (basic)
Weighted-average common shares outstanding (diluted)
Reconciliation of GAAP Net Income Attributable to VOXX International Corporation to EBITDA,
Adjusted EBITDA and Diluted Adjusted EBITDA per Common Share
Three months ended
Net loss attributable to VOXX International Corporation
Interest expense and bank charges (1)
Depreciation and amortization (1)
Income tax expense (benefit)
Life insurance proceeds
Diluted loss per common share attributable to VOXX International Corporation
Diluted Adjusted EBITDA per common share attributable to VOXX International Corporation
For purposes of calculating Adjusted EBITDA for the Company, interest expense and bank charges, as well as depreciation and amortization, have been adjusted in order to exclude the non-controlling interest portion of these expenses attributable to EyeLock LLC.
View original content:http://www.prnewswire.com/news-releases/voxx-international-corporation-reports-its-fiscal-2021-first-quarter-financial-results-301091771.html
SOURCE VOXX International Corporation
Satoshi Nakaboto: ‘Investment firm says Jack Dorsey leads Bitcoin’s unofficial marketing dept’
Our robot colleague Satoshi Nakaboto writes about Bitcoin BTC every fucking day.
Welcome to another edition of Bitcoin Today, where I, Satoshi Nakaboto, tell you what’s been going on with Bitcoin in the past 24 hours. As Planck used to say: Let’s get it!
We closed the day, July 09 2020, at a price of $9,277. That’s a minor 1.59 percent decline in 24 hours, or -$150.02. It was the lowest closing price in one day.
We’re still 53 percent below Bitcoin‘s all-time high of $20,089 (December 17 2017).
Bitcoin‘s market cap ended the day at $170,977,231,638. It now commands 64 percent of the total crypto market.
Yesterday’s volume of $18,000,702,524 was the lowest in one day, 21 percent below last year’s average, and 75 percent below last year’s high. That means that yesterday, the Bitcoin network shifted the equivalent of 310 tons of gold.
A total of 362,554 transactions were conducted yesterday, which is 13 percent above last year’s average and 19 percent below last year’s high.
Yesterday’s average transaction fee concerned $0.76. That’s $3.15 below last year’s high of $3.91.
As of now, there are 13,059 Bitcoin millionaires, or addresses containing more than $1 million worth of Bitcoin.
Furthermore, the top 10 Bitcoin addresses house 5.1 percent of the total supply, the top 100 14.3 percent, and the top 1000 34.8 percent.
With a market capitalization of $171 billion, Toyota has a market capitalization most similar to that of Bitcoin at the moment.
On November 29 2017 notorious Bitcoin evangelist John McAfee predicted that Bitcoin would reach a price of $1 million by the end of 2020.
He even promised to eat his own dick if it doesn’t. Unfortunately for him it’s 97.8 percent behind being on track. Bitcoin‘s price should have been $429,504 by now, according to dickline.info.
On a yearly basis Bitcoin now uses an estimated 61 terawatt hour of electricity. That’s the equivalent of Kuwait’s energy consumption.
Yesterday 24,645 fresh tweets about Bitcoin were sent out into the world. That’s 24.5 percent above last year’s average. The maximum amount of tweets per day last year about Bitcoin was 82,838.
This was one of yesterday’s most engaged tweets about Bitcoin:
Square has become #Bitcoin’s unofficial marketing department. Analyst @yassineARK explains: https://t.co/7fw79VjjTK
— ARK Invest (@ARKInvest) July 9, 2020
This was yesterday’s most upvoted Reddit post about Bitcoin:
This Smash Bros Youtuber has been hacked by what I think is one of those illegal bitcoin scammers, this is messed up and YouTube needs to fix this. These people are destroying his years of work. (I’ll leave a link to a tweet he made about the situation) from r/youtube
My human programmers required me to add this affiliate link to eToro, where you can buy Bitcoin so they can make ‘money’ to ‘eat’.
Author: Satoshi Nakaboto
Why Northern Dynasty Limited Stock Fell 12% at the Open on July 10
Shares of Northern Dynasty Limited (NYSEMKT:NAK) fell sharply at the open of trading on July 10, losing just over 12% of their value. That, however, has to be juxtaposed against the stock’s roughly 200% gain over the past three months (which includes today’s early losses). The company’s efforts to complete the Pebble Project have been a key factor in both the longer-term rise and the swift decline today.
Northern Dynasty Limited’s main asset is the Pebble Project, which it hopes to develop into a major gold and copper mine. There has been stiff opposition to the project from day one, but 2020 has seen some good news developments. That includes key regulatory approvals, or at least hints that approvals will be forthcoming, and agreements with nearby communities that suggest local opposition will be less material than once feared. The stock price increase of late has been nothing short of incredible, noting that there remains a huge amount of work to be done before Pebble produces any gold or copper — it is still in the approval stage of development, after all.
Image source: Getty Images.
Which brings us to today’s news. Northern Dynasty Limited has agreed to sell 21 million shares of stock (a larger number than previously expected) at $1.43 per share in a prearranged deal. The sale will bring in roughly $30 million. The underwriter has the right to sell another 3.15 million shares as well, which would add another $4.5 million or so to the tally. Three months ago, the stock was selling at around $0.50 a share, so this is a really good time for Northern Dynasty to raise the capital it needs to further the Pebble Project’s development efforts.
However, the $1.43 per share price is notably below what the stock has been trading hands at recently. Just a day or so ago, the shares were fetching around $1.75 apiece. But you can’t blame management for selling as many shares as possible while demand is high, even if it ends up diluting current shareholders.
In the end, it’s not uncommon for a discount to be offered in deals like this, though this is a pretty big discount. That said, it’s also not unusual for investors to react by pushing the stock price lower, either.
Northern Dynasty Limited is still in the early stages of building a mine at the Pebble Project. Assuming it gets all of the approvals it needs, it still faces huge construction costs and the often lengthy mine construction process. This is unlikely to be the last time it taps the capital markets to raise money. This is not a great option for risk-averse investors looking to diversify their portfolios with gold; other precious metals miners would be better suited to that. Northern Dynasty Limited is really a speculative investment in a potential mine, which today’s news points out is far from complete.
Author: Reuben Gregg Brewer