SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Universal Electronics Inc. (UEI), (NASDAQ: UEIC), the worldwide leader in sensing and control technologies for the smart home, reported financial results for the three and six months ended June 30, 2019.

Paul Arling, UEI’s chairman and CEO, stated, “Our record second quarter results and 19% year-over-year net sales growth reflect increases across the board, notably in subscription broadcasting, consumer electronics (CE), and home security. Our customers are beginning to more rapidly adopt advanced, 2-way, IP-connected home entertainment systems. Further, new and existing customers recognize UEI as the voice technology expert. As such, we are selected for sophisticated new device initiatives that require greater intellectual property and carry higher average selling prices. In addition to this transition in home entertainment, our home automation business continues to gain traction. In 2019, we are positioned to deliver the best year in our history.”

Financial Results for the Three Months Ended June 30: 2019 Compared to 2018



  • GAAP net sales were $193.9 million, compared to $162.5 million; Adjusted Non-GAAP net sales were $193.4 million, compared to $162.4 million.


  • GAAP gross margins were 17.5%, compared to 16.5%; Adjusted Non-GAAP gross margins were 25.2%, compared to 22.1%.


  • GAAP operating loss was $3.9 million, compared to $9.9 million; Adjusted Non-GAAP operating income was $15.8 million, compared to $4.6 million.


  • GAAP net loss was $5.1 million, or $0.37 per share, compared to a net income of $22.7 million or $1.60 per share; Adjusted Non-GAAP net income was $11.7 million, or $0.83 per diluted share, compared to $2.6 million, or $0.18 per diluted share.


  • At June 30, 2019, cash and cash equivalents were $49.6 million.

Bryan Hackworth, UEI’s CFO, stated, “We are very pleased with our strong second quarter results and expect this positive momentum to continue into the third quarter. The transition of the manufacturing of U.S.-bound product is nearly complete with most of the associated costs behind us. As planned, we are now optimizing efficiency at our Mexico facility. As a company, we remain focused on the development of products, technologies and new markets that will continue to drive growth.”

Financial Outlook

For the third quarter of 2019, the company expects GAAP net sales to range between $188 million and $198 million, compared to $182.7 million in the third quarter of 2018. GAAP earnings per diluted share for the third quarter of 2019 are expected to range from $0.31 to $0.41, compared to GAAP earnings per diluted share of $0.07 in the third quarter of 2018.

For the third quarter of 2019, the company expects Adjusted Non-GAAP net sales to range between $188 million and $198 million, compared to $182.7 million in the third quarter of 2018. Adjusted Non-GAAP earnings per diluted share are expected to range from $0.85 to $0.95, compared to Adjusted Non-GAAP earnings per diluted share of $0.80 in the third quarter of 2018. The third quarter 2019 Adjusted Non-GAAP earnings per diluted share estimate excludes $0.54 per share related to, among other things, stock-based compensation, amortization of acquired intangibles, changes in contingent consideration relating to acquisitions, foreign currency gains and losses, excess manufacturing overhead and factory transition costs, additional Section 301 U.S. tariffs on goods manufactured in China, restructuring costs and the related tax impact of these adjustments. For a more detailed explanation of Non-GAAP measures, please see the Use of Non-GAAP Financial Metrics discussion and the Reconciliation of Adjusted Non-GAAP Financial Results, each located elsewhere in this press release.

Conference Call Information

UEI’s management team will hold a conference call today, Thursday, August 8, 2019 at 4:30 p.m. ET / 1:30 p.m. PT, to discuss its second quarter 2019 earnings results, review recent activity and answer questions. To access the call in the U.S. please dial 877-843-0414, and for international calls dial 315-625-3071 approximately 10 minutes prior to the start of the conference. The conference ID is 6409838. The conference call will also be broadcast live at www.uei.com where it will be available for replay for one year. In addition, a replay will be available via telephone for two business days beginning two hours after the call. To listen to the replay, in the U.S. please dial 855-859-2056, and internationally dial 404-537-3406. The access code is 6409838.

Use of Non-GAAP Financial Metrics

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, UEI provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GAAP financial measures. These measures are not required by, in accordance with, or an alternative for, GAAP and may be different from non-GAAP financial measures used by other companies. UEI’s management uses these measures for reviewing the financial results of UEI, for budget planning purposes, and for making operational and financial decisions and believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, they help investors evaluate UEI’s core operating and financial performance and business trends consistent with how management evaluates such performance and trends. Additionally, management believes these measures facilitate comparisons with the core operating and financial results and business trends of competitors and other companies.

Adjusted Non-GAAP net sales is defined as net sales excluding the revenue impact of the additional Section 301 U.S. tariffs on products manufactured in China and imported into the U.S. and the impact of stock-based compensation for performance-based warrants. Adjusted Non-GAAP gross profit is defined as gross profit excluding the impact of the additional Section 301 U.S. tariffs on products manufactured in China and imported into the U.S. and costs of implementing countermeasures to mitigate this impact, excess manufacturing overhead and factory transition costs, stock-based compensation expense, depreciation expense related to the increase in fixed assets from cost to fair market value resulting from acquisitions and amortization of intangibles acquired. Adjusted Non-GAAP operating expenses are defined as operating expenses excluding costs incurred related to implementing countermeasures to mitigate the impact of the additional Section 301 U.S. tariffs on products manufactured in China and imported into the U.S., stock-based compensation expense, amortization of intangibles acquired, changes in contingent consideration related to acquisitions and employee related restructuring and other costs. Adjusted Non-GAAP net income is defined as net income excluding the aforementioned items, foreign currency gains and losses, the net gain recognized on the sale of the company's Guangzhou factory, the related tax effects of all adjustments and adjustments to certain deferred tax assets resulting from tax incentives at one of our China factories. Adjusted Non-GAAP diluted earnings per share is calculated using Adjusted Non-GAAP net income. A reconciliation of these financial measures to the most directly comparable GAAP financial measures is included at the end of this press release.

About Universal Electronics

Universal Electronics Inc. (NASDAQ: UEIC) is the worldwide leader in universal control and sensing technologies for the smart home. For more information, please visit www.uei.com/about.

Note on Forward-looking Statements

This press release and accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including net sales, profit margin and earnings trends, estimates and assumptions; our expectations about new product introductions; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those we identify below and other risk factors that we identify in our most recent annual report on Form 10-K and the periodic reports filed thereafter. Risks that could affect forward-looking statements in this press release include our ability to anticipate the needs and wants of our customers, new and existing, and timely develop and deliver products and technologies that will be accepted by our customers and enable us to enter to new markets, including with our advanced control products, our intuitive 2-way home entertainment technologies, and our home automation and sensing products and technologies, all as anticipated by management; the continuation of the ordering pattern of our customers as anticipated by management; management's ability to manage its business to achieve its growth, net sales, margins, and earnings as guided and as anticipated, including management’s ability to improve operating costs and efficiencies at acceptable levels through cost containment efforts including moving our administrative, operations, and manufacturing facilities; management’s ability to complete the transition of certain of its manufacturing operations to our Mexico facility; and effects that changes in laws, regulations and policies may have on our business including the impact of trade regulations pertaining to importation of our products and the tariffs imposed upon them. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release. We make these forward-looking statements as of August 8, 2019. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.


UNIVERSAL ELECTRONICS INC.



CONSOLIDATED BALANCE SHEETS



(In thousands, except share-related data)



(Unaudited)



 



 



June 30, 2019



 



December 31, 2018



ASSETS



 



 



 



 



Current assets:



 



 



 



 



Cash and cash equivalents



 



$



49,565



 



 



$



53,207



 



Accounts receivable, net



 



154,633



 



 



144,689



 



Contract assets



 



23,639



 



 



25,572



 



Inventories, net



 



148,909



 



 



144,350



 



Prepaid expenses and other current assets



 



9,047



 



 



11,638



 



Income tax receivable



 



3,149



 



 



997



 



Total current assets



 



388,942



 



 



380,453



 



Property, plant and equipment, net



 



93,867



 



 



95,840



 



Goodwill



 



48,472



 



 



48,485



 



Intangible assets, net



 



22,046



 



 



24,370



 



Operating lease right-of-use assets



 



20,306



 



 






 



Deferred income taxes



 



2,237



 



 



1,833



 



Other assets



 



2,423



 



 



4,615



 



Total assets



 



$



578,293



 



 



$



555,596



 



LIABILITIES AND STOCKHOLDERS’ EQUITY



 



 



 



 



Current liabilities:



 



 



 



 



Accounts payable



 



$



113,827



 



 



$



107,282



 



Line of credit



 



95,000



 



 



101,500



 



Accrued compensation



 



36,337



 



 



33,965



 



Accrued sales discounts, rebates and royalties



 



8,676



 



 



9,574



 



Accrued income taxes



 



517



 



 



3,524



 



Other accrued liabilities



 



36,087



 



 



24,011



 



Total current liabilities



 



290,444



 



 



279,856



 



Long-term liabilities:



 



 



 



 



Operating lease obligations



 



16,403



 



 






 



Contingent consideration



 



4,429



 



 



8,435



 



Deferred income taxes



 



4,486



 



 



930



 



Income tax payable



 



1,647



 



 



1,647



 



Other long-term liabilities



 



13



 



 



1,768



 



Total liabilities



 



317,422



 



 



292,636



 



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; 24,042,791 and 23,932,703 shares issued on June 30, 2019 and December 31, 2018, respectively



 



240



 



 



239



 



Paid-in capital



 



281,583



 



 



276,103



 



Treasury stock, at cost, 10,163,559 and 10,116,459 shares on June 30, 2019 and December 31, 2018, respectively



 



(277,293



)



 



(275,889



)



Accumulated other comprehensive income (loss)



 



(20,381



)



 



(20,281



)



Retained earnings



 



276,722



 



 



282,788



 



Total stockholders’ equity



 



260,871



 



 



262,960



 



Total liabilities and stockholders’ equity



 



$



578,293



 



 



$



555,596



 



UNIVERSAL ELECTRONICS INC.



CONSOLIDATED STATEMENTS OF OPERATIONS



(In thousands, except per share amounts)



(Unaudited)


 


 



 



Three Months Ended June 30,



 



Six Months Ended June 30,



 



 



2019



 



2018



 



2019



 



2018



Net sales



 



$



193,896



 



 



$



162,523



 



 



$



378,059



 



 



$



327,221



 



Cost of sales



 



159,903



 



 



135,764



 



 



304,192



 



 



263,260



 



Gross profit



 



33,993



 



 



26,759



 



 



73,867



 



 



63,961



 



Research and development expenses



 



7,163



 



 



6,059



 



 



13,954



 



 



12,110



 



Selling, general and administrative expenses



 



30,756



 



 



30,570



 



 



62,176



 



 



60,817



 



Operating loss



 



(3,926



)



 



(9,870



)



 



(2,263



)



 



(8,966



)



Interest income (expense), net



 



(1,098



)



 



(1,279



)



 



(2,304



)



 



(2,349



)



Gain on sale of Guangzhou factory



 






 



 



36,978



 



 






 



 



36,978



 



Other income (expense), net



 



188



 



 



(1,082



)



 



(278



)



 



(1,669



)



Income (loss) before provision for income taxes



 



(4,836



)



 



24,747



 



 



(4,845



)



 



23,994



 



Provision for income taxes



 



225



 



 



2,088



 



 



1,221



 



 



1,922



 



Net income (loss)



 



$



(5,061



)



 



$



22,659



 



 



$



(6,066



)



 



$



22,072



 



 



 



 



 



 



 



 



 



 



Earnings (loss) per share:



 



 



 



 



 



 



Basic



 



$



(0.37



)



 



$



1.61



 



 



$



(0.44



)



 



$



1.57



 



Diluted



 



$



(0.37



)



 



$



1.60



 



 



$



(0.44



)



 



$



1.55



 



Shares used in computing earnings (loss) per share:



 



 



 



 



 



 



 



 



Basic



 



13,863



 



 



14,070



 



 



13,845



 



 



14,078



 



Diluted



 



13,863



 



 



14,158



 



 



13,845



 



 



14,195



 



UNIVERSAL ELECTRONICS INC.



CONSOLIDATED STATEMENTS OF CASH FLOWS



(In thousands)



(Unaudited)


 


 



 



Six Months Ended June 30,



 



 



2019



 



2018



Cash provided by (used for) operating activities:



 



 



 



 



Net income (loss)



 



$



(6,066



)



 



$



22,072



 



Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:



 



 



 



 



Depreciation and amortization



 



15,871



 



 



16,913



 



Provision for doubtful accounts



 



5



 



 



2



 



Provision for inventory write-downs



 



7,016



 



 



5,078



 



Gain on sale of Guangzhou factory



 






 



 



(36,978



)



Deferred income taxes



 



3,203



 



 



(557



)



Shares issued for employee benefit plan



 



620



 



 



590



 



Employee and director stock-based compensation



 



4,191



 



 



4,669



 



Performance-based common stock warrants



 



670



 



 



343



 



Impairment of China factory equipment



 






 



 



2,763



 



Changes in operating assets and liabilities:



 



 



 



 



Accounts receivable and contract assets



 



(8,108



)



 



6,164



 



Inventories



 



(11,403



)



 



(16,061



)



Prepaid expenses and other assets



 



2,578



 



 



(2,765



)



Accounts payable and accrued liabilities



 



16,822



 



 



(7,329



)



Accrued income taxes



 



(5,166



)



 



1,219



 



Net cash provided by (used for) operating activities



 



20,233



 



 



(3,877



)



Cash provided by (used for) investing activities:



 



 



 



 



Proceeds from sale of Guangzhou factory



 






 



 



51,291



 



Acquisitions of property, plant and equipment



 



(10,093



)



 



(13,416



)



Refund of deposit received toward sale of Guangzhou factory



 






 



 



(5,053



)



Acquisitions of intangible assets



 



(1,260



)



 



(1,248



)



Net cash provided by (used for) investing activities



 



(11,353



)



 



31,574



 



Cash provided by (used for) financing activities:



 



 



 



 



Borrowings under line of credit



 



40,000



 



 



23,000



 



Repayments on line of credit



 



(46,500



)



 



(50,000



)



Proceeds from stock options exercised



 






 



 



704



 



Treasury stock purchased



 



(1,404



)



 



(7,114



)



Contingent consideration payments in connection with business combinations



 



(4,251



)



 



(3,858



)



Net cash provided by (used for) financing activities



 



(12,155



)



 



(37,268



)



Effect of exchange rate changes on cash, cash equivalents and restricted cash



 



(367



)



 



1,665



 



Net increase (decrease) in cash, cash equivalents and restricted cash



 



(3,642



)



 



(7,906



)



Cash, cash equivalents and restricted cash at beginning of year



 



53,207



 



 



67,339



 



Cash, cash equivalents and restricted cash at end of period



 



$



49,565



 



 



$



59,433



 



 



 



 



 



 



Supplemental cash flow information:



 



 



 



 



Income taxes paid



 



$



3,973



 



 



$



4,191



 



Interest paid



 



1,156



 



 



2,525



 



UNIVERSAL ELECTRONICS INC.



RECONCILIATION OF ADJUSTED NON-GAAP FINANCIAL RESULTS



(In thousands, except per share amounts)



(Unaudited)


 


 



 



Three Months Ended June 30,



 



Six Months Ended June 30,



 



 



2019



 



2018



 



2019



 



2018



Net sales:



 



 



 



 



 



 



 



 



Net sales - GAAP



 



$



193,896



 



 



$



162,523



 



 



$



378,059



 



 



$



327,221



 



Section 301 U.S. tariffs on goods imported from China (1)



 



(730



)



 






 



 



(2,646



)



 






 



Stock-based compensation for performance-based warrants



 



236



 



 



(129



)



 



670



 



 



342



 



Adjusted Non-GAAP net sales



 



$



193,402



 



 



$



162,394



 



 



$



376,083



 



 



$



327,563



 



 



 



 



 



 



 



 



 



 



Cost of sales:



 



 



 



 



 



 



 



 



Cost of sales - GAAP



 



$



159,903



 



 



$



135,764



 



 



$



304,192



 



 



$



263,260



 



Section 301 U.S. tariffs on goods imported from China (1)



 



(5,097



)



 






 



 



(10,507



)



 






 



Excess manufacturing overhead and factory transition costs (2)



 



(10,048



)



 



(9,036



)



 



(13,320



)



 



(10,589



)



Adjustments to acquired tangible assets (3)



 



(120



)



 



(158



)



 



(240



)



 



(316



)



Stock-based compensation expense



 



(37



)



 



(23



)



 



(65



)



 



(40



)



Amortization of acquired intangible assets



 






 



 






 



 






 



 



(37



)



Adjusted Non-GAAP cost of sales



 



144,601



 



 



126,547



 



 



280,060



 



 



252,278



 



Adjusted Non-GAAP gross profit



 



$



48,801



 



 



$



35,847



 



 



$



96,023



 



 



$



75,285



 



 



 



 



 



 



 



 



 



 



Gross margin:



 



 



 



 



 



 



 



 



Gross margin - GAAP



 



17.5



%



 



16.5



%



 



19.5



%



 



19.5



%



Section 301 U.S. tariffs on goods imported from China (1)



 



2.3



%



 






%



 



2.2



%



 






%



Stock-based compensation for performance-based warrants



 



0.1



%



 



(0.1



)%



 



0.1



%



 



0.1



%



Excess manufacturing overhead and factory transition costs (2)



 



5.2



%



 



5.6



%



 



3.6



%



 



3.3



%



Adjustments to acquired tangible assets (3)



 



0.1



%



 



0.1



%



 



0.1



%



 



0.1



%



Stock-based compensation expense



 



0.0



%



 



0.0



%



 



0.0



%



 



0.0



%



Amortization of acquired intangible assets



 






%



 






%



 






%



 



0.0



%



Adjusted Non-GAAP gross margin



 



25.2



%



 



22.1



%



 



25.5



%



 



23.0



%



 



 



 



 



 



 



 



 



 



Operating expenses:



 



 



 



 



 



 



 



 



Operating expenses - GAAP



 



$



37,919



 



 



$



36,629



 



 



$



76,130



 



 



$



72,927



 



Section 301 U.S. tariffs on goods imported from China (1)



 



(815



)



 






 



 



(1,539



)



 






 



Stock-based compensation expense



 



(2,235



)



 



(2,441



)



 



(4,125



)



 



(4,629



)



Amortization of acquired intangible assets



 



(1,401



)



 



(1,402



)



 



(2,802



)



 



(2,801



)



Change in contingent consideration



 



56



 



 



(1,009



)



 



(1,006



)



 



(258



)



Employee related restructuring and other costs



 



(506



)



 



(554



)



 



(1,021



)



 



(666



)



Adjusted Non-GAAP operating expenses



 



$



33,018



 



 



$



31,223



 



 



$



65,637



 



 



$



64,573



 



UNIVERSAL ELECTRONICS INC.



RECONCILIATION OF ADJUSTED NON-GAAP FINANCIAL RESULTS



(In thousands, except per share amounts)



(Unaudited)


 


 



 



Three Months Ended June 30,



 



Six Months Ended June 30,



 



 



2019



 



2018



 



2019



 



2018



Operating income (loss):



 



 



 



 



 



 



 



 



Operating loss - GAAP



 



$



(3,926



)



 



$



(9,870



)



 



$



(2,263



)



 



$



(8,966



)



Section 301 U.S. tariffs on goods imported from China (1)



 



5,182



 



 






 



 



9,400



 



 






 



Stock-based compensation for performance-based warrants



 



236



 



 



(129



)



 



670



 



 



342



 



Excess manufacturing overhead and factory transition costs (2)



 



10,048



 



 



9,036



 



 



13,320



 



 



10,589



 



Adjustments to acquired tangible assets (3)



 



120



 



 



158



 



 



240



 



 



316



 



Stock-based compensation expense



 



2,272



 



 



2,464



 



 



4,190



 



 



4,669



 



Amortization of acquired intangible assets



 



1,401



 



 



1,402



 



 



2,802



 



 



2,838



 



Change in contingent consideration



 



(56



)



 



1,009



 



 



1,006



 



 



258



 



Employee related restructuring and other costs



 



506



 



 



554



 



 



1,021



 



 



666



 



Adjusted Non-GAAP operating income



 



$



15,783



 



 



$



4,624



 



 



$



30,386



 



 



$



10,712



 



 



 



 



 



 



 



 



 



 



Adjusted pro forma operating income as a percentage of net sales



 



8.2



%



 



2.8



%



 



8.1



%



 



3.3



%



 



 



 



 



 



 



 



 



 



Net income (loss):



 



 



 



 



 



 



 



 



Net income (loss) – GAAP



 



$



(5,061



)



 



$



22,659



 



 



$



(6,066



)



 



$



22,072



 



Section 301 U.S. tariffs on goods imported from China (1)



 



5,182



 



 






 



 



9,400



 



 






 



Stock-based compensation for performance-based warrants



 



236



 



 



(129



)



 



670



 



 



342



 



Excess manufacturing overhead and factory transition costs (2)



 



10,048



 



 



9,036



 



 



13,320



 



 



10,589



 



Adjustments to acquired tangible assets (3)



 



120



 



 



158



 



 



240



 



 



316



 



Stock-based compensation expense



 



2,272



 



 



2,464



 



 



4,190



 



 



4,669



 



Amortization of acquired intangible assets



 



1,401



 



 



1,402



 



 



2,802



 



 



2,838



 



Change in contingent consideration



 



(56



)



 



1,009



 



 



1,006



 



 



258



 



Employee related restructuring and other costs



 



506



 



 



554



 



 



1,021



 



 



666



 



Foreign currency (gain) loss



 



(54



)



 



1,101



 



 



349



 



 



1,706



 



Gain on sale of Guangzhou factory



 






 



 



(36,978



)



 






 



 



(36,978



)



Income tax provision on adjustments



 



(2,910



)



 



1,302



 



 



(5,671



)



 



241



 



Other income tax adjustments (4)



 






 



 






 



 



1,772



 



 






 



Adjusted Non-GAAP net income



 



$



11,684



 



 



$



2,578



 



 



$



23,033



 



 



$



6,719



 



 



 



 



 



 



 



 



 



 



Diluted shares used in computing earnings (loss) per share:



 



 



 



 



 



 



 



 



GAAP



 



13,863



 



 



14,158



 



 



13,845



 



 



14,195



 



Adjusted Non-GAAP



 



14,058



 



 



14,158



 



 



13,989



 



 



14,195



 



 



 



 



 



 



 



 



 



 



Diluted earnings (loss) per share:



 



 



 



 



 



 



 



 



Diluted earnings (loss) per share - GAAP



 



$



(0.37



)



 



$



1.60



 



 



$



(0.44



)



 



$



1.55



 



Total adjustments



 



$



1.19



 



 



$



(1.42



)



 



$



2.08



 



 



$



(1.08



)



Adjusted Non-GAAP diluted earnings per share



 



$



0.83



 



 



$



0.18



 



 



$



1.65



 



 



$



0.47



 



(1)


 


Includes incremental revenues and costs directly attributable to the additional Section 301 U.S. tariffs implemented in 2018 on goods manufactured in China and imported into the U.S. as well as costs incurred for the movement of factory equipment and other costs of countermeasures undertaken by the company to modify its manufacturing operations and supply chain.



(2)


 


The three and six months ended June 30, 2019 include excess manufacturing overhead costs incurred as a result of expanding our manufacturing capacity in Mexico and transitioning certain of our manufacturing activities from China to Mexico. In addition, included are direct manufacturing inefficiencies incurred in Mexico as we were still in a start-up phase through the second quarter of 2019. The three and six months ended June 30, 2018 include excess manufacturing costs incurred resulting from factory underutilization associated with ceasing manufacturing activities while transitioning our Asia operations onto our new global ERP system, which went live in Asia in April 2018. Additionally, the three and six months ended June 30, 2018 include $4.8 million of asset write-downs associated with the closure and sale of our Guangzhou factory.



(3)


 


Consists of depreciation related to the mark-up from cost to fair value of fixed assets acquired in business combinations.



(4)


 


The six months ended June 30, 2019 includes net deferred tax asset adjustments resulting from a lower statutory tax rate due to tax incentives at one of our China factories.


 

Contacts

Paul Arling, Chairman & CEO, UEI 480.530.3000

Kirsten Chapman, LHA Investor Relations 415.433.3777