VOXX signs non-binding LOI to sell real estate in Pulheim, Germany
VOXX International announced financial results for its Fiscal 2019 fourth quarter and year ended February 28. The Company also provided updates on its corporate realignment program and other material updates related to its business operations and outlook.Net sales for the Fiscal 2019 year ended February 28 were $446.8M, as compared to $507.1M in the comparable year-ago period, a decline of $60.3M. In conjunction with the realignment of the international accessories business, the Company signed a non-binding Letter of Intent to sell its real estate in Pulheim, Germany, with anticipated gross proceeds of approximately $12.0 million. This pending sale is made possible by the successful consolidation of Oehlbach and Schwaiger into one facility. This sale, upon closing, will further strengthen the Company's cash position and balance sheet. As also communicated on April 29, 2019, the Company has a new reporting structure, which took effect on March 1, 2019. This move is in line with the restructuring initiatives that began in the prior Fiscal year, and which will continue in Fiscal 2020. The Company believes that as a result of the restructuring, it will be able to operate with a significantly lower cost structure and generate greater efficiencies.