VOXX International Corporation reported unaudited consolidated earnings results for the third quarter and nine months ended November 30, 2013. For the quarter, net sales were $245.8 million, an increase of 1.1% compared to net sales of $243.0 million reported in the comparable year-ago period. The company reported operating income of $16.6 million as compared to operating income of $19.8 million in the comparable year ago period. The decline in operating income is directly attributed to lower gross profit and higher expenses, despite higher sales volumes. Net income was $15.4 million or net income per diluted share of $0.63 as compared to net income of $13.2 million and net income per diluted share of $0.56 for the comparable period last year. Net income for the three months ended November 30, 2013 was favorably impacted by an increase in other income as a result of a $4.3 million payment due from an OEM customer due to a contract shortfall, offset by lower interest and bank charges and higher income generated from the company's joint venture, ASA Electronics. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $27.7 million as compared to EBITDA of $25.8 million for the comparable period in Fiscal 2013. There were approximately $4.2 million in income adjustments related to the OEM contract shortfall, stock-based compensation and restructuring charges, resulting in adjusted EBITDA of $23.5 million for the fiscal 2014 third quarter as compared to adjusted EBITDA of $25.7 for the fiscal 2013 third quarter. Income before income taxes was $21.833 million against $19.460 million a year ago. CapEx was $3.9 million. Diluted adjusted EBITDA per common share was $0.96 against $1.09 a year ago.

For the nine months, net sales were $622.6 million, a decrease of 1.0% compared to net sales of $628.8 million reported in the comparable year-ago period. The company reported operating income of $22.2 million as compared to operating income of $29.7 million in the comparable year ago period. Similar to the three-month period comparisons, operating income declined due to lower sales volumes and higher operating expenses, many of which are not expected to repeat in Fiscal 2015. Net income was $22.4 million or net income per diluted share of $0.93 as compared to net income of $12.2 million and net income per diluted share of $0.52 for the comparable period last year. Net income was favorably impacted by improved gross margins, improved performance of the company's equity investment, lower interest expense and bank charges, lower acquisition and other professional fees, as well as funds the company received as part of a contract shortfall payment due, class action settlement and funds recovered related to the Circuit City bankruptcy. Additionally, net income during the Fiscal 2013 nine-month period was unfavorably impacted by expenses associated with the patent lawsuit and losses on forward exchange contracts, offset by income related to favorable legal settlements. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $50.3 million as compared to EBITDA of $36.4 million for the comparable period in Fiscal 2013, an increase of $13.9 million. There were approximately $7.6 million in income adjustments related to a contract shortfall from one of the company's OEM customers, restructuring charges, net settlements, the Circuit City recovery, Asia warehouse relocation expenses, and stock-based compensation in Fiscal 2014. This compares to $12.7 million in adjustments in the comparable Fiscal 2013 period which are related to net patent settlements, acquisition costs and foreign exchange losses related to its Hirschmann acquisition, Asia warehouse relocation charges and stock-based compensation. As a result, adjusted EBITDA for the fiscal 2014 nine-month period was $42.7 million as compared to $49.1 million in the comparable fiscal 2013 period. Income before income taxes was $32.690 million against $17.973 million a year ago. CapEx was approximately $9.6 million. Diluted adjusted EBITDA per common share was $1.76 against $2.08 a year ago.