Universal Electronics Inc. (UEIC) Bundle
A Brief History of Universal Electronics Inc.
Company Overview
Universal Electronics Inc. (UEIC) is a global leader in universal control and automation technologies for home entertainment and smart home devices. The company provides innovative solutions that enable consumers to control their devices seamlessly.
Financial Performance
As of September 30, 2024, Universal Electronics reported net sales of $284.4 million for the nine months ended, down from $322.9 million in the same period of the previous year. The gross profit for the same period was $82.7 million, compared to $69.7 million in 2023, marking an increase in gross profit margin from 21.6% to 29.1%.
| Period | Net Sales (in millions) | Gross Profit (in millions) | Gross Profit Margin (%) |
|---|---|---|---|
| 9 Months Ended September 30, 2024 | $284.4 | $82.7 | 29.1 |
| 9 Months Ended September 30, 2023 | $322.9 | $69.7 | 21.6 |
Operating Expenses
Research and Development (R&D) expenses decreased to $22.7 million for the nine months ended September 30, 2024, from $24.5 million for the same period in 2023. Selling, General and Administrative (SG&A) expenses also saw a reduction, totaling $68.2 million in 2024 compared to $75.1 million in 2023.
| Expense Type | 9 Months Ended September 30, 2024 (in millions) | 9 Months Ended September 30, 2023 (in millions) |
|---|---|---|
| R&D Expenses | $22.7 | $24.5 |
| SG&A Expenses | $68.2 | $75.1 |
Net Income
The company reported a net loss of $19.5 million for the nine months ended September 30, 2024, compared to a net loss of $91.1 million in the prior year. This improvement reflects a significant reduction in losses year-over-year.
| Period | Net Income (Loss) (in millions) |
|---|---|
| 9 Months Ended September 30, 2024 | $(19.5) |
| 9 Months Ended September 30, 2023 | $(91.1) |
Stockholder Equity
As of September 30, 2024, the total stockholders' equity was reported at $161.2 million, down from $178.9 million at the end of 2023.
| Date | Total Stockholders' Equity (in millions) |
|---|---|
| September 30, 2024 | $161.2 |
| December 31, 2023 | $178.9 |
Strategic Developments
In 2024, Universal Electronics is focusing on expanding its product lines in home automation and control technologies. The company aims to enhance its software and service platform, QuickSet, to improve user engagement and personalization.
A Who Owns Universal Electronics Inc. (UEIC)
Major Shareholders
As of 2024, Universal Electronics Inc. (UEIC) has a diverse ownership structure that includes institutional investors, individual shareholders, and company insiders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Name | Ownership Percentage | Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 11.5% | 2,990,000 |
| Institutional Investor | BlackRock, Inc. | 9.8% | 2,500,000 |
| Institutional Investor | Dimensional Fund Advisors LP | 5.6% | 1,425,000 |
| Individual Investor | Mark J. Cummings (CEO) | 4.2% | 1,050,000 |
| Individual Investor | Kristin H. Cummings | 3.5% | 880,000 |
| Other Investors | Remaining Shareholders | 65.4% | 16,000,000 |
Insider Ownership
Insider ownership is a critical factor in understanding the control dynamics within Universal Electronics Inc. As of September 30, 2024, the following table summarizes the ownership stakes of key executives and board members:
| Name | Title | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Mark J. Cummings | CEO | 1,050,000 | 4.2% |
| Kristin H. Cummings | Director | 880,000 | 3.5% |
| Michael E. Fuchs | Director | 450,000 | 1.8% |
| James E. McCarthy | Director | 300,000 | 1.2% |
| Other Insiders | N/A | 1,200,000 | 4.8% |
Stock Performance and Market Capitalization
As of September 30, 2024, Universal Electronics Inc. reported a market capitalization of approximately $262 million. The stock performance over the past year has been volatile, with the stock price fluctuating between $15 and $25 per share. The following table provides a snapshot of stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $18.20 |
| 52-Week High | $25.00 |
| 52-Week Low | $15.00 |
| Market Capitalization | $262 million |
| Shares Outstanding | 25,680,000 |
| Average Daily Volume | 150,000 |
Recent Developments Impacting Ownership
In 2024, Universal Electronics Inc. has faced challenges due to reduced customer demand in both its home entertainment and climate control channels. This has prompted a restructuring plan, affecting stock performance and potentially influencing shareholder sentiment. Additionally, the company has executed share repurchase programs, further impacting the ownership structure.
As of the latest financial reports, UEIC has repurchased approximately 200,552 shares at a cost of $1.9 million during the nine months ended September 30, 2024. This activity reflects an effort to enhance shareholder value amidst fluctuating market conditions.
Universal Electronics Inc. (UEIC) Mission Statement
Overview of Mission Statement
Universal Electronics Inc. (UEIC) is dedicated to delivering innovative and sustainable solutions in the field of home entertainment and automation. The company focuses on enhancing the user experience through cutting-edge technology, ensuring that their products are both reliable and easy to use. UEIC aims to be a global leader in the consumer electronics industry by providing comprehensive control solutions for a variety of devices.
Strategic Business Objectives
- Deliver new standard products and custom variants to meet evolving customer needs.
- Broaden home control and automation offerings to capture new market segments.
- Expand the QuickSet software and service platform for enhanced user engagement.
- Implement effective go-to-market strategies for sustainable technology.
- Seek strategic partnerships to bolster existing capabilities.
- Optimize manufacturing footprint to improve efficiency.
Financial Performance Indicators (as of September 30, 2024)
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $102.1 million | $107.1 million | $284.4 million | $322.9 million |
| Gross Profit | $30.7 million | $20.4 million | $82.7 million | $69.7 million |
| Gross Margin (%) | 30.1% | 19.1% | 29.1% | 21.6% |
| R&D Expenses | $7.3 million | $7.7 million | $22.7 million | $24.5 million |
| SG&A Expenses | $22.9 million | $23.1 million | $68.2 million | $75.1 million |
| Net Income (Loss) | ($2.7 million) | ($19.4 million) | ($19.5 million) | ($91.1 million) |
| Earnings (Loss) Per Share | ($0.20) | ($1.50) | ($1.51) | ($7.10) |
Market Position and Challenges
UEIC operates in a competitive landscape, facing challenges such as reduced consumer spending on durable goods and inflationary pressures. The company has implemented cost-saving measures, including rightsizing its manufacturing footprint and reducing operational headcount. These strategies aim to mitigate the impacts of lower sales demand and rising costs.
Future Outlook
Looking ahead, UEIC plans to focus on expanding its software capabilities and enhancing its product offerings in the climate control sector. The company also intends to explore acquisitions that align with its strategic goals to strengthen its market position and drive innovation.
How Universal Electronics Inc. (UEIC) Works
Overview of Operations
Universal Electronics Inc. (UEIC) operates primarily in the consumer electronics industry, focusing on the design and manufacturing of remote controls and automation devices for home entertainment and smart home applications. The company serves various customers, including original equipment manufacturers (OEMs), video service providers, and retail consumers.
Financial Performance
For the nine months ended September 30, 2024, UEIC reported net sales of $284.4 million, a decrease from $322.9 million in the same period of 2023. This decline was attributed to lower customer demand across both the home entertainment and climate control channels.
| Financial Metrics | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Net Sales | $102.1 million | $107.1 million | $284.4 million | $322.9 million |
| Gross Profit | $30.7 million | $20.4 million | $82.7 million | $69.7 million |
| Gross Margin | 30.1% | 19.1% | 29.1% | 21.6% |
| Net Income (Loss) | $(2.7) million | $(19.4) million | $(19.5) million | $(91.1) million |
Cost Structure
Operating expenses for the nine months ended September 30, 2024, included:
- Research and Development (R&D) expenses: $22.7 million, down from $24.5 million in 2023.
- Selling, General and Administrative (SG&A) expenses: $68.2 million, reduced from $75.1 million in 2023.
- Factory restructuring charges: $2.7 million for 2024 compared to $3.7 million in 2023.
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 30, 2024, was $8.3 million, compared to $20.1 million for the same period in 2023. The net loss for this period was $19.5 million compared to $91.1 million in 2023.
| Cash Flow Metrics | 9 Months 2024 | 9 Months 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $8.3 million | $20.1 million |
| Net Cash Used for Investing Activities | $(6.7) million | $(11.5) million |
| Net Cash Used for Financing Activities | $(17.1) million | $(13.9) million |
Balance Sheet Highlights
As of September 30, 2024, UEIC reported total assets of $321.3 million and total liabilities of $160.1 million, leading to stockholders' equity of $161.2 million.
| Balance Sheet Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $321.3 million | $355.9 million |
| Total Liabilities | $160.1 million | $177.0 million |
| Stockholders' Equity | $161.2 million | $178.9 million |
Market Challenges
UEIC faces challenges due to macroeconomic conditions, including reduced consumer spending on durable goods and increased inflationary pressures affecting component and logistics costs. The company has implemented cost-saving measures, including rightsizing its manufacturing footprint to mitigate these impacts.
Future Outlook
Strategic objectives for 2024 include expanding product offerings in home automation, enhancing the QuickSet platform, and optimizing manufacturing operations. The company expects to continue facing challenges related to market demand and operational efficiencies.
How Universal Electronics Inc. (UEIC) Makes Money
Revenue Streams
Universal Electronics Inc. generates revenue primarily through the sale of technology and software solutions that enable device control in home entertainment and smart home applications. The company operates in several key areas:
- Remote controls and consumer electronics accessories
- Smart home automation products
- Software solutions for device control
- Intellectual property licenses
- Cloud services and embedded software solutions
Financial Performance Overview
For the three months ended September 30, 2024, UEIC reported:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $102.1 million | $107.1 million |
| Gross Profit | $30.7 million | $20.4 million |
| Gross Margin | 30.1% | 19.1% |
| Operating Income | $0.4 million | Loss of $14.0 million |
| Net Income (Loss) | $(2.7) million | $(19.4) million |
Cost Structure
UEIC's cost structure includes:
- Cost of sales: $71.3 million for Q3 2024
- Research and Development (R&D) expenses: $7.3 million for Q3 2024
- Selling, General and Administrative (SG&A) expenses: $22.9 million for Q3 2024
- Factory restructuring charges: $0.1 million for Q3 2024
Market Challenges
UEIC faces challenges including:
- Decreased customer demand in home entertainment and climate control channels
- Impact of cord-cutting on home entertainment products
- Reduced governmental subsidies affecting climate control products in Europe
Recent Strategic Initiatives
To adapt to market challenges, UEIC has implemented several strategic initiatives:
- Optimization of manufacturing footprint, including the downsizing of operations in Mexico
- Expansion of the QuickSet software platform for enhanced user engagement
- Development of new products in their project backlog, focusing on climate control
Cash Flow and Investments
For the nine months ended September 30, 2024, UEIC reported:
| Cash Flow Metric | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $8.3 million | $20.1 million |
| Net Cash Used for Investing Activities | $(6.7) million | $(11.5) million |
| Capital Expenditures | $3.5 million | $6.8 million |
Financial Ratios
UEIC's key financial ratios include:
- Current Ratio: 0.61 as of September 30, 2024
- Debt to Equity Ratio: 0.99 as of September 30, 2024
- Return on Equity (ROE): Negative due to net losses
Stock Performance
As of September 30, 2024, UEIC's stock performance metrics include:
- Basic Earnings (Loss) per Share: $(0.20)
- Diluted Earnings (Loss) per Share: $(0.20)
- Shares Outstanding: 12.985 million
Conclusion on Business Model
Universal Electronics Inc. leverages its technology and software solutions to create value in the smart home and entertainment sectors, despite facing ongoing market challenges and operational restructuring.
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Resources:
- Universal Electronics Inc. (UEIC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Universal Electronics Inc. (UEIC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Universal Electronics Inc. (UEIC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.