Turtle Beach Highlights Recent Actions Supporting Shareholder Interests and Value Creation – Yahoo Finance

Company Delivered 10% EBITDA Margin in a Challenging Year and Remains On Track to Deliver Approximately $100 Million in Non-Console-Headset Revenues in 2022

Consistent Strong Performance Has Enabled Company to Deliver Five Year Total Shareholder Returns of Over 350%

Responds to Donerail Group’s Attempt to Take Control of Turtle Beach’s Board Without Any Value Proposition to Shareholders

Releases Letter Previously Sent to Donerail Outlining Company’s Good-Faith Attempt to Reach Constructive Resolution to Avoid Costly and Distracting Proxy Contest

WHITE PLAINS, N.Y., March 22, 2022–(BUSINESS WIRE)–Leading gaming accessory maker Turtle Beach Corporation (Nasdaq: HEAR) (the “Company”) today confirmed that the Donerail Group (“Donerail”), together with SCW Capital Management (collectively, the “Donerail Group”), has delivered a notice of their intent to nominate six candidates to stand for election to the Turtle Beach Board of Directors (the “Board”) at the Company’s 2022 Annual Meeting of Shareholders (“Annual Meeting”). If successful, this action would give Donerail effective control of the Company.

The Company notes that the Donerail Group failed to acknowledge Turtle Beach’s recent proactive outreach seeking a constructive resolution, despite Donerail’s campaign of disparaging and misleading public statements and public statements threatening a proxy contest for control of the Turtle Beach Board. The Company’s attempt, for the benefit of all shareholders, to avoid a costly, distracting and unnecessary proxy contest was made on March 14, 2022 and rejected as outlined below.

The Company issued the following statement:

Consistent Strong Performance Delivering Shareholder Returns

Under the Board’s oversight, Turtle Beach’s purpose-built management team has transformed the Company from a market-leading console gaming headset business into a diversified gaming and creator accessories business with ample room for growth. In fact, the Company recently reported the highest full-year total revenues in its history, and Turtle Beach’s 2021 performance reinforces the belief that its diverse portfolio, expert operational management and strong consumer demand for its products have positioned the Company well for future value creation.

Indeed, the Company’s successful execution of its strategic plan is driving strong financial results and innovative new products to the market. This consistency in performance has enabled Turtle Beach to deliver total shareholder returns of over 350% over the last five years, along with revenue and EBITDA growth of 111% and 812%, respectively over that same period.1

Further, Turtle Beach has a strong balance sheet and no outstanding debt, providing it with the financial flexibility to continue balancing investments in organic and inorganic growth opportunities, while returning capital to shareholders. Consistent with this, in 2021 the Company effectively allocated capital towards inventory management, a strategic acquisition to enter the streaming and creator markets, and share repurchases of approximately $5 million of stock.

Highly Qualified and Engaged Board Focused on Driving Shareholder Value

Turtle Beach maintains a strong and independent Board and regularly evaluates its composition to ensure it reflects the appropriate skills and expertise to oversee the Company’s continued transformation. To that end, in August 2019 and April 2021, respectively, the Board has added two directors who bring fresh perspectives and whose diverse backgrounds add to the Board’s deep bench of talent. Currently, the Board is comprised of six highly qualified, engaged and experienced directors, five of whom are independent and all of whom offer a diverse set of backgrounds and significant relevant …….

Source: https://finance.yahoo.com/news/turtle-beach-highlights-recent-actions-220900337.html


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