Attached files
file | filename |
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8-K - MAINBODY - ZAGG Inc | mainbody.htm |
EX-99.2 - EXHIBIT 99.2 - ZAGG Inc | ex99_2.htm |
EX-99.3 - EXHIBIT 99.3 - ZAGG Inc | ex99_3.htm |
ZAGG INCORPORATED AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
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March 31, 2010
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March 31, 2009
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Net sales
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$ | 8,775,559 | $ | 8,090,951 | |
Cost of sales
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3,831,857 | 2,895,143 | |||
Gross profit
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4,943,702 | 5,195,808 | |||
Operating expenses:
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Advertising and marketing
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1,061,050 | 1,454,871 | |||
Selling, general and administrative
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2,550,860 | 2,137,045 | |||
Total operating expenses
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3,611,910 | 3,591,916 | |||
Income from operations
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1,331,792 | 1,603,892 | |||
Other income (expense):
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Interest expense
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(71,529) | (2,442) | |||
Interest and other income
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6,710 | 42,048 | |||
Total other (expense) income
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(64,819) | 39,606 | |||
Income before provision for income taxes
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1,266,973 | 1,643,498 | |||
Income tax provision
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(475,897) | (615,258) | |||
Net income
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$ | 791,076 | $ | 1,028,240 | |
Basic net income per common share
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$ | 0.04 | $ | 0.05 | |
Diluted net income per common share
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$ | 0.03 | $ | 0.05 | |
Weighted average number of shares outstanding - basic
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21,719,274 | 19,185,642 | |||
Weighted average number of shares outstanding - diluted
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23,370,610 | 19,869,440 |
ZAGG INCORPORATED AND SUBSIDIARY
RECONCILIATION OF NON-GAAP FINANCICAL INFORMATION TO GAAP
(Unaudited)
Unaudited Supplemental Data
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The following information is not a financial measure under generally accepted accounting principals (GAAP). In addition, it should not be construed as an
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alternative to any other measures of performance determined in accordance with GAAP, or as an indicator of our operating performance, liquidity or cash
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flows generated by operating, investing and financing activities as there may be significant factors or trends that it fails to address. We present this financial
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information because we believe that it is helpful to some investors as one measure of our operations. We caution investors that non-GAAP financial information,
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by its nature, departs from traditional accounting conventions; accordingly, its use can make it difficult to compare our results with our results from other
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reporting periods and with the results of other companies.
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Three months ended
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March 31, 2010
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March 31, 2009
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Net income in accordance with GAAP
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$ | 791,076 | $ | 1,028,240 | ||
Add/(less):
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b. |
Stock based compensation expense
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242,070 | 107,634 | |||
c. |
Depreciation and amortization
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73,501 | 52,246 | |||
d. |
Provision for income taxes
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475,897 | 615,258 | |||
e. |
Other expense (income)
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64,819 | (39,606) | |||
Adjusted EBITDA
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$ | 1,647,363 | $ | 1,763,772 | ||
Diluted Adjusted EBITDA per common share
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$ | 0.07 | $ | 0.09 | ||
Weighted average number of shares outstanding - diluted
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23,370,610 | 19,869,440 |
ZAGG INCORPORATED AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31,
2010 |
December 31,
2009 |
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ASSETS
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Current assets
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Cash
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$ | 5,133,439 | $ | 4,970,756 | |
Accounts receivable, net
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4,615,039 | 5,450,722 | |||
Inventories
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4,449,077 | 3,695,840 | |||
Prepaid expenses and other current assets
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2,912,604 | 1,911,355 | |||
Convertible bridge loan
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1,151,000 | 1,151,000 | |||
Deferred income tax assets
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255,653 | 255,653 | |||
Total current assets
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18,516,812 | 17,435,306 | |||
Property and equipment, net
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878,034 | 887,705 | |||
Deferred income tax assets
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446,154 | 446,154 | |||
Deposits and other assets
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27,047 | 9,688 | |||
Intangible assets, net
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116,521 | 119,627 | |||
Total assets
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$ | 19,984,568 | $ | 18,898,480 | |
LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities
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Accounts payable
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$ | 2,335,885 | $ | 2,781,425 | |
Accrued liabilities
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1,713,564 | 1,252,461 | |||
Accrued wages and wage related expenses
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160,754 | 164,495 | |||
Deferred revenue
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279,789 | 262,937 | |||
Sales returns liability
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517,392 | 550,201 | |||
Total current liabilities
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5,007,384 | 5,011,519 | |||
Total liabilities
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5,007,384 | 5,011,519 | |||
Stockholders' equity
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Common stock, $0.001 par value; 50,000,000 shares authorized;
21,733,279 and 21,711,862 shares issued and outstanding, respectively
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21,732 | 21,712 | |||
Additional paid-in capital
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9,536,450 | 9,239,285 | |||
Cumulative translation adjustment
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(110,076) | (112,039) | |||
Retained earnings
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5,529,078 | 4,738,003 | |||
Total stockholders' equity
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14,977,184 | 13,886,961 | |||
Total liabilities and stockholders' equity
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$ | 19,984,568 | $ | 18,898,480 |