Attached files
| file | filename |
|---|---|
| EX-99.2 - RESULTS OF OPERATIONS PRESS RELEASE DATED NOVEMBER 3, 2015 - ZAGG Inc | f8k110315ex99ii_zagginc.htm |
| EX-99.3 - CFO COMMENTARY ON RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER, 2015 - ZAGG Inc | f8k110315ex99iii_zagginc.htm |
| 8-K - CURRENT REPORT - ZAGG Inc | f8k110315_zagginc.htm |
Exhibit 99.1
ZAGG INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value)
(Unaudited)
| September 30, | December 31, | |||||||
| 2015 | 2014 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 14,957 | $ | 9,461 | ||||
| Accounts receivable, net of allowances of $888 in 2015 and $1,910 in 2014 | 53,071 | 75,729 | ||||||
| Inventories | 45,352 | 48,378 | ||||||
| Prepaid expenses and other current assets | 3,162 | 2,681 | ||||||
| Deferred income tax assets | 10,774 | 10,774 | ||||||
| Total current assets | 127,316 | 147,023 | ||||||
| Property and equipment, net of accumulated depreciation at $9,737 in 2015 and $7,659 in 2014 | 6,987 | 7,300 | ||||||
| Intangible assets, net of accumulated amortization at $39,720 in 2015 and $33,242 in 2014 | 24,930 | 31,408 | ||||||
| Deferred income tax assets | 15,203 | 14,290 | ||||||
| Note receivable | - | 801 | ||||||
| Other assets | 1,502 | 457 | ||||||
| Total assets | $ | 175,938 | $ | 201,279 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 37,681 | $ | 49,379 | ||||
| Income taxes payable | 76 | 6,464 | ||||||
| Accrued liabilities | 5,280 | 6,910 | ||||||
| Accrued wages and wage related expenses | 2,176 | 2,600 | ||||||
| Deferred revenue | 21 | 179 | ||||||
| Sales returns liability | 5,176 | 8,674 | ||||||
| Total current liabilities | 50,410 | 74,206 | ||||||
| Total liabilities | 50,410 | 74,206 | ||||||
| Stockholders' equity | ||||||||
| Common stock, $0.001 par value; 100,000 shares authorized; 33,117 and 32,686 shares issued in 2015 and 2014, respectively | 33 | 33 | ||||||
| Additional paid-in capital | 87,549 | 85,154 | ||||||
| Accumulated other comprehensive loss | (1,232 | ) | (895 | ) | ||||
| Note receivable collateralized by stock | - | (348 | ) | |||||
| Treasury stock, 5,535 and 3,569 common shares in 2015 and 2014 respectively, at cost | (34,158 | ) | (19,576 | ) | ||||
| Retained earnings | 73,336 | 62,705 | ||||||
| Total stockholders' equity | 125,528 | 127,073 | ||||||
| Total liabilities and stockholders' equity | $ | 175,938 | $ | 201,279 | ||||
ZAGG INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||||
| Net sales | $ | 66,774 | $ | 60,013 | $ | 190,679 | $ | 159,170 | ||||||||
| Cost of sales | 41,903 | 50,849 | 117,894 | 115,441 | ||||||||||||
| Gross profit | 24,871 | 9,164 | 72,785 | 43,729 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Advertising and marketing | 2,759 | 1,377 | 7,450 | 4,763 | ||||||||||||
| Selling, general and administrative | 13,750 | 11,971 | 41,014 | 34,776 | ||||||||||||
| Amortization of definite-lived intangibles | 2,134 | 2,427 | 6,403 | 7,282 | ||||||||||||
| Total operating expenses | 18,643 | 15,775 | 54,867 | 46,821 | ||||||||||||
| Income (loss) from operations | 6,228 | (6,611 | ) | 17,918 | (3,092 | ) | ||||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (26 | ) | (40 | ) | (79 | ) | (124 | ) | ||||||||
| Other income and (expense) | (76 | ) | 90 | (53 | ) | 204 | ||||||||||
| Total other income (expense) | (102 | ) | 50 | (132 | ) | 80 | ||||||||||
| Income (loss) before provision for income taxes | 6,126 | (6,561 | ) | 17,786 | (3,012 | ) | ||||||||||
| Income tax (provision) benefit | (2,387 | ) | 2,242 | (7,155 | ) | 473 | ||||||||||
| Net income (loss) | $ | 3,739 | $ | (4,319 | ) | $ | 10,631 | $ | (2,539 | ) | ||||||
| Earnings (loss) per share: | ||||||||||||||||
| Basic earnings (loss) per share | $ | 0.13 | $ | (0.14 | ) | $ | 0.36 | $ | (0.08 | ) | ||||||
| Diluted earnings (loss) per share | $ | 0.13 | $ | (0.14 | ) | $ | 0.36 | $ | (0.08 | ) | ||||||
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ZAGG INC AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP
(Unaudited)
Unaudited Supplemental Data
The following are not financial measures under generally accepted accounting principals (GAAP). In addition, they should not be construed as alternative to any other measures of performance determined in accordance with GAAP, or as an indicator of our operating performance, liquidity or cash 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 information because we believe that it is helpful to some investors as a measure of our operations. We caution investors that non-GAAP financial information, by its nature, departs from traditional accounting conventions; accordingly, its use can make it difficult to compare our results with our results from other reporting periods and with the results of other companies.
| Adjusted EBITDA Reconciliation | Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||||
| Net income (loss) in accordance with GAAP | $ | 3,739 | $ | (4,319 | ) | $ | 10,631 | $ | (2,539 | ) | ||||||
| Adjustments: | ||||||||||||||||
| a. Stock based compensation expense | 898 | 506 | 2,708 | 1,677 | ||||||||||||
| b. Depreciation and amortization | 3,455 | 3,123 | 9,551 | 9,195 | ||||||||||||
| c. Recovery of reserves on note receivable | (639 | ) | - | (639 | ) | - | ||||||||||
| d. Other (income) expense | 102 | (50 | ) | 132 | (80 | ) | ||||||||||
| e. Provision for income taxes | 2,387 | (2,242 | ) | 7,155 | (473 | ) | ||||||||||
| Adjusted EBITDA | $ | 9,942 | $ | (2,982 | ) | $ | 29,538 | $ | 7,780 | |||||||
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