Attached files
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| EX-99.3 - EXHIBIT 99.3 - ZAGG Inc | ex993.htm |
| EX-99.2 - EXHIBIT 99.2 - ZAGG Inc | ex992.htm |
| 8-K - ZAGG, INC. FORM 8-K - ZAGG Inc | form8k.htm |
Exhibit 99.1
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ZAGG INCORPORATED AND SUBSIDIARY
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(Unaudited)
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Three Months Ended
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Nine Months Ended
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September 30, 2010
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September 30, 2009
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September 30, 2010
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September 30, 2009
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Net sales
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$ | 23,055,763 | $ | 9,728,528 | $ | 46,882,039 | $ | 26,964,159 | ||||||||
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Cost of sales
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11,475,606 | 4,521,555 | 22,839,969 | 11,055,903 | ||||||||||||
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Gross profit
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11,580,157 | 5,206,973 | 24,042,070 | 15,908,256 | ||||||||||||
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Operating expenses:
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Advertising and marketing
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1,480,740 | 1,327,126 | 3,558,411 | 4,168,854 | ||||||||||||
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Selling, general and administrative
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3,946,121 | 2,408,559 | 9,774,293 | 6,801,112 | ||||||||||||
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Total operating expenses
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5,426,861 | 3,735,685 | 13,332,704 | 10,969,966 | ||||||||||||
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Income from operations
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6,153,296 | 1,471,288 | 10,709,366 | 4,938,290 | ||||||||||||
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Other (expense) income:
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Interest expense
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- | (62,034 | ) | (242,617 | ) | (64,654 | ) | |||||||||
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Interest and other income
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4,136 | 49,107 | 17,699 | 141,381 | ||||||||||||
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Total other (expense) income
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4,136 | (12,927 | ) | (224,918 | ) | 76,727 | ||||||||||
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Income before provision for income taxes
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6,157,432 | 1,458,361 | 10,484,448 | 5,015,017 | ||||||||||||
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Income tax provision
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(2,298,340 | ) | (550,280 | ) | (3,923,240 | ) | (1,884,432 | ) | ||||||||
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Net income
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$ | 3,859,092 | $ | 908,081 | $ | 6,561,208 | $ | 3,130,585 | ||||||||
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Basic net income per common share
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$ | 0.17 | $ | 0.04 | $ | 0.29 | $ | 0.15 | ||||||||
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Diluted net income per common share
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$ | 0.16 | $ | 0.04 | $ | 0.28 | $ | 0.14 | ||||||||
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Weighted average number of shares outstanding - basic
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22,565,300 | 21,540,033 | 22,375,468 | 20,630,819 | ||||||||||||
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Weighted average number of shares outstanding - diluted
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24,029,177 | 24,252,718 | 23,707,530 | 22,902,264 | ||||||||||||
1
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ZAGG INCORPORATED AND SUBSIDIARY
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RECONCILIATION OF NON-GAAP FINANCICAL INFORMATION TO GAAP
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(Unaudited)
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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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Nine months ended
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September 30, 2010
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September 30, 2009
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September 30, 2010
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September 30, 2009
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Net income in accordance with GAAP
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$ | 3,859,092 | $ | 908,081 | $ | 6,561,208 | $ | 3,130,585 | ||||||||||||
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Add/(less):
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| b. Stock based compensation expense | 196,593 | 190,632 | 676,837 | 476,084 | ||||||||||||||||
| c. Depreciation and amortization | 88,253 | 63,755 | 239,229 | 171,708 | ||||||||||||||||
| d. Provision for income taxes | 2,298,340 | 550,280 | 3,923,240 | 1,884,432 | ||||||||||||||||
| e. Other expense (income) | (4,136 | ) | 12,927 | 224,918 | (76,727 | ) | ||||||||||||||
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Adjusted EBITDA
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$ | 6,438,142 | $ | 1,725,675 | $ | 11,625,432 | $ | 5,586,082 | ||||||||||||
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Diluted Adjusted EBITDA per common share
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$ | 0.27 | $ | 0.07 | $ | 0.49 | $ | 0.24 | ||||||||||||
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Weighted average number of shares outstanding - diluted
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24,029,177 | 24,252,718 | 23,707,530 | 22,902,264 | ||||||||||||||||
2
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ZAGG INCORPORATED AND SUBSIDIARY
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CONDENSED CONSOLIDATED BALANCE SHEETS
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(Unaudited)
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September 30,
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December 31,
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2010
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2009
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ASSETS
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Current assets
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Cash
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$ | 5,885,935 | $ | 4,970,756 | ||||
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Accounts receivable, net
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14,144,051 | 5,450,722 | ||||||
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Inventories
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10,389,926 | 3,695,840 | ||||||
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Prepaid expenses and other current assets
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4,053,858 | 1,911,335 | ||||||
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Convertible bridge loan
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1,371,000 | 1,151,000 | ||||||
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Deferred income tax assets
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255,653 | 255,653 | ||||||
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Total current assets
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36,100,423 | 17,435,306 | ||||||
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Property and equipment, net
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1,063,858 | 887,705 | ||||||
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Deferred income tax assets
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446,154 | 446,154 | ||||||
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Deposits and other assets
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26,336 | 9,688 | ||||||
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Intangible assets, net
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146,310 | 119,627 | ||||||
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Total assets
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$ | 37,783,081 | $ | 18,898,480 | ||||
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities
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Accounts payable
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$ | 8,496,250 | $ | 2,781,425 | ||||
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Accrued liabilities
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4,521,563 | 1,252,461 | ||||||
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Accrued wages and wage related expenses
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264,794 | 164,495 | ||||||
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Deferred revenue
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312,909 | 262,937 | ||||||
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Sales returns liability
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1,376,281 | 550,201 | ||||||
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Total current liabilities
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14,971,797 | 5,011,519 | ||||||
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Total liabilities
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14,971,797 | 5,011,519 | ||||||
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Stockholders' equity
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Common stock, $0.001 par value; 50,000,000 shares authorized;
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23,135,278 and 21,690,195 shares issued and outstanding, respectively
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23,135 | 21,712 | ||||||
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Additional paid-in capital
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11,599,758 | 9,239,285 | ||||||
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Cumulative translation adjustment
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(110,819 | ) | (112,039 | ) | ||||
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Retained earnings
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11,299,210 | 4,738,003 | ||||||
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Total stockholders' equity
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22,811,284 | 13,886,961 | ||||||
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Total liabilities and stockholders' equity
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$ | 37,783,081 | $ | 18,898,480 | ||||
3