Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - ZAGG Inc | ex992.htm |
| 8-K - ZAGG INC FORM 8-K - ZAGG Inc | form8k.htm |
Exhibit 99.1
ZAGG INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value)
(Unaudited)
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December 31,
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December 31,
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2011
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2010
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ASSETS
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Current assets
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Cash and cash equivalents
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$ | 26,433 | $ | 2,373 | ||||
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Accounts receivable, net of allowances of $2,070 in 2011 and $904 in 2010
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45,450 | 17,669 | ||||||
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Inventories
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29,622 | 17,947 | ||||||
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Prepaid expenses and other current assets
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1,593 | 2,620 | ||||||
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Related party other asset
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- | 3,900 | ||||||
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Deferred income tax assets
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5,018 | 2,196 | ||||||
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Total current assets
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108,116 | 46,705 | ||||||
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Investment in HzO
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4,879 | - | ||||||
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Property and equipment, net of accumulated depreciation at $1,801 in 2011 and $852 in 2010
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4,162 | 1,497 | ||||||
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Goodwill
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6,925 | - | ||||||
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Intangible assets, net of accumulated amortization at $3,989 in 2011 and $28 in 2010
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73,691 | 9,167 | ||||||
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Note receivable
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1,349 | - | ||||||
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Other assets
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3,010 | 63 | ||||||
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Total assets
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$ | 202,132 | $ | 57,432 | ||||
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LIABILITIES AND EQUITY
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Current liabilities
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Accounts payable
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$ | 16,013 | $ | 12,122 | ||||
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Income taxes payable
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3,998 | 8,031 | ||||||
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Accrued liabilities
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3,886 | 240 | ||||||
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Accrued wages and wage related expenses
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1,468 | 303 | ||||||
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Deferred revenue
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320 | 295 | ||||||
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Current portion of note payable
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2,372 | 31 | ||||||
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Sales returns liability
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5,387 | 2,068 | ||||||
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Total current liabilities
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33,444 | 23,090 | ||||||
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Deferred income tax liability
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100 | 1,561 | ||||||
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Revolving line of credit
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23,332 | - | ||||||
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Noncurrent portion of note payable
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42,628 | - | ||||||
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Total liabilities
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99,504 | 24,651 | ||||||
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Redeemable noncontrolling interest
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- | - | ||||||
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Stockholders' equity
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Common stock, $0.001 par value; 100,000 shares authorized;
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29,782 and 23,925 shares issued and outstanding, respectively
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30 | 24 | ||||||
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Additional paid-in capital
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70,248 | 15,495 | ||||||
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Cumulative translation adjustment
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(33 | ) | (60 | ) | ||||
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Note receivable collateralized by stock
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(566 | ) | - | |||||
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Retained earnings
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32,949 | 14,701 | ||||||
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Total stockholders' equity
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102,628 | 30,160 | ||||||
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Noncontrolling interest
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- | 2,621 | ||||||
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Total equity
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102,628 | 32,781 | ||||||
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Total liabilities and equity
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$ | 202,132 | $ | 57,432 | ||||
1
ZAGG INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
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Three Months Ended
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Twelve Months Ended
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December 31, 2011
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December 31, 2010
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December 31, 2011
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December 31, 2010
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Net sales
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$ | 67,492 | $ | 29,253 | $ | 179,125 | $ | 76,135 | ||||||||
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Cost of sales
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36,122 | 15,898 | 97,201 | 38,738 | ||||||||||||
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Gross profit
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31,370 | 13,355 | 81,924 | 37,397 | ||||||||||||
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Operating expenses:
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Advertising and marketing
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2,367 | 1,509 | 10,246 | 5,067 | ||||||||||||
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Selling, general and administrative
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14,624 | 5,742 | 43,541 | 15,516 | ||||||||||||
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Total operating expenses
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16,991 | 7,251 | 53,787 | 20,583 | ||||||||||||
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Income from operations
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14,379 | 6,104 | 28,137 | 16,814 | ||||||||||||
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Other income (expense):
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Interest expense
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(1,452 | ) | - | (3,022 | ) | (243 | ) | |||||||||
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Gain on deconsolidation of HzO
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1,906 | - | 1,906 | - | ||||||||||||
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Interest and other income
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(123 | ) | (11 | ) | (19 | ) | 7 | |||||||||
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Total other income (expense)
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331 | (11 | ) | (1,135 | ) | (236 | ) | |||||||||
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Income before provision for income taxes
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14,710 | 6,093 | 27,002 | 16,578 | ||||||||||||
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Income tax provision
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(5,083 | ) | (2,726 | ) | (9,418 | ) | (6,650 | ) | ||||||||
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Net income
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9,627 | 3,367 | 17,584 | 9,928 | ||||||||||||
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Net loss attributable to noncontrolling interest
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319 | 35 | 664 | 35 | ||||||||||||
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Net income attributable to stockholders
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$ | 9,946 | $ | 3,402 | $ | 18,248 | $ | 9,963 | ||||||||
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Earnings per share attributable to stockholders:
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Basic earnings per share
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$ | 0.34 | $ | 0.14 | $ | 0.67 | $ | 0.44 | ||||||||
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Diluted earnings per share
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$ | 0.32 | $ | 0.13 | $ | 0.63 | $ | 0.41 | ||||||||
2
ZAGG INC AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP
(in thousands, except per share amounts)
(Unaudited)
Unaudited Supplemental Data
The following information is not a financial measure under generally accepted accounting principals (GAAP). In addition, it should not be construed as an 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 one 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.
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Adjusted EBITDA Reconciliation
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Three Months Ended
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Twelve Months Ended
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December 31, 2011
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December 31, 2010
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December 31, 2011
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December 31, 2010
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Net income attributable to stockholders in accordance with GAAP
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$ | 9,946 | $ | 3,402 | $ | 18,248 | $ | 9,963 | ||||||||||
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Adjustments:
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| a. |
Stock based compensation expense
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584 | 317 | 3,258 | 993 | |||||||||||||
| b. |
Depreciation and amortization
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2,463 | 109 | 5,926 | 348 | |||||||||||||
| c. |
iFrogz acquisition expenses
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- | - | 1,947 | - | |||||||||||||
| d. |
iFrogz inventory fair value write up
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864 | - | 4,506 | - | |||||||||||||
| e. |
Provision for income taxes
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5,083 | 2,726 | 9,418 | 6,650 | |||||||||||||
| f. |
Impairment of note receivable
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418 | - | 1,489 | - | |||||||||||||
| g. |
Other( income) expense
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(331 | ) | 11 | 1,135 | 236 | ||||||||||||
| h. |
Noncontrolling interest
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(319 | ) | (35 | ) | (664 | ) | (35 | ) | |||||||||
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Adjusted EBITDA
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$ | 18,708 | $ | 6,530 | $ | 45,263 | $ | 18,155 | ||||||||||
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Diluted Adjusted EBITDA per common share
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$ | 0.60 | $ | 0.27 | $ | 1.56 | $ | 0.75 | ||||||||||
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Non-GAAP Reconciliation
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Three Months Ended
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Twelve Months Ended
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December 31, 2011
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December 31, 2010
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December 31, 2011
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December 31, 2010
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Net income attributable to stockholders in accordance with GAAP
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$ | 9,946 | $ | 3,402 | $ | 18,248 | $ | 9,963 | ||||||||||
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Adjustments:
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| a. |
Modification of stock option
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- | - | 1,560 | - | |||||||||||||
| b. |
iFrogz acquisition expenses
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- | - | 1,947 | - | |||||||||||||
| c. |
iFrogz inventory fair value write up
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864 | - | 4,506 | - | |||||||||||||
| d. |
Impairment of note receivable
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418 | - | 1,489 | - | |||||||||||||
| e. |
Gain on deconsolidation of HzO
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(1,906 | ) | - | (1,906 | ) | - | |||||||||||
| f. |
Income tax effects
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(755 | ) | - | (3,576 | ) | - | |||||||||||
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Non-GAAP net income attributable to stockholders
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$ | 8,567 | $ | 3,402 | $ | 22,268 | $ | 9,963 | ||||||||||
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Non-GAAP EPS attributable to stockholders
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$ | 0.27 | $ | 0.14 | $ | 0.77 | $ | 0.41 | ||||||||||
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Weighted average number of shares outstanding - diluted
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31,378 | 24,585 | 29,082 | 24,262 | ||||||||||||||
3