Delicious
Digg
Facebook
LinkedIn
Twitter
First Quarter Highlights (First quarter 2012 versus first quarter 2011)
"We are pleased with our strong first quarter results, which reflect our
increased presence in our retail channel, the expansion of our product
offerings, and the underlying phenomenal demand for smartphones and
tablets," said
First Quarter Results
Consolidated revenue for the first quarter of 2012 increased 106% to
Gross profit for the first quarter of 2012 was
Operating income for the first quarter of 2012 was
Net income attributable to stockholders for the first quarter of 2012
was
Adjusted EBITDA
A reconciliation of the differences between Adjusted EBITDA and the most comparable financial measure calculated and presented in accordance with GAAP, is presented under the heading "Reconciliation of Non-GAAP Financial Information to GAAP" immediately following the Condensed Consolidated Statements of Operations included below.
The difference between Adjusted EBITDA per share, a non-GAAP measure, and GAAP EPS, is other income or expense, income tax provision, depreciation and amortization, and share-based compensation.
Adjusted EBITDA for the first quarter of 2012 was
Outlook
Conference Call
A conference call will be held today at
Non-GAAP Financial Disclosure
Investors are cautioned that the Adjusted EBITDA, or earnings before other income or expense, income tax provision, depreciation and amortization, and stock-based compensation, contained in this press release are not financial measures under generally accepted accounting principles. In addition, they should not be construed as alternatives to any other measures of performance determined in accordance with generally accepted accounting principles, or as indicators of our operating performance, liquidity or cash flows generated by operating, investing and financing activities, as there may be significant factors or trends that they fail to address. We present this financial information because we believe that it is helpful to some investors as a measure of our performance. 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 current results with our results from other reporting periods and with the results of other companies.
Safe Harbor Statement
This release contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended, and such
forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
"Forward-looking statements" describe future expectations, plans,
results, or strategies and are generally preceded by words such as
"may," "future," "plan" or "planned," "will" or "should," "expected,"
"anticipates," "draft," "eventually" or "projected." You are cautioned
that such statements are subject to a multitude of risks and
uncertainties that could cause future circumstances, events, or results
to differ materially from those projected in the forward-looking
statements, including the risks that actual results may differ
materially from those projected in the forward-looking statements as a
result of various factors, and other risks identified in filings made by
the company with the
| ZAGG INC AND SUBSIDIARIES | |||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||
| (in thousands, except per share amounts) | |||||||||||||
| (Unaudited) | |||||||||||||
|
|
December 31, | ||||||||||||
| 2012 | 2011 | ||||||||||||
| ASSETS | |||||||||||||
| Current assets | |||||||||||||
| Cash and cash equivalents | $ | 16,856 | $ | 26,433 | |||||||||
|
Accounts receivable, net of allowances of |
36,374 | 45,450 | |||||||||||
| Inventories | 25,656 | 29,622 | |||||||||||
| Prepaid expenses and other current assets | 5,387 | 1,593 | |||||||||||
| Deferred income tax assets | 5,063 | 5,132 | |||||||||||
| Total current assets | 89,336 | 108,230 | |||||||||||
| Equity method investment in HzO | 4,416 | 4,879 | |||||||||||
|
Property and equipment, net of accumulated
depreciation at |
4,423 | 4,162 | |||||||||||
| Goodwill | 6,925 | 6,925 | |||||||||||
|
Intangible assets, net of accumulated amortization at |
71,255 | 73,691 | |||||||||||
| Deferred income tax assets | 82 | 82 | |||||||||||
| Note receivable | 1,099 | 1,349 | |||||||||||
| Other assets | 3,051 | 3,010 | |||||||||||
| Total assets | $ | 180,587 | $ | 202,328 | |||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
| Current liabilities | |||||||||||||
| Accounts payable | $ | 16,637 | $ | 16,013 | |||||||||
| Income taxes payable | 2,223 | 4,294 | |||||||||||
| Accrued liabilities | 2,348 | 3,886 | |||||||||||
| Accrued wages and wage related expenses | 1,420 | 1,468 | |||||||||||
| Deferred revenue | 288 | 320 | |||||||||||
| Current portion of note payable | - | 2,372 | |||||||||||
| Sales returns liability | 5,163 | 5,387 | |||||||||||
| Total current liabilities | 28,079 | 33,740 | |||||||||||
| Revolving line of credit | 1,627 | 23,332 | |||||||||||
| Noncurrent portion of note payable | 41,000 | 42,628 | |||||||||||
| Total liabilities | 70,706 | 99,700 | |||||||||||
| Stockholders' equity | |||||||||||||
|
Common stock, |
30 | 30 | |||||||||||
| Additional paid-in capital | 72,409 | 70,248 | |||||||||||
| Cumulative translation adjustment | (53 | ) | (33 | ) | |||||||||
| Note receivable collaterlized by stock | (566 | ) | (566 | ) | |||||||||
| Retained earnings | 38,061 | 32,949 | |||||||||||
| Total stockholders' equity | 109,881 | 102,628 | |||||||||||
| Total liabilities and stockholders' equity | $ | 180,587 | $ | 202,328 | |||||||||
|
|
|
||||||||||||
| ZAGG INC AND SUBSIDIARIES | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (in thousands, except per share amounts) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
|
|
|
|||||||||||
| Net sales | $ | 55,480 | $ | 26,976 | ||||||||
| Cost of sales | 28,547 | 13,330 | ||||||||||
| Gross profit | 26,933 | 13,646 | ||||||||||
| Operating expenses: | ||||||||||||
| Advertising and marketing | 2,441 | 2,512 | ||||||||||
| Selling, general and administrative | 11,842 | 6,220 | ||||||||||
| Amortization of definite-lived intangibles | 2,422 | 50 | ||||||||||
| Total operating expenses | 16,705 | 8,782 | ||||||||||
| Income from operations | 10,228 | 4,864 | ||||||||||
| Other income (expense): | ||||||||||||
| Interest expense | (1,521 | ) | (11 | ) | ||||||||
| Loss from equity method investment in HzO | (463 | ) | - | |||||||||
| Interest and other income | (147 | ) | - | |||||||||
| Total other income (expense) | (2,131 | ) | (11 | ) | ||||||||
| Income before provision for income taxes | 8,097 | 4,853 | ||||||||||
| Income tax provision | (2,985 | ) | (1,595 | ) | ||||||||
| Net income | 5,112 | 3,258 | ||||||||||
| Net loss attributable to noncontrolling interest | - | 52 | ||||||||||
| Net income attributable to stockholders | $ | 5,112 | $ | 3,310 | ||||||||
| Earnings per share attributable to stockholders: | ||||||||||||
|
|
$ | 0.17 | $ | 0.14 | ||||||||
| Diluted earnings per share | $ | 0.16 | $ | 0.13 | ||||||||
| ZAGG INC AND SUBSIDIARIES | ||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP | ||||||||||
| (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. | ||||||||||
| Adjusted EBITDA Reconciliation | Three Months Ended | |||||||||
|
|
|
|||||||||
| Net income attributable to stockholders in accordance with GAAP | $ | 5,112 | $ | 3,310 | ||||||
| Adjustments: | ||||||||||
| a. | Stock based compensation expense | 1,342 | 304 | |||||||
| b. | Depreciation and amortization | 2,804 | 176 | |||||||
| c. | Provision for income taxes | 2,985 | 1,595 | |||||||
| d. |
Other (income) expense |
2,131 | 11 | |||||||
| Adjusted EBITDA | $ | 14,374 | $ | 5,396 | ||||||
| Diluted Adjusted EBITDA per common share | $ | 0.46 | $ | 0.21 | ||||||
| Weighted average number of shares outstanding - diluted | 31,417 | 26,216 | ||||||||
Investor Relations:
krogersc@genesisselect.com
or
Media:
Lane
PR
Amber@lanepr.com
or
Company:
nnelson@zagg.com
Source:
News Provided by Acquire Media
Mixx
Yahoo! Buzz