ZAGG INCORPORATED AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended | |||||
March 31, 2010 | March 31, 2009 | ||||
Net sales | $ | 8,775,559 | $ | 8,090,951 | |
Cost of sales | 3,831,857 | 2,895,143 | |||
Gross profit | 4,943,702 | 5,195,808 | |||
Operating expenses: | |||||
Advertising and marketing | 1,061,050 | 1,454,871 | |||
Selling, general and administrative | 2,550,860 | 2,137,045 | |||
Total operating expenses | 3,611,910 | 3,591,916 | |||
Income from operations | 1,331,792 | 1,603,892 | |||
Other income (expense): | |||||
Interest expense | (71,529) | (2,442) | |||
Interest and other income | 6,710 | 42,048 | |||
Total other (expense) income | (64,819) | 39,606 | |||
Income before provision for income taxes | 1,266,973 | 1,643,498 | |||
Income tax provision | (475,897) | (615,258) | |||
Net income | $ | 791,076 | $ | 1,028,240 | |
Basic net income per common share | $ | 0.04 | $ | 0.05 | |
Diluted net income per common share | $ | 0.03 | $ | 0.05 | |
Weighted average number of shares outstanding - basic | 21,719,274 | 19,185,642 | |||
Weighted average number of shares outstanding - diluted | 23,370,610 | 19,869,440 |
ZAGG INCORPORATED AND SUBSIDIARY
RECONCILIATION OF NON-GAAP FINANCICAL 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. | ||||||
Three months ended | ||||||
March 31, 2010 | March 31, 2009 | |||||
Net income in accordance with GAAP | $ | 791,076 | $ | 1,028,240 | ||
Add/(less): | ||||||
b. | Stock based compensation expense | 242,070 | 107,634 | |||
c. | Depreciation and amortization | 73,501 | 52,246 | |||
d. | Provision for income taxes | 475,897 | 615,258 | |||
e. | Other expense (income) | 64,819 | (39,606) | |||
Adjusted EBITDA | $ | 1,647,363 | $ | 1,763,772 | ||
Diluted Adjusted EBITDA per common share | $ | 0.07 | $ | 0.09 | ||
Weighted average number of shares outstanding - diluted | 23,370,610 | 19,869,440 |
ZAGG INCORPORATED AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, 2010 | December 31, 2009 | ||||
ASSETS | |||||
Current assets | |||||
Cash | $ | 5,133,439 | $ | 4,970,756 | |
Accounts receivable, net | 4,615,039 | 5,450,722 | |||
Inventories | 4,449,077 | 3,695,840 | |||
Prepaid expenses and other current assets | 2,912,604 | 1,911,355 | |||
Convertible bridge loan | 1,151,000 | 1,151,000 | |||
Deferred income tax assets | 255,653 | 255,653 | |||
Total current assets | 18,516,812 | 17,435,306 | |||
Property and equipment, net | 878,034 | 887,705 | |||
Deferred income tax assets | 446,154 | 446,154 | |||
Deposits and other assets | 27,047 | 9,688 | |||
Intangible assets, net | 116,521 | 119,627 | |||
Total assets | $ | 19,984,568 | $ | 18,898,480 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities | |||||
Accounts payable | $ | 2,335,885 | $ | 2,781,425 | |
Accrued liabilities | 1,713,564 | 1,252,461 | |||
Accrued wages and wage related expenses | 160,754 | 164,495 | |||
Deferred revenue | 279,789 | 262,937 | |||
Sales returns liability | 517,392 | 550,201 | |||
Total current liabilities | 5,007,384 | 5,011,519 | |||
Total liabilities | 5,007,384 | 5,011,519 | |||
Stockholders' equity | |||||
Common stock, $0.001 par value; 50,000,000 shares authorized; 21,733,279 and 21,711,862 shares issued and outstanding, respectively | 21,732 | 21,712 | |||
Additional paid-in capital | 9,536,450 | 9,239,285 | |||
Cumulative translation adjustment | (110,076) | (112,039) | |||
Retained earnings | 5,529,078 | 4,738,003 | |||
Total stockholders' equity | 14,977,184 | 13,886,961 | |||
Total liabilities and stockholders' equity | $ | 19,984,568 | $ | 18,898,480 |