Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FOXF | ||
Entity Registrant Name | Fox Factory Holding Corp | ||
Entity Central Index Key | 1,424,929 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 37,025,076 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 287,813 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 6,944 | $ 4,212 |
Accounts receivable (net of allowances of $407 and $348 at December 31, 2015 and December 31, 2014, respectively) | 43,660 | 39,221 |
Inventory | 68,202 | 59,191 |
Prepaids and other current assets | 13,135 | 6,257 |
Total current assets | 131,941 | 108,881 |
Property, plant and equipment, net | 26,094 | 19,759 |
Deferred tax assets | 1,065 | 4,298 |
Goodwill | 57,653 | 58,745 |
Intangibles, net | 60,849 | 65,184 |
Other assets | 895 | 1,570 |
Total assets | 278,497 | 258,437 |
Current liabilities: | ||
Accounts payable | 32,072 | 30,371 |
Accrued expenses | 23,234 | 12,128 |
Reserve for uncertain tax positions | 8,924 | 7,785 |
Current portion of long-term debt | 2,837 | 2,837 |
Current portion of contingent consideration | 6,950 | 7,704 |
Total current liabilities | 74,017 | 60,825 |
Line of credit | 1,500 | 0 |
Long-term debt, less current portion | 44,325 | 47,163 |
Deferred rent | 695 | 681 |
Deferred tax liabilities | 0 | 7,414 |
Contingent consideration, less current portion | 5,700 | 13,548 |
Total liabilities | $ 126,237 | $ 129,631 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity | ||
Preferred stock, $0.001 par value—10,000 authorized and no shares issued or outstanding as of December 31, 2015 and December 31, 2014 | $ 0 | $ 0 |
Common stock, $0.001 par value—90,000 authorized; 37,415 shares issued and 37,025 outstanding as of December 31, 2015; 37,117 shares issued and 37,078 outstanding as of December 31, 2014 | 37 | 37 |
Additional paid-in capital | 102,860 | 97,577 |
Treasury stock, at cost; 390 common shares as of December 31, 2015 and 39 common shares as of December 31, 2014 | (5,807) | (571) |
Accumulated other comprehensive loss | (1,953) | (406) |
Retained earnings | 57,123 | 32,169 |
Total stockholders’ equity | 152,260 | 128,806 |
Total liabilities and stockholders’ equity | $ 278,497 | $ 258,437 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 531 | $ 348 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 37,415,000 | 37,117,000 |
Common stock, shares outstanding | 37,025,000 | |
Treasury Stock, shares | 390,000 | 39,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Sales | $ 366,798 | $ 306,734 | $ 272,746 |
Cost of sales | 254,756 | 212,314 | 192,617 |
Gross profit | 112,042 | 94,420 | 80,129 |
Operating expenses: | |||
Sales and marketing | 23,182 | 19,192 | 14,153 |
Research and development | 17,001 | 13,642 | 10,409 |
General and administrative | 21,053 | 17,683 | 11,408 |
Amortization of purchased intangibles | 8,525 | 6,424 | 5,378 |
Fair value adjustment of contingent consideration and acquisition related compensation | 6,937 | 2,856 | 0 |
Total operating expenses | 76,698 | 59,797 | 41,348 |
Income from operations | 35,344 | 34,623 | 38,781 |
Other expense, net: | |||
Interest expense | 1,549 | 999 | 4,125 |
Other (income) expense, net | (449) | (693) | (12) |
Other expense, net | 1,100 | 306 | 4,113 |
Income before income taxes | 34,244 | 34,317 | 34,668 |
Provision for income taxes | 9,290 | 6,631 | 10,566 |
Net income | $ 24,954 | $ 27,686 | $ 24,102 |
Earnings per share: | |||
Basic (in dollars per share) | $ 0.67 | $ 0.75 | $ 0.70 |
Diluted (in dollars per share) | $ 0.66 | $ 0.73 | $ 0.68 |
Weighted average shares used to compute earnings per share: | |||
Basic (in shares) | 36,989 | 36,756 | 34,571 |
Diluted (in shares) | 37,894 | 37,807 | 35,705 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 24,954 | $ 27,686 | $ 24,102 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (1,547) | (391) | (16) |
Other comprehensive (loss) income | (1,547) | (391) | (16) |
Comprehensive income | $ 23,407 | $ 27,295 | $ 24,086 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock [Member] | Additional paid-in capital | Accumulated other comprehensive (loss) income | Retained earnings (deficit) |
Beginning Balance at Dec. 31, 2012 | $ 29,584 | $ 33 | $ 49,169 | $ 1 | $ (19,619) | |
Beginning Balance (in shares) at Dec. 31, 2012 | 33,460,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercises of employee stock options (in shares) | 2,857,000 | |||||
Issuance of common stock upon exercises of employee stock options | 36,122 | $ 3 | 36,119 | |||
Stock-based compensation expense | 2,500 | 2,500 | ||||
Foreign currency translation adjustment | (16) | (16) | ||||
Net income | 24,102 | 24,102 | ||||
Ending Balance at Dec. 31, 2013 | 92,292 | $ 36 | 87,788 | (15) | 4,483 | |
Ending Balance (in shares) at Dec. 31, 2013 | 36,317,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercises of employee stock options (in shares) | 800,000 | |||||
Issuance of common stock upon exercises of employee stock options | 2,108 | $ 1 | 2,107 | |||
Excess tax benefit from exercise of stock options | $ 2,680 | 2,680 | ||||
Tax benefit from equity issuance costs | 958 | |||||
Repurchase of common stock (in shares) | (39,000) | |||||
Repurchase of common stock | $ (571) | $ (571) | ||||
Stock-based compensation expense | 4,044 | 4,044 | ||||
Foreign currency translation adjustment | (391) | (391) | ||||
Net income | 27,686 | 27,686 | ||||
Ending Balance at Dec. 31, 2014 | $ 128,806 | $ 37 | 97,577 | (406) | 32,169 | |
Ending Balance (in shares) at Dec. 31, 2014 | 37,117,000 | |||||
Treasury Stock, Ending Balance, shares at Dec. 31, 2014 | 39,000 | |||||
Treasury Stock, Ending Balance at Dec. 31, 2014 | $ (571) | (571) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercises of employee stock options (in shares) | 298,000 | |||||
Issuance of common stock upon exercises of employee stock options | (163) | $ 0 | (163) | |||
Excess tax benefit from exercise of stock options | $ 539 | 539 | ||||
Repurchase of common stock (in shares) | (351,000) | |||||
Repurchase of common stock | $ (5,236) | 0 | ||||
Stock-based compensation expense | 4,907 | 4,907 | ||||
Foreign currency translation adjustment | $ (1,547) | (1,547) | ||||
Treasury Stock, Shares, Acquired | 351,000 | |||||
Treasury Stock, Carrying Basis | (5,236) | |||||
Net income | $ 24,954 | 24,954 | ||||
Ending Balance at Dec. 31, 2015 | $ 152,260 | $ 37 | $ 102,860 | $ (1,953) | $ 57,123 | |
Ending Balance (in shares) at Dec. 31, 2015 | 37,025,000 | 37,415,000 | ||||
Treasury Stock, Ending Balance, shares at Dec. 31, 2015 | 390,000 | |||||
Treasury Stock, Ending Balance at Dec. 31, 2015 | $ (5,807) | $ (5,807) |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2013$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Dividend distribution, per share | $ 2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES: | |||
Net income | $ 24,954 | $ 27,686 | $ 24,102 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 13,063 | 9,730 | 7,759 |
Cost of goods on acquired inventory step up | 812 | 953 | 0 |
Provision for doubtful accounts | 75 | (18) | (74) |
Stock-based compensation | 4,907 | 4,044 | 2,500 |
Excess tax benefit from exercise of stock options | (539) | (2,680) | 0 |
Tax benefit from equity issuance costs | 0 | (958) | 0 |
Loss (gain) on disposal of property and equipment | 54 | (27) | (7) |
Deferred taxes | (4,364) | (5,399) | (3,236) |
Amortization of loan fees | 198 | 182 | 323 |
Write-off of unamortized loan origination costs from related party debt | 0 | 0 | 1,405 |
Gain on bargain purchase, net of deferred taxes | (315) | 0 | 0 |
Change in fair value of contingent consideration | (748) | 2,217 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (5,510) | (635) | (8,510) |
Inventory | (11,128) | (2,157) | (7,447) |
Income taxes | 2,272 | 2,563 | 2,965 |
Prepaids and other assets | (6,570) | (2,988) | (405) |
Accounts payable | 2,138 | 1,406 | 3,614 |
Accrued expenses | 10,709 | (764) | (169) |
Deferred rent | 14 | (250) | (201) |
Net cash provided by operating activities | 30,022 | 32,905 | 22,619 |
INVESTING ACTIVITIES: | |||
Acquisition of businesses | (2,414) | (70,938) | (1,117) |
Purchases of property and equipment | (10,894) | (4,625) | (3,932) |
Acquisition of other assets | 0 | (1,401) | 0 |
Proceeds from sale of property and equipment | 145 | 135 | 7 |
Net cash used in investing activities | (13,163) | (76,829) | (5,042) |
FINANCING ACTIVITIES: | |||
Proceeds from line of credit | 37,000 | 18,600 | 27,721 |
Payments on line of credit | (35,500) | (26,600) | (20,500) |
Payment of contingent consideration liability | (7,854) | 0 | 0 |
Proceeds from related party line of credit | 0 | 0 | 31,858 |
Payments on related party line of credit | 0 | 0 | (32,608) |
Proceeds from issuance of debt, net of origination fees of $278 | 0 | 79,556 | 0 |
Repayment of debt | (2,838) | (30,000) | 0 |
Repayment of related party debt | 0 | 0 | (58,500) |
Proceeds from initial public offering, net of underwriter fees | 0 | 0 | 39,857 |
Payments for deferred offering costs of initial public offering | 0 | 0 | (3,735) |
Tax benefit from equity issuance costs | 0 | 958 | 0 |
Proceeds (repurchases) from stock compensation, net | (163) | 2,108 | 0 |
Excess tax benefit from exercise of stock options | 539 | 2,680 | $ 0 |
Repurchase of common stock | (5,236) | (571) | |
Net cash (used in) provided by financing activities | (14,052) | 46,731 | $ (15,907) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (75) | (278) | (2) |
CHANGE IN CASH AND CASH EQUIVALENTS | 2,732 | 2,529 | 1,668 |
CASH AND CASH EQUIVALENTS-Beginning of period | 4,212 | 1,683 | 15 |
CASH AND CASH EQUIVALENTS-End of period | 6,944 | 4,212 | 1,683 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Income taxes | 15,928 | 9,338 | 10,778 |
Interest | 1,338 | 809 | 2,565 |
Deferred offering costs recorded in accounts payable | 0 | 0 | 1,401 |
Sport Truck USA, Inc. | |||
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Contingent consideration - acquisition of Sport Truck USA, Inc. | $ 0 | $ 19,035 | $ 0 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Statement of Cash Flows [Abstract] | |
Issuance of debt, origination fees | $ 0 |
Description of Business, Basis
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies Fox Factory Holding Corp. (the "Company") designs and manufactures performance ride dynamics products primarily for bicycles, side-by-side vehicles, on-road and off-road vehicles and trucks, all-terrain vehicles, snowmobiles, specialty vehicles and applications, and motorcycles. The Company acts both as a tier one supplier to leading action sports original equipment manufacturers and provides aftermarket products to retailers and distributors. Throughout this Form 10-K, unless stated otherwise or as the context otherwise requires, the "Company," "FOX," "Fox Factory," "we," "us," "our," and "ours" refer to Fox Factory Holding Corp. and its wholly owned operating subsidiaries on a consolidated basis. Basis of Presentation - The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Initial Public Offering - On August 13, 2013, the Company completed the initial public offering ("IPO") of its common stock pursuant to a registration statement on Form S-1. In the IPO, the Company sold 2,857 shares of common stock and the selling stockholders sold a total of 7,000 shares of common stock (including the shares sold pursuant to the exercise of the option granted to the underwriters) at an initial public offering price to the public of $15.00 per share. The Company received net proceeds from the IPO of approximately $36,122 from its sale of 2,857 shares of common stock after deducting underwriting discounts, commissions and offering expenses. The Company did not receive any proceeds from the sale of shares by the selling stockholders. The Company used the net proceeds it received to pay down related party debt. In July 2014, certain selling stockholders completed a secondary offering of the Company's common stock, which is described more fully in Note 9 - Stockholders' Equity . Principles of Consolidation - The consolidated financial statements include the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates - The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from management’s estimates. In the second quarter of 2014, the Company concluded an analysis of legal developments and business practices relative to the apportionment of income for state tax purposes that resulted in a change in estimate regarding income taxes. See Note 11 - Income Taxes . Reclassifications - We have reclassified certain prior period amounts within our consolidated balance sheet for the year ended December 31, 2014 and the condensed consolidated statement of cash flows for the year months ended December 31, 2014 to conform to our current year presentation. Foreign Currency Translation and Transaction - The functional currency of the Company’s non-U.S. entities is the local currency of the respective operations. The Company translates the financial statements of its non-U.S. entities into U.S. Dollars each reporting period for purposes of consolidation. Assets and liabilities of the Company’s foreign subsidiaries are translated at the period-end currency exchange rates while sales and expenses are translated at the average currency exchange rates in effect for the period. The effects of these translation adjustments are a component of other comprehensive income. Foreign currency transaction gains (losses) of $187 , $649 , and $ (5) for the years ended December 31, 2015, 2014 and 2013 , respectively, are included as a component of other income or expense. Cash and Cash Equivalents - Cash consists of cash maintained in a checking account. All highly liquid investments purchased with an original maturity date of 90 days or less at the date of purchase are considered to be cash equivalents. Accounts Receivable - Accounts receivable are unsecured customer obligations which generally require payment within various terms from the invoice date. The receivables are stated at the invoice amount. Financing terms vary by customer. Payments of accounts receivable are applied to the specific invoices identified on the customer’s remittance advice or if unspecified, generally to the earliest unpaid invoices. The carrying amount of accounts receivable is reduced by a valuation allowance that reflects management’s best estimate of amounts that may not be collected. All accounts or portions thereof deemed to be uncollectible or that may require an excessive collection cost are written off to the allowance for doubtful accounts. Concentration of Credit Risk - Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist primarily of cash and accounts receivable. A significant portion of the Company’s cash is held at two large financial institutions. The Company has not experienced any losses in such accounts. The Company mitigates its credit risk with respect to accounts receivable by performing ongoing credit evaluations and monitoring of its customers’ accounts receivable balances. The following customers accounted for 10% or more of the Company’s accounts receivable balance: December 31, 2015 2014 Customer A 16% 17% Customer B 8% 14% During the years ended December 31, 2015, 2014 and 2013 , Customer A from the table above represented 12% , 14% , and 17% of sales, respectively. The Company depends on a limited number of vendors to supply component parts for its products. The Company purchased 37% , 44% , and 48% of its product components for the years ended December, 31, 2015, 2014 and 2013 , respectively, from ten vendors. As of December 31, 2015 and 2014 , amounts due to these vendors represented 27% and 38% of accounts payable, respectively. Allowance for Doubtful Accounts -The Company records a provision for doubtful accounts based on historical experience and a detailed assessment of the collectability of its accounts receivable. In estimating the allowance for doubtful accounts, management considers, among other factors, the aging of the accounts receivable, historical write-offs, and the credit-worthiness of each customer. If circumstances change, such as higher-than-expected defaults or an unexpected material adverse change in a major customer’s ability to meet its financial obligations, the Company’s estimate of the recoverability of the amounts due could be reduced by a material amount. The following table presents the activity in the allowance for doubtful accounts: For the years ended December 31, Allowance for doubtful accounts: 2015 2014 2013 Balance, beginning of year $ 348 $ 366 $ 440 Add: bad debt (benefit) expense 75 (10 ) (45 ) Less: write-offs, net of recoveries (16 ) (8 ) (29 ) Balance, end of year $ 407 $ 348 $ 366 Inventories - Inventories are stated at the lower of actual cost (or standard cost which generally approximates actual costs on a first-in first-out basis) or market value. Cost includes raw materials, as well as direct labor and manufacturing overhead for products we manufacture. Market value is based on current replacement cost for raw materials and on a net realizable value for finished goods. Adjustments to reduce the cost of inventory to its net realizable value are made, if required, for estimated excess, obsolescence or impaired balances. Property and Equipment - Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Maintenance and repairs are charged to expense as incurred, and improvements and betterments are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from the balance sheet and any resulting gain or loss is reflected in operations in the period realized. Leasehold improvements are amortized on a straight-line basis over the terms of the lease, or the useful lives of the assets, whichever is shorter. The value assigned to land associated with buildings we own, which is not material, is not amortized. Depreciation and amortization periods for the Company’s property and equipment are as follows: Asset Classification Estimated useful life Machine shop equipment 10-15 years Manufacturing equipment 5-10 years Information systems, office equipment and furniture 3-5 years Transportation equipment 5 years Buildings 39 years Internal Use Computer Software Costs - Costs incurred to purchase and develop computer software for internal use are capitalized during the application development and implementation stages. These software costs have been for enterprise-level business and finance software that is customized to meet the Company’s operational needs. Capitalized costs are included in property and equipment and are amortized on a straight-line basis over the estimated useful life of the software beginning when the software project is substantially complete and placed in service. Costs incurred during the preliminary project stage and costs for training, data conversion, and maintenance are expensed as incurred. Impairment of Long-lived Assets -The Company periodically reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset is impaired or the estimated useful lives are no longer appropriate. If indicators of impairment exist and the undiscounted projected cash flows associated with such assets are less than the carrying amount of the assets, an impairment loss is recorded to write the assets down to their estimated fair values. Fair value is estimated based on discounted future cash flows. No impairment charges were recorded during the years ended December 31, 2015, 2014 and 2013 . Business Combinations - The Company accounts for acquisitions of entities that include inputs and processes and have the ability to create outputs as business combinations. The Company allocates the purchase price of the acquisition to the tangible assets acquired, liabilities assumed and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. During the measurement period, the Company records adjustments to provisional amounts recorded for assets acquired and liabilities assumed with the corresponding offset to goodwill. After the measurement period, which could be up to one year after the transaction date, subsequent adjustments are recorded to the Company’s consolidated statements of income. Goodwill and Intangible Assets - Goodwill represents the excess of purchase price over the fair value of the net assets of businesses acquired. Annually the Company either makes a qualitative assessment prior to proceeding to step 1 of the annual goodwill impairment test or performs a two-step impairment test. If the Company makes a qualitative assessment and it determines that the fair value of the reporting unit is less than its carrying amount, the Company would perform step 1 of the annual goodwill impairment test and, if necessary, proceed to step 2. Otherwise, no further evaluation is necessary. For the two-step impairment test, in the first step, the Company compares the fair value of the reporting unit to its carrying value, including goodwill. The Company determines the fair value of the reporting unit based on a weighting of income and market approaches. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired and no further testing is performed. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company performs the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. Impairments, if any, are charged directly to earnings. The Company has a single reporting unit for purposes of assessing goodwill impairment. No impairment charges have been incurred to date. Intangible assets include customer relationships and the Company’s core technology, are subject to amortization over their respective useful lives, and are classified in intangibles, net in the accompanying consolidated balance sheet. These intangibles are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be fully recoverable. If facts and circumstances indicate that the carrying value might not be recoverable, projected undiscounted net cash flows associated with the related asset or group of assets over their estimated remaining useful lives is compared against their respective carrying amounts. Trademarks and brands are considered to be indefinite life intangibles, and are not amortized but are subject to testing for impairment annually. No impairments of intangible assets were identified in the years ended December 31, 2015, 2014 and 2013 . Self-Insurance - Since January 2015, the Company has been partially self-insured for its U.S. employee health and welfare benefits. The Company’s liability for self-insurance is based on claims filed and an estimate of claims incurred but not yet reported. The Company considers a number of factors, including historical claims information, when determining the amount of the accrual. Costs related to the administration of the plan and related claims are expensed as incurred. The Company has third-party insurance coverage to limit exposure for individually significant claims. The estimate for unpaid claims incurred as of December 31, 2015 is $454 and is recorded within accrued expenses on the consolidated balance sheets. Revenue Recognition - The Company recognizes sales when persuasive evidence of an arrangement exists, title has transferred, the sales price is fixed or determinable, and collectability of the receivable is reasonably assured. Provisions for discounts, rebates, sales incentives, returns, and other adjustments are provided for in the period the related sales are recorded based on an assessment of historical trends and current projection of future results. Sales are recorded net of sales tax. Cost of Sales - Cost of sales primarily consists of materials and labor expense in the manufacturing of the Company’s products. Cost of sales also includes provisions for excess and obsolete inventory, warranty costs, certain allocated costs for facilities, depreciation and other manufacturing overhead. Additionally, it includes stock-based compensation for personnel directly involved with manufacturing the Company’s product offerings. Shipping and Handling Fees and Costs - The Company includes shipping and handling fees billed to customers in sales. Shipping costs associated with inbound freight are capitalized as part of inventory and included in cost of sales as products are sold. Sales and Marketing - Sales and marketing expenses include costs related to sales, customer service and marketing personnel, including their wages, employee benefits and related stock-based compensation, and occupancy related expenses. Other significant sales and marketing expenses include race support and sponsorships of events and athletes, advertising and promotions related to trade shows, travel and entertainment, and promotional materials, products and sales offices costs. Research and Development - Research and development expenses consist primarily of salaries and personnel costs, including wages, employee benefits and related stock-based compensation for the Company’s engineering, research and development teams, occupancy related expenses, fees for third party consultants, service fees, and expenses for prototype tooling and materials, travel, and supplies. The Company expenses research and development costs as incurred. General and Administrative - General and administrative expenses include costs related to executive, finance, information technology, human resources and administrative personnel, including wages, employee benefits and related stock-based compensation expenses. The Company records professional and contract service expenses, occupancy related expenses associated with corporate locations and equipment, and legal expenses in general and administrative expenses. Stock-Based Compensation - The Company measures stock-based compensation for all stock-based awards, including stock options and restricted stock units (“RSUs”), based on their estimated fair values on the date of the grant and recognizes the stock-based compensation cost for time-vested awards on a straight-line basis over the requisite service period. For performance-based RSUs, the amount of shares ultimately expected to vest is estimated at each reporting date based on management’s expectations regarding the relevant performance criteria. To the extent shares are expected to vest, the stock-based compensation cost is recognized on a straight-line basis over the requisite service period. The fair value of each stock option granted is estimated using the Black-Scholes option pricing model, net of estimated forfeitures. The forfeiture rate is based on an analysis of the Company’s actual historical forfeitures. The fair value of the RSU’s is equal to the fair value of the Company’s common stock on the grant date of the award. Income Taxes - The Company accounts for income taxes using an asset and liability approach. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Operating loss and tax credit carryforwards are measured by applying currently enacted tax laws. Valuation allowances are provided when necessary to reduce net deferred tax assets to an amount that is more likely than not to be realized. The Company recognizes the tax effects of an uncertain tax position only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date and then only in an amount more likely than not to be sustained upon review by the tax authorities. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. Advertising - Advertising costs are expensed as incurred. Costs incurred for advertising totaled $1,532 , $1,012 , and $448 for the years ended December 31, 2015, 2014 and 2013 , respectively. Warranties - The Company offers limited warranties on its products for one to two years . The Company recognizes estimated costs related to warranty activities as a component of cost of sales upon product shipment. The estimates are based upon historical product failure rates and historical costs incurred in correcting product failures. The recorded amount is adjusted from time to time for specifically identified warranty exposures. Actual warranty expenses are charged against the Company’s estimated warranty liability when incurred. Factors that affect the Company’s liability include the number of units, historical and anticipated rates of warranty claims, and the cost per claim. Fair Value of Financial Instruments - The Financial Accounting Standards Board ("FASB") has issued Accounting Standards Codification 820, Fair Value Measurements and Disclosures , that requires the valuation of assets and liabilities required or permitted to be either recorded or disclosed at fair value based on hierarchy of available inputs as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity). The carrying amounts of the Company’s financial instruments, including cash, receivables, accounts payable, and accrued liabilities approximate their fair values due to their short-term nature. Amounts owed under the Company's credit facility approximate fair value due to the variable interest rate features embedded in both the line of credit and term debt. Certain Significant Risks and Uncertainties - The Company is subject to those risks common in manufacturing-driven markets, including, but not limited to, competitive forces, dependence on key personnel, customer demand for its products, the successful protection of its proprietary technologies, compliance with government regulations, and the possibility of not being able to obtain additional financing when needed. Recent Accounting Pronouncements - In May 2014, the FASB and International Accounting Standards Board issued their converged standard on revenue recognition, Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers. This standard outlines a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that revenue is recognized when a customer obtains control of a good or service. A customer obtains control when it has the ability to direct the use of and obtain the benefits from the good or service. Transfer of control is not the same as transfer of risks and rewards, as it is considered in current guidance. We will apply the new guidance to determine whether revenue should be recognized over time or at a point in time. This standard will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted after December 15, 2016. The Company can choose to apply this standard retrospectively for each prior reporting period presented or retrospectively with the cumulative effect of initially applying the standard recognized at the date of the initial application in retained earnings. The Company expects to complete its assessment of the impact of the new guidance on its consolidated financial statements in 2016. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. This ASU requires reporting entities to classify deferred income taxes as non-current on the consolidated balance sheets. Deferred income taxes were previously required to be classified as current or non-current on the consolidated balance sheets. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 with early adoption permitted. The Company has elected to early adopt ASU 2015-17 on a retrospective basis and has presented all of its deferred tax assets and liabilities as non-current as of December 31, 2015 and 2014. The adoption of ASU 2015-17 did not have an impact on statements of income or cash flows. Other accounting standards updates effective after December 31, 2015, are not expected to have a material effect on the Company’s financial position, annual results of operations or cash flows. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consisted of the following: December 31, 2015 2014 Raw materials $ 43,468 $ 39,655 Work-in-process 1,921 1,568 Finished goods 22,813 17,968 Total inventory $ 68,202 $ 59,191 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment consisted of the following: December 31, 2015 2014 Machinery and manufacturing equipment $ 22,488 $ 17,739 Information systems, office equipment and furniture 9,829 5,297 Transportation equipment 2,243 2,041 Building and land 3,469 3,469 Leasehold improvements 6,970 5,971 Total 44,999 34,517 Less: accumulated depreciation and amortization (18,905 ) (14,758 ) Property, plant and equipment, net $ 26,094 $ 19,759 Depreciation expense was $4,538 , $3,306 , and $ 2,381 for the years ended December 31, 2015 , 2014 , and 2013 , respectively. |
Intangibles, net
Intangibles, net | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Intangible assets, excluding goodwill, are comprised of the following: Gross carrying amount Accumulated amortization Net carrying amount Weighted average life (years) December 31, 2015: Customer relationships $ 39,004 $ (13,013 ) $ 25,991 13 Core technology 33,400 (32,559 ) 841 8 Patents 1,335 (889 ) 446 4 Total $ 73,739 $ (46,461 ) 27,278 Trademarks and brands, not subject to amortization 33,571 Total $ 60,849 December 31, 2014: Customer relationships $ 36,555 $ (9,144 ) $ 27,411 13 Core technology 33,700 (28,438 ) 5,262 8 Patents 835 (394 ) 441 5 Total $ 71,090 $ (37,976 ) 33,114 Trademarks and brands, not subject to amortization 32,070 Total $ 65,184 For the years ended December 31, 2015 2014 2013 Amortization of intangibles $ 8,525 $ 6,424 $ 5,378 The Company acquired intangible assets in conjunction with acquisitions. The company recorded valuation adjustments during the year ended December 31, 2015 , as more fully described in Note 15 - Acquisitions . The acquired definite lived assets will be amortized on a straight-line basis. Goodwill activity consisted of the following: Balance as of December 31, 2014 $ 58,745 Acquisitions - Refer to Note 15, Acquisitions 567 Purchase accounting adjustments - Refer to Note 15, Acquisitions (1,593 ) Currency translation and other adjustments (66 ) Balance as of December 31, 2015 $ 57,653 Future amortization expense for finite-lived intangibles as of December 31, 2015 is as follows: For the years ending December 31, Amortization Expense 2016 $ 2,962 2017 2,798 2018 2,773 2019 2,706 2020 2,015 Thereafter 14,024 Total expected future amortization $ 27,278 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following: December 31, 2015 2014 Payroll and related expenses $ 8,143 $ 5,352 Management earn-out 7,242 274 Warranty 3,914 4,215 Income tax payable 1,949 1,405 Other accrued expenses 1,986 882 Total $ 23,234 $ 12,128 Activity related to warranties is as follows: For the years ended December 31, 2015 2014 2013 Beginning warranty liability $ 4,215 $ 3,857 $ 4,582 Charge to cost of sales 3,616 4,381 4,491 Fair value of warranty assumed in acquisition — 382 — Costs incurred (3,917 ) (4,405 ) (5,216 ) Ending warranty liability $ 3,914 $ 4,215 $ 3,857 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In September 2014, the Company entered into an agreement with Compass to assist with compliance requirements pursuant to the Sarbanes-Oxley Act of 2002, as amended. While the Company was a majority-owned subsidiary, Compass provided and incurred the cost of these services to meet its own obligations as a public company. Subsequent to the secondary offering in July 2014, described in Note 9 - Stockholders' Equity , these services are not within the scope of Compass' compliance requirements. Compass has agreed to provide these services on the Company's behalf through March 31, 2016 at an estimated annual cost of approximately $150 . In August 2013, in connection with its IPO, the Company repaid all indebtedness and terminated its Credit Facility with Compass, recognizing a non-cash expense of approximately $1,405 related to unamortized loan origination costs. Interest expense on the Prior Credit Facility was approximately $2,179 for the years ended December 31, 2013. The Company paid annual management fees of $308 to an affiliate of Compass for the year ended December 31, 2013, which are included as part of general and administrative expenses. The Company terminated the management services agreement with Compass upon the consummation of the IPO. Fox Factory, Inc. has a triple-net building lease for its manufacturing and office facilities in Watsonville, California. The building is owned by Robert Fox, a founder and minority stockholder of the Company. The term of the lease ends June 30, 2018 , with monthly rental payments, which are adjusted annually for a cost-of-living increase based upon the consumer price index. Payments made under this lease were $1,203 , $1,186 and $1,156 for the years ended December 31, 2015, 2014 and 2013 , respectively. See Note 8 - Commitments and Contingencies for a summary of the future minimum lease payments under this operating lease. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Amended and Restated 2013 Credit Facility In August 2013, the Company entered into a credit facility with Sun Trust Bank and other named lenders (the "2013 Credit Facility"). The 2013 Credit Facility provided a revolving line of credit. On March 31, 2014, the Company amended and restated the 2013 Credit Facility (the “Amended and Restated 2013 Credit Facility”). The Amended and Restated 2013 Credit Facility provided a maturing secured term loan in the principal amount of $50,000 (the "Term Loan"), subject to quarterly amortization payments, and extended the term of the 2013 Credit Facility through March 31, 2019. The proceeds of the Term Loan were used, in part, to fund the acquisition of Sport Truck USA, Inc. ("Sport Truck") and to pay down the revolving line of credit provided under the 2013 Credit Facility. On December 12, 2014, the Company entered into the First Amendment to the Amended and Restated 2013 Credit Facility. The First Amendment increased the Term Loan by the principal amount of $30,000 to a total of $56,750 , subject to quarterly amortization payments, and extended the maturity of the Amended and Restated 2013 Credit Facility through December 12, 2019. The additional proceeds of the Term Loan made available through the First Amendment were used to partially fund the acquisition of Race Face Performance Products, Inc. and Easton Cycling (together "Race Face/Easton"). The Amended and Restated 2013 Credit Facility provides for interest at either a rate based on the London Interbank Offered Rate, or LIBOR, plus a margin ranging from 1.50% to 2.50% , or based on the prime rate offered by SunTrust Bank plus a margin ranging from 0.50% to 1.50% . At December 31, 2015 the one month LIBOR and prime rates were 0.24% and 3.50% , respectively. The Amended and Restated 2013 Credit Facility is secured by substantially all of the Company’s assets, restricts the Company's ability to make certain payments and engage in certain transactions, and also requires that the Company satisfy customary financial ratios. The Company was in compliance with the covenants as of December 31, 2015 . The following table summarizes the line of credit under the Amended and Restated 2013 Credit Facility and the 2013 Credit Facility: December 31, 2015 2014 Amount outstanding $ 1,500 $ — Available borrowing capacity $ 58,500 $ 60,000 Maximum borrowing capacity $ 60,000 $ 60,000 As of December 31, 2015 , future principal payments for the Term Loan, including the current portion, are summarized as follows: For the years ending December 31, 2016 2,837 2017 4,256 2018 4,256 2019 35,813 Total 47,162 Less: current portion (2,837 ) Long-term debt less current portion $ 44,325 Prior Credit Facility In August 2013, in connection with its IPO, the Company repaid all indebtedness and terminated its Credit Facility with Compass, See Note 6 - Related Party Transactions . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases - The Company has operating lease agreements for administrative, research and development, manufacturing and sales and marketing facilities and equipment that expire at various dates. The Company recognizes rent expense on a straight-line basis over the lease term and records the difference between cash rent payments and the recognition of rent expense as a deferred rent liability. Rent expense was $4,611 , $3,214 , and $2,953 for the years ended December 31, 2015 , 2014 and 2013 , respectively. See Note 6 - Related Party Transactions for additional information on related party operating leases. Approximate remaining future minimum lease payments under these operating leases as of December 31, 2015 , are as follows: For the years ending December 31, Third party future payments Related party future payments Total future payments 2016 2,901 1,203 4,104 2017 2,436 1,203 3,639 2018 1,756 601 2,357 2019 1,041 — 1,041 2020 946 — 946 Thereafter 146 — 146 $ 9,226 $ 3,007 $ 12,233 Indemnification Agreements - In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by the Company or intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with directors and certain officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. While the outcome of these matters cannot be predicted with certainty, the Company does not believe that the outcome of any claims under indemnification arrangements will have a material effect on the Company’s results of operations, financial position or liquidity. Legal Proceedings - The Company is currently involved in legal matters that arise in the normal course of business. Based on information currently available, management does not believe that the ultimate resolution of these matters will have a material adverse effect on the Company's financial condition, results of operations and cash flows. Were an unfavorable ruling to occur, or if factors indicate that a loss is probable and reasonably estimable, there exists the possibility of a material adverse impact on the results of operations in the future. Other Commitments - In connection with the acquisition of businesses, the Company has agreed to pay up to $32,263 in additional consideration and acquisition related compensation through 2017, contingent in one case upon the achievement of certain financial performance goals and in one case continued employment through the 2017 scheduled payment date. A portion of the obligation is denominated in Canadian Dollars. See Note 12 - Fair Value Measurements and Note 15 - Acquisitions . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity | Stockholders' Equity Secondary Offering In July 2014, selling stockholders, including Compass, sold 5,750 shares of the Company's common stock at a price of $15.50 per share, less underwriting discounts and commissions, in a secondary public offering. The total shares sold include 750 shares, which were also sold by certain selling stockholders, in connection with the underwriters' option to purchase additional shares. The Company did not sell shares or receive any proceeds from the sales of shares by the selling stockholders. The Company incurred approximately $469 of expenses in connection with the offering during the year ended December 31, 2014. Share Repurchase Program On November 3, 2014, the Company's Board of Directors authorized the repurchase of up to an aggregate of $40,000 in shares of common stock under a stock repurchase program. Shares of common stock repurchased under this program are accounted for as treasury stock using the cost method. Treasury stock is included as a component of stockholders’ equity. During the year ended December 31, 2015 , the Company repurchased 351 shares for a total of $5,236 . Since the inception of the program, the Company has repurchased 390 shares for a total of $5,807 . The repurchase program expired on December 31, 2015. On February 25, 2016, the Company's Board of Directors authorized a new share repurchase program for up to $40,000 of the Company’s common shares outstanding. The new repurchase program will expire on December 31, 2017. Equity Incentive Plans The Company has outstanding awards under the following equity incentive plans: the 2008 Stock Option Plan (the "2008 Plan"), the 2008 Non-Statutory Stock Option Plan (the "2008 Non-Statutory Plan") and the 2013 Omnibus Plan (the "2013 Plan"). No further awards will be granted pursuant to the 2008 Plan or the 2008 Non-Statutory Plan. Under the 2013 Plan, the Company has the ability to issue incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, RSUs, performance units and/or performance shares. The equity incentive plans are administered by the Compensation Committee of the board of directors of the Company, which has the authority to determine the type of incentive award, as well as the terms and conditions of the awards. Options granted under the plans have vesting periods ranging from one to five years and expire no later than 10 years from the date of grant. RSUs generally vest over a four -year period with 25% vesting at the end of one year and the remaining vesting annually thereafter. In addition to time-based vesting criteria, certain of our RSUs include performance-based vesting criteria. As of December 31, 2015 , there were 4,965 shares reserved for issuance under the Company's equity incentive plans and 2,549 shares available for grant under the 2013 Plan. Stock-Based Compensation Compensation expense related to the Company's share-based awards for the years ended December 31, 2015 , 2014 and 2013 was $4,907 , $4,044 and $2,500 , respectively, of which $4,576 , $3,401 and $897 , respectively, related to RSUs and $331 , $643 and $1,603 , respectively, related to stock options. The following table summarizes the allocation of stock-based compensation in the accompanying consolidated statements of income: For the years ended December 31, 2015 2014 2013 Cost of sales $ 82 $ 43 $ 23 Sales and marketing 430 279 158 Research and development 178 88 53 General and administrative 4,217 3,634 2,266 Total $ 4,907 $ 4,044 $ 2,500 Stock-based compensation expense capitalized to inventory was not material for the years ended December 31, 2015 , 2014 and 2013 . Restricted Stock Units The Company grants both time-based and performance-based stock awards which also include a time-based vesting feature. Compensation expense for time-based stock awards is measured at the grant date based on the closing market price of the Company's common stock, and recognized ratably over the vesting period. On September 2, 2014, the Company and certain of its officers agreed to amend certain existing award agreements, thereby canceling the 19 existing RSU time-based awards and reissuing such awards in tranches that are subject to both time and performance-based vesting conditions, allowing the Company to ensure the tax deductibility of the RSU expense as 162(m) performance-based compensation. The cancellation and replacement was accounted for as a modification. Compensation expense for the modified awards is based on the original grant-date closing market price of the Company's common stock. For purposes of measuring compensation expense, the amount of shares ultimately expected to vest is estimated at each reporting date based on management’s expectations regarding the relevant performance criteria. Assuming performance goals are achieved, the Company does not expect to record incremental stock-based compensation expense as a result of the modification. The recognition of compensation expense associated with performance-based stock awards requires defined criteria for assessing achievement and judgment in assessing the probability of meeting the performance goals. The following table summarizes RSU activity: Unvested RSUs Number of shares outstanding Weighted-average grant date fair value Unvested at December 31, 2013 516 $ 17.53 Granted 783 17.30 Canceled (386 ) 17.52 Vested (133 ) 17.53 Unvested at December 31, 2014 780 17.30 Granted 246 16.60 Canceled (19 ) 16.93 Vested (234 ) 17.36 Unvested at December 31, 2015 773 $ 17.07 As of December 31, 2015 , the Company had approximately $10,731 of unrecognized stock-based compensation expense related to RSUs, which will be recognized over the remaining weighted-average vesting period of approximately 2.40 years. Stock Options The Company issued no stock options in the years ended December 31, 2015 and 2014 . For the year ended December 31, 2013 , the fair value of options on the date of grant was estimated using the Black-Scholes option-pricing model using the single-option award approach with the following weighted average assumptions; expected term of 5.5 years , volatility of 36% , and risk-free interest rate of 0.79% . The Company estimated the expected term of options granted by taking the average of the vesting term and the contractual term of the option. Estimated volatilities were based on an analysis of comparable companies and the Company’s leverage. The risk-free interest rate is based on zero coupon U.S. Treasury bond rates corresponding to the expected life of the awards. Although the Company paid a dividend in connection in 2012, the Company does not intend to pay cash dividends in the future. As such, expected dividends are zero . Expected forfeitures are based on the Company’s historical experience. The following table summarizes stock option activity: Number of shares outstanding Weighted-average exercise price Weighted-average remaining contractual life (years) Aggregate intrinsic value Balance at December 31, 2012 2,502 $ 4.88 9 $ 6,828 Options granted (weighted average fair value of $2.59 per share) 9 7.59 Balance at December 31, 2013 2,511 4.88 8 $ 32,001 Options exercised (711 ) 3.90 $ 8,963 Options forfeited (58 ) 5.75 Balance at December 31, 2014 1,742 5.25 7 $ 19,136 Options exercised (99 ) 3.99 $ 1,332 Options forfeited — — Balance at December 31, 2015 1,643 5.32 6 $ 18,414 Options vested and expected to vest - December 31, 2015 1,643 5.32 6 $ 18,414 Options exercisable - December 31, 2015 1,381 $ 5.25 6 $ 15,579 Aggregate intrinsic value represents the difference between the closing price of the Company's common stock on Nasdaq and the exercise price of outstanding, in-the-money options. As of December 31, 2015 , the Company had approximately $362 of unrecognized stock-based compensation expense related to stock options, which will be recognized over the remaining weighted-average vesting period of approximately 1.52 years. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The carrying value of the Company’s financial instruments, including cash, accounts receivable and accounts payable approximate their fair value as of December 31, 2015 and 2014 , based on Level 1 inputs. As of December 31, 2015 and 2014 , the carrying amount of the principal under the Company’s First Amendment to Amended and Restated 2013 Credit Facility approximates fair value because the facility has variable interest rates that reflect market changes in interest rates and changes in the Company’s net leverage ratio. The Company used Level 2 inputs to determine the fair value of its credit facility. The Company measured its contingent consideration liability arising from the acquisition of Sport Truck using Level 3 unobservable inputs (see Note 15 - Acquisitions ). The fair value of the contingent consideration liability associated with the achievement of adjusted EBITDA targets is estimated at each balance sheet date by applying a Black-Scholes model to the Company's most recent financial projection. The unobservable inputs to the valuation model that have the most significant effect on the estimated fair value of the Company's contingent consideration liability are the projected results, the probabilities that actual results will exceed the projection and the volatility surrounding the expected results. The Company estimated the probabilities of actual results exceeding the projection during the remaining years of the earn-out at approximately 70% as of December 31, 2015 , compared to an overall estimate of 75% for all annual periods at the acquisition date. Additionally, volatility was measured at 32% as of December 31, 2015 , compared to 41% at the acquisition date. The adjustment in fair value is recorded in the accompanying consolidated statement of income for the year ended December 31, 2015 as a component of fair value adjustment of contingent consideration and acquisition related compensation. The following table provides a reconciliation of the beginning and ending balances for the Company's contingent consideration liability measured at fair value using Level 3 inputs: Contingent consideration liability (level 3 measurement) Balance at December 31, 2014 $ 21,252 Change in fair value (748 ) Payment of contingent liability (7,854 ) Balance at December 31, 2015 $ 12,650 There were no transfers of assets or liabilities between Level 1, Level 2 and Level 3 categories of the fair value hierarchy during the years ended December 31, 2015 , 2014 and 2013 . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share ("EPS") amounts are computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted EPS amounts are computed by dividing net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. Potentially dilutive common shares include shares issuable upon the exercise of outstanding stock options and vesting of restricted stock units, which are reflected in diluted earnings per share by application of the treasury stock method. The following table presents the calculation of basic and diluted earnings per share: For the years ended December 31, 2015 2014 2013 Net income $ 24,954 $ 27,686 $ 24,102 Weighted average shares used to compute basic earnings per share 36,989 36,756 34,571 Dilutive effect of employee stock plans 905 1,051 1,134 Weighted average shares used to compute diluted earnings per share 37,894 37,807 35,705 Earnings per share: Basic $ 0.67 $ 0.75 $ 0.70 Diluted $ 0.66 $ 0.73 $ 0.68 The Company did not exclude any potentially dilutive shares from the calculation of diluted earnings per share for the years ended December 31, 2015 , 2014 , and 2013 , as none of these shares would have been antidilutive. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense are as follows: For the years ended December 31, 2015 2014 2013 Current: Federal $ 11,468 $ 15,122 $ 10,282 State (22 ) (3,772 ) 3,135 Foreign 2,208 680 385 Total 13,654 12,030 13,802 Deferred: Federal (3,751 ) (5,016 ) (2,912 ) State (613 ) (383 ) (324 ) Total (4,364 ) (5,399 ) (3,236 ) Total provision $ 9,290 $ 6,631 $ 10,566 The Company's income before provision for income taxes was subject to taxes in the following jurisdictions for the following periods: For the years ended December 31, 2015 2014 2013 United States $ 24,308 $ 27,162 $ 35,098 Foreign 9,936 7,155 (430 ) $ 34,244 $ 34,317 $ 34,668 The following table presents a reconciliation of the statutory federal rate and the Company’s effective tax rate for the periods presented: For the years ended December 31, 2015 2014 2013 Tax at federal statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 2.2 1.5 4.7 Reapportionment benefit (0.1 ) (11.8 ) — Change in liability for unrecognized tax benefits (2.8 ) (4.0 ) (3.7 ) Manufacturing deduction (2.0 ) (2.7 ) (2.9 ) Research and development tax credit (2.9 ) (0.8 ) (2.7 ) Stock-based compensation (0.1 ) (0.1 ) 0.1 Other (2.2 ) 2.2 — Total provision 27.1 % 19.3 % 30.5 % On December 18, 2015, the Protecting Americans From Tax Hikes Act was signed into law reinstating the federal research and development credit for 2015. Accordingly, the Company recorded the benefit related to the 2015 federal research and development credit of approximately $303 in the fourth quarter of 2015. On February 3, 2015, the Company announced that it had been awarded a four -year, $1,700 tax credit from the State of California, subject to certain in-state growth requirements. The Company will evaluate the requirements in each of the eligible years and realize the benefits of the credit if conditions are met. For the year ended December 31, 2014, the Company's recognized a tax benefit of $4,063 , or $0.11 per basic and fully diluted share, related to the reapportionment of income amongst the jurisdictions where the Company does business. The Company periodically evaluates opportunities to enhance tax efficiencies and to minimize tax liabilities through operating, legal and administrative strategies. The reapportionment benefit relates to tax years 2009 through 2013 and resulted from the Company's examination of evolving laws, existing court cases, and its business practices. The tax benefit includes the impact of a reduction in the rate used to measure the Company's net deferred tax liability and unrecognized tax benefit. The benefit has been accounted for as a change in estimate. On January 3, 2013, the American Taxpayer Relief Act of 2012 was signed into law reinstating the federal research and development credit for the 2012 and 2013 years. Accordingly, the benefit related to the 2012 federal research and development credit of approximately $440 was recorded in 2013. The following table presents the significant components of the Company’s deferred tax assets and liabilities: December 31, 2015 2014 Deferred tax assets: Accrued liabilities $ 3,754 $ 3,767 Inventory 3,615 1,050 State income taxes — 1,201 Other 828 — Allowance for doubtful accounts 182 132 Total deferred tax asset 8,379 6,150 Deferred tax liabilities: Intangible assets (2,033 ) (6,616 ) Depreciation (3,856 ) (2,356 ) Property and equipment — (233 ) State income taxes (1,312 ) — Prepaid expenses (113 ) (61 ) Total deferred tax liability (7,314 ) (9,266 ) Net deferred tax asset (liability) $ 1,065 $ (3,116 ) On November 20, 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes which requires non-current classification of all deferred tax assets and liabilities for all public entities for annual periods beginning after December 15, 2016. The Company has elected to early adopt ASU 2015-17 on a retrospective basis and has presented all of its deferred tax assets and liabilities as non-current as of December 31, 2015 and 2014. As of December 31, 2015, the Company had foreign net operating loss carryforwards of approximately $120 which begin to expire in 2034 unless previously utilized. The Company also had gross state research credits of approximately $384 which do not expire. The following table summarizes the activity related to the Company's unrecognized tax benefits: For the years ended December 31, 2015 2014 2013 Balance - beginning of period $ 7,785 $ 7,796 $ 7,292 Increase related to current year tax positions 1,878 1,988 1,896 Increase related to prior year tax positions 584 — — Decrease due to expiration of statute of limitations (1,323 ) (1,489 ) (1,392 ) Decrease due to change in estimated state tax rate — (510 ) — Balance - end of period $ 8,924 $ 7,785 $ 7,796 As of December 31, 2015 , the Company had $8,924 of unrecognized tax benefits, of which approximately $8,236 , if recognized, would favorably impact the effective tax rate. The Company regularly engages in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. The Company believes it is reasonably possible that certain federal, foreign, and state tax matters may be concluded in the next 12 months. Specific positions that may be resolved include issues involving the deductibility of amortization and depreciation deductions which were incurred as a result of the acquisition of the Company in 2008. The Company estimates that it is reasonably possible that the unrecognized tax benefits at December 31, 2015 could be reduced by approximately $1,298 in the next twelve months. As of December 31, 2015 and 2014 , the Company had approximately $268 and $225 , respectively, of cumulative interest and penalties related to the uncertain tax positions, and has elected to treat interest and penalties as a component of income tax expense. The Company's federal tax returns for 2012 and forward, state tax returns for 2011 and forward, and foreign tax returns from 2013 and forward are subject to examination by tax authorities. The Company's 2011 and 2012 state tax returns are currently under examination by the California Franchise Tax Board. |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plan | Retirement Plan The Company established a 401(k) plan to provide tax deferred salary deductions for all eligible employees. Participants may make voluntary contributions to the 401(k) plan, limited by certain Internal Revenue Service restrictions. The Company made matching contributions of $298 , $233 , and $205 for each of the years ended December 31, 2015, 2014 and 2013 . |
Segments and Geographic Areas
Segments and Geographic Areas | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segments and Geographic Areas | Segments and Geographic Areas The Company has determined that it has a single operating and reportable segment. The Company considers operating segments to be components of the Company in which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker for the Company is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The following table summarizes total sales generated by geographic location of the customer: For the years ended December 31, 2015 2014 2013 United States $ 163,126 $ 128,297 $ 96,113 Asia 101,947 88,069 89,424 Europe 71,941 66,876 61,996 Rest of the World 29,784 23,492 25,213 Total sales $ 366,798 $ 306,734 $ 272,746 The Company’s long-lived assets by geographic location are as follows: December 31, 2015 2014 United States $ 23,241 $ 16,579 International 2,853 3,180 Total long-lived assets $ 26,094 $ 19,759 The following table summarizes total sales by product category: For the years ended December 31, 2015 2014 2013 Bikes $ 211,704 $ 179,192 $ 181,019 Power vehicles 155,094 127,542 91,727 Total sales $ 366,798 $ 306,734 $ 272,746 |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisition | Acquisitions Sport Truck USA, Inc. On March 31, 2014, the Company acquired certain assets and assumed certain liabilities of Sport Truck. The transaction was accounted for as a business combination. In connection with the acquisition, the Company paid cash of $40,770 , after certain working capital adjustments, in accordance with the asset purchase agreement. Certain members of Sport Truck’s executive management team agreed to refund up to $1,432 of the proceeds from the sale, on a graduated basis, if they terminate employment prior to March 31, 2017. As a result, such payments have been excluded from the acquisition consideration, and are recognized as compensation expense over the expected three year service period. The total consideration was increased by the effective settlement of trade receivables in the amount of $473 , which represented the recorded amount and as a result, no gain or loss was recorded upon settlement. The Company agreed to total contingent consideration of up to $29,295 upon achievement of adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") targets of the acquired business through 2016, subject to adjustments defined in the asset purchase agreement. Performance compared to the targets is measured annually over a three year period, and payment of the contingent consideration will be made upon final determination of the adjusted EBITDA for each year. The estimated acquisition date fair value of the contingent consideration was $19,035 , based on a Black-Scholes model. As of December 31, 2015, $7,854 of contingent consideration has been paid under this arrangement. See Note 12 - Fair Value Measurements . The purchase price of Sport Truck is allocated to the assets acquired and liabilities assumed based on their estimated respective fair values as of March 31, 2014 with the excess purchase price allocated to goodwill. The Company’s allocation of the purchase price to the net tangible and intangible assets acquired and liabilities assumed is as follows: Acquisition consideration Cash consideration $ 40,770 Settlement of pre-existing accounts 473 Contingent consideration 19,035 Total consideration at closing $ 60,278 Fair market values Other current and non-current assets $ 10,534 Property, plant and equipment 4,488 Customer relationships 19,000 Trademarks and brands 16,270 Goodwill 11,962 Total assets acquired 62,254 Accounts payable and accrued expenses 1,976 Total liabilities assumed 1,976 Purchase price allocation $ 60,278 The values assigned to the identifiable intangible assets were determined by discounting the estimated future cash flows associated with these assets to their present value. The goodwill of $11,962 reflects the strategic fit of Sport Truck with the Company’s operations. Sport Truck is well-aligned with the Company’s mission of improving vehicle performance, delivering best in-class service, and entering into strategic and adjacent markets. The Company will amortize the acquired customer relationships asset over its expected useful life of 15 years. Trademarks, brand names and goodwill are expected to have an indefinite life, and will be subject to impairment testing. The goodwill is expected to be deductible for income tax purposes. The Company incurred $1,402 of transaction costs in conjunction with the Sport Truck acquisition for the year ended December 31, 2014 , which is included in general and administrative expense in the accompanying consolidated statement of income. Additional costs of $278 were incurred in the year ended December 31, 2014 associated with financing the transaction and are included in loan fees. See Note 7 - Debt . The results of operations for Sport Truck have been included in the Company's consolidated statement of income since the date of acquisition. Revenue and income from operations included since the date of acquisition through December 31, 2014 amount to $33,162 and $2,974 , inclusive of adjustments to the fair value of contingent consideration of $2,217 . See Note 12 - Fair Value Measurements . Race Face Performance and Easton Cycling Businesses On December 12, 2014, the Company acquired certain assets and assumed certain liabilities of Race Face/Easton. In connection with the acquisition, the Company paid approximately $29,857 . The acquisition was financed with debt and includes a potential earn-out opportunity of up to a maximum of approximately $14,063 , denominated in Canadian Dollars (equivalent to $19.5 million CAD at December 31, 2015 rates), contingent upon continued employment and the achievement of certain performance-based financial targets through October 2016. In November 2015, the Company entered into a Second Amendment to Asset Purchase Agreement for Race Face/Easton, which guaranteed the earn-out payments payable in 2016 and 2017, subject to conditions including continued employment. The Company incurred $1,142 of transaction costs in conjunction with the Race Face/Easton acquisition, which is included in general and administrative expense in the accompanying consolidated statement of income for the year ended December 31, 2014. Additional costs of $166 were incurred in association with financing the transaction and are included in loan fees. See Note 7 - Debt . The allocation of the purchase price to the assets acquired and liabilities assumed was finalized in the fourth quarter of 2015. Based on the Company's validation of working capital and completion of its intangible valuation procedures, with the assistance of specialists, the Company increased the purchase price allocated to intangibles by $3,300 which was partially offset by adjustments related to inventory and liabilities, resulting in a net reduction to goodwill of $1,593 . Goodwill acquired is expected to be deductible for income tax purposes. The acquisition was not material to the Company's financial statements. Other Acquisitions In January 2015, the Company, through certain of its subsidiaries, acquired certain specified assets of a machine shop in Spring Arbor, Michigan. The Company paid cash of $765 . Based on the allocation of the purchase price to the assets acquired and liabilities assumed, the Company recorded goodwill of $567 which represents the strategic fit with the Company's operations. The acquisition was not material to the Company's financial statements. In November 2015, the Company, through certain of its subsidiaries, acquired certain specified assets of Marzocchi’s mountain bike product lines. The Company paid cash of $1,649 . Based on the preliminary allocation of the purchase price to the assets acquired and liabilities assumed, the Company recorded a gain of $315 , net of tax, to reflect the excess of the fair value acquired over the consideration paid which is included in other (income) expense, net, on the statements of income. The acquisition was not material to the Company's financial statements. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) Selected summarized quarterly financial information for 2015 and 2014 is as follows: Quarter Ended Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, 2015 2015 2015 2015 2014 2014 2014 2014 Sales $ 95,668 $ 106,171 $ 97,171 $ 67,788 $ 74,104 $ 90,148 $ 86,374 $ 56,108 Gross profit 28,605 34,786 29,868 18,783 21,903 28,547 26,953 17,017 Income from operations 9,447 13,821 10,537 1,539 4,229 13,911 11,736 4,747 Net income 6,830 10,591 6,763 770 2,873 10,291 11,581 2,941 Earnings per share: Basic $ 0.18 $ 0.29 $ 0.18 $ 0.02 $ 0.08 $ 0.28 $ 0.32 $ 0.08 Diluted $ 0.18 $ 0.28 $ 0.18 $ 0.02 $ 0.08 $ 0.27 $ 0.31 $ 0.08 |
Description of Business, Basi26
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation - The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). |
Principles of Consolidation | Principles of Consolidation - The consolidated financial statements include the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates - The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from management’s estimates. |
Foreign Currency Translation and Transaction | Foreign Currency Translation and Transaction - The functional currency of the Company’s non-U.S. entities is the local currency of the respective operations. The Company translates the financial statements of its non-U.S. entities into U.S. Dollars each reporting period for purposes of consolidation. Assets and liabilities of the Company’s foreign subsidiaries are translated at the period-end currency exchange rates while sales and expenses are translated at the average currency exchange rates in effect for the period. The effects of these translation adjustments are a component of other comprehensive income. |
Cash and Cash Equivalents | Cash and Cash Equivalents - Cash consists of cash maintained in a checking account. All highly liquid investments purchased with an original maturity date of 90 days or less at the date of purchase are considered to be cash equivalents. |
Accounts Receivable | Accounts Receivable - Accounts receivable are unsecured customer obligations which generally require payment within various terms from the invoice date. The receivables are stated at the invoice amount. Financing terms vary by customer. Payments of accounts receivable are applied to the specific invoices identified on the customer’s remittance advice or if unspecified, generally to the earliest unpaid invoices. The carrying amount of accounts receivable is reduced by a valuation allowance that reflects management’s best estimate of amounts that may not be collected. All accounts or portions thereof deemed to be uncollectible or that may require an excessive collection cost are written off to the allowance for doubtful accounts. |
Concentration of Credit Risk | Concentration of Credit Risk - Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist primarily of cash and accounts receivable. A significant portion of the Company’s cash is held at two large financial institutions. The Company has not experienced any losses in such accounts. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts -The Company records a provision for doubtful accounts based on historical experience and a detailed assessment of the collectability of its accounts receivable. In estimating the allowance for doubtful accounts, management considers, among other factors, the aging of the accounts receivable, historical write-offs, and the credit-worthiness of each customer. If circumstances change, such as higher-than-expected defaults or an unexpected material adverse change in a major customer’s ability to meet its financial obligations, the Company’s estimate of the recoverability of the amounts due could be reduced by a material amount. |
Inventories | Inventories - Inventories are stated at the lower of actual cost (or standard cost which generally approximates actual costs on a first-in first-out basis) or market value. Cost includes raw materials, as well as direct labor and manufacturing overhead for products we manufacture. Market value is based on current replacement cost for raw materials and on a net realizable value for finished goods. Adjustments to reduce the cost of inventory to its net realizable value are made, if required, for estimated excess, obsolescence or impaired balances. |
Property and Equipment | Property and Equipment - Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Maintenance and repairs are charged to expense as incurred, and improvements and betterments are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from the balance sheet and any resulting gain or loss is reflected in operations in the period realized. Leasehold improvements are amortized on a straight-line basis over the terms of the lease, or the useful lives of the assets, whichever is shorter. The value assigned to land associated with buildings we own, which is not material, is not amortized. Depreciation and amortization periods for the Company’s property and equipment are as follows: Asset Classification Estimated useful life Machine shop equipment 10-15 years Manufacturing equipment 5-10 years Information systems, office equipment and furniture 3-5 years Transportation equipment 5 years Buildings 39 years |
Impairment of Long-lived Assets | Impairment of Long-lived Assets -The Company periodically reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset is impaired or the estimated useful lives are no longer appropriate. If indicators of impairment exist and the undiscounted projected cash flows associated with such assets are less than the carrying amount of the assets, an impairment loss is recorded to write the assets down to their estimated fair values. Fair value is estimated based on discounted future cash flows. No impairment charges were recorded during the years ended December 31, 2015, 2014 and 2013 . |
Business Combinations | Business Combinations - The Company accounts for acquisitions of entities that include inputs and processes and have the ability to create outputs as business combinations. The Company allocates the purchase price of the acquisition to the tangible assets acquired, liabilities assumed and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. During the measurement period, the Company records adjustments to provisional amounts recorded for assets acquired and liabilities assumed with the corresponding offset to goodwill. After the measurement period, which could be up to one year after the transaction date, subsequent adjustments are recorded to the Company’s consolidated statements of income. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets - Goodwill represents the excess of purchase price over the fair value of the net assets of businesses acquired. Annually the Company either makes a qualitative assessment prior to proceeding to step 1 of the annual goodwill impairment test or performs a two-step impairment test. If the Company makes a qualitative assessment and it determines that the fair value of the reporting unit is less than its carrying amount, the Company would perform step 1 of the annual goodwill impairment test and, if necessary, proceed to step 2. Otherwise, no further evaluation is necessary. For the two-step impairment test, in the first step, the Company compares the fair value of the reporting unit to its carrying value, including goodwill. The Company determines the fair value of the reporting unit based on a weighting of income and market approaches. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired and no further testing is performed. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company performs the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. Impairments, if any, are charged directly to earnings. The Company has a single reporting unit for purposes of assessing goodwill impairment. No impairment charges have been incurred to date. Intangible assets include customer relationships and the Company’s core technology, are subject to amortization over their respective useful lives, and are classified in intangibles, net in the accompanying consolidated balance sheet. These intangibles are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be fully recoverable. If facts and circumstances indicate that the carrying value might not be recoverable, projected undiscounted net cash flows associated with the related asset or group of assets over their estimated remaining useful lives is compared against their respective carrying amounts. Trademarks and brands are considered to be indefinite life intangibles, and are not amortized but are subject to testing for impairment annually. No impairments of intangible assets were identified in the years ended December 31, 2015, 2014 and 2013 . |
Revenue Recognition | Revenue Recognition - The Company recognizes sales when persuasive evidence of an arrangement exists, title has transferred, the sales price is fixed or determinable, and collectability of the receivable is reasonably assured. Provisions for discounts, rebates, sales incentives, returns, and other adjustments are provided for in the period the related sales are recorded based on an assessment of historical trends and current projection of future results. Sales are recorded net of sales tax. |
Cost of Sales | Cost of Sales - Cost of sales primarily consists of materials and labor expense in the manufacturing of the Company’s products. Cost of sales also includes provisions for excess and obsolete inventory, warranty costs, certain allocated costs for facilities, depreciation and other manufacturing overhead. Additionally, it includes stock-based compensation for personnel directly involved with manufacturing the Company’s product offerings. |
Sales And Marketing | Sales and Marketing - Sales and marketing expenses include costs related to sales, customer service and marketing personnel, including their wages, employee benefits and related stock-based compensation, and occupancy related expenses. Other significant sales and marketing expenses include race support and sponsorships of events and athletes, advertising and promotions related to trade shows, travel and entertainment, and promotional materials, products and sales offices costs. |
Research and Development | Research and Development - Research and development expenses consist primarily of salaries and personnel costs, including wages, employee benefits and related stock-based compensation for the Company’s engineering, research and development teams, occupancy related expenses, fees for third party consultants, service fees, and expenses for prototype tooling and materials, travel, and supplies. The Company expenses research and development costs as incurred. |
General And Administrative | General and Administrative - General and administrative expenses include costs related to executive, finance, information technology, human resources and administrative personnel, including wages, employee benefits and related stock-based compensation expenses. The Company records professional and contract service expenses, occupancy related expenses associated with corporate locations and equipment, and legal expenses in general and administrative expenses. |
Stock-Based Compensation | Stock-Based Compensation - The Company measures stock-based compensation for all stock-based awards, including stock options and restricted stock units (“RSUs”), based on their estimated fair values on the date of the grant and recognizes the stock-based compensation cost for time-vested awards on a straight-line basis over the requisite service period. For performance-based RSUs, the amount of shares ultimately expected to vest is estimated at each reporting date based on management’s expectations regarding the relevant performance criteria. To the extent shares are expected to vest, the stock-based compensation cost is recognized on a straight-line basis over the requisite service period. The fair value of each stock option granted is estimated using the Black-Scholes option pricing model, net of estimated forfeitures. The forfeiture rate is based on an analysis of the Company’s actual historical forfeitures. The fair value of the RSU’s is equal to the fair value of the Company’s common stock on the grant date of the award. |
Shipping and Handling Fees and Costs | |
Income Taxes | Income Taxes - The Company accounts for income taxes using an asset and liability approach. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Operating loss and tax credit carryforwards are measured by applying currently enacted tax laws. Valuation allowances are provided when necessary to reduce net deferred tax assets to an amount that is more likely than not to be realized. The Company recognizes the tax effects of an uncertain tax position only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date and then only in an amount more likely than not to be sustained upon review by the tax authorities. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. |
Advertising | Advertising - Advertising costs are expensed as incurred. |
Warranties | Warranties - The Company offers limited warranties on its products for one to two years . The Company recognizes estimated costs related to warranty activities as a component of cost of sales upon product shipment. The estimates are based upon historical product failure rates and historical costs incurred in correcting product failures. The recorded amount is adjusted from time to time for specifically identified warranty exposures. Actual warranty expenses are charged against the Company’s estimated warranty liability when incurred. Factors that affect the Company’s liability include the number of units, historical and anticipated rates of warranty claims, and the cost per claim. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments - The Financial Accounting Standards Board ("FASB") has issued Accounting Standards Codification 820, Fair Value Measurements and Disclosures , that requires the valuation of assets and liabilities required or permitted to be either recorded or disclosed at fair value based on hierarchy of available inputs as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity). The carrying amounts of the Company’s financial instruments, including cash, receivables, accounts payable, and accrued liabilities approximate their fair values due to their short-term nature. Amounts owed under the Company's credit facility approximate fair value due to the variable interest rate features embedded in both the line of credit and term debt. |
Certain Risks and Uncertainties | Certain Significant Risks and Uncertainties - The Company is subject to those risks common in manufacturing-driven markets, including, but not limited to, competitive forces, dependence on key personnel, customer demand for its products, the successful protection of its proprietary technologies, compliance with government regulations, and the possibility of not being able to obtain additional financing when needed. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - In May 2014, the FASB and International Accounting Standards Board issued their converged standard on revenue recognition, Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers. This standard outlines a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that revenue is recognized when a customer obtains control of a good or service. A customer obtains control when it has the ability to direct the use of and obtain the benefits from the good or service. Transfer of control is not the same as transfer of risks and rewards, as it is considered in current guidance. We will apply the new guidance to determine whether revenue should be recognized over time or at a point in time. This standard will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted after December 15, 2016. The Company can choose to apply this standard retrospectively for each prior reporting period presented or retrospectively with the cumulative effect of initially applying the standard recognized at the date of the initial application in retained earnings. The Company expects to complete its assessment of the impact of the new guidance on its consolidated financial statements in 2016. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. This ASU requires reporting entities to classify deferred income taxes as non-current on the consolidated balance sheets. Deferred income taxes were previously required to be classified as current or non-current on the consolidated balance sheets. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 with early adoption permitted. The Company has elected to early adopt ASU 2015-17 on a retrospective basis and has presented all of its deferred tax assets and liabilities as non-current as of December 31, 2015 and 2014. The adoption of ASU 2015-17 did not have an impact on statements of income or cash flows. Other accounting standards updates effective after December 31, 2015, are not expected to have a material effect on the Company’s financial position, annual results of operations or cash flows. |
Description of Business, Basi27
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | The Company mitigates its credit risk with respect to accounts receivable by performing ongoing credit evaluations and monitoring of its customers’ accounts receivable balances. The following customers accounted for 10% or more of the Company’s accounts receivable balance: December 31, 2015 2014 Customer A 16% 17% Customer B 8% 14% |
Schedule of Credit Losses for Financing Receivables, Current | The following table presents the activity in the allowance for doubtful accounts: For the years ended December 31, Allowance for doubtful accounts: 2015 2014 2013 Balance, beginning of year $ 348 $ 366 $ 440 Add: bad debt (benefit) expense 75 (10 ) (45 ) Less: write-offs, net of recoveries (16 ) (8 ) (29 ) Balance, end of year $ 407 $ 348 $ 366 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory consisted of the following: December 31, 2015 2014 Raw materials $ 43,468 $ 39,655 Work-in-process 1,921 1,568 Finished goods 22,813 17,968 Total inventory $ 68,202 $ 59,191 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property, plant and equipment consisted of the following: December 31, 2015 2014 Machinery and manufacturing equipment $ 22,488 $ 17,739 Information systems, office equipment and furniture 9,829 5,297 Transportation equipment 2,243 2,041 Building and land 3,469 3,469 Leasehold improvements 6,970 5,971 Total 44,999 34,517 Less: accumulated depreciation and amortization (18,905 ) (14,758 ) Property, plant and equipment, net $ 26,094 $ 19,759 |
Intangibles, net (Tables)
Intangibles, net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Excluding Goodwill | Intangible assets, excluding goodwill, are comprised of the following: Gross carrying amount Accumulated amortization Net carrying amount Weighted average life (years) December 31, 2015: Customer relationships $ 39,004 $ (13,013 ) $ 25,991 13 Core technology 33,400 (32,559 ) 841 8 Patents 1,335 (889 ) 446 4 Total $ 73,739 $ (46,461 ) 27,278 Trademarks and brands, not subject to amortization 33,571 Total $ 60,849 December 31, 2014: Customer relationships $ 36,555 $ (9,144 ) $ 27,411 13 Core technology 33,700 (28,438 ) 5,262 8 Patents 835 (394 ) 441 5 Total $ 71,090 $ (37,976 ) 33,114 Trademarks and brands, not subject to amortization 32,070 Total $ 65,184 |
Schedule of Finite-Lived Intangible Assets, Amortization Expense | For the years ended December 31, 2015 2014 2013 Amortization of intangibles $ 8,525 $ 6,424 $ 5,378 |
Schedule of Goodwill | The Company acquired intangible assets in conjunction with acquisitions. The company recorded valuation adjustments during the year ended December 31, 2015 , as more fully described in Note 15 - Acquisitions . The acquired definite lived assets will be amortized on a straight-line basis. Goodwill activity consisted of the following: Balance as of December 31, 2014 $ 58,745 Acquisitions - Refer to Note 15, Acquisitions 567 Purchase accounting adjustments - Refer to Note 15, Acquisitions (1,593 ) Currency translation and other adjustments (66 ) Balance as of December 31, 2015 $ 57,653 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Future amortization expense for finite-lived intangibles as of December 31, 2015 is as follows: For the years ending December 31, Amortization Expense 2016 $ 2,962 2017 2,798 2018 2,773 2019 2,706 2020 2,015 Thereafter 14,024 Total expected future amortization $ 27,278 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consisted of the following: December 31, 2015 2014 Payroll and related expenses $ 8,143 $ 5,352 Management earn-out 7,242 274 Warranty 3,914 4,215 Income tax payable 1,949 1,405 Other accrued expenses 1,986 882 Total $ 23,234 $ 12,128 |
Activity Related to Warranties | Activity related to warranties is as follows: For the years ended December 31, 2015 2014 2013 Beginning warranty liability $ 4,215 $ 3,857 $ 4,582 Charge to cost of sales 3,616 4,381 4,491 Fair value of warranty assumed in acquisition — 382 — Costs incurred (3,917 ) (4,405 ) (5,216 ) Ending warranty liability $ 3,914 $ 4,215 $ 3,857 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Amended & Restated 2013 Credit Facility | The following table summarizes the line of credit under the Amended and Restated 2013 Credit Facility and the 2013 Credit Facility: December 31, 2015 2014 Amount outstanding $ 1,500 $ — Available borrowing capacity $ 58,500 $ 60,000 Maximum borrowing capacity $ 60,000 $ 60,000 |
Schedule of Future Principal Payments | As of December 31, 2015 , future principal payments for the Term Loan, including the current portion, are summarized as follows: For the years ending December 31, 2016 2,837 2017 4,256 2018 4,256 2019 35,813 Total 47,162 Less: current portion (2,837 ) Long-term debt less current portion $ 44,325 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Approximate remaining future minimum lease payments under these operating leases as of December 31, 2015 , are as follows: For the years ending December 31, Third party future payments Related party future payments Total future payments 2016 2,901 1,203 4,104 2017 2,436 1,203 3,639 2018 1,756 601 2,357 2019 1,041 — 1,041 2020 946 — 946 Thereafter 146 — 146 $ 9,226 $ 3,007 $ 12,233 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table summarizes the allocation of stock-based compensation in the accompanying consolidated statements of income: For the years ended December 31, 2015 2014 2013 Cost of sales $ 82 $ 43 $ 23 Sales and marketing 430 279 158 Research and development 178 88 53 General and administrative 4,217 3,634 2,266 Total $ 4,907 $ 4,044 $ 2,500 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes RSU activity: Unvested RSUs Number of shares outstanding Weighted-average grant date fair value Unvested at December 31, 2013 516 $ 17.53 Granted 783 17.30 Canceled (386 ) 17.52 Vested (133 ) 17.53 Unvested at December 31, 2014 780 17.30 Granted 246 16.60 Canceled (19 ) 16.93 Vested (234 ) 17.36 Unvested at December 31, 2015 773 $ 17.07 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes stock option activity: Number of shares outstanding Weighted-average exercise price Weighted-average remaining contractual life (years) Aggregate intrinsic value Balance at December 31, 2012 2,502 $ 4.88 9 $ 6,828 Options granted (weighted average fair value of $2.59 per share) 9 7.59 Balance at December 31, 2013 2,511 4.88 8 $ 32,001 Options exercised (711 ) 3.90 $ 8,963 Options forfeited (58 ) 5.75 Balance at December 31, 2014 1,742 5.25 7 $ 19,136 Options exercised (99 ) 3.99 $ 1,332 Options forfeited — — Balance at December 31, 2015 1,643 5.32 6 $ 18,414 Options vested and expected to vest - December 31, 2015 1,643 5.32 6 $ 18,414 Options exercisable - December 31, 2015 1,381 $ 5.25 6 $ 15,579 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a reconciliation of the beginning and ending balances for the Company's contingent consideration liability measured at fair value using Level 3 inputs: Contingent consideration liability (level 3 measurement) Balance at December 31, 2014 $ 21,252 Change in fair value (748 ) Payment of contingent liability (7,854 ) Balance at December 31, 2015 $ 12,650 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The following table presents the calculation of basic and diluted earnings per share: For the years ended December 31, 2015 2014 2013 Net income $ 24,954 $ 27,686 $ 24,102 Weighted average shares used to compute basic earnings per share 36,989 36,756 34,571 Dilutive effect of employee stock plans 905 1,051 1,134 Weighted average shares used to compute diluted earnings per share 37,894 37,807 35,705 Earnings per share: Basic $ 0.67 $ 0.75 $ 0.70 Diluted $ 0.66 $ 0.73 $ 0.68 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense are as follows: For the years ended December 31, 2015 2014 2013 Current: Federal $ 11,468 $ 15,122 $ 10,282 State (22 ) (3,772 ) 3,135 Foreign 2,208 680 385 Total 13,654 12,030 13,802 Deferred: Federal (3,751 ) (5,016 ) (2,912 ) State (613 ) (383 ) (324 ) Total (4,364 ) (5,399 ) (3,236 ) Total provision $ 9,290 $ 6,631 $ 10,566 |
Schedule of Income before Income Tax, Domestic and Foreign | The Company's income before provision for income taxes was subject to taxes in the following jurisdictions for the following periods: For the years ended December 31, 2015 2014 2013 United States $ 24,308 $ 27,162 $ 35,098 Foreign 9,936 7,155 (430 ) $ 34,244 $ 34,317 $ 34,668 |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents a reconciliation of the statutory federal rate and the Company’s effective tax rate for the periods presented: For the years ended December 31, 2015 2014 2013 Tax at federal statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 2.2 1.5 4.7 Reapportionment benefit (0.1 ) (11.8 ) — Change in liability for unrecognized tax benefits (2.8 ) (4.0 ) (3.7 ) Manufacturing deduction (2.0 ) (2.7 ) (2.9 ) Research and development tax credit (2.9 ) (0.8 ) (2.7 ) Stock-based compensation (0.1 ) (0.1 ) 0.1 Other (2.2 ) 2.2 — Total provision 27.1 % 19.3 % 30.5 % |
Schedule of Deferred Tax Assets and Liabilities | The following table presents the significant components of the Company’s deferred tax assets and liabilities: December 31, 2015 2014 Deferred tax assets: Accrued liabilities $ 3,754 $ 3,767 Inventory 3,615 1,050 State income taxes — 1,201 Other 828 — Allowance for doubtful accounts 182 132 Total deferred tax asset 8,379 6,150 Deferred tax liabilities: Intangible assets (2,033 ) (6,616 ) Depreciation (3,856 ) (2,356 ) Property and equipment — (233 ) State income taxes (1,312 ) — Prepaid expenses (113 ) (61 ) Total deferred tax liability (7,314 ) (9,266 ) Net deferred tax asset (liability) $ 1,065 $ (3,116 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | he following table summarizes the activity related to the Company's unrecognized tax benefits: For the years ended December 31, 2015 2014 2013 Balance - beginning of period $ 7,785 $ 7,796 $ 7,292 Increase related to current year tax positions 1,878 1,988 1,896 Increase related to prior year tax positions 584 — — Decrease due to expiration of statute of limitations (1,323 ) (1,489 ) (1,392 ) Decrease due to change in estimated state tax rate — (510 ) — Balance - end of period $ 8,924 $ 7,785 $ 7,796 |
Segments and Geographic Areas (
Segments and Geographic Areas (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Summary of Total Sales by Geographic Location of Customer | The following table summarizes total sales generated by geographic location of the customer: For the years ended December 31, 2015 2014 2013 United States $ 163,126 $ 128,297 $ 96,113 Asia 101,947 88,069 89,424 Europe 71,941 66,876 61,996 Rest of the World 29,784 23,492 25,213 Total sales $ 366,798 $ 306,734 $ 272,746 |
Long-lived Assets by Geographic Location | The Company’s long-lived assets by geographic location are as follows: December 31, 2015 2014 United States $ 23,241 $ 16,579 International 2,853 3,180 Total long-lived assets $ 26,094 $ 19,759 |
Revenue from External Customers by Products and Services | The following table summarizes total sales by product category: For the years ended December 31, 2015 2014 2013 Bikes $ 211,704 $ 179,192 $ 181,019 Power vehicles 155,094 127,542 91,727 Total sales $ 366,798 $ 306,734 $ 272,746 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The Company’s allocation of the purchase price to the net tangible and intangible assets acquired and liabilities assumed is as follows: Acquisition consideration Cash consideration $ 40,770 Settlement of pre-existing accounts 473 Contingent consideration 19,035 Total consideration at closing $ 60,278 Fair market values Other current and non-current assets $ 10,534 Property, plant and equipment 4,488 Customer relationships 19,000 Trademarks and brands 16,270 Goodwill 11,962 Total assets acquired 62,254 Accounts payable and accrued expenses 1,976 Total liabilities assumed 1,976 Purchase price allocation $ 60,278 |
Business Acquisition, Pro Forma Information |
Selected Quarterly Financial 40
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Selected summarized quarterly financial information for 2015 and 2014 is as follows: Quarter Ended Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, 2015 2015 2015 2015 2014 2014 2014 2014 Sales $ 95,668 $ 106,171 $ 97,171 $ 67,788 $ 74,104 $ 90,148 $ 86,374 $ 56,108 Gross profit 28,605 34,786 29,868 18,783 21,903 28,547 26,953 17,017 Income from operations 9,447 13,821 10,537 1,539 4,229 13,911 11,736 4,747 Net income 6,830 10,591 6,763 770 2,873 10,291 11,581 2,941 Earnings per share: Basic $ 0.18 $ 0.29 $ 0.18 $ 0.02 $ 0.08 $ 0.28 $ 0.32 $ 0.08 Diluted $ 0.18 $ 0.28 $ 0.18 $ 0.02 $ 0.08 $ 0.27 $ 0.31 $ 0.08 |
Description of Business, Basi41
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | Aug. 13, 2013 | Jul. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Description of Business and Basis of Presentation [Line Items] | |||||
Initial public offering (IPO), number of common shares issued | 5,750,000 | ||||
Foreign Currency transaction gain (loss) | $ 187,000 | $ 649,000 | $ (5,000) | ||
Asset impairment charges | 0 | 0 | 0 | ||
Advertising expense | $ 1,531,913,000 | $ 1,012,000 | $ 448,000 | ||
Initial public offering (IPO) | |||||
Description of Business and Basis of Presentation [Line Items] | |||||
Initial public offering (IPO), number of common shares issued | 2,857,000 | ||||
Initial public offering (IPO), price per share | $ 15 | ||||
Proceeds from initial public offering (IPO) | $ 36,122,000 | ||||
Initial public offering (IPO) | Shares Offered By Selling Stockholders | |||||
Description of Business and Basis of Presentation [Line Items] | |||||
Initial public offering (IPO), number of common shares issued | 7,000,000 | ||||
Sales Revenue, Net | Customer A | |||||
Description of Business and Basis of Presentation [Line Items] | |||||
Concentration risk, percentage | 12.00% | 14.00% | 17.00% | ||
Purchases | Supplier Concentration Risk | |||||
Description of Business and Basis of Presentation [Line Items] | |||||
Concentration risk, percentage | 37.00% | 44.00% | 48.00% | ||
Accounts Payable | |||||
Description of Business and Basis of Presentation [Line Items] | |||||
Concentration risk, percentage | 27.00% | 38.00% | |||
Minimum | |||||
Description of Business and Basis of Presentation [Line Items] | |||||
Warranty Period | 1 year | ||||
Maximum | |||||
Description of Business and Basis of Presentation [Line Items] | |||||
Warranty Period | 2 years |
Customers Accounted for 10% or
Customers Accounted for 10% or More of Accounts Receivable Balance (Detail) - Accounts Receivable | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Customer A | ||
Concentration Risk [Line Items] | ||
Concentration risk, accounts receivable percentage | 16.00% | 17.00% |
Customer B | ||
Concentration Risk [Line Items] | ||
Concentration risk, accounts receivable percentage | 8.00% | 14.00% |
Activity in Allowance For Doubt
Activity in Allowance For Doubtful Accounts (Detail) - Allowance for Doubtful Accounts, Current - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance, beginning of period | $ 348 | $ 366 | $ 440 |
Add: bad debt expense (benefit) | 75 | (10) | (45) |
Less: write-offs, net of recoveries | (16) | (8) | (29) |
Balance, end of period | $ 407 | $ 348 | $ 366 |
Depreciation and Amortization P
Depreciation and Amortization Periods for the Company's Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Machine shop equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 10 years |
Machine shop equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 15 years |
Machinery and manufacturing equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Machinery and manufacturing equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 10 years |
Office equipment and furniture | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Office equipment and furniture | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Transportation equipment | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Building | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 39 years |
Inventory (Detail)
Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 43,468 | $ 39,655 |
Work-in-process | 1,921 | 1,568 |
Finished goods | 22,813 | 17,968 |
Total inventory | $ 68,202 | $ 59,191 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment gross | $ 44,999 | $ 34,517 | |
Accumulated depreciation and amortization | (18,905) | (14,758) | |
Net property and equipment | 26,094 | 19,759 | |
Depreciation | 4,538 | 3,306 | $ 2,381 |
Machinery and and manufacturing equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment gross | 22,488 | 17,739 | |
Office equipment and furniture | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment gross | 9,829 | 5,297 | |
Transportation equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment gross | 2,243 | 2,041 | |
Building and land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment gross | 3,469 | 3,469 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment gross | $ 6,970 | $ 5,971 |
Intangible Assets Excluding Goo
Intangible Assets Excluding Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Asset Excluding Goodwill [Line Items] | ||
Gross carrying amount | $ 73,739 | $ 71,090 |
Accumulated amortization | (46,461) | (37,976) |
Net carrying amount | 27,278 | 33,114 |
Intangible assets, excluding goodwill | 60,849 | 65,184 |
Trademarks | ||
Intangible Asset Excluding Goodwill [Line Items] | ||
Intangible assets, not subject to amortization | 33,571 | 32,070 |
Customer relationships | ||
Intangible Asset Excluding Goodwill [Line Items] | ||
Gross carrying amount | 39,004 | 36,555 |
Accumulated amortization | (13,013) | (9,144) |
Net carrying amount | $ 25,991 | $ 27,411 |
Weighted average life (years) | 13 years | 13 years |
Core technology | ||
Intangible Asset Excluding Goodwill [Line Items] | ||
Gross carrying amount | $ 33,400 | $ 33,700 |
Accumulated amortization | (32,559) | (28,438) |
Net carrying amount | $ 841 | $ 5,262 |
Weighted average life (years) | 8 years | 8 years |
Patents | ||
Intangible Asset Excluding Goodwill [Line Items] | ||
Gross carrying amount | $ 1,335 | $ 835 |
Accumulated amortization | (889) | (394) |
Net carrying amount | $ 446 | $ 441 |
Weighted average life (years) | 4 years | 5 years |
Intangibles, Net - Additional I
Intangibles, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Amortization of intangibles | $ 8,525 | $ 6,424 | $ 5,378 |
Intangibles, net - Rollforward
Intangibles, net - Rollforward Activity (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Finite-lived Intangible Assets [Roll Forward] | |
Balance as of December 31, 2014 | $ 58,745 |
Acquisitions - Refer to Note 15, Acquisitions | 567 |
Currency translation and other adjustments | (66) |
Balance as of December 31, 2015 | $ 57,653 |
Intangibles, net - Future Amort
Intangibles, net - Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,016 | $ 2,962 | |
2,017 | 2,798 | |
2,018 | 2,773 | |
2,019 | 2,706 | |
2,020 | 2,015 | |
Thereafter | 14,024 | |
Net carrying amount | $ 27,278 | $ 33,114 |
Accrued Expenses (Detail)
Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Payables and Accruals [Abstract] | ||||
Payroll and related expenses | $ 8,143 | $ 5,352 | ||
Management earn-out | 7,242 | 274 | ||
Warranty | 3,914 | 4,215 | $ 3,857 | $ 4,582 |
Income tax payable | 1,949 | 1,405 | ||
Other accrued expenses | 1,986 | 882 | ||
Total | $ 23,234 | $ 12,128 |
Activity Related to Warranties
Activity Related to Warranties (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Beginning warranty liability | $ 4,215 | $ 3,857 | $ 4,582 |
Charge to cost of sales | 3,616 | 4,381 | 4,491 |
Fair value of warranty assumed in acquisition | 0 | 382 | 0 |
Costs incurred | (3,917) | (4,405) | (5,216) |
Ending warranty liability | $ 3,914 | $ 4,215 | $ 3,857 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Write-off of unamortized loan origination costs from related party debt | $ 0 | $ 0 | $ 1,405 |
Related party, interest expense on prior credit facility | 2,179 | ||
Operating Leases, leases expense | 4,611 | 3,214 | 2,953 |
Related Party Transactions | |||
Related Party Transaction [Line Items] | |||
Related party, management fees | 308 | ||
Operating Leases, leases expense | $ 1,186 | $ 1,156 | |
Beneficial Owner [Member] | |||
Related Party Transaction [Line Items] | |||
Estimated annual cost | 150 | ||
Minority Shareholder [Member] | Related Party Transactions | |||
Related Party Transaction [Line Items] | |||
Operating Leases, leases expense | $ 1,203 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 12, 2014 | |
Amended and Restated 2013 Credit Facility | Term Loan | |||
Debt Instrument [Line Items] | |||
Term loan amount | $ 50,000,000 | ||
Amended and Restated 2013 Credit Facility | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
LIBOR RATE | 0.24% | ||
Amended and Restated 2013 Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Amended and Restated 2013 Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.50% | ||
Amended and Restated 2013 Credit Facility | Prime Rate | |||
Debt Instrument [Line Items] | |||
prime interest rate | 3.50% | ||
Amended and Restated 2013 Credit Facility | Prime Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Amended and Restated 2013 Credit Facility | Prime Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Amended and Restated 2013 Credit Facility, First Amendment | Term Loan | |||
Debt Instrument [Line Items] | |||
Term loan amount | $ 56,750,000 | ||
Increase in Term loan principal amount | $ 30,000,000 |
Summary of Amended & Restated 2
Summary of Amended & Restated 2013 Credit Facility (Detail) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Amount outstanding | $ 1,500,000 | $ 0 |
Available borrowing capacity | 58,500,000 | 60,000,000 |
Maximum borrowing capacity | $ 60,000,000 | $ 60,000,000 |
Future Payments for Long-term D
Future Payments for Long-term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
2,016 | $ 2,837 | |
2,017 | 4,256 | |
2,018 | 4,256 | |
2,019 | 35,813 | |
Total | 47,162 | |
Less: current portion | 2,837 | $ 2,837 |
Long-term debt less current portion | $ 44,325 | $ 47,163 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases, leases expense | $ 4,611 | $ 3,214 | $ 2,953 |
Contingent consideration, maximum | $ 32,263 |
Future Minimum Lease Payments u
Future Minimum Lease Payments under Operating Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Lease Future Minimum Payments Due [Abstract] | |
2,016 | $ 4,104 |
2,017 | 3,639 |
2,018 | 2,357 |
2,019 | 1,041 |
2,020 | 946 |
Thereafter | 146 |
Operating leases future minimum payments | 12,233 |
Third Party | |
Operating Lease Future Minimum Payments Due [Abstract] | |
2,016 | 2,901 |
2,017 | 2,436 |
2,018 | 1,756 |
2,019 | 1,041 |
2,020 | 946 |
Thereafter | 146 |
Operating leases future minimum payments | 9,226 |
Related Party | |
Operating Lease Future Minimum Payments Due [Abstract] | |
2,016 | 1,203 |
2,017 | 1,203 |
2,018 | 601 |
2,019 | 0 |
2,020 | 0 |
Thereafter | 0 |
Operating leases future minimum payments | $ 3,007 |
Stockholders' Equity - Secondar
Stockholders' Equity - Secondary Offering (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended |
Jul. 31, 2014 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Issuance of common stock (in shares) | 5,750,000 | |
Issuance of common stock, price per share (in usd per share) | $ 15.50 | |
Shares issued upon underwriters' exercise of option to purchase additional shares (in shares) | 750,000 | |
Expenses incurred in connection with offering of shares | $ 469 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Program (Details) - USD ($) shares in Thousands | 12 Months Ended | 14 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Feb. 25, 2016 | Nov. 03, 2014 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Share repurchase program, authorized amount | $ 40,000,000 | ||||
Repurchase of common stock (in shares) | 351 | 39 | 390 | ||
Repurchase of common stock | $ 5,236,000 | $ 571,000 | $ 5,807,000 | ||
Subsequent Event | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Share repurchase program, authorized amount | $ 40,000,000 |
Stockholders' Equity - Equity I
Stockholders' Equity - Equity Incentive Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for future issuance | 4,965,000 | ||
Number of shares available for grant | 2,548,893 | ||
Options granted (in shares) | 9,000 | ||
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Award vesting percentage | 25.00% | ||
Award expiration period | 10 years | ||
Period for recognition of unrecognized stock-based compensation expense | 1 year 6 months 8 days | ||
Options granted (in shares) | 0 | 0 | |
Unrecognized stock-based compensation expense related to stock options | $ 362 | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock-based compensation expense related to RSUs | $ 10,731 | ||
Period for recognition of unrecognized stock-based compensation expense | 2 years 4 months 24 days | ||
Minimum | Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Maximum | Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years |
Summary of Allocation of Stock-
Summary of Allocation of Stock-Based Compensation in Accompanying Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 4,907 | $ 4,044 | $ 2,500 |
Cost of sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | 82 | 43 | |
Stock-based compensation | 23 | ||
Sales and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | 430 | 279 | |
Stock-based compensation | 158 | ||
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | 178 | 88 | |
Stock-based compensation | 53 | ||
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | 4,217 | 3,634 | |
Stock-based compensation | 2,266 | ||
Restricted Stock Units | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 4,576 | 3,401 | 897 |
Stock Option | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 331 | $ 643 | $ 1,603 |
Summary of Unvested RSUs Activi
Summary of Unvested RSUs Activity (Detail) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Number of shares outstanding | ||
Unvested outstanding, beginning balance (in shares) | 780 | 516 |
Granted (in shares) | 246 | 783 |
Canceled (in shares) | (19) | (386) |
Vested (in shares) | (234) | (133) |
Unvested outstanding, ending balance (in shares) | 773 | 780 |
Weighted average grant date fair value | ||
Unvested outstanding, beginning balance (in usd per share) | $ 17.30 | $ 17.53 |
Granted (in usd per share) | 16.60 | 17.30 |
Canceled (in usd per share) | 16.93 | 17.52 |
Vested (in usd per share) | 17.36 | 17.53 |
Unvested outstanding, ending balance (in usd per share) | $ 17.07 | $ 17.30 |
Assumptions Used to Value Stock
Assumptions Used to Value Stock-Based Awards Granted (Detail) - Stock Option | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 5 years 6 months |
Volatility (as a percent) | 36.00% |
Risk-free interest rate (as a percent) | 0.79% |
Dividend yield (as a percent) | 0.00% |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | |
Number of shares outstanding | |||||
Options outstanding, beginning balance (in shares) | 1,742 | 2,511 | 2,502 | ||
Options granted (in shares) | 9 | ||||
Options exercised (in shares) | (99) | (711) | |||
Options forfeited (in shares) | 0 | (58) | |||
Options outstanding, ending balance (in shares) | 1,643 | 1,742 | 2,511 | ||
Options vested and expected to vest (in shares) | 1,643 | ||||
Options exercisable (in shares) | 1,381 | ||||
Weighted-average exercise price | |||||
Weighted-average exercise price, beginning of period (in usd per share) | $ 5.25 | $ 4.88 | $ 4.88 | ||
Options granted (in usd per share) | 3.90 | 7.59 | |||
Options exercised (in usd per share) | 3.99 | ||||
Options forfeited (in usd per share) | 0 | 5.75 | |||
Weighted-average exercise price, ending balance (in usd per share) | 5.32 | $ 5.25 | $ 4.88 | ||
Options vested and expected to vest (in usd per share) | 5.32 | ||||
Options exercisable (in usd per share) | $ 5.25 | ||||
Weighted average remaining contractual life | |||||
Options outstanding | 6 years | 7 years | 8 years | 9 years | |
Options vested and expected to vest | 6 years | ||||
Options exercisable | 6 years | ||||
Aggregate intrinsic value | |||||
Options outstanding | $ 18,414 | $ 19,136 | $ 32,001 | $ 6,828 | |
Options exercised | $ 1,332 | ||||
Options vested and expected to vest | 18,414 | ||||
Options exercisable | $ 15,579 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | Mar. 31, 2014 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Earn out percentage | 75.00% | 70.00% |
Expected volatility rate | 41.00% | 32.00% |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Roll Forward (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance at December 31, 2014 | $ 21,252 |
Change in fair value | (748) |
Payment of contingent liability | (7,854) |
Balance at December 31, 2015 | $ 12,650 |
Calculation of Basic and Dilute
Calculation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 6,830 | $ 10,591 | $ 6,763 | $ 770 | $ 2,873 | $ 10,291 | $ 11,581 | $ 2,941 | $ 24,954 | $ 27,686 | $ 24,102 |
Weighted average shares used to compute basic earnings per share (in shares) | 36,989 | 36,756 | 34,571 | ||||||||
Dilutive effect of employee stock plans (in shares) | 905 | 1,051 | 1,134 | ||||||||
Weighted average shares used to compute diluted earnings per share (in shares) | 37,894 | 37,807 | 35,705 | ||||||||
Basic (in dollars per share) | $ 0.18 | $ 0.29 | $ 0.18 | $ 0.02 | $ 0.08 | $ 0.28 | $ 0.32 | $ 0.08 | $ 0.67 | $ 0.75 | $ 0.70 |
Diluted (in dollars per share) | $ 0.18 | $ 0.28 | $ 0.18 | $ 0.02 | $ 0.08 | $ 0.27 | $ 0.31 | $ 0.08 | $ 0.66 | $ 0.73 | $ 0.68 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive shares excluded from calculation of diluted earnings per share | 0 | 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Feb. 03, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ||||||
Research and development credit | $ 303 | $ 440 | ||||
Tax credit period | 4 years | |||||
Tax credit from State of California | $ 1,700 | |||||
Other tax expense (benefit) | $ 4,063 | |||||
Tax benefit, per share, per basic and diluted (in dollars per share) | $ 0.11 | |||||
Unrecognized tax benefits | 8,924 | $ 8,924 | 7,785 | $ 7,796 | $ 7,292 | |
Unrecognized tax benefits that would impact effective tax rate | 8,236 | 8,236 | ||||
Possible reduction in unrecognized tax benefit over fiscal year | (1,298) | (1,298) | ||||
Interest and penalties related to uncertain tax positions | $ 268 | $ 268 | $ 225 |
Components of Income Tax Expens
Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 11,468 | $ 15,122 | $ 10,282 |
State | (22) | (3,772) | 3,135 |
Foreign | 2,208 | 680 | 385 |
Total current | 13,654 | 12,030 | 13,802 |
Deferred: | |||
Federal | (3,751) | (5,016) | (2,912) |
State | (613) | (383) | (324) |
Total deferred | (4,364) | (5,399) | (3,236) |
Total provision | $ 9,290 | $ 6,631 | $ 10,566 |
Income Taxes - Income Before Pr
Income Taxes - Income Before Provision by Jurisdiction (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 24,308 | $ 27,162 | $ 35,098 |
Foreign | 9,936 | 7,155 | (430) |
Income before income taxes | $ 34,244 | $ 34,317 | $ 34,668 |
Reconciliation of Statutory Fed
Reconciliation of Statutory Federal Rate and Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
Tax at federal statutory rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 2.20% | 1.50% | 4.70% |
Reapportionment benefit | (0.10%) | (11.80%) | (0.00%) |
Change in liability for unrecognized tax benefits | (2.80%) | (4.00%) | (3.70%) |
Manufacturing deduction | (2.00%) | (2.70%) | (2.90%) |
Research and development tax credit | (2.90%) | (0.80%) | (2.70%) |
Stock-based compensation | (0.10%) | (0.10%) | 0.10% |
Other | (2.20%) | 2.20% | 0.00% |
Total provision | 27.10% | 19.30% | 30.50% |
Significant Components of Defer
Significant Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Accrued liabilities | $ 3,754 | $ 3,767 |
Inventory | 3,615 | 1,050 |
State income taxes | 0 | (1,201) |
Other | 828 | 0 |
Allowance for doubtful accounts | 182 | 132 |
Total deferred tax asset | 8,379 | 6,150 |
Deferred tax liabilities: | ||
Intangible assets | (2,033) | (6,616) |
Depreciation | (3,856) | (2,356) |
Property and equipment | 0 | (233) |
State income taxes | 1,312 | 0 |
Prepaid expenses | (113) | (61) |
Total deferred tax liability | (7,314) | (9,266) |
Net deferred tax asset (liability) | $ (3,116) | |
Net deferred tax asset (liability) | $ 1,065 |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefit - activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Balance - beginning of period | $ 7,785 | $ 7,796 | $ 7,292 |
Increase related to current year tax positions | 1,878 | 1,988 | 1,896 |
Increase related to prior year tax positions | 584 | 0 | 0 |
Decrease due to expiration of statute of limitations | (1,323) | (1,489) | (1,392) |
Decrease due to change in estimated state tax rate | 0 | (510) | 0 |
Balance - end of period | $ 8,924 | $ 7,785 | $ 7,796 |
Retirement Plan - Additional In
Retirement Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||
Matching contribution made under the plan | $ 298 | $ 233 | $ 205 |
Summary of Total Sales by Geogr
Summary of Total Sales by Geographic Location of Customer (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of operating segments | segment | 1 | ||||||||||
Number of reportable segments | segment | 1 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 95,668 | $ 106,171 | $ 97,171 | $ 67,788 | $ 74,104 | $ 90,148 | $ 86,374 | $ 56,108 | $ 366,798 | $ 306,734 | $ 272,746 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 163,126 | 128,297 | 96,113 | ||||||||
Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 101,947 | 88,069 | 89,424 | ||||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 71,941 | 66,876 | 61,996 | ||||||||
Rest of the World | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 29,784 | $ 23,492 | $ 25,213 |
Long-lived Assets by Geographic
Long-lived Assets by Geographic Location (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 26,094 | $ 19,759 |
United States | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 23,241 | 16,579 |
International | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 2,853 | $ 3,180 |
Segments and Geographic Areas S
Segments and Geographic Areas Summary of Sales by Products (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue from External Customer [Line Items] | |||||||||||
Sales | $ 95,668 | $ 106,171 | $ 97,171 | $ 67,788 | $ 74,104 | $ 90,148 | $ 86,374 | $ 56,108 | $ 366,798 | $ 306,734 | $ 272,746 |
Bikes | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales | 211,704 | 179,192 | 181,019 | ||||||||
Power vehicles | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales | $ 155,094 | $ 127,542 | $ 91,727 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) $ in Thousands, CAD in Millions | Dec. 12, 2014USD ($) | Mar. 31, 2014USD ($) | Nov. 30, 2015USD ($) | Jan. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jun. 30, 2015USD ($) | Dec. 12, 2014CAD |
Business Acquisition [Line Items] | |||||||||
Cash consideration | $ 2,414 | $ 70,938 | $ 1,117 | ||||||
Contingent consideration, maximum | 32,263 | ||||||||
Goodwill | $ 57,653 | $ 58,745 | |||||||
Federal statutory rate | 35.00% | 35.00% | 35.00% | ||||||
Gain on bargain purchase, net of deferred taxes | $ (315) | $ 0 | $ 0 | ||||||
Sport Truck USA, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash consideration | $ 40,770 | ||||||||
Contingent consideration, asset | 1,432 | ||||||||
Contingent consideration, asset, period for recognition | 3 years | ||||||||
Settlement of pre-existing accounts | $ 473 | ||||||||
Contingent consideration, maximum | $ 29,295 | ||||||||
Contingent consideration at fair value | 19,035 | 0 | 19,035 | $ 0 | |||||
Goodwill | 11,962 | ||||||||
Transaction costs | $ 1,402 | ||||||||
Financing costs | 278 | ||||||||
Total Sport Truck sales included in the condensed consolidated statements of income | 33,162 | ||||||||
Sport Truck net income included in the condensed consolidated statements of income | 2,974 | ||||||||
Losses recorded for fair value adjustments | 2,217 | ||||||||
Total consideration at closing | $ 60,278 | ||||||||
Race Face Performance and Easton Cycling | |||||||||
Business Acquisition [Line Items] | |||||||||
Contingent consideration at fair value | $ 14,063 | CAD 19.5 | |||||||
Financing costs | 166 | ||||||||
Increase to purchase price allocated to intangibles | 3,300 | ||||||||
Total consideration at closing | 29,857 | ||||||||
Transaction costs | $ 1,142 | ||||||||
Purchase accounting adjustments | $ (1,593) | ||||||||
Other Acquisition | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash consideration | $ 765 | ||||||||
Goodwill | $ 567 | ||||||||
Marzocchi's Mountain Bike Product Line | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash consideration | $ 1,649 | ||||||||
Gain on bargain purchase, net of deferred taxes | $ (315) | ||||||||
Customer relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Useful life of finite-lived intangibles | 13 years | 13 years | |||||||
Customer relationships | Sport Truck USA, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Useful life of finite-lived intangibles | 15 years |
Acquisition - Assets Acquired a
Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Acquisition consideration | ||||
Cash consideration | $ 2,414 | $ 70,938 | $ 1,117 | |
Fair market values | ||||
Goodwill | 57,653 | 58,745 | ||
Sport Truck USA, Inc. | ||||
Acquisition consideration | ||||
Cash consideration | $ 40,770 | |||
Settlement of pre-existing accounts | 473 | |||
Contingent consideration - acquisition of Sport Truck USA, Inc. | 19,035 | $ 0 | 19,035 | $ 0 |
Total consideration at closing | $ 60,278 | |||
Fair market values | ||||
Other current and non-current assets | 10,534 | |||
Property, plant and equipment | 4,488 | |||
Customer relationships | 19,000 | |||
Trademarks and brands | 16,270 | |||
Goodwill | 11,962 | |||
Total assets acquired | 62,254 | |||
Accounts payable and accrued expenses | 1,976 | |||
Total liabilities assumed | 1,976 | |||
Purchase price allocation | $ 60,278 |
Selected Quarterly Financial 82
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 95,668 | $ 106,171 | $ 97,171 | $ 67,788 | $ 74,104 | $ 90,148 | $ 86,374 | $ 56,108 | $ 366,798 | $ 306,734 | $ 272,746 |
Gross profit | 28,605 | 34,786 | 29,868 | 18,783 | 21,903 | 28,547 | 26,953 | 17,017 | 112,042 | 94,420 | 80,129 |
Income from operations | 9,447 | 13,821 | 10,537 | 1,539 | 4,229 | 13,911 | 11,736 | 4,747 | 35,344 | 34,623 | 38,781 |
Net income | $ 6,830 | $ 10,591 | $ 6,763 | $ 770 | $ 2,873 | $ 10,291 | $ 11,581 | $ 2,941 | $ 24,954 | $ 27,686 | $ 24,102 |
Earnings Per Share: | |||||||||||
Basic (in dollars per share) | $ 0.18 | $ 0.29 | $ 0.18 | $ 0.02 | $ 0.08 | $ 0.28 | $ 0.32 | $ 0.08 | $ 0.67 | $ 0.75 | $ 0.70 |
Diluted (in dollars per share) | $ 0.18 | $ 0.28 | $ 0.18 | $ 0.02 | $ 0.08 | $ 0.27 | $ 0.31 | $ 0.08 | $ 0.66 | $ 0.73 | $ 0.68 |