We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Skullcandy, Inc. (MM) | NASDAQ:SKUL | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 6.35 | 6.34 | 6.35 | 0 | 01:00:00 |
|
|
|
|
|
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
|
|
|
Delaware
|
|
56-2362196
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification Number)
|
1441 West Ute Boulevard, Suite 250
Park City, Utah
|
|
84098
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
|
|
Large accelerated filer
|
|
o
|
|
Accelerated filer
|
|
x
|
|
|
|
|
|||
Non-accelerated filer
|
|
o
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
|
|
o
|
|
|
Page
|
|
||
Item 1.
|
|
|
|
||
|
||
|
|
|
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
||
Item 1.
|
||
Item 1A.
|
||
Item 6.
|
||
Signatures
|
|
June 30, 2016 |
|
December 31, 2015 |
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
24,617
|
|
|
$
|
23,030
|
|
Short-term investments
|
16,602
|
|
|
543
|
|
||
Total cash, cash equivalents, and short-term investments
|
41,219
|
|
|
23,573
|
|
||
Accounts receivable, net
|
53,128
|
|
|
84,909
|
|
||
Inventories, net
|
44,498
|
|
|
41,686
|
|
||
Prepaid expenses and other current assets
|
11,963
|
|
|
6,189
|
|
||
Current deferred tax assets
|
4,492
|
|
|
3,999
|
|
||
Total current assets
|
155,300
|
|
|
160,356
|
|
||
Property and equipment, net
|
14,566
|
|
|
14,830
|
|
||
Intangibles
|
6,743
|
|
|
7,433
|
|
||
Goodwill
|
13,867
|
|
|
13,867
|
|
||
Deferred financing fees
|
26
|
|
|
31
|
|
||
Non-current deferred tax assets
|
558
|
|
|
923
|
|
||
Other non-current assets
|
654
|
|
|
250
|
|
||
Total assets
|
$
|
191,714
|
|
|
$
|
197,690
|
|
Liabilities and stockholders’ equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
17,211
|
|
|
$
|
13,216
|
|
Accrued liabilities
|
16,341
|
|
|
21,931
|
|
||
Current deferred tax liabilities
|
8
|
|
|
190
|
|
||
Total current liabilities
|
33,560
|
|
|
35,337
|
|
||
Non-current deferred tax liabilities
|
996
|
|
|
1,148
|
|
||
Other non-current liabilities
|
1,280
|
|
|
1,117
|
|
||
Total liabilities
|
35,836
|
|
|
37,602
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock
|
—
|
|
|
—
|
|
||
Common stock
|
3
|
|
|
3
|
|
||
Treasury stock
|
(43,294
|
)
|
|
(43,294
|
)
|
||
Additional paid-in capital
|
139,638
|
|
|
137,535
|
|
||
Accumulated other comprehensive loss
|
(652
|
)
|
|
(818
|
)
|
||
Retained earnings
|
60,183
|
|
|
66,662
|
|
||
Total stockholders’ equity
|
155,878
|
|
|
160,088
|
|
||
Total liabilities and stockholders’ equity
|
$
|
191,714
|
|
|
$
|
197,690
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net sales
|
$
|
57,282
|
|
|
$
|
57,393
|
|
|
$
|
103,569
|
|
|
$
|
103,035
|
|
Cost of goods sold
|
33,727
|
|
|
32,866
|
|
|
62,647
|
|
|
59,849
|
|
||||
Gross profit
|
23,555
|
|
|
24,527
|
|
|
40,922
|
|
|
43,186
|
|
||||
Selling, general and administrative expenses
|
25,527
|
|
|
23,502
|
|
|
49,668
|
|
|
45,807
|
|
||||
(Loss) income from operations
|
(1,972
|
)
|
|
1,025
|
|
|
(8,746
|
)
|
|
(2,621
|
)
|
||||
Other expense (income)
|
311
|
|
|
(111
|
)
|
|
491
|
|
|
884
|
|
||||
Interest (income) expense
|
(34
|
)
|
|
5
|
|
|
(46
|
)
|
|
(11
|
)
|
||||
(Loss) income before income taxes and noncontrolling interests
|
(2,249
|
)
|
|
1,131
|
|
|
(9,191
|
)
|
|
(3,494
|
)
|
||||
Income tax benefit
|
(675
|
)
|
|
(19
|
)
|
|
(2,712
|
)
|
|
(813
|
)
|
||||
Net (loss) income
|
(1,574
|
)
|
|
1,150
|
|
|
(6,479
|
)
|
|
(2,681
|
)
|
||||
Net loss attributable to noncontrolling interests
|
—
|
|
|
(65
|
)
|
|
—
|
|
|
(168
|
)
|
||||
Net (loss) income attributable to Skullcandy, Inc.
|
$
|
(1,574
|
)
|
|
$
|
1,215
|
|
|
$
|
(6,479
|
)
|
|
$
|
(2,513
|
)
|
Net (loss) income per common share attributable to Skullcandy, Inc.
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.05
|
)
|
|
$
|
0.04
|
|
|
$
|
(0.23
|
)
|
|
$
|
(0.09
|
)
|
Diluted
|
$
|
(0.05
|
)
|
|
$
|
0.04
|
|
|
$
|
(0.23
|
)
|
|
$
|
(0.09
|
)
|
Weighted average common shares outstanding
|
|
|
|
|
|
|
|
||||||||
Basic
|
28,665
|
|
|
28,380
|
|
|
28,614
|
|
|
28,326
|
|
||||
Diluted
|
28,665
|
|
|
28,952
|
|
|
28,614
|
|
|
28,326
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net (loss) income
|
$
|
(1,574
|
)
|
|
$
|
1,150
|
|
|
$
|
(6,479
|
)
|
|
$
|
(2,681
|
)
|
Unrealized gain (loss) on foreign currency cash flow hedges, net of tax benefits (expense) of ($209) and ($187) for the three and six months ended June 30, 2016 and $355 and $213 for the three and six months ended June 30, 2015, respectively
|
389
|
|
|
(640
|
)
|
|
349
|
|
|
(385
|
)
|
||||
Change in unrecognized actuarial loss, net of tax benefit of $4 and $8 for the three and six months ended June 30, 2016, and $0 for the three and six months ended June 30, 2015, respectively
|
(37
|
)
|
|
—
|
|
|
(73
|
)
|
|
—
|
|
||||
Unrealized gain on available-for-sale securities, net of tax expense (benefit) of $6 for the three and six months ended June 30, 2016 and $2 and ($8) for the three and six months ended June 30 2015, respectively
|
11
|
|
|
4
|
|
|
11
|
|
|
15
|
|
||||
Foreign currency translation adjustment
|
(151
|
)
|
|
33
|
|
|
(121
|
)
|
|
(94
|
)
|
||||
Comprehensive (loss) income
|
(1,362
|
)
|
|
547
|
|
|
(6,313
|
)
|
|
(3,145
|
)
|
||||
Comprehensive loss attributable to noncontrolling interests
|
—
|
|
|
(65
|
)
|
|
—
|
|
|
(168
|
)
|
||||
Comprehensive (loss) income attributable to Skullcandy, Inc.
|
$
|
(1,362
|
)
|
|
$
|
612
|
|
|
$
|
(6,313
|
)
|
|
$
|
(2,977
|
)
|
|
Six months ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
Operating activities
|
|
|
|
||||
Net loss
|
$
|
(6,479
|
)
|
|
$
|
(2,681
|
)
|
Adjustments to reconcile net loss to net cash provided (used in) by operating activities:
|
|
|
|
||||
Depreciation of fixed assets and amortization of intangible assets
|
5,204
|
|
|
5,230
|
|
||
Loss on disposal of property and equipment and intangible assets
|
—
|
|
|
64
|
|
||
Provision for doubtful accounts
|
833
|
|
|
11
|
|
||
Deferred income taxes
|
(2,062
|
)
|
|
2,720
|
|
||
Non-cash interest expense
|
5
|
|
|
5
|
|
||
Amortization of stock-based compensation expense
|
2,342
|
|
|
2,055
|
|
||
Foreign currency remeasurement (gain) loss
|
(458
|
)
|
|
550
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
31,039
|
|
|
19,394
|
|
||
Inventories
|
(2,650
|
)
|
|
(6,531
|
)
|
||
Prepaid expenses and other assets
|
(5,697
|
)
|
|
(5,191
|
)
|
||
Accounts payable
|
3,702
|
|
|
(9,484
|
)
|
||
Accrued liabilities
|
(3,559
|
)
|
|
(17,969
|
)
|
||
Net cash provided by (used in) provided by operating activities
|
22,220
|
|
|
(11,827
|
)
|
||
Investing activities
|
|
|
|
||||
Purchase of property and equipment
|
(3,937
|
)
|
|
(5,807
|
)
|
||
Purchases of short-term investments
|
(16,043
|
)
|
|
—
|
|
||
Proceeds from sales of short-term investments
|
—
|
|
|
7,514
|
|
||
Loan to third party
|
(500
|
)
|
|
—
|
|
||
Net cash (used in) provided by investing activities
|
(20,480
|
)
|
|
1,707
|
|
||
Financing activities
|
|
|
|
||||
Proceeds from exercise of stock options
|
9
|
|
|
358
|
|
||
Taxes paid related to net share settlement of equity awards
|
(163
|
)
|
|
(245
|
)
|
||
Income tax (detriment) benefit from share based compensation
|
(84
|
)
|
|
95
|
|
||
Net cash (used in) provided by financing activities
|
(238
|
)
|
|
208
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
85
|
|
|
(10
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
1,587
|
|
|
(9,922
|
)
|
||
Cash and cash equivalents, beginning of period
|
23,030
|
|
|
21,623
|
|
||
Cash and cash equivalents, end of period
|
$
|
24,617
|
|
|
$
|
11,701
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
||||
Cash paid for income tax
|
$
|
4,580
|
|
|
$
|
3,725
|
|
Supplemental non-cash activities:
|
|
|
|
||||
Purchases of property and equipment financed through accounts payable
|
$
|
298
|
|
|
$
|
329
|
|
|
|
Cost Basis
|
|
Unrealized gains (losses), net
|
|
Fair Value
|
||||||
Available-for-sale:
|
|
|
|
|
|
|
||||||
Debt mutual funds
|
|
$
|
16,589
|
|
|
$
|
13
|
|
|
$
|
16,602
|
|
|
|
Cost Basis
|
|
Unrealized gains (losses), net
|
|
Fair Value
|
||||||
Available-for-sale:
|
|
|
|
|
|
|
||||||
Debt mutual funds
|
|
$
|
545
|
|
|
$
|
(2
|
)
|
|
$
|
543
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Total impact on net sales
|
$
|
323
|
|
|
$
|
13
|
|
|
$
|
445
|
|
|
$
|
146
|
|
Total impact on other income (expense)
|
217
|
|
|
(139
|
)
|
|
(761
|
)
|
|
104
|
|
||||
|
$
|
540
|
|
|
$
|
(126
|
)
|
|
$
|
(316
|
)
|
|
$
|
250
|
|
|
Number of
Instruments
|
|
Sell
Notional Value
|
|
Buy
Notional Value
|
|||||
Sell EUR/Buy USD Forward Contract
|
22
|
|
|
€
|
5,077
|
|
|
$
|
5,653
|
|
Sell GBP/Buy USD Forward Contract
|
22
|
|
|
£
|
9,298
|
|
|
$
|
13,295
|
|
|
44
|
|
|
|
|
$
|
18,948
|
|
|
Amount of Gain (Loss)
Recognized in
OCI on Derivative
(Effective Portion)
Three months ended
|
|
Location of Gain or Loss
Reclassified from
Accumulated OCI
into Income
(Effective Portion)
|
|
Amount of Gain (Loss)
Reclassified from
Accumulated OCI
into Income
(Effective Portion)
Three months ended
|
|
Location of Gain or Loss
Recognized in
Income on Derivative
(Ineffective Portion
and Amount
Excluded from
Effectiveness Testing)
|
|
Amount of Gain (Loss)
Recognized in Income on
Derivative
(Ineffective Portion
and Amount
Excluded from
Effectiveness Testing)
Three months ended
|
||||||||||||||||||
|
June 30,
2016 |
|
June 30,
2015 |
|
June 30,
2016 |
|
June 30,
2015 |
|
June 30,
2016 |
|
June 30,
2015 |
||||||||||||||||
Sell EUR/Buy USD Forward Contract
|
$
|
105
|
|
|
$
|
(275
|
)
|
|
Net sales
|
|
$
|
(59
|
)
|
|
$
|
130
|
|
|
Net sales
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
Sell GBP/Buy USD Forward Contract
|
587
|
|
|
(604
|
)
|
|
Net sales
|
|
154
|
|
|
(11
|
)
|
|
Net sales
|
|
—
|
|
|
(2
|
)
|
||||||
|
$
|
692
|
|
|
$
|
(879
|
)
|
|
|
|
$
|
95
|
|
|
$
|
119
|
|
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
Amount of Gain (Loss)
Recognized in
OCI on Derivative
(Effective Portion)
Six months ended
|
|
Location of Gain or Loss
Reclassified from
Accumulated OCI
into Income
(Effective Portion)
|
|
Amount of Gain (Loss)
Reclassified from
Accumulated OCI
into Income
(Effective Portion)
Six months ended
|
|
Location of Gain or Loss
Recognized in
Income on Derivative
(Ineffective Portion
and Amount
Excluded from
Effectiveness Testing)
|
|
Amount of Gain (Loss)
Recognized in Income on
Derivative
(Ineffective Portion
and Amount
Excluded from
Effectiveness Testing)
Six months ended
|
||||||||||||||||||
|
June 30,
2016 |
|
June 30,
2015 |
|
June 30,
2016 |
|
June 30,
2015 |
|
June 30,
2016 |
|
June 30,
2015 |
||||||||||||||||
Sell EUR/Buy USD Forward Contract
|
$
|
(115
|
)
|
|
$
|
(10
|
)
|
|
Net sales
|
|
$
|
(61
|
)
|
|
$
|
180
|
|
|
Net sales
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
Sell GBP/Buy USD Forward Contract
|
857
|
|
|
(436
|
)
|
|
Net sales
|
|
267
|
|
|
(31
|
)
|
|
Net sales
|
|
—
|
|
|
(2
|
)
|
||||||
|
$
|
742
|
|
|
$
|
(446
|
)
|
|
|
|
$
|
206
|
|
|
$
|
149
|
|
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
Number of
Instruments
|
|
Sell
Notional Value
|
|
Buy
Notional Value
|
|||||
Sell EUR/Buy USD Forward Contract
|
15
|
|
|
€
|
2,153
|
|
|
$
|
2,340
|
|
Sell GBP/Buy USD Forward Contract
|
3
|
|
|
£
|
2,882
|
|
|
$
|
3,872
|
|
Sell CAD/Buy USD Forward Contract
|
26
|
|
|
C$
|
11,754
|
|
|
$
|
8,886
|
|
Sell USD/Buy CHF Forward Contract
|
19
|
|
|
$
|
3,634
|
|
|
Fr.
|
3,510
|
|
Sell MXN/Buy USD Forward Contract
|
21
|
|
|
$
|
101,477
|
|
|
$
|
5,469
|
|
Sell JPY/Buy USD Forward Contract
|
1
|
|
|
¥
|
285,863
|
|
|
$
|
2,790
|
|
Sell CNY/Buy USD Forward Contract
|
11
|
|
|
¥
|
30,913
|
|
|
$
|
4,590
|
|
|
96
|
|
|
|
|
|
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||
|
June 30, 2016
|
|
December 31, 2015
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||
Derivatives designated as cash flow hedges
|
|
|
|
|
|
|
|
||||||||
Balance Sheet Location
|
Prepaid expenses
and other current
assets
|
|
Prepaid expenses
and other current
assets
|
|
Accrued liabilities
|
|
Accrued liabilities
|
||||||||
Sell EUR/Buy USD Forward Contract
|
$
|
29
|
|
|
$
|
47
|
|
|
$
|
44
|
|
|
$
|
16
|
|
Sell GBP/Buy USD Forward Contract
|
874
|
|
|
273
|
|
|
3
|
|
|
—
|
|
||||
|
$
|
903
|
|
|
$
|
320
|
|
|
$
|
47
|
|
|
$
|
16
|
|
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
||||||||
Balance Sheet Location
|
Prepaid expenses
and other current
assets
|
|
Prepaid expenses
and other current
assets
|
|
Accrued liabilities
|
|
Accrued liabilities
|
||||||||
Sell EUR/Buy USD Forward Contract
|
$
|
30
|
|
|
$
|
45
|
|
|
$
|
22
|
|
|
$
|
57
|
|
Sell GBP/Buy USD Forward Contract
|
27
|
|
|
27
|
|
|
—
|
|
|
—
|
|
||||
Sell CAD/Buy USD Forward Contract
|
10
|
|
|
211
|
|
|
221
|
|
|
14
|
|
||||
Sell CHF/Buy USD Forward Contract
|
21
|
|
|
3
|
|
|
24
|
|
|
116
|
|
||||
Sell MXN/Buy USD Forward Contract
|
95
|
|
|
86
|
|
|
150
|
|
|
5
|
|
||||
Sell JPY/Buy USD Forward Contract
|
19
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Sell CNY/Buy USD Forward Contract
|
—
|
|
|
—
|
|
|
45
|
|
|
30
|
|
||||
|
$
|
202
|
|
|
$
|
372
|
|
|
$
|
462
|
|
|
$
|
223
|
|
|
Fair Value Measurements at June 30, 2016
|
||||||||||||||
|
Quoted Prices in Active Markets for Identical Assets and Liabilities
(Level 1) |
|
Significant Other
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
$
|
—
|
|
|
$
|
1,105
|
|
|
$
|
—
|
|
|
$
|
1,105
|
|
Cash equivalents - Money market funds
|
2,402
|
|
|
—
|
|
|
—
|
|
|
2,402
|
|
||||
Debt mutual funds
|
—
|
|
|
16,602
|
|
|
—
|
|
|
16,602
|
|
||||
Total assets
|
$
|
2,402
|
|
|
$
|
17,707
|
|
|
$
|
—
|
|
|
$
|
20,109
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
—
|
|
|
509
|
|
|
—
|
|
|
509
|
|
|
Fair Value Measurements at December 31, 2015
|
||||||||||||||
|
Quoted Prices in Active Markets for Identical Assets and Liabilities
(Level 1) |
|
Significant Other
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
$
|
—
|
|
|
$
|
692
|
|
|
$
|
—
|
|
|
$
|
692
|
|
Cash equivalents - Money market funds
|
400
|
|
|
—
|
|
|
—
|
|
|
400
|
|
||||
Debt mutual funds
|
—
|
|
|
541
|
|
|
—
|
|
|
541
|
|
||||
Total assets
|
$
|
400
|
|
|
$
|
1,233
|
|
|
$
|
—
|
|
|
$
|
1,633
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
—
|
|
|
239
|
|
|
—
|
|
|
239
|
|
|
Doubtful
Accounts
|
|
Sales Returns
& Allowances
|
||||
|
(in thousands)
|
||||||
Balance, December 31, 2015
|
$
|
3,253
|
|
|
$
|
7,037
|
|
Provision
|
830
|
|
|
14,973
|
|
||
Deductions
|
(206
|
)
|
|
(15,709
|
)
|
||
Balance, June 30, 2016
|
$
|
3,877
|
|
|
$
|
6,301
|
|
|
Warranty
Accrual
|
||
|
(in thousands)
|
||
Balance at December 31, 2015
|
$
|
792
|
|
Warranty claims
|
(358
|
)
|
|
Warranty costs accrued
|
348
|
|
|
Balance at June 30, 2016
|
$
|
782
|
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
|
(in thousands)
|
||||||
Cost:
|
|
|
|
||||
Leasehold improvements
|
$
|
4,757
|
|
|
$
|
3,281
|
|
Furniture and fixtures
|
10,373
|
|
|
9,341
|
|
||
Other equipment
|
12,861
|
|
|
12,214
|
|
||
Computer equipment and software
|
8,117
|
|
|
6,998
|
|
||
Vehicles
|
208
|
|
|
212
|
|
||
Total cost:
|
36,316
|
|
|
32,046
|
|
||
Less accumulated depreciation
|
(21,750
|
)
|
|
(17,216
|
)
|
||
Property and equipment, net
|
$
|
14,566
|
|
|
$
|
14,830
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Numerator
|
|
|
|
|
|
|
|
||||||||
Net (loss) income attributable to Skullcandy, Inc.
|
$
|
(1,574
|
)
|
|
$
|
1,215
|
|
|
$
|
(6,479
|
)
|
|
$
|
(2,513
|
)
|
Denominator
|
|
|
|
|
|
|
|
||||||||
Weighted average common stock outstanding for basic net loss per common share
|
28,665
|
|
|
28,380
|
|
|
28,614
|
|
|
28,326
|
|
||||
Effect of dilutive securities—unvested restricted stock and stock options
|
—
|
|
|
572
|
|
|
—
|
|
|
—
|
|
||||
Weighted average common shares and dilutive securities outstanding
|
28,665
|
|
|
28,952
|
|
|
28,614
|
|
|
28,326
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Net sales
|
|
|
|
|
|
|
|
||||||||
Domestic
|
$
|
42,324
|
|
|
$
|
40,728
|
|
|
$
|
74,093
|
|
|
$
|
71,352
|
|
International
|
14,958
|
|
|
16,665
|
|
|
29,476
|
|
|
31,683
|
|
||||
Consolidated net sales
|
$
|
57,282
|
|
|
$
|
57,393
|
|
|
$
|
103,569
|
|
|
$
|
103,035
|
|
Gross profit
|
|
|
|
|
|
|
|
||||||||
Domestic
|
$
|
17,904
|
|
|
$
|
17,849
|
|
|
$
|
29,992
|
|
|
$
|
30,175
|
|
International
|
5,651
|
|
|
6,678
|
|
|
10,930
|
|
|
13,011
|
|
||||
Consolidated gross profit
|
$
|
23,555
|
|
|
$
|
24,527
|
|
|
$
|
40,922
|
|
|
$
|
43,186
|
|
(Loss) income from operations
|
|
|
|
|
|
|
|
||||||||
Domestic
|
$
|
(97
|
)
|
|
$
|
(1
|
)
|
|
$
|
(6,036
|
)
|
|
$
|
(5,092
|
)
|
International
|
(1,875
|
)
|
|
1,026
|
|
|
(2,710
|
)
|
|
2,471
|
|
||||
Consolidated (loss) income from operations
|
$
|
(1,972
|
)
|
|
$
|
1,025
|
|
|
$
|
(8,746
|
)
|
|
$
|
(2,621
|
)
|
|
June 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(in thousands)
|
||||||
Identifiable assets
|
|
|
|
||||
Domestic
|
$
|
133,450
|
|
|
$
|
129,102
|
|
International
|
58,264
|
|
|
68,588
|
|
||
Consolidated
|
$
|
191,714
|
|
|
$
|
197,690
|
|
Long-lived assets
|
|
|
|
||||
Domestic
|
$
|
14,916
|
|
|
$
|
15,397
|
|
International
|
6,393
|
|
|
6,866
|
|
||
Consolidated
|
$
|
21,309
|
|
|
$
|
22,263
|
|
Goodwill
|
|
|
|
||||
Domestic
|
$
|
6,805
|
|
|
$
|
6,805
|
|
International
|
7,062
|
|
|
7,062
|
|
||
Consolidated
|
$
|
13,867
|
|
|
$
|
13,867
|
|
|
Options
Outstanding
|
|
Price Range
|
|
Weighted-
Average
Price
|
|
Weighted-
Average
Contractual Term
(in years)
|
|
Aggregate
Intrinsic Value (1)
|
||||||
Balance at December 31, 2015
|
2,052
|
|
|
0.37 – 20.00
|
|
|
$
|
7.98
|
|
|
|
|
|
||
Granted
|
587
|
|
|
4.12
|
|
|
4.12
|
|
|
|
|
|
|||
Exercised
|
(2
|
)
|
|
5.26
|
|
|
5.26
|
|
|
|
|
|
|||
Canceled and forfeited
|
(42
|
)
|
|
5.26 - 11.99
|
|
|
7.69
|
|
|
|
|
|
|||
Balance at June 30, 2016
|
2,595
|
|
|
0.37 – 20.00
|
|
|
$
|
7.11
|
|
|
7.50
|
|
$
|
2,321
|
|
Vested and Exercisable
|
1,192
|
|
|
0.37 – 20.00
|
|
|
$
|
8.23
|
|
|
6.27
|
|
$
|
869
|
|
Unvested
|
1,404
|
|
|
4.12 – 10.94
|
|
|
$
|
6.17
|
|
|
8.55
|
|
$
|
1,452
|
|
|
PSUs
Outstanding
|
|
Weighted-
Average
Grant Date
Fair Value
|
|||
Balance at December 31, 2015
|
19
|
|
|
$
|
9.28
|
|
Granted
|
241
|
|
|
4.12
|
|
|
Vested
|
—
|
|
|
—
|
|
|
Forfeited
|
(1
|
)
|
|
4.12
|
|
|
Balance at June 30, 2016
|
259
|
|
|
$
|
4.50
|
|
|
RSUs
Outstanding
|
|
Weighted-
Average
Grant Date
Fair Value
|
|||
Balance at December 31, 2015
|
1,011
|
|
|
$
|
7.03
|
|
Granted
|
845
|
|
|
3.95
|
|
|
Vested
|
(211
|
)
|
|
8.45
|
|
|
Forfeited
|
(75
|
)
|
|
6.40
|
|
|
Balance at June 30, 2016
|
1,571
|
|
|
$
|
5.21
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Net sales
|
|
|
|
|
|
|
|
||||||||
Domestic
|
$
|
42,324
|
|
|
$
|
40,728
|
|
|
$
|
74,093
|
|
|
$
|
71,352
|
|
International
|
14,958
|
|
|
16,665
|
|
|
29,476
|
|
|
31,683
|
|
||||
Consolidated net sales
|
$
|
57,282
|
|
|
$
|
57,393
|
|
|
$
|
103,569
|
|
|
$
|
103,035
|
|
Gross profit
|
|
|
|
|
|
|
|
||||||||
Domestic
|
$
|
17,904
|
|
|
$
|
17,849
|
|
|
$
|
29,992
|
|
|
$
|
30,175
|
|
International
|
5,651
|
|
|
6,678
|
|
|
10,930
|
|
|
13,011
|
|
||||
Consolidated gross profit
|
$
|
23,555
|
|
|
$
|
24,527
|
|
|
$
|
40,922
|
|
|
$
|
43,186
|
|
(Loss) income from operations
|
|
|
|
|
|
|
|
||||||||
Domestic
|
$
|
(97
|
)
|
|
$
|
(1
|
)
|
|
$
|
(6,036
|
)
|
|
$
|
(5,092
|
)
|
International
|
(1,875
|
)
|
|
1,026
|
|
|
(2,710
|
)
|
|
2,471
|
|
||||
Consolidated (loss) income from operations
|
$
|
(1,972
|
)
|
|
$
|
1,025
|
|
|
$
|
(8,746
|
)
|
|
$
|
(2,621
|
)
|
|
June 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(in thousands)
|
||||||
Identifiable assets
|
|
|
|
||||
Domestic
|
$
|
133,450
|
|
|
$
|
129,102
|
|
International
|
58,264
|
|
|
68,588
|
|
||
Consolidated
|
$
|
191,714
|
|
|
$
|
197,690
|
|
Long-lived assets
|
|
|
|
||||
Domestic
|
$
|
14,916
|
|
|
$
|
15,397
|
|
International
|
6,393
|
|
|
6,866
|
|
||
Consolidated
|
$
|
21,309
|
|
|
$
|
22,263
|
|
Goodwill
|
|
|
|
||||
Domestic
|
$
|
6,805
|
|
|
$
|
6,805
|
|
International
|
7,062
|
|
|
7,062
|
|
||
Consolidated
|
$
|
13,867
|
|
|
$
|
13,867
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||||||
Net sales
|
|
$
|
57,282
|
|
|
100.0
|
%
|
|
$
|
57,393
|
|
|
100.0
|
%
|
|
$
|
103,569
|
|
|
100.0
|
%
|
|
$
|
103,035
|
|
|
100.0
|
%
|
Cost of goods sold
|
|
33,727
|
|
|
58.9
|
%
|
|
32,866
|
|
|
57.3
|
%
|
|
62,647
|
|
|
60.5
|
%
|
|
59,849
|
|
|
58.1
|
%
|
||||
Gross profit
|
|
23,555
|
|
|
41.1
|
%
|
|
24,527
|
|
|
42.7
|
%
|
|
40,922
|
|
|
39.5
|
%
|
|
43,186
|
|
|
41.9
|
%
|
||||
Selling, general and administrative expenses
|
|
25,527
|
|
|
44.6
|
%
|
|
23,502
|
|
|
40.9
|
%
|
|
49,668
|
|
|
48.0
|
%
|
|
45,807
|
|
|
44.5
|
%
|
||||
(Loss) income from operations
|
|
(1,972
|
)
|
|
(3.4
|
)%
|
|
1,025
|
|
|
1.8
|
%
|
|
(8,746
|
)
|
|
(8.4
|
)%
|
|
(2,621
|
)
|
|
(2.5
|
)%
|
||||
Other expense (income)
|
|
311
|
|
|
0.5
|
%
|
|
(111
|
)
|
|
(0.2
|
)%
|
|
491
|
|
|
0.5
|
%
|
|
884
|
|
|
0.9
|
%
|
||||
Interest (income) expense
|
|
(34
|
)
|
|
(0.1
|
)%
|
|
5
|
|
|
—
|
%
|
|
(46
|
)
|
|
—
|
%
|
|
(11
|
)
|
|
—
|
%
|
||||
(Loss) income before income taxes and noncontrolling interests
|
|
(2,249
|
)
|
|
(3.9
|
)%
|
|
1,131
|
|
|
2.0
|
%
|
|
(9,191
|
)
|
|
(8.9
|
)%
|
|
(3,494
|
)
|
|
(3.4
|
)%
|
||||
Benefit for income taxes
|
|
(675
|
)
|
|
(1.2
|
)%
|
|
(19
|
)
|
|
—
|
%
|
|
(2,712
|
)
|
|
(2.6
|
)%
|
|
(813
|
)
|
|
(0.8
|
)%
|
||||
Net (loss) income
|
|
(1,574
|
)
|
|
(2.7
|
)%
|
|
1,150
|
|
|
2.0
|
%
|
|
(6,479
|
)
|
|
(6.3
|
)%
|
|
(2,681
|
)
|
|
(2.6
|
)%
|
||||
Net loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
%
|
|
(65
|
)
|
|
(0.1
|
)%
|
|
—
|
|
|
—
|
%
|
|
(168
|
)
|
|
(0.2
|
)%
|
||||
Net (loss) income attributable to Skullcandy, Inc.
|
|
$
|
(1,574
|
)
|
|
(2.7
|
)%
|
|
$
|
1,215
|
|
|
2.1
|
%
|
|
$
|
(6,479
|
)
|
|
(6.3
|
)%
|
|
$
|
(2,513
|
)
|
|
(2.4
|
)%
|
|
Three months ended June 30,
|
|
|
|
|
|||||||||
|
2016
|
|
2015
|
|
$ Change
|
|
% Change
|
|||||||
Gross profit
|
|
|
|
|
|
|
|
|||||||
Domestic
|
$
|
17,904
|
|
|
$
|
17,849
|
|
|
$
|
55
|
|
|
0.3
|
%
|
International
|
5,651
|
|
|
6,678
|
|
|
(1,027
|
)
|
|
(15.4
|
)%
|
|||
Total gross profit
|
$
|
23,555
|
|
|
$
|
24,527
|
|
|
$
|
(972
|
)
|
|
(4.0
|
)%
|
|
|
|
|
|
|
|
|
|||||||
|
Three months ended June 30,
|
|
|
|
|
|||||||||
|
2016
|
|
2015
|
|
Basis Point Change
|
|
|
|||||||
Gross margin %
|
|
|
|
|
|
|
|
|||||||
Domestic %
|
42.3
|
%
|
|
43.8
|
%
|
|
(150
|
)
|
|
|
||||
International %
|
37.8
|
%
|
|
40.1
|
%
|
|
(230
|
)
|
|
|
||||
Total gross margin %
|
41.1
|
%
|
|
42.7
|
%
|
|
(160
|
)
|
|
|
|
Three months ended June 30,
|
|
|
|
|
|||||||||
|
2016
|
|
2015
|
|
$ Change
|
|
% Change
|
|||||||
Selling, general and administrative expenses
|
$
|
25,527
|
|
|
$
|
23,502
|
|
|
$
|
2,025
|
|
|
8.6
|
%
|
Selling, general and administrative expenses as a percent of net sales
|
44.6
|
%
|
|
40.9
|
%
|
|
|
|
|
|
Six months ended June 30,
|
|
|
|
|
|||||||||
|
2016
|
|
2015
|
|
$ Change
|
|
% Change
|
|||||||
Gross profit
|
|
|
|
|
|
|
|
|||||||
Domestic
|
$
|
29,992
|
|
|
$
|
30,175
|
|
|
$
|
(183
|
)
|
|
(0.6
|
)%
|
International
|
10,930
|
|
|
13,011
|
|
|
(2,081
|
)
|
|
(16.0
|
)%
|
|||
Total gross profit
|
$
|
40,922
|
|
|
$
|
43,186
|
|
|
$
|
(2,264
|
)
|
|
(5.2
|
)%
|
|
|
|
|
|
|
|
|
|||||||
|
Six months ended June 30,
|
|
|
|
|
|||||||||
|
2016
|
|
2015
|
|
Basis Point Change
|
|
|
|||||||
Gross margin %
|
|
|
|
|
|
|
|
|||||||
Domestic %
|
40.5
|
%
|
|
42.3
|
%
|
|
(180
|
)
|
|
|
||||
International %
|
37.1
|
%
|
|
41.1
|
%
|
|
(400
|
)
|
|
|
||||
Total gross margin %
|
39.5
|
%
|
|
41.9
|
%
|
|
(240
|
)
|
|
|
|
Six months ended June 30,
|
|
|
|
|
|||||||||
|
2016
|
|
2015
|
|
$ Change
|
|
% Change
|
|||||||
Selling, general and administrative expenses
|
$
|
49,668
|
|
|
$
|
45,807
|
|
|
$
|
3,805
|
|
|
8.3
|
%
|
Selling, general and administrative expenses as a percent of net sales
|
48.0
|
%
|
|
44.5
|
%
|
|
|
|
|
|
Six months ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
Cash and cash equivalents at beginning of period
|
$
|
23,030
|
|
|
$
|
21,623
|
|
Net cash provided by (used in) operating activities
|
22,220
|
|
|
(11,827
|
)
|
||
Net cash (used in) provided by investing activities
|
(20,480
|
)
|
|
1,707
|
|
||
Net cash (used in) provided by financing activities
|
(238
|
)
|
|
208
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
85
|
|
|
(10
|
)
|
||
Cash and cash equivalents at end of period
|
$
|
24,617
|
|
|
$
|
11,701
|
|
•
|
If the Offer and the Merger are not completed or are significantly delayed, the trading price of the Company Shares may decrease or change to the extent that the current trading price of the Company Shares reflects an assumption that the Offer and the Merger will be completed, or completed in a timely manner;
|
•
|
Certain significant costs related to the Offer and the Merger, including significant fees and/or expenses of our legal, accounting and financial advisors printing fees, mailing fees and related charges, must be paid by us whether or not the Merger is not consummated, and such costs will continue to increase if the Offer and the Merger are delayed;
|
•
|
Under certain circumstances, if the Merger Agreement is terminated, the Company will be obligated to pay Incipio the Termination Fee, which would be a significant cost;
|
•
|
Pursuant to the Merger Agreement, we are subject to certain restrictions on the conduct of our business prior to the consummation of the Merger, which restrictions could adversely affect our ability to realize certain of our business strategies or take advantage of certain business opportunities;
|
•
|
The uncertainties related to the potential pending Merger may cause customers, vendors, and others that deal with us to delay or defer doing business with us or cause them to seek to change existing business relationships with us, which could negatively impact our revenues, earnings, and cash flows regardless of whether the merger is completed;
|
•
|
The attention of our management may be directed toward the consummation of the Offer, the Merger and related matters, and their focus may be diverted from the day-to-day business operations of our company, including from other opportunities that might otherwise be beneficial to us;
|
•
|
The inability to retain certain key employees who may have sought and obtained different employment in anticipation of the consummation of the Offer and the Merger or to preserve employee morale;
|
•
|
Uncertainty about the completion or effect of the pending Merger also may lead to increased competition from the Company’s competitors;
|
•
|
Our inability to hire capable employees, given the uncertainty regarding the future of the company, in order to execute on our continuing business operations; and
|
•
|
A failure of the Offer and the Merger may result in negative publicity and/or a negative impression of us in the investment community or business community generally.
|
|
|
Exhibit No.
|
Description of Exhibit
|
|
|
31.1
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.
|
|
|
31.2
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.
|
|
|
32.1
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
101
|
The following materials from Skullcandy, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Operations; (iii) Condensed Consolidated Statements of Comprehensive Income (Loss) (iv) Condensed Consolidated Statements of Cash Flows; and (v) Notes to Condensed Consolidated Financial Statements.
|
|
|
|
|
Skullcandy, Inc.
|
|
|
|
|
Date: August 9, 2016
|
By:
|
/s/ JASON HODELL
|
|
|
Jason Hodell
|
|
|
Chief Financial Officer and Chief Operating Officer
|
|
|
(Principal Financial Officer and Duly Authorized Signatory)
|
1 Year Skullcandy, Inc. (MM) Chart |
1 Month Skullcandy, Inc. (MM) Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions