MAD CATZ INTERACTIVE INC

CIK:0001088162|SEC Filings

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Net sales	$ 19,061	$ 65,038	$ 44,716	$ 116,930
Cost of sales	17,766	53,633	42,997	93,641
Gross profit	1,295	11,405	1,719	23,289
Operating expenses:
Sales and marketing	1,733	4,865	4,581	12,038
General and administrative	1,911	2,600	6,458	8,132
Research and development	436	1,007	1,653	2,869
Restructuring and severance costs	154		151
Amortization of intangible assets	92	112	314	332
Net loss (gain) on sale of Saitek assets	7		(8,170)
Net operating expenses	4,333	8,584	4,987	23,371
Operating (loss) income	(3,038)	2,821	(3,268)	(82)
Other income (expense):
Interest expense, net	(290)	(657)	(900)	(1,278)
Foreign exchange gain (loss), net	450	(657)	1,270	(750)
Change in fair value of warrant liabilities	170	1,200	173	283
Other income	26	18	49	40
Total other income (expense)	356	(96)	592	(1,705)
(Loss) income before income taxes	(2,682)	2,725	(2,676)	(1,787)
Income tax expense	(779)	(1,506)	(1,498)	(2,570)
Net (loss) income	$ (3,461)	$ 1,219	$ (4,174)	$ (4,357)
Net (loss) income per share:
Basic	$ (0.05)	$ 0.02	$ (0.06)	$ (0.06)
Diluted	$ (0.05)	$ 0.02	$ (0.06)	$ (0.06)
Shares used in per share computations:
Basic	73,469,571	73,469,571	73,469,571	73,469,571
Diluted	73,469,571	73,902,905	73,469,571	73,469,571

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net loss	$ (4,174)	$ (4,357)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,660	1,711
Amortization of deferred financing fees	179	262
(Gain) loss on disposal of assets	(23)	4
Net gain on sale of Saitek assets	(8,170)
Stock-based compensation	142	357
Change in fair value of warrant liabilities	(173)	(283)
Provision for deferred income taxes	1,271	2,096
Changes in operating assets and liabilities:
Accounts receivable	1,014	(19,150)
Other receivables	(69)	(825)
Inventories	4,685	(12,277)
Prepaid expenses and other current assets	909	(1,168)
Other assets	16	114
Accounts payable	302	12,031
Accrued liabilities	(2,079)	8,698
Deferred rent	(212)	(71)
Income taxes receivable/payable	(387)	1,019
Net cash used in operating activities	(5,109)	(11,839)
Cash flows from investing activities:
Purchases of intangible assets		(125)
Purchases of property and equipment	(700)	(1,600)
Net proceeds from sale of Saitek assets	10,654
Net cash provided by (used in) investing activities	9,954	(1,725)
Cash flows from financing activities:
Borrowings on bank loans	35,226	103,629
Repayments on bank loans	(39,099)	(84,047)
Payment of financing fees		(818)
Changes in restricted cash	(903)	(5,780)
Borrowings on notes payable		95
Repayments on notes and restructured payables	(775)	(501)
Payment of expenses related to issuance of common stock		(164)
Net cash (used in) provided by financing activities	(5,551)	12,414
Effects of foreign currency exchange rate changes on cash	(127)	(6)
Net decrease in cash	(833)	(1,156)
Cash, beginning of period	2,436	5,142
Cash, end of period	1,603	3,986
Supplemental cash flow information:
Income taxes paid	627	314
Interest paid	909	$ 1,190
Supplemental disclosures of noncash operating and financing activities:
Restructuring of accounts payable	$ 6,345

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Current assets:
Cash	$ 1,603	$ 2,436
Restricted cash	1,583	680
Accounts receivable, net	8,277	9,585
Other receivables	1,054	998
Inventories	15,370	23,005
Income taxes receivable	302	159
Prepaid expenses and other current assets	1,710	2,969
Total current assets	29,899	39,832
Deferred tax assets	8,177	9,449
Other assets	323	531
Property and equipment, net	1,799	2,921
Intangible assets, net	1,590	2,270
Total assets	41,788	55,003
Current liabilities:
Bank loans	12,210	16,076
Accounts payable	19,141	25,354
Accrued liabilities	6,652	8,153
Notes and restructured payables	2,872	73
Income taxes payable		173
Total current liabilities	40,875	49,829
Notes and restructured payables, less current portion	2,925	145
Warrant liabilities	127	300
Deferred tax liabilities	9	10
Other long-term liabilities	526	699
Total liabilities	44,462	50,983
Shareholders’ (deficit) equity:
Common stock, no par value, unlimited shares authorized; 73,469,571 and 73,469,571 shares issued and outstanding at December 31, 2016 and March 31, 2016, respectively	63,694	63,552
Accumulated other comprehensive loss	(8,357)	(5,695)
Accumulated deficit	(58,011)	(53,837)
Total shareholders’ (deficit) equity	(2,674)	4,020
Total liabilities and shareholders’ (deficit) equity	$ 41,788	$ 55,003