Heelys, Inc.

CIK:0001373980|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract]
NET SALES	$ 6,656	$ 6,624	$ 19,681	$ 21,069
COST OF SALES	4,508	4,186	12,093	11,712
GROSS PROFIT	2,148	2,438	7,588	9,357
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling and marketing	1,530	1,826	4,496	5,388
General and administrative	2,014	2,557	7,191	8,085
Impairment of goodwill	1,521	0	1,521	0
Restructuring charges	16	0	784	0
Total selling, general and administrative expenses	5,081	4,383	13,992	13,473
LOSS FROM OPERATIONS	(2,933)	(1,945)	(6,404)	(4,116)
OTHER (INCOME) EXPENSE
Interest (income) expense, net	(54)	(55)	(172)	(217)
Other (income) expense, net	0	(396)	5	(405)
Exchange (gain) loss, net	(57)	(115)	(21)	(119)
Total other (income) expense, net	(111)	(566)	(188)	(741)
LOSS BEFORE INCOME TAXES	(2,822)	(1,379)	(6,216)	(3,375)
INCOME TAX (BENEFIT) EXPENSE	(425)	85	(586)	245
NET LOSS	$ (2,397)	$ (1,464)	$ (5,630)	$ (3,620)
LOSS PER SHARE:
Basic and diluted (in dollars per share)	$ (0.09)	$ (0.05)	$ (0.20)	$ (0.13)
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic and diluted (in shares)	27,571	27,571	27,571	27,571

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
OPERATING ACTIVITIES:
Net Loss	$ (5,630)	$ (3,620)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	506	575
Accretion (amortization) of discount (premium) on investments, net	461	482
Accrued interest income	14	(174)
Deferred income taxes	(585)	(11)
Stock-based compensation	248	296
Unrealized exchange (gain) loss foreign currency transactions, net	(697)	(104)
Impairment of property and equipment	34	0
Inventory impairment charges and reserve adjustments	342	69
Impairment of goodwill	1,521	0
Changes in operating assets and liabilities:
Accounts receivable	2,562	(531)
Inventories	461	(2,751)
Prepaid expenses and other current assets	615	(42)
Accounts payable	(743)	687
Accrued liabilities	377	1,431
Income taxes payable/receivable	(122)	(585)
Net cash used in operating activities	(636)	(4,278)
INVESTING ACTIVITIES:
Purchases of investments	(23,159)	(40,686)
Proceeds from maturities of investments	33,635	33,045
Purchases of equipment	(31)	(105)
Increase in patents and trademarks	(133)	(59)
Net cash provided by (used in) investing activities	10,312	(7,805)
FINANCING ACTIVITIES:
Payment for previously acquired goodwill and intangible assets	(26)	(143)
Net cash used in financing activities	(26)	(143)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	652	55
NET DECREASE IN CASH AND CASH EQUIVALENTS	10,302	(12,171)
CASH AND CASH EQUIVALENTS, beginning of period	17,925	35,320
CASH AND CASH EQUIVALENTS, end of period	$ 28,227	$ 23,149

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
CURRENT ASSETS:
Cash and cash equivalents	$ 28,227	$ 17,925
Investments	29,533	40,469
Accounts receivable, net of allowances of $394 and $391, respectively	4,479	7,077
Inventories	8,054	8,836
Prepaid expenses and other current assets	652	1,193
Prepaid income taxes and income taxes receivable	275	133
Deferred income taxes	15	14
Total current assets	71,235	75,647
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $2,092 and $1,933, respectively	376	570
PATENTS AND TRADEMARKS, net of accumulated amortization of $1,551 and $1,456, respectively	358	320
INTANGIBLE ASSETS, net of accumulated amortization of $1,303 and $1,091, respectively	159	380
GOODWILL	0	1,532
DEFERRED INCOME TAXES	904	364
TOTAL ASSETS	73,032	78,813
CURRENT LIABILITIES:
Accounts payable	1,362	2,277
Accrued liabilities	3,597	2,974
Deferred income taxes	104	104
Total current liabilities	5,063	5,355
LONG TERM LIABILITIES:
Income taxes payable	680	660
Deferred income taxes	0	40
Other long term liabilities	217	247
TOTAL LIABILITIES	5,960	6,302
COMMITMENTS AND CONTINGENCIES (Note 10)
STOCKHOLDERS' EQUITY:
Common stock, $0.001 par value, 75,000,000 shares authorized; 27,571,052 shares issued and outstanding as of September 30, 2012 and December 31, 2011	28	28
Additional paid-in capital	66,374	66,126
Retained earnings	1,311	6,941
Accumulated other comprehensive loss	(641)	(584)
Total stockholders' equity	67,072	72,511
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 73,032	$ 78,813