SKULLCANDY, INC.

CIK:0001423542|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
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	0	(65)	0	(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 (usd per share)	$ (0.05)	$ 0.04	$ (0.23)	$ (0.09)
Diluted (usd per share)	$ (0.05)	$ 0.04	$ (0.23)	$ (0.09)
Weighted average common shares outstanding
Basic (shares)	28,665	28,380	28,614	28,326
Diluted (shares)	28,665	28,952	28,614	28,326

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities
Net (loss) income	$ (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	0	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)	0
Proceeds from sales of short-term investments	0	7,514
Loan to third party	(500)	0
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

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
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
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	0	0
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